Determining online consumer's luxury purchase intention: The influence of antecedent factors and the moderating role of brand awareness, perceived risk, and web atmospherics

Abstract

The Internet has become the fastest-growing way to sell luxury products. Purchase intention for luxury products in online stores has taken attention in the last few years since the sector has proliferated. The primary objective of this study is to examine the impact of various factors such as Product knowledge, Price consciousness, Perceived enjoyment, Perceived ease of usage, and usefulness on online luxury purchase intention in developing countries like Pakistan. Data was collected from 267 luxury fashion customers in Pakistan through an online questionnaire, and the results were analyzed using Smart PLS-SEM. In addition, the paper investigates the moderating effect of Perceived risk, Brand awareness and Web Atmospheric on the link between the Attitude and Online Luxury Purchase Intentions of the consumer to buy luxury fashion products online. The framework of this study is validated by structural equation modelling (SEM). The findings of this study show that perceived enjoyment, price consciousness, and Perceived ease of use significantly and positively impact online luxury purchase intention. Additionally, the findings indicated that brand awareness, perceived risk, and web atmospherics each intervened as moderators in the relationship between attitudes toward purchasing luxury products and online luxury purchase intentions. Product knowledge is not directly related to online purchase intention, but Attitude plays a mediating role in the relationship between product knowledge and online luxury buying purpose. In the context of luxury product intention, this study is one of the first to investigate the moderating effect that brand awareness, perceived risk, and web atmospherics play. It will help luxury brands develop the right tactics for selling luxury goods online in developing countries like Pakistan.