How rarity and exclusivity influence types of perceived value for luxury

Abstract

The purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers’ perceived value (functional, social and emotional) for luxury. Data were collected through an online panel. Luxury product categories including bags, wines, shoes and jewellery were selected as research stimuli. Structural equation modelling was used to test the hypotheses. Results showed that perceived natural rarity was a positive and significant predictor for all three types of consumers’ perceived value and across all four product categories. Perceived virtual rarity was a positive and significant predictor only for perceived functional value. Perceived exclusivity did not show any significant effects on value across all categories. This study is the first to provide theoretical support that exclusivity and rarity may have different functions in luxury marketing implementations. It provides updated empirical evidence showing traditional marketing tactic, such as natural rarity, still receive positive social and emotional evaluations among contemporary consumers.