The Moderating Effect of Personal Cultural Orientation on Brand Association and Conspicuous Consumptions: A Study in the Context of Luxury Fashion Brand Market in Sri Lanka

Abstract

Sri Lanka being a country where the luxury brand market is at an elementary stage, it is vital for luxury marketers to better understand the luxury consumer–brand relationship, have an in depth understanding about the market and customer dynamics, to strategize the conspicuous brand appeals in their branding and promotional strategies. The overall purpose of reaching such an understanding is to develop a strong brand architecture. Moreover, how the Sri Lankan culture would react to their marketing communication concepts does hold some ambiguity given the fact that culture plays a major role in influencing consumer behavior and purchase intention. It was noted that there is no common agreement among previous researchers regarding the subject matter. Further it is not appropriate to apply concepts in other parts of the world in Sri Lankan context given the fact that we have a diverse cultural background. In addition, this research area is a new endeavor in the Sri Lankan context as it was noted that there is a scarcity of literature of the theme of the present study in published sources. The target population of the study is the global middle-class population who spend (PPP) more than 10$ and less than 100$ a day per capita and the rich (upper) class population who spends more than 100$ a day per capita. The sample size of the study was 634 respondents. Both the online survey and field interviews were simultaneously carried out as data collection methods. Both descriptive and inferential statistics were used to presenting and analyzing the data. Further the main data analytical tool which was used for the present study was PLS-SEM 3. The SPSS 23 software also used for the other analysis needed for the study. Based on the findings it was revealed that there is a significance relationship between brand association and conspicuous consumption. Further it was discovered that there is a mediating impact from self-concept to the relationship between brand association and conspicuous consumption. Accordingly, this research offers useful guidance to decision makers of the existing brands in the current market as well as the new brands in the context of the luxury brands market in Sri Lanka in planning their marketing strategies, to shape their marketing communication, segmenting their markets based on the findings given in the study.