“Effects of brand attitude, perceived value, and social WOM on purchase intentions in luxury product marketing”

Abstract

During the COVID-19 pandemic, there has been a significant change in customer behavior, including in the luxury product business. One crucial part of customer behavior is purchase intention. Understanding purchase intention is an essential basis for developing various marketing innovations. This study aimed to establish a model of the interaction of factors that influence purchase intention in luxury products today, especially in Indonesia. The study used a cross-sectional study approach. This study’s respondents were social media users who would buy luxury products. The research sample size was 381 users. The Lime Survey was applied to collect data and was accessed online. The questionnaire statement items used a Likert scale from 1 (Strongly Disagree) to 5 (Strongly Agree), including Perceived Value (9 items), Social WoM (3 items), Brand Attitude (3 items), and Purchase Intention (3 items). The model validation was analyzed using bootstrapping to process the Structural Equation Model (SEM) under Smart-PLS software. The analysis results show that the three variables simultaneously (R-square = 0.419) moderately can be used to explain Purchase Intention. However, the factors that affect Purchase Intention are only Perceived Value (p-value = 0.000) and Brand Attitude (p-value = 0.000), but not Social WoM (p-value = 0.203). This study concludes that marketing innovation is critical to focus on the prestige of luxury product users through perceived value and brand attitude. Information from other users is not reliable enough to build purchase intention because luxury product users tend not to trust products from other users. Still, they believe more in the perceived prestige.