探討想像觀點對奢侈品購買意圖影響之研究

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(1)國立臺灣師範大學管理學院管理研究所碩士論文 Graduate Institute of Management College of Management. National Taiwan Normal University Master’s Thesis. 探討想像觀點對奢侈品購買意圖影響之研究 The Effects of Imagery Perspective on Luxury Goods Purchase Intention 吳嫻妮 Novita Anggraeni Goenawan. 指導教授：張佳榮博士 Advisor: Chia-Jung Chang, Ph.D.. 中華民國 109 年 8 月 August 2020.

(2) ACKNOWLEDGEMENT First and foremost, praises and thanks to God for His blessings throughout my master’s degree journey and His guidance so that I can finish this master thesis successfully. I sincerely feel grateful for my thesis advisor, Prof. Chia-Jung Chang, Ph.D. Without his time, guidance, knowledge, and persistence help, this thesis would not have been possible. I would also like to thank the committee members, Prof. Cindy Yun-Hsin Chou Ph.D. and Prof. Chou Szu-Yu Ph.D., for their encouragement, insightful comments, and advises. I would like to express my gratitude to my husband, my parents, my family, and friends who always give me their help supports, prayers, and always be there for me throughout this time. Last but not least, I would like to thank the National Taiwan Normal University Graduate Institute of Management and all of the people who have willingly helped me out with their abilities.. i.

(3) ABSTRACT The growing effect of social media on luxury goods industries is making the most of the usage of online advertising as key marketing resources by the luxury brand marketers. This research reveals the main effect of imagery perspective on customers’ intention in luxury goods purchase after viewing advertising videos of luxury goods. Study 1 demonstrated a video taken from a firstperson perspective leads to higher luxury goods purchase intention rather than a video taken from a third-person perspective. Furthermore, the findings in study 2 showed the mediating effects of immersion that influenced the main effect. The result of study 3 demonstrated the need for status as the moderator. The findings have theoretical contributions to the marketing research field and practical implications for the executives of luxury brands.. Keywords: imagery perspective, luxury goods, immersion, purchase intention, need for status.. ii.

(4) TABLE OF CONTENTS Acknowledgement ....................................................................................................... i Abstract........................................................................................................................ ii Table of Contents ........................................................................................................ iii List of tables................................................................................................................. v List of figures ............................................................................................................... vi Introduction ................................................................................................................. 1 Literature Review ....................................................................................................... 4 Methods........................................................................................................................ 10 3.1 Study 1 ............................................................................................................. 11 3.1.1. Participants and design .......................................................................... 11 3.1.2. Procedure ............................................................................................... 11 3.1.3. Imagery Perspective............................................................................... 13 3.1.4. Purchase Intention.................................................................................. 13 3.1.5. Results.................................................................................................... 13 3.2 Study 2 ............................................................................................................. 14 3.2.1. Participants and design .......................................................................... 14 3.2.2. Procedure ............................................................................................... 15 3.2.3. Immersion .............................................................................................. 16 3.2.4. Results.................................................................................................... 16 3.3 Study 3 ............................................................................................................. 18 3.3.1. Participants and design .......................................................................... 18 3.3.2. Procedure ............................................................................................... 19 3.3.3. Need for Status....................................................................................... 20 3.3.4. Results.................................................................................................... 20 iii.

(5) Discussion..................................................................................................................... 22 Conclusion ................................................................................................................... 24 References .................................................................................................................... 25 Appendixes................................................................................................................... 30. iv.

(6) LIST OF TABLES Table 1: Pilot Test Result Table .................................................................................... 11 Table 2: Purchase Intention Measurement Table .......................................................... 13 Table 3: ANOVA Result in Study 1 Table ................................................................... 14 Table 4: Immersion Measurement Table ...................................................................... 16 Table 5: ANOVA Result for Main Effect Table ........................................................... 17 Table 6: ANOVA Result for Mediating Effect in Study 2 Table.................................. 17 Table 7: Regression Result in Study 2 Table ................................................................ 18 Table 8: Need for Status Measurement Table ............................................................... 20 Table 9: ANOVA Result in Study 3 Table ................................................................... 21. v.

(7) LIST OF FIGURES Figure 1: Interaction Plot between NFS and PI in Study 3 ........................................... 22. vi.

(8) I.. Introduction Thanks to strong economic prosperity, consumers today are likely than ever to buy luxury. goods. The world is increasingly changing socially and digitally, and internet technology has brought significant change to the marketing climate, and consumers have gained tremendous market power. By captivating the online luxury market and embracing social media marketing, the luxury brand managers and business owners can go social and omnichannel. Luxury brands vary from other brand styles. The social relationships that develop around them define luxury, not the items or the brands themselves (Dion and Arnould, 2011). Luxury is based on social privilege and is viewed as the exclusive luxury of the wealthy. They use it as a status affirmation and sign of distinction (Han, Nunes, and Dr’eze 2010). The status display continues to be a significant driver of luxury buying, particularly wealthy and powerless consumers that are new (Han, Nunes, and Dr’eze 2010). Individuals are more likely to associate their purchases of material products with other individual purchases, according to Carter and Gilovich (2010). A substantial research body has studied how consumers are signaling their status by using luxury products (Dubois and Ordabayeva 2015). Many studies especially focused on the streams of the luxury goods purchase intention on customer behavior literature. For example, from a social comparison perspective, Eom, Seock, and Hunt-Hurst (2019) showed purchasing intent towards luxury fashion brands. Salehzadeh and Pool (2017) looked at how brand adoption and anticipated interest influence purchasing intention for global luxury brands. From 2013 to 2018, Chu, Kamal, & Kim (2019) re-examined customer reactions to social media ads and purchasing motives for luxury goods. However, research of the online luxury market only showed theoretical gaps. Practically, the distinctive characteristic of e-commerce is it lacks interaction with the products. If touch isn’t. 1.

(9) viable, imagination plays a crucial role in purchasing decisions. This way, product videos have played a significant role in presenting the product vividly to the customers. Previous research (Xu, Chen & Santhanam, 2015) has already shown positive effects of online videos on consumer understanding of the product and on website perceptions. There is a lack of studies analyzing the video making process involving imagery perspective that will lead to different purchase intentions. The importance of imagination makes imagery a powerful tool used by many marketers in the world to make customers imagine future outcomes. As an illustration, a car salesperson tells his customer to “imagine yourself driving the car.” The customer then imagined himself driving the car, although the salesperson did not specify the imagery perspective. The customer may picture himself driving the car from the first-person perspective (e.g., sitting in the driver’s seat driving the car) or a third-person viewpoint (e.g., seeing himself driving the car from afar). These differences in imagery perspective may influence the customer’s decisions. Previous researches mentioned that imagery perspective plays an important role in thoughts, feelings, and behaviors (Jiang & Wyer, 2009) and could influence individuals significantly. Jiang et al. (2014) has shown that consumers often picture themselves in a scene and engage in such self-imagery as information is processed. A recent study revealed the joint impact of luxury hospitality consumption in China between the need for prestige and the imagery perspective (Mou, Gao, Yang, 2019). This paper aims to fill this gap and therefore analyzes the relationship between luxury goods purchase intention and imagery perspective. To investigate the degree of motivation for purchases and changes in intention, several studies have examined consumer reactions to imaging from various perspectives. Cognitive immersion and involvement, a psychological condition that allows one to immerse oneself in an environment is closely linked to immersion (Agarwal & Karahanna, 2000; Hamilton, Kaltcheva,. 2.

(10) & Rohm, 2016; Oh, Fiore, & Jeoung, 2007; Zha et al., 2018). Within the online world, immersion is often used. Social media platforms can develop a sense of immersion, and brand interactions can be of higher importance by providing better user experience with immersion. (Hamilton, Kaltcheva, & Rohm, 2016). This paper investigated the effect of immersion as a mediator in the relationship between imagery perspective and luxury goods purchase intention. Need for status is also seen as a significant motivating mechanism by which individuals achieve social status by taking part in the noticeable purchasing of luxury services and goods. People with an extreme desire for status seem to have negative views toward goods that less affluent consumers prefer, and prefer to purchase luxury goods to differentiate themselves from less wealthy consumers (Berger & Heath, 2008). Therefore, individual differences in need for status can be described and measured as a tendency to buy status value goods or services that they bring to their owners.Given the limited literature available that specifically addresses the preferences of luxury buyers, it is important to look at how buyers with different levels of need for prestige perceive the intentions of purchasing luxury goods. To sum up, this thesis aims to: (a) examine the effect of the imagery perspective on the intention to purchase luxury goods (b) study effect of immersion and the status need on the intention of customers to purchase luxury goods; and (c) include recommendations that will support luxury brand executives enhance their online marketing campaigns effectiveness. Three studies were designed to investigate the effect of the viewpoint of imagery perspective on desire to buy luxury products for customers mediated by immersion with different levels of status need. The findings provided not only understandings on imagery perspective and luxury goods purchase intention, but also practical implications to luxury managers as far as online marketing strategies are concerned. Theoretical and practical contributions are presented at the end of the paper.. 3.

(11) II.. Literature Review. Luxury Purchase The term “luxury” comes from the term “Luxus” and refers to lavish living pleasure (Tynan, McKechnie, & Chhuon, 2010). In the Cambridge dictionary (2019), luxury describes “Great comfort, particularly when given by expensive and beautiful things; something expensive to have but not necessary; something that gives you a lot of pleasure but can’t be done very often.” According to Veblen’s (1899) leisure class theory, individuals utilize possessions to enhance their social status and awe others. Consumers would pay a premium price for a functionally comparable good because they want the prestige of these material wealth displays (Bagwell & Bernheim 1996). Higher prices themselves, in some respects, make customers feel superior to one of the few who can afford to purchase the product (Garfein 1989). It has also been found in previous studies that luxury labels are not only used to fit in with reference groups but are also used to stand out (Han, Nunes, and Dr’eze 2010; Berger and Ward 2010). From a previous study by Heine & Phan (2011), consumers usually use these six features to identify luxury products: symbolic meaning, quality, price, rarity, aesthetics, and extraordinariness. Of all major features, luxury goods need a relative high ranking. Based on previous studies (Brun et al., 2013), several factors are affecting online luxury shopping, such as convenience (Stephenson & Willett, 1969), price (Yavas, 2001), availability of products (Eastman et al., 2009), attitudes of online shopping (Eastman et al., 2009), and online trust (Gefen et al., 2003). On the other hand, the aesthetic appeal (Eng and Bogaert, 2010), store trust (De Wulf et al., 2001), shopping experience (Bellenger and Korgaonkar, 1980), sense of power (Corneo and Jeanne, 1997), and customer service (Nueno and Quelch, 1998) affect luxury shopping in-store too. Therefore, online luxury shopping has one aspect neglected: the aesthetic. 4.

(12) appeal. Consumers can reduce the distance in online shopping by using pictures or videos to show the product to consumers in a vivid manner. Online videos have a positive impact and help consumers understand the products more clearly, so they can better visualize how the product will be and how it would work to build a realistic impression and consider purchasing it (Argyriou, 2012). But in the video making process there is a lack of studies involving imagery perspective which will lead to specific purchasing intentions. This research seeks to investigate which one is the most successful, video from the third-person or first-person perspective can drive greater intention to buy luxurious goods. An important target demographic for luxury brands is Millennials, a growing group of luxury shoppers (Bailis 2017). Those are the most digitally affected buyers of luxury; 42 percent purchase online, which is growing increasingly common across generations (Global Powers 2017). Evidence showed that some key luxury brands (e.g., Gucci, Burberry, Dior, LV, etc.) have successfully managed for the transition to millennials customers and experienced a rise in their performance because of the shift. Therefore, to grab the attention of the millennials, more and more luxury goods brands paid more attention to online marketing campaigns. Imagery is an important tool to increase the effectiveness of advertising. If it occurs, it will help to improve various outcomes, including behavioral responses, which is purchase intention (Argyriou, 2012). Thus, this paper aimed to link the relationship between imagery and intention to purchase luxury goods. Imagery Perspective Imagery perspective can be a perspective from first-person or third-person (Libby & Eibach, 2002). Recently, both practice and research have acknowledged the significance of the imagery perspective. It is a powerful method of persuasion that advertisers use to inspire customers. 5.

(13) to visualize future interactions (Schlosser, 2003). Proof from previous studies suggests that imaging plays an essential part in the decision-making phase of buying and influencing customer preferences (Escalas, 2004; Farace, van Laer, de Ruyter, & Wetzels, 2017). That is, after visualizing potential experiences with certain items, customers continue to purchase products (Lee et al., 2016). Nowadays, the world has changed with social media. The rapid and wide implementation of these technologies is transforming how information is received, stored, and exchanged. Social media has become increasingly popular as a new advertising platform which let users to interact with each other and communicate with the brands. Just around the same time, the online luxury market was expanding rapidly due to the increasing number of affluent buyers. They tend to be younger, wealthier, and more socially active. Consumers’ attitudes towards social media ads and brand recognition in the luxury industry had a positive impact on their perceptions and behavioral reactions towards luxury buying (Chu, Kamal & Kim, 2013). Recently, the research has been applied to topics such as advertising. Either by official accounts, websites, or social media posts (endorsement), luxury brands can promote their products and services by posting on social media. As a result, they can improve their relationship with their customers and change their purchase behavioral intentions. Consumer preferences are heavily affected by advertisements that evoked imaging, which encourages consumers to picture using real goods (Bone & Ellen, 1992). Therefore, if consumers imagine they are having a great enjoyment or get higher status by using luxury products, they will have a strong desire to buy them. While people imagine a potential future purchase, they sometimes create visual perceptions of themselves purchasing and utilizing the product (Argyriou, 2012), also called purchase visions (Walker & Olson, 1997), or purchase imagery (Petrova & Cialdini, 2005). Indeed, advertisers also. 6.

(14) urge customers to shape positive imagery that includes themselves and a product (Hung & Wyer, 2011) to enhance their desire to buy the product. Past work showed that purchase imagery might have major impacts on customer desire and preference (Argyriou, 2012). With the rise of social media and online advertisement, this research examines primarily the imagery perspective of advertisement videos with social media content, meanwhile investigates the effect of first or third-person perspectives of luxury consumption. Evidence from previous research showed that the first-person viewpoint is more immersive (Denisova and Cairns, 2015) and can be more efficient to trigger consumers’ behavioral intention in luxurious consumption (Mou, Gou, & Yang, 2019). The goal is to explore which viewpoint on luxury products is more successful, first-person or third-person, to make consumers have greater intention to purchase. Through using ads from the right viewpoint, the managers or advertisers of luxury products can increase their profits and produce more income. H1: Video taken from first person perspective compared to video taken from third person perspective will lead to greater luxury goods purchase intention. Immersion Immersion is a psychological condition where you can involve yourself in an environment (Agarwal & Karahanna, 2000; Hamilton, Kaltcheva, & Rohm, 2016; Oh, Fiore, & Jeoung, 2007; Witmer & Singer, 1998; Zha et al. 2018). Immersion is often used for an online environment. It can also lead to the enjoyment of experiences, the effectiveness of learning, and engagement (Grinberg et al., 2014; Hamari et al., 2016). Prior studies showed that social media are able to build a sense of immersion (Pelet, Ettis, & Cowart, 2017) and followership (Carlson & Lee, 2015). Weinstein et al. (2009) underlined that the level of immersion can affect the imaging effect.. 7.

(15) Green and Brock (2002) emphasized that narratives can promote imagery as they lead to deep immersion and become “transportation” through the story. Multimedia learning theory introduced by (Mayer 1997) notes that multimedia presentations may promote concentrated attention and immersion in the material, which is important. Thus, they can contribute to their persuasiveness by using both verbal, visual, and auditory stimuli. Recent work suggests that experience is more closely correlated with interaction and enjoyment in the immersive world, contributing to greater buying intent (Papagiannidis et al., 2017). Another prior research has also shown that content offering sensory immersion will help a brand by increasing the amount of time consumers spend on ads (Ashley & Tuten, 2015). The major influence of immersion on attitudes and preferences was clarified by Slater and Wilbur (1997), and the degree of immersion influences the motivation strength of positive imaging (Weinstein et al., 2009). Following this literature, the author examines the influence of imagery perspectives on luxury purchase intention mediates by immersion. H2: The relationship between imagery perspective and luxury goods purchase intentions is mediated by immersion Need for Status The Leisure Class Theory by Veblen (1899) firstly describes how people use wealth and possessions to benefit and improve their social status. According to their wealth and desire for prestige, Han et al. (2010) found there are four classes of individuals: proletarians, poseurs, parvenus, and patricians. Both parvenus and patrician have different levels of status needs, even though they both are wealthy customers, but they have a big difference in status needs. Patricians are upper-class born citizens whose wealth can be traced back to many generations on a regular basis, whereas the parvenus are ordinary individuals who quickly attain success or prosperity and. 8.

(16) rise to the upper class (Bauman, 2001). Parvenus are likely to buy luxury goods that everyone can easily recognize with a high need for status. Patricians only need to be noticed by their ingroups (other patricians). Furthermore, parvenus need approval from the other haves (parvenus and patricians) and are concerned about being disconnected from the have-nots, that are unable to afford luxury products. This thesis will only focus on Parvenus and Patrician because these two groups can afford authentic luxury goods and differ in need for status. Based on previous research, consumers that have a high need for status have significantly increased their intention to involve in luxury hospitality consumption after viewing pictures from a first-person perspective (Mou, Gao, & Yang, 2019). It is because the first-person viewpoint is more immersive (Denisova and Cairns, 2009) and can be more efficient to trigger consumers’ intention in luxurious consumption. On the contrary, customers with a low need for status are not affected, regardless of imagery perspective. It is because people with a high need for status choose to distinguish themselves from less prosperous customers. In this research, the author examined the relationship between imagery perspective and luxury goods purchase intention, arguing that video from a first person versus a third person viewpoint might lead to different immersion levels. H3: The relationship between imagery perspective and luxury goods purchase intention is moderated by need for status. 9.

(17) III. Methods Pilot Test To ensure the effectiveness of manipulation in imagery perspective, a pilot test was conducted. A total of 20 participants were assigned randomly to watch a video of a luxury product. In this paper, the author used a luxury car video: Mercedes Benz for men and luxury jewelry video Tiffany & Co. for women. Mercedes Benz was chosen because it belongs to one of the top three luxury car tribes (Loureiro & Kaufmann, 2016). Tiffany & Co. was chosen because it ranked first of the top three most widely purchased jewelry brands by affluent women based on the book: The Luxury Economy and Intellectual Property: Critical Reflections. The videos are displayed from third-person and first-person perspectives. Four videos were tested—one video (third-person or first-person, car or jewelry) for every person. Based on the previous study (Mou, Gao, & Yang, 2019), the video taken from third person's perspective shows the actor, luxury product(s) and luxury environment surroundings. While, first person videos were close up shots of hands with luxury good(s) with almost no actor inside. Various in-camera angels were controlled. Participants had to answer the following question after viewing randomly assigned video as the pilot test: “Which video do you think represents the first-person perspective and which video do you think represents the third-person perspective?”. The result shows that the video of each perspective is manipulated successfully (See Table 1).. 10.

(18) Table 1. Pilot Test Result Table Video. Imagery Perspective. Percentage True Answer. A. First-person male. 100%. B. Third-person male. 80%. C. First-person female. 100%. D. Third-person female. 80%. Main Study 3.1. Study 1 The purpose of study 1 was to investigate how imagery perspective might affect. customers’ luxury goods purchase intention (H1). Study 1 is a one-factor (imagery perspective: third-person versus first-person) between-subject design. The luxury goods purchase intention is the dependent variable. 3.1.1. Participants and Design A total of 120 respondents participated (60 males and 60 females). In Study 1 an. experimental design was used. Participants were assigned randomly to one of the 2 conditions (imagery perspective: first person perspective vs. third person perspective) x 2 (purchase intention: high vs. low). 3.1.2. Procedure Participants were assured of anonymity at the beginning and informed of their right. to withdraw at any time. The author also asked them to read the scenario carefully before making their decisions. After that, the participants had to complete all scales to the stimuli.. 11.

(19) The research method was based on Mou, Gao, & Yang (2019). At first, the author was first screened each participant to make sure they are from the affluent group who can afford to buy luxury goods. Before start, the author quoted a statement from Goody (2006) about the definition of luxury then asked the participants the screening questions: “Have you ever buy the luxury goods for the last two years?” then “What’s the brand of the luxury products you bought?”. After that, the participants had to complete the questions related to demographics. Next, they had to watch the assigned videos, then completed the imagery perspective manipulation check. Study 1 used car (Mercedes Benz) for men and luxury jewelry (Tiffany & Co.) for women participants. Each participant was randomly allocated to one of the two experimental settings, with 30 persons each. Therefore, this study had 30 men watched luxury car first-person perspective video, 30 men watched luxury car third-person perspective video, 30 women watched luxury jewelry first-person perspective video, and 30 women watched luxury jewelry third-person perspective video. Based on a prior study by Mou, Gao, and Yang (2019), participants were provided with the definition of firstperson and third-person perspectives, and were asked to respond to the manipulation check after viewing randomly-assigned videos: “Please pick the viewpoint that best suits the video. First-person perspective or third-person perspective.” Finally, after all the participants watched the video, the author asked participants to complete questions related to luxury goods purchase intention.. 12.

(20) 3.1.3. Imagery Perspective In most prior studies, imagery perspective can be divided into perspective from first. person or third person (Libby & Eibach, 2002). In study 1, imagery perspective was manipulated to first-person perspective (or third-person perspective) by using an advertising video based on the pilot test. The participants in each group have to choose which perspective best fits the video as a manipulation check. 3.1.4. Purchase Intention Parameters from the previous study (Netemeyer et al., 2004) are used to measure. purchase intentions. Participants gave the answer using a 7-points Likert scale from 1 (not at all) up to 7 (very much) (α = .94). Table 2. Purchase Intention Measurement Table Purchase intention : the possibility of consuming a good (Dodds et al., 1991) Purchase Intention. I would buy the product after watching the video I am likely to buy the product after watching the video. 3.1.5. Result As expected, the participants significantly have higher purchase intention after they. had watched a video from first person perspective than video from third-person perspective (M first-person = 5.09, SD = 1.36 versus M third-person = 4.21, SD = 1.37, p < .005). By conducting a one-way ANOVA, as expected, no order effect occurred in this study (F(1,118) =12.4, p < .01). There is a statistically significant difference between firstperson and third-person groups. All of these results supported H1.. 13.

(21) Table 3. ANOVA Result in Study 1Table Descriptives Purchase_Interntion 95% Confidence Interval for Mean N. Mean. Std.. Std.. Lower. Upper. Deviation. Error. Bound. Bound. Minimum Maximum. first-person. 60. 5.0917. 1.36696. .17647. 4.7385. 5.4448. 2.00. 7.00. third-person. 60. 4.2083. 1.37561. .17759. 3.8530. 4.5637. 1.00. 7.00. 120. 4.6500. 1.43574. .13106. 4.3905. 4.9095. 1.00. 7.00. Total. ANOVA Purchase_Interntion Sum of Squares Between Groups Within Groups Total. 3.2. df. 23.408 221.892 245.300. Mean Square 1 118 119. 23.408 1.880. F 12.448. Sig. .001. Study 2 The aim of study 2 is to test the mediating effect of immersion on the relation. between imagery perspective and luxury goods purchase intentions. 3.2.1. Participants and design A total of 120 respondents (60 males and 60 females) have participated in Study 2.. The participants were randomly assigned to one of the 2 (imagery perspective: first-person perspective vs. third-person perspective) scenarios, with immersion measured as a mediator.. 14.

(22) 3.2.2. Procedure The research method was based on Mou, Gao, & Yang (2019). At first, the author. first screened each participant to make sure they are from the affluent group who can afford to buy luxury goods. Before start, the author quoted a statement from Goody (2006) about the definition of luxury then asked the participants the screening questions: “Have you ever buy the luxury goods for the last two years?” then “What’s the brand of the luxury products you bought?”. Next, the participants had to complete the questions related to demographics. After that, the participants had to watch one of two assigned videos then completed the imagery perspective manipulation check. Study 2 used car (Mercedes Benz) for men, and luxury jewelry (Tiffany & Co.) for women participants. Each participant was randomly allocated to one of the two experimental settings, with 30 persons each. Therefore, this study had 30 men watched luxury car first-person perspective video, 30 men watched luxury car third-person perspective video, 30 women watched luxury jewelry first-person perspective video and 30 women watched luxury jewelry third-person perspective video. Before choosing the suitable perspective of the video, the author gave the participants definitions related to firstperson and third-person perspectives. Based on a prior study by Mou et al. (2019), participants responded to the manipulation test after viewing randomly-assigned videos: “Please pick the viewpoint that best suits the video. First-person perspective or third-person perspective.” Finally, after the participants watched the video, the author asked participants to complete questions related to luxury goods purchase intention and immersion.. 15.

(23) 3.2.3. Immersion Parameters created by Weinstein et al. (2009) were used to measure immersion.. After watching the video, the participants were asked to imagine themselves as if they are in the video. In the first-person video, the author asked participants to imagine themselves as the main actor/actress doing what he/she saw in the video. In the third-person video, the author asked them to imagine themselves as an observer/spectator. Four elements assessed immersion in the advertising videos present using a scale of 7 points from 1 (not at all) to 7 (very much) (α = .91).. Table 4. Immersion Measurement Table Immersion is a psychological condition where you can involve yourself in an environment (Agarwal & Karahanna, 2000; Hamilton, Kaltcheva, & Rohm, 2016; Oh, Fiore, & Jeoung, 2007; Witmer & Singer, 1998; Zha et al. 2018). Were all your senses engaged when you watch the video? Did you feel that you are in the location you saw when you watch the video? How much did you get involved with the environment when you watch the video? How much did the experience was the reality for you when you watch the video?. 3.2.4. Results As part of the study, a mediation analysis was undertaken based on the procedures. employed by Baron and Kenny ( 1986) to analyze the mediating role of immersion in the relationship between imagery perspective and luxury goods purchase intention. As shown in the result table below, the results found that immersion has a significant impact on the. 16.

(24) relationship between imagery perspective and purchase intention (β = .935, t = 13.03, p < .01). Furthermore, when imagery perspective was regressed on purchase intention, it became insignificant (β = .192, t = 1.04, p = .297). All these results supported H2. Table 5. Table ANOVA Result for Main Effect Table Descriptives Purchase_Intention 95% Confidence Interval for Mean. N. Mean. Std.. Std.. Lower. Upper. Deviation. Error. Bound. Bound Minimum Maximum. first-person. 60. 4.8250. 1.52334. .19666. 4.4315 5.2185. 1.00. 7.00. third-person. 60. 4.1750. 1.39559. .18017. 3.8145 4.5355. 1.00. 7.00. 120. 4.5000. 1.49087. .13610. 4.2305 4.7695. 1.00. 7.00. Total. ANOVA Purchase_Intention Sum of Squares Between Groups Within Groups Total. df. 12.675 251.825 264.500. Mean Square 1 118 119. 12.675 2.134. F 5.939. Table 6. ANOVA Result for Mediating Effect in Study 2 Table Model Summary Model 1. R. R Square. .782. a. .612. Adjusted R Square. Std. Error of the Estimate. .605. a. Predictors: (Constant), Immersion, Imagery_perspective. 17. .93704. Sig. .016.

(25) ANOVAa Sum of Squares. Model 1. df. Mean Square. Regression. 161.769. 2. Residual. 102.731. 117. Total. 264.500. 119. 80.885. F. Sig. .000b. 92.120. .878. a. Dependent Variable: Purchase_Intention b. Predictors: (Constant), Immersion, Imagery_perspective. Table 7. Regression Result in Study 2 Table Coefficients. a. Unstandardized Coefficients Model 1. B (Constant). Std. Error -.159. .510. Imagery_perspective. .192. .183. Immersion. .935. .072. Standardized Coefficients Beta. t. Sig.. -.311. .756. .065. 1.047. .297. .803. 13.031. .000. a. Dependent Variable: Purchase_Intention. 3.3. Study 3 The purpose of study 3 is to test the moderating effect of need for status on the. relationship between imagery perspective and luxury goods purchase intention. 3.3.1. Participants and design In Study 3 a total of 120 respondents (60 males and 60 females) took part.. Participants were allocated randomly to one of two (imagery perspective: first person perspective vs. third person perspective) conditions, while need for status was measured as a moderator.. 18.

(26) 3.3.2. Procedure The research method was based on Mou, Gao, & Yang (2019). At first, the author. first screened each participant to make sure they are from the affluent group who can afford to buy luxury goods. Before start, the author quoted a statement from Goody (2006) about the definition of luxury then asked the participants the screening questions: “Have you ever buy the luxury goods for the last two years?” then “What’s the brand of the luxury products you bought?”. Next, the participants had to complete the questions related to demographics. After that, the participants had to watch one of two assigned videos then completed the imagery perspective manipulation check. Study 3 also used car (Mercedes Benz) for men and luxury jewelry (Tiffany & Co.) for women participants. Each participant was randomly allocated to one of the two experimental settings, with 30 persons each. Therefore, this study has 30 men watched luxury car first-person perspective video, 30 men watched luxury car third-person perspective video, 30 women watched luxury jewelry first-person perspective video, and 30 women watched luxury jewelry third-person perspective video. Before choosing the suitable perspective of the video, the author gave the participants definitions related to firstperson and third-person perspectives. Based on the prior study by Mou, Gao, and Yang (2019), participants responded to the manipulation test after viewing randomly-assigned videos: “Please pick the viewpoint that best suits the video. First person perspective or third person perspective.” Finally, after the participants watched the video, the author asked participants to complete questions related to luxury goods purchase intention and need for status.. 19.

(27) 3.3.3. Need for Status Five items validated in previous studies were used to measure the need for status. (Eastman & Eastman 2011; Yang & Mattila, 2014). Participants answered to parameters utilizing a 7 points Likert scale (For example, “I am interested in status new products;” 1 means strongly disagree; 7 means strongly agree) (α = 87). Table 8. Need for Status Measurement Table Need for status is also seen as a significant motivating mechanism by which individuals achieve social status by taking part in the noticeable purchasing of luxury services and goods (Berger & Heath, 2008). I will purchase a product because it has a status I am interested in new products with status If the product has status, I will pay more for it The status of a product is meaningless to me A product is more precious to me if it has some snob appeal. 3.3.4. Results By conducting ANOVA, we tested the moderator effect, which is need for status. on the relationship between imagery perspective and luxury goods purchase intention. As shown in the result below, from the model summary, the result has shown that our model is significant (p < .01). The interaction (read: moderator) between imagery perspective (read: imagery) and need for status (read: NFS) on Purchase Intention (read: PI) is significant (β = .269, t = 3.039, p < .01).From the graph using Johnson-Neyman technique we can see that need for status at the value of 4.6 is the turning point from non-significance. 20.

(28) to significance. When NFS score is bigger than 4.6, the first-person perspective is associated with higher purchase intention than the third-person perspective. When the the score is smaller than 4.6, the difference between first-person perspective and third-person perspective is not significant. All of these results supported H3.. Table 9. ANOVA Result in Study 3 Table Model Summaryb Model. R. R Square a. 1. Adjusted R Square. .734. .539. Std. Error of the Estimate. .527. .90108. a. Predictors: (Constant), moderator, IMAGERY, NFS b. Dependent Variable: PI ANOVAa Sum of Squares. Model 1. Regression. Mean Square. 110.095. 3. 36.698. 94.187. 116. .812. 204.281. 119. Residual Total. df. F. Sig. .000b. 45.197. a. Dependent Variable: PI b. Predictors: (Constant), moderator, IMAGERY, NFS Coefficientsa Unstandardized. Standardized. Coefficients. Coefficients. Correlations Pa. Model. B. moderator. .269. Std. Error .089. Beta. t .194. 3.039. Sig. .003. Zero-order .093. Partial .272. rt .1 92. a. Dependent Variable: PI. 21.

(29) Figure 1. Interaction plot between NFS and PI in Study 3. IV. Discussion The findings from the current study extend the impact on luxury industries and imagery perspective on video advertising context. While some previous studies have investigated the importance of status needs in social media posts (Mou, Gao, & Yang, 2019), little attention has been given to how people with different status needs will respond to video advertising with different image perspectives. The findings of study 1 have shown consistently the impact that imagery perspective has an effect on luxury goods purchase intention. When people watch luxury product advertising from a first-person perspective, they have higher purchase intention. In contrast, when people watch luxury product advertising from a third-person perspective, they have lower purchase intentions. Moreover, study 2 showed us the importance of mediating effect immersion. Immersion can induce. 22.

(30) people’s imagination. Therefore, people would imagine themselves as they are inside the “environment”. The results from this study showed that a first-person perspective video could create higher immersion rather than a third-person perspective video. Study 3 shows the effect of need for status as the moderator variable in the relationship between imagery perspective and luxury goods purchase intention. Results showed that different need for status could lead to different purchase intentions. After watching a luxury brand advertising video from a first-person perspective, people who have a high need for status have higher purchase intentions rather than people who have no need for status. This is because, from the first-person video, people can have more concrete details about the luxury product, which triggers purchase intention. These results support all the hypotheses in this paper. The present article also has several practical contributions to managers and owners of luxury brand products. As the number of online video advertising increasing and become ubiquitous, the owner and manager of luxury brand products can grab this chance to maximize the effectiveness of video advertising by using findings from this paper. First-person perspective videos can lead to higher purchase intention rather than third-person perspective videos. Hence, owners and managers of luxury brands can use first-person perspective video advertising more to grab the attention of the customers and encourage them to but the product, especially for those who have high needs for status. Luxury brand companies can also utilize the influence of social media influencer or famous celebrities to promote the brand by using video from the first-person perspective; as a result, the company can attract more customers and boosting its sales. Moreover, the findings of this study also underlined the importance of immersion when doing online video marketing campaigns. From the result of the study, a first-person perspective can create higher immersion so that the customers have a higher intention to purchase the product.. 23.

(31) Companies can also utilize some technologies while doing video advertising, for example, by virtual reality or live streaming. In this way, customers “feel the experience” and have higher purchase intention to luxury products, potentially leading to more profit.. V.. Conclusion This research is aiming to reveal the effect of imagery perspective (first person perspective. versus third person perspective) on customers’ intention in luxury goods purchase after viewing advertising videos of luxury goods. From the results we found that immersion has an important role as the mediating effect and need for status as the moderator also has a significant effect on the relationship between imagery perspective and luxury goods purchase intention. The findings have theoretical contributions to the marketing research field and practical implications for the executives of luxury brands. When this research is conducted, the video offers a few interesting elements. For example, the actor or actress, the background sound, etc. can also have an influence on luxury goods purchase intention. In the future, the researchers could expand the research by not only watching video advertising but also use the effect of using technology, like virtual reality advertising. Future research can also investigate any possibility of other variables that can mediate or moderate the effect of mental imagery in luxury goods purchase intention.. 24.

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(37) APPENDIXES. Pilot test female. 30.

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(39) Pilot test male. 32.

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(41) Study 1.1A (female-first person perspective-main effect). 34.

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(44) Study 1.1B (female-first person perspective-mediating effect). 37.

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(47) Study 1.1C (female-first person perspective-moderating effect). 40.

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(50) Study 1.3A (female-third person perspective-main effect). 43.

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(53) Study 1.3B (female-third person perspective-mediating effect). 46.

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(56) Study 1.3C (female-third person perspective-moderating effect). 49.

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(59) Study 2.1A (male-first person perspective-main effect). 52.

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(62) Study 2.1B (male-first person perspective-mediating effect). 55.

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(65) Study 2.1C (male-first person perspective-moderating effect). 58.

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(68) Study 2.3A (male-third person perspective-main effect). 61.

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(71) Study 2.3B (male-third person perspective-mediating effect). 64.

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(74) Study 2.3C (male-third person perspective-moderating effect). 67.

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