現代潮流與未來趨勢：分析台北的奢侈品與服務消費行為 - 政大學術集成

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(1)國立政治大學應用經濟與社會發展英語碩士學位學程 International Master’s Program of Applied Economics and Social Development College of Social Sciences National Chengchi University. 政治大. 學. Master’s Thesis. ‧ sit. Nat. 現代潮流與未來趨勢. y. ‧ 國. 立碩士論文. er. io. 分析台北的奢侈品與服務消費行為. n. a. v. i Consumption Luxuryl Goods and Services n C U. hengchi. Behavior Analysis in Taiwan Current Trends and Tendency for the Future. Student : Claire Glorieux -克萊兒 Advisor : Professor Tsoyu Calvin LIN 中華民國. 106 年 08 月 25 1.

(2) Acknowledgement. I wish to express my sincere gratitude to Professor Tsoyu Calvin LIN, (Dean at the Office of General Affairs and Distinguished Professor at the Land Economics department), who advised me to focus on the Luxury consumption’s topic.. 政治大 I also thank Jury members for encouraging me in improving my research, 立 providing advices to better develop my findings.. ‧. ‧ 國. 學. Of course, I would like to express all my friendship to my Classemate. sit. y. Nat. Asma Amina Belem. A special thank you to her for her support when. n. al. er. io. analyzing data on Stata.. Ch. engchi. i n U. v. 1.

(3) Abstract. The present thesis highlight that despite economics crisis, trends show that luxury market is constently increasing. Since, Asian consumers are particulary demanding for innovation in term of fashion, whereas it is particularly targetted from luxury brands over the world. Many reasons lead us to believe that Taiwan is the right market to study; reflecting Asian sought markets.. 政治大. To study current consuming trends, making an overlook of the Taiwanese. 立. market by identifying potential group of consumers, those who will have. ‧ 國. 學. purchasing power in the Taiwanese, luxury market-consumer’s behavior may be determined allowing a better understanding of the market and its. ‧. possible evolution. Results may help western companies in order to. y. sit. Nat. implement new brands, products or services on Asian market.. er. io. Profiling customers have been hard to defined. However, results prove that. n. a the family, the Shoppingv experience, Social being the Only kid in i l C n h e n gmust motivation or Emotional attachement c h ibeUconsidered when targeting customers. A twenty-questions Survey has been conducted in three different places in Taipei. The later, first, focused on demographic and socio-economics data, the second part shows shopping trends of taiwanese buyers, whereas, purchase factors remain in the last category of the questionnaire. Logit regression and Stata-program have been used to instrumentate the research.. 1.

(4) List of figures. Figure 1. Global personnal luxury goods market. Figure 2. Global personal luxury goods market by consumer nationality. Figure 3. Asia countrie’s stage of lux evolution. Figure 4. Research questions. Figure 5. Boxplot age versus luxury consumption. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 1.

(5) List of tables. Table 1. Literature review summary table. Table 2. Sample composition. Table 3. Descriptive statistics of age versus luxury consumption. Table 4. Demographic factors – Frequencies and chi-square tests. Table 5. Socio-economic factors – Frequencies and chi-square tests. Table 6. Shopping frequencies. Table 7. Absolute and relative frequencies by product/service category. 立. 政治大. ‧ 國. 學. Purchase factors - Frequencies and chi-square tests. Table 9. Social motive versus individual satisfaction. Table 10. Demographic/socio-economic factors - Logit regression. ‧. Table 8. y. Nat. n. al. er. Purchase factors - Logit regression results. io. Table 11. sit. results. Ch. engchi. i n U. v. 1.

(6) TABLE OF CONTENTS Chapter 1: Introduction research .............................................................................................. 3 1.1.. General increase of luxury market .................................................................... 3. 1.2.. Taiwan and luxurious market ............................................................................. 4. 1.3.. Why studying Taiwanese market? .................................................................... 6 -. Outlet Malls in Taiwan .................................................................................. 6. -. Changes in Attitude ........................................................................................ 6. 1.4.. Purpose of the study ............................................................................................... 7. 1.5.. Definition of terms ................................................................................................... 7. 立. 政治大. Chapter 2: Literature review .....................................................................................................10. ‧ 國. 學. Introduction of the literature review .............................................................10. 2.2.. Litterature review: Analysis and research questions ..............................10. 2.3.. Litterature Summary table ....................................................................................14. 2.4.. Literature review analysis and research question .......................................17. ‧. 2.1.. sit. y. Nat. -. Conceptual framework and research questions .............................18. n. al. er. Review analysis .............................................................................................18. io. -. 2.5.. Ch. engchi. i n U. v. Importance of the study ..........................................................................................20. Chapter 3: Methodology……………………………………………………………………………..21 3.1.. Research Design .....................................................................................................20. 3.2.. Population and Sample Selection.....................................................................20. 3.3.. Data measurement ................................................................................................21. 3.4.. Reliability ..................................................................................................................22. 3.5.. Instrumentation......................................................................................................23. 3.6.. Estimation .................................................................................................................23 1.

(7) 3.7.. Variables and regressions...................................................................................24. Chapter 4: Data analysis ..............................................................................................................26 4.1.. Demographic and socio-economic factors ......................................................26. 4.2.. Shopping Trends .......................................................................................................33. 4.3.. Purchase factors........................................................................................................34. 4.4.. Logit Regression .......................................................................................................38. Chapter 5: Conclusion ..................................................................................................................42 APPENDIX .........................................................................................................................................47. 治政大 REFERENCES ................................................................................................................................... 53 立 ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2.

(8) Chapter 1 : Introduction research General increase of luxury market A Chinese dictum specifies, “Looking good is the desire of everyone”. This must come from the “face issue” or “Miàn zi” (面子), within a society. In the modern Taiwanese economy, there are many opportunities to buy status. 政治大. symbols, which help a person to gain prestige (McLaughlin, 2013), to gain. 立. “face”. However, this proverb is not enough to understand the frenzy to the. ‧ 國. 學. current mass consumption of luxury in Asia, with 37% of the total world. ‧. luxury consumption in 2014 (Chada & Husband, 2006).. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Sources: Bain & Company (2015). Figure 1: Global personnal luxury goods market, 2000-2015 (EUR billion). 3.

(9) According to figure 1, despite worldwide economy slow-down due to the crisis of 2008-2009, personnal luxury goods markets significantly increased by Chinise shoppers over the world between 2014 and 2015.. 政治大. 立. ‧ 國. 學 sit. y. Nat. Figure 2:. ‧. Source: Bain & Company (2015). io. al. n. 2015 (EUR billion). er. Global personal luxury goods market by consumer nationality, 2000-. Ch. engchi. i n U. v. Chinese consumers now represent about one-third of the global market. Due to its historic past and similar culture, Taiwan followed the same tendency. Therefore, it would be interesting to take a closer look to the luxurious taiwanese market. What is exactly the current market situation in Taiwan? Taiwan and luxurious market Thanks to the “Taiwan Miracle” of 1960, Taiwan maintains a stable industrial economy. It is the sixth fastest growing luxurious global market 4.

(10) behind the South Korea, Indonesia and UAE. The Luxury market of Taiwan is sandwiched between consumer hubs including Japan, South Korea and China (Fflur 2015). In 1980, the rapid progress allowed Taiwan (and South Korea), due to a growing middle class, going further “Fit in” stage, which is the fourth step of the consumption’s behavior toward luxury.. Stage1. Stage2. Subjugation. Stage3. Start of money. India. white goods. buying lux. an rule Poverty and deprivation. Locked into lux. symbols of. adoption of. habit -. wealth. lux. Confident. Display. Fueled by. economic. need to. status. conform. discerning buyers. y. Nat. n. er. io. al. sit. Source: The cult of luxury brand. Figure 3:. Way of life. Acquire Korea Large-scale. ‧. Elites start. 立. ‧ 國. Masses buy. a. Authoritari. Stage 5. Japan. 學. growth. Fit in. 政治Taiwan–South 大. Chin Economic. Show off. Hong-Kong/Singapore. Chi Taiwan/S.Kore ana. Stage4. Asia countrie’s stage of lux Cevolution. hengchi. i n U. v. At that period, International Brands called “Pin Pai” or “Pai Zi” where introduced in Taiwan. Of course, consuming higher and higher standards of lux consumption was becoming the norm (Chadha & Husband 2011), whereas Chinese try to acquire the symbol of wealth and display. In the mean time, consumers from Singapore and Hong-Kong are going on the Fifth stage called “Way of life”, when also held the mature Japanese market.. 5.

(11) Being in the middle of the model, Taiwan is definitely the right market place to analyze in Asia. Why studying Taiwanese market? Taiwanese consumers are an excellent population for testing products and studying consumption behavior in Asia. Taiwan is the 22nd largest economy and gains a higher PPP compared with France (Taipei Representative office in the EU, 2015). In addition, it is one of the most densely populated countries in the world with a population density of 1,712. 政治大. people per miles² on February 2017 (worldometers, 2017), which allows. 立. testing products relatively easily. Moreover, the Taiwanese market is. ‧ 國. 學. constantly demanding for innovation (in term of food, fashion and new technology industry). On the other hand, Taiwan is mainly populated by. ‧. Chinese immigrants (between 1927 et1950), who were colonized by Japan. y. sit. Nat. (until 1945). Therefore, Taiwan is a particular island that combines. er. io. Chinese culture mixed with Japanese attitudes, whereas western culture is. n. a those countries have pretty omnipresent. Thus, since i v identical behavior. l C n U h consumption, it well represents population e n g c hofi similar markets like the four Asian Dragon Countries and similar market segments in China.. -. Outlet Malls in Taiwan. Recently, two outlet malls opened in the northern part of Taiwan (Mitsui outlet park in Linkou and Gloria outlet in Taoyuan) offering new incentive for consumers to buy luxury goods. In fact, thanks to this new channel, it is facilitating access for luxury shopping.. 6.

(12) -. Changes in Attitude. The shift in the demand for luxury consumption in Taiwan may have resulted from other reasons that will not be studied in this research. According to Euromonitor International (2017), new generation of consumers show a difference in consumption behavior. Taiwanese People tend to spend more, rather than saving money. Secondly, oversea political reasons may have contributed in increasing luxurious market. The political events of 2014 in Hong Kong encouraged tourists from Mainland China to travel to Taipei. However, It was shown that this is no longer the case. 政治大. (Euromonitor international, 2017).. Purpose of the study. 學. ‧ 國. 立. ‧. Despite recent fluctuations in Taiwan's economy, the sales of luxury goods. y. sit. Nat. and services remained particularly robust. The present research focuses on. io. er. the determination of the current market conditions and consumers’ behavior in Taiwan regarding luxurious lifestyle. The thesis tends to a. n. iv l C n measure other factors that mayhinfluence thei behavior of the consumers to U engch acquire luxurious goods. In the next section, literature review will be conducted in order to highlight the profile of consumers and personal motivations through academic’s studies and previous framework approaches.. 7.

(13) Definition of terms Luxury Luxury derives from the Latin word « Luxus », which means « the indulgence of sens, regardless of cost (Xiao 2008). Luxury goods / services Luxury products (and services) are not essential for the consumers but it is desired. with. the. expectation. of. affluent. or. wealthy. people. (Businessdictionary, 2016). Luxury goods, also called « expensive brand ». 政治大. or « Top brands » litteraly means 奢 (chi) « more then actually needed, and. 立. 侈 (she) « people posses more than ample things pending for use.. ‧ 國. 學. For this research, luxury products include branded Apparel/Fashion, Bags/Leather Good, Shoes/Footwear, Skin care product, Electronic. ‧. product, Champagne and spirit, Jewel/watch, Home appliance, Luxurious. y. Nat. sit. Car, Art objects. Luxury Services are represented with Travels, High-class. n. al. er. io. Restaurant, Spa and other cares, Expensive sports (Golf, horsing, racing, etc.).. Ch. e. i. i n U. v. h n gthecproducts Brand is the tool of communicating to the audience in order to differentiate the product from its competitors (Economictimes, 2016). According to Perreau (2014), « consumption behavior » can analyze reactions of consumers according to four influences: Cultural factors (societal environment, sub-cultures, social class, cultural trends), Social factors (group’s reference, family, social role and status), Personal factors (age, way of life, purchasing power and revenue, lifestyle, personality) and Psychological factors (motivation, decision process), perception, learning, and beliefs) 8.

(14) China-One Policy is an official program initiated in the late 1970s and early ’80s by the central government of China, the purpose of which was to limit the great majority of family units in the country to one child each (Global Britania, 2017). SIK (Single income kids) a household consisting of at least one dependent child and the mother or father, the other parent being dead or permanently absent. Many children are now born into or raised in oneparent families (Collins Dictionary, 2017).. 政治大 fraction of what you need to take into consideration when mapping out 立. DIK (Dual income kids) represent most families in America, that’s just a. clothes for the kids) (Molly Triffin, 2015).. 學. ‧ 國. monthly budget for daily life (groceries, car payments, the mortgage,. ‧. SINK (Single income no kids) are often young workers, having golden. sit. y. Nat. opportunities. Without financial commitments, no preconceptions of the. io. dreams (Erin Wright, 2015).. al. er. standard of living and no health problems, this is the best time to realize. n. v i n C child) DINCK (Double income no in which there are two h e nisgachousehold hi U. incomes and no children (either both partners are working or one has two incomes). DINKS are often the target of marketing efforts for luxury items such as expensive cars and vacations (Investopedia, 2017).. 9.

(15) Chapter 2: Litterature review 2.1. Introduction of the literature review This chapter will ensure the analysis of experimental work conducted by different researchers and scholars as a secondary source of data collection. As this specific research is quantitative, the literature review will highlight the necessary data to collect in the next chapter providing base and strong. 政治大 two books have been selected. Due to a mandarin language issue, all 立 evidence to conduct this research. In this section four journal articles and. ‧ 國. 學. sources are wrotten in english or french. Further gaps, strengths and. weaknesses of the literatures will be assessed in a table at the end of the. ‧. chapter.. sit. y. Nat. al. er. io. 2.2. Litterature review: Analysis and research questions. n. v i n C hof the differencesUin Taiwanese women’s Literature 1: “Exploration engchi purchasing decision towards luxury goods and general products” (Chen, Chao, Lee, TSAI, & Pei-chuan, 2012).. The research paper explores the distinct perspective of Taiwanese women's purchasing behaviors and decisions regarding general products and luxury goods. Women are powerful consumers in the world and have different purchasing decision process compared with men.. From the random. sampling and data retrieved from the ANOVA-analysis, it was discovered that there are different motives of women to buy luxury good. The literature presents that past shopping experience seems essential when consuming 10.

(16) luxury goods for Taiwanese Ladies. Therefore, service may be as much important then the product it-self, by consuming the present moment. Questionnaire will reflect this assumption in question 18.. Literature 2: “Luxury fashion consumption in China: Factors affecting attitude and purchase intent” (Zhang & Kim ,2013). According to the Authors several factors affect the attitude of chinese people towards luxury fashion goods and the purchasing intent of diversified group. The significant role of « brand consciousness » is. 政治大. explained by the need for social prestige and may be considered as a vital. 立. role for luxury fashion good sales staff to inform Chinese Customers about. ‧ 國. 學. their brands social recognition. The results showed a significant relationship between « Social comaprison » and attitude toward purchasing. ‧. luxury fashion brands. Chinese cutomers care about what their friends and. y. Nat. sit. celebrities wear. People gain self-confidence and self-esteem through. a. er. io. other’s appreciation. Based on the review, it will be important to test if the. n. iv « Social Motivation » (External Need) versus « Individual Satisfaction » l (Internal requirement), do. n U e n g cTaiwanese hi encourage. Ch. in their consumption.. Assumption will be considered in question 20 of the survey.. Literature 3: “Understanding consumer purchase behavior in the Japanese personal grooming sector” (Caroline SueLin, 2010). A similar study was conducted by Caroline SueLin (2010) that describes the consumer behavior in the Japanese market by using the model « Hawkins, Best and Coney models » (1998). Research shows short and long term decision making process. It results that consumers make two 11.

(17) kind of purchases, planned and impulsive. Impulsive purchases occur often when emotion happen. The affective process (emotion) are responsible for creating impulsivity while cognitive process (mental structures) are the rational side that maintains self-control. According to the third literature review, the factor « Emotionnal attachement » must be considered when purchasing goods. Since Classic Western luxury brands do have a long story using strong emotional attachement with consumers, question 17 will test rather they prefer classic western brand or Taiwanese brand.. 政治大 Literature 4: “China one, the love of Luxe. Strategy and framework 立 development towards Chinese Young Luxury Consumers” (Elise Ran. ‧ 國. 學. Wang, 2014).. According to the book "All eyes on China ones", China Ones tend to have. ‧. more spending power to purchase luxury products than other generations.. sit. y. Nat. Fours models (the LSEDP-model, VALS, Maslow pyramid and Marketing. er. io. Mix) has been combined to developed a unique model for the concerned. n. segment « China Onea». The Author found outi v4 types of profiles:. l C n U h Innovators, Thinkers, Achievers,eExperiencers. n g c h i If the only child in Taiwan shows more significance when purchaising luxury goods, similar models may be applied in order to better target those demanding consumers.. Literature 5: “The cult of luxury brands. Inside asias’ love affaire with luxury” (Radha Chadha & Paul Husband, 2006).. From the other book, the Cult of the Luxury brands, the segmentation was classified on the basis of six distinct segments such as « Celebrity set », 12.

(18) « Tai-tais », « Office ladies », « Trendy teens », « Corporate climbers » « Mistress » and « Junior wives ». Based on the review, the « demographic study’s segmentation » must be clarified. Assuming that the diversity of profiles is similar in Tiger Countries, economic point of view is proposed, what is the status of households Consumer? (DINK, SINK, SIK, DIK).. Literature 6: “La marque Rouge. Shanghai - Luxe - Art & Mémoire » (Catherine Becker, 2014). The current tendency of the Chinese Society is to reproduce the reality in. 政治大. an exaggerated way. For instance, the the phenomenun of the « willingness. 立. of omnipresence » by taking many pictures (selfie or others) as. ‧ 國. 學. « Spectators» despite being « Actors » of their own-life through images that people takes them-self. This example may be explained by the. ‧. necessity of comfort, by « need to forget the past » (due to dark side of the. y. Nat. sit. communism). Moreover, Brands logos are referred at the origin of Chinese. a. er. io. characters. Pictograms are images that are the graphical representation of. n. i v face through Logo objects. Based on the comprehensive review, gaining l. n U g c h i for chinese it e is nessential. Ch. exposure is considered. If. consumers, do. taiwanese have the same interest for trade mark?. 13.

(19) 2.3. Table 1: Litterature Summary Literatures. Key concept. Research methods. Summary. Strengths. Weaknesses. The different motives of women. goods and general products ». Pei-chuan, (2012). perception of women towards the luxury good versus general consumption pattern in Taiwan.. 立. statistical model is used to reveal the findings.. Factors affecting attitude and and buying behavior of people in three Chinese markets are. reliable and valid as it is an academic source and. The present moment may be as important then buying the product it-self. If they like the. provides authentic presentation of the research.. This article is based on gender biasness and fails to present the preferences of men in consuming luxurious goods.. (question 18).. ‧. purchasing intent. « past experience ».. Article is relevant,. service, they may come back. This article suggests that life became significally more. al. Survey and regression. n. consumption in China:. analyzed.. model and ANOVA. io. Factors affecting the. Zhang & Kim, (2013). 政治大. this research. KBC-. Nat. 2. « Luxury fashion. purchase intent ». methodology is used in. consumption’s is driving by. 學. Chen, Chao, Lee, TSAI, &. research is the. y. decisions towards luxury. observed. Taiwanese Women’s. Quantitative research. sit. Women’s purchasing. The theme of this. Ch. analysis (SEM) was. used in this research.. materialistic. « Social. er. differences in Taiwanese. to purchase luxury goods are. ‧ 國. 1. « Exploration of the. iv. comparison » has a positive. nattitude. on people’s U i e nimpact gch. Do Taiwanese consumers gain. The factors affecting the decision making behavior is used as variables to test the findings of the study.. This source fails to cover the entire behavioral pattern in Chinese market.. self-confidence through other’s appreciation (question 20)?. 14.

(20) Literatures. Key concept. Research methods. Summary. Strengths. Weaknesses. EKB rational model has been improbed by taking the. Factors that drive. « emotional factors » into. cosmetics. Suelin (2010). between the various. 立. factors and categoried according. models.. Models.. western brands) encourage. luxury luxury goods (question. ‧. 17).. Generaly, « china one » need. Behavioral factors. Nat. framework development. impact on the. to conduct this study. towards Chinese Young. purchasing decision. Luxury Consumers ». is analyzed on the. Quantitative approach. io. more social attention to fullfil self actualization. Moreover,. This research is efficient. China one has more spending. in terms of presenting. on power to purchase luxury a and LSEDPl& VALS iv n products. C models, Maslow h e ngchi U. n. Wang (2014). consumers and brands (Classic. of a cosmetic product.. purchase) when consuming. Luxe. Strategy and. Chinese market.. stating each points of the. irrational decison (impulsive. The litterature uses. 4. « China one, the love of. Strong attachement between. 學. to the consumer. thanks to a detailed report provide concrete example. 政治大. EKB and HBC models. The paper does not. y. sector ». relashionship. The analysis is effective. sit. Japanese personal grooming. to the HBC-model.. demonstrating the. er. purchase behavior in the. consumption behavior, thanks. discussed,. ‧ 國. 3. « Understanding consumer. account in measuring. consumption are. pyramid and Marketing Mix theory.. Only child may consume more. quantitative research. The results are reliable as it uses chi-square test results.. The research fails to address other eminent aspects and factors of fluctuations in consumption pattern.. luxury goods and services in Taiwan (question 6).. 15.

(21) Literatures. Key concept. Research methods. Summary. Strengths. Weaknesses. The litterature proposed a distinction of 6 segments such. affaire with luxury ». rich Countires in Asia.. Chada & Husband (2006). The book provides a clear. combining many. « Office ladies », « Trendy. understanding of. Exact demographic. sources, proposing. teens », « Corporate climbers ». hierachic society. Codes. proportions are not. general Consumers. and « Mistress » or « Junior. are similar over Asian. represented.. segmentation of rich. wives », and « Celebrity set ».. Countries and may be. Asian counties.. 立. 政治大. (Demographic questions from. ‧ 國. 1 to 13). The analysis indicates that the willingness that pictograms,. Social and cultural. Mémoire ». behavior reflexion. Nat. toward chinese. towards chinese society. io. al. n. society.. Behavioral analysis. ‧. Shanghai - Luxe - Art &. Becker (2014). 學. 6. « La marque Rouge.. used for Taiwan.. Confucianism and face issue. This specific western. trends are some reasons why. analysis provides. chinese consumers may be. y. Societal overlook of. as « Celebrity set », « Tai-tais »,. important facts that. sit. brands. Inside asias’ love. The litterature is. attracted by luxury brands.. er. 5. « The cult of luxury. v n i 19 C h analysed throughUquestion engchi Attraction for logo may be. definetly help to. Sources are unclear. It is. understand taiwanese. the result of long-run. society. Whereas, Asian. personal researches.. Researcher would not. such as maturity of the market’s specify those facts. analysis.. 16.

(22) 2.4. Literature review analysis and research question Based on the comprehensive review, the following 3 relevant categories Are highlighted (demographic data, trends of shopping, purchase factors) take into account 8 key factors (segmentation, onlychild, materialistic life, shopping experience, emotional attachement, logo exposure and social motivation).. - Review analysis. 立. 政治大. I. Category 1: Demographic data. ‧ 國. 學. Demographic study’s segmentation must be clarified. In Tiger Countries, the diversity of profiles is similar from one country to another. However,. ‧. from an economic point of view, what is the status of households Consumer?. sit. y. Nat. In China, one-child need to consume more to satisfy self-Actualization. In. al. n. more?. er. io. comparison with other profiles, do the segment only-child will consume. Ch. engchi. i n U. v. II. Category 2: Trends of shopping. In addition, due to a hyper Materialistic livestyle, it will be interesting to understand if it is commun for Taiwanese consumers to purchase luxury goods. If younger generation purchases more goods with time, it twill be favorable to know what hight labelled accessories may be the most consumed.. 17.

(23) III. Category 3: Purchase Factors In China, the importance for Logo is clearly significant. Do Taiwanese have the same interest for brands names exhibition? Furthermore, the shopping experience seems essential when consuming luxury goods for Taiwanese Ladies. Do Taiwanese consume primarily the product itself or the experience of the purchase? Finally, the element emotionnal attachement seems essential when consuming due to the irrationality dimension. Classic western fashion brands use they image to generate emotionnal attachement. Do Local Taiwanese Fashion brands versus. 政治大. Classic western fashion brands may generate any preference? Moreover, if. 立. Chinese consumers do gain self-confidence and self-esteem through. ‧ 國. 學. other’s appreciation, it will be important to study the exact driving forces, « Social Motivation » (External Need) versus « Individual Satisfaction ». ‧. (Internal requirement), that encourage Taiwanese in their consumption. n. al. er. io. sit. y. Nat. behavior.. Ch. engchi. i n U. v. 18.

(24) -. PART1 Demographic data Who? Only Child SIK-SINK-DIK-DINCK. RESEARCH QUESTIONS 1. Who are the consumers of luxury goods and services in Taiwan? 2. What and how much do they consume?. PART2 Trends of shopping What? How often? How much?. 3. Does the shopping experience factor influence consumption behavior?. when buying goods?. y. 6. Are there any social motivation versus. sit. ‧ 國. 5. Is the logo exposure significant factor. ‧. io. n. al. 學. Nat. Individual Satisfaction. consumption?. individual satisfaction preference?. er. 立. PART3 Purchase Factors Shopping Experience Emotionnal Attachement Logo Exposure Social Motivation ><. Does the emotional attachement factor 政 4. 治大 have positive impact on the. i n U. Figure 4 : Ch e n g cquestions hi Conceptual framework and research. v. Hypothesis H1. Only child may consume more luxury goods and services. H2. Logo Exposure has significant impact on the consumption. H3. People consume to show off not to satisfy their individual needs. 19.

(25) 2.5. Importance of the study This research is mainly intended to deliver inspiration for business development and western branding marketing strategy for Tiger’s countries and similar markets. Secondly, identification of customers would allow to develop appropriate marketing strategies that would enhance business success. Moreover, the study will reveal driving forces that contribute in the growth of luxurious goods consumption in Taiwan. By identifying the real needs of consumer inquiries linked from an emotional. 政治大. point of view, trademark side through strategic settlements.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 20.

(26) Chapter 3: Methodology 3.1. Research Design Primary and secondary research will be used to collect the information related with the research topic. Qualitative research is designed for this study. Survey is selected as the method for collecting the data to conduct the study. Moreover, random sampling is chosen as the mode of selecting. 政治大 obtain the data. Indeed, the later will be helpful in conducting in depth 立. the participants of the research. Questionnaire will be used as the tool to. ‧ 國. Finally, theoretical approach will be provided.. 學. analysis regarding human behavior, characteristics and emotions.. sit. y. ‧. Nat. 3.2. Population and Sample Selection. er. io. Paper basis questionnaire had been randomely conducted around Shopping. n. a l and Xiny Area. The targeted malls in Dazhi, Banqiao i v audience for this n U e n g64care study include 71 consumers whereas h ivalid for analysis.. Ch. 3.3. Data measurement Under quantitative research, primary collection approach is designed to assist in generalization of the findings. Survey analysis is used as a primary source of data collection. The questionnaire has been first developed in English and then translated into Chinese. The demographic question (part 1) helps defining consumers’ profile. Whether, part 2 shows the trends of 21.

(27) shopping, whereas part 3 analyzes purchase factors. For parts 1 and 2, questions “multiple choices”, “close-ended” and “ratio-scale” are proposed to determine profile and basic luxurious consumption trends. Two text-box questions are also suggested to better understand the job position and the industry activity of the respondents. For part 3, ordinal 0-to-10 scale questions are also proposed in order to analyze respondents’ feeling perception (see appendix 1: Luxury life style consumption – behaviour analysis in Taiwan).. 政治大 presence of several thematic, it seems like the most attractive method of 立. This operationalization would incur less time of respondents due to. survey.. ‧. ‧ 國. 學. 3.4. Reliability. y. sit. Nat. Reliability of this instrument has been measured through a pre-retest. er. io. methodology. Consistency of questions and reduction of complexity of the. n. questions is helpful ina analyzing overall results. i v Using a convenient. l C n U h sampling for pretesting is required. e nThe h i was about 12 classmates. g csample Through an interview, subjects showed how much they understand the questions of the survey and provide suggestions. Afterward, the pre-test questionnaires were collected to examine reliability. Hence, after corrections, the responses from the questionnaire are expected to be consistent and valid.. 22.

(28) 3.5. Instrumentation One of the most known economic binary outcome model is the Logit Model. As an econometric model, it formulates the probability of an event occurring as a function of specifically chosen covariates or independent variables. The added value of this model lies in its ability to deliver quantitative results while incorporating qualitative factors. Predicted outcome of regression (dependent variables) are probabilities bounded between zero and one. Such a model can help us appreciating the luxury goods consumers’. 政治大 propensity to purchase a good or not based on their individual, often 立 qualitative, considerations.. ‧ 國. 學. 3.6. Estimation. ‧. First modelled by the Belgian anthropologist Pierre François Verhulst, the. y. sit. Nat. logistic function further evolved towards a more sophisticated version. er. io. called the Logit model. For the Logit model, the outcome of the estimation. n. lies into the cumulativeadistribution function (cdf) of i v the statistical logistic. l C n U h function. The standard logistic model e n giscmainly h i used to understand how the probability (𝜋𝑖 ) of occurrence of an outcome can be influenced by other factors. In particular, in the present study, the outcome variable 𝑌𝑖 is binary and takes on value 1 if the 𝑖 th respondent buys luxury products and 0 otherwise. It can therefore be assumed that 𝑌𝑖 has a binomial distribution 𝑌𝑖 ~𝐵(𝑛𝑖 , 𝜋𝑖 ) with binomial denominator 𝑛𝑖 and probability 𝜋𝑖 . In the Logit model, it is further assumed that the logit of the underlying probability 𝜋𝑖 is a linear function of the predictors, such that: 23.

(29) logit(𝜋𝑖 ) = log (. 𝜋𝑖 ) = 𝐱′𝑖 𝜷 1 − 𝜋𝑖. - where 𝐱 𝑖 is the vector of observed covariates (explanatory variables or predictors, with the 1st element being equal to 1 for the constant term) for the 𝑖 th respondent and 𝜷 is a vector of regression coefficients to be estimated. A parametric estimation design can aggregate qualitative and quantitative characteristics into a vector 𝐱 𝑖 for each individual 𝑖 in the dataset and delivers sound results through Maximum Likelihood (ML) estimation.. 政治大. Exponentiating both sides of the above equation and isolating the probability 𝜋𝑖 , we get:. 立. ‧ 國. 學. 𝑒 𝐱′𝑖𝜷 𝜋𝑖 = logit (𝐱′𝑖 𝜷) = 1 + 𝑒 𝐱′𝑖𝜷 where 𝐹(. ) = logit −1 (. ) is the cumulative logistic distribution, ensuring −1. ‧. y. Nat. that the probabilities 𝜋𝑖 are bounded between 0 and 1, unlike in a linear. er. io. sit. probability model. The ML estimation remains the best option for qualitative estimation as it limits the variance of the error term of the. n. al. C cumulative distribution function.. hengchi. i n U. v. 3.7. Variables and Regressions Y binary variable It is essential to understand if consumers do consume luxury goods and services. Y (related in question 4) is a dummy variable taking value ‘1’ if the respondent have interest in consuming luxury products and services, and ‘0’ otherwise. If consumption appears, factors of consumption must be highlited.. 24.

(30) Demographic data variables = 𝛽1 Taiwanese = 𝛽2 GrowinTw = 𝛽3 Gender = 𝛽5 Age = 𝛽6 Only Child = 𝛽7 Children. = 𝛽8 Study = 𝛽9 Status = 𝛽10 PersIncome = 𝛽11 Couple = 𝛽12 Partlive (Couple living together). = 𝛽13 PartIncome = 𝛽14 HouseholdIncome = 𝛽15 SIK = 𝛽16 SINK = 𝛽 17 DIK = 𝛽 18 DINCK. Demographic logit model logit(𝜋𝑖) = log(𝜋𝑖1−𝜋𝑖) = 𝛽0 + 𝛽1 𝑇𝑤 + 𝛽2 Growtw + 𝛽3 Gender + 𝛽5. 政治大 Age + 𝛽6 Onlychild + 𝛽7 Children + 𝛽8 Study + 𝛽9 Status + 𝛽10 立. persincome + 𝛽 11 Couple + 𝛽 12 Partlive + 𝛽 13 PartIncome + 𝛽. ‧ 國. 學. 14HouseholdIncome + 𝜖𝑖. er. io. a l (Shopping Experience) i v n Ch (Emotionnal Attachement) U engchi. n. = 𝛽17 ShopExp = 𝛽18 TaiwWest = 𝛽19 BrandDisplay = 𝛽20 SocialMotiv versus = 𝛽 21 IndiSatis. sit. Nat. Purchase Factors variables. y. ‧. logit(𝜋𝑖) = log(𝜋𝑖1−𝜋𝑖) = 𝛽0 + 𝛽11 𝑆𝐼𝐾 + 𝛽12 𝑆𝐼𝑁𝐾 + 𝛽13 𝐷𝐼𝐾 + 𝜖𝑖. (Logo Exposure) (Social Motivation). (Individual Satisfaction). Purchase Factors Models logit(𝜋𝑖) = log(𝜋𝑖1−𝜋𝑖) = 𝛽0 + 𝛽17 ShopExp + 𝛽18 TaiwWest + 𝛽19 BrandDisplay + 𝛽20 SocialMotiv + 𝛽21 IndiSatis + + 𝜖𝑖. 25.

(31) Chapter 4: Data Analysis. The key objective of the research is to understand the factors that are driving customers towards Luxury goods and services in Taiwan. Out of all these, demographic data, shopping trends and purchase factors are measures to better understand Taiwanese behavior towards luxury consumption.. 立. 政治大. Since the demographic factors and the consumption of luxury goods may. ‧ 國. 學. not be inter linked, qualitative analysis was performed to understand the impact of the demographic factors over the consumption of luxurious. ‧. er. io. a. sit. Nat. count of responses towards the luxury categories.. y. products and services factor by assessing the descriptive statistics and the. n. iv l using MS Excel andnStata. All analyses were conducted. Ch. engchi U. 4.1. Demographic and socio-economic factors. On 71 surveys, 64 were valid for data analysis. Table 1 shows the composition of the survey sample. The sample is relatively balanced by gender as it is composed of 31 men (44.44%) with mean age 38.5 and 33 women (55.56%) with mean age 32.16.. 26.

(32) Table 2: Sample composition Gender. Frequency. Mean age. Male. 31. 38.5. Female. 33. 32.16. Total. 64. 35.17. Before assessing the determinants of luxury consumption, a new binary dependent variable was created from the survey responses. This new. 政治大 services, and 0 otherwise. From the 64 valid responses, 46 respondents 立 variable takes value 1 if the respondent consumes luxury products and. ‧ 國. 學. (71.9%) do effectively consume luxury products and services in Taïwan. This high proportion of positive responses demonstrates the relevance of. ‧. further analyses.. y. Nat. er. io. sit. However, in order to minimize errors, some observations what do not represent enough information for data analysis (such as Corporte executive. al. n. v i n C hdropped automatically and not employed) have been by the Sata program engchi U representing a smaller sample of 55.. In an attempt to define the profile of luxury consumers in Taïwan, the association between the dependent variable and demographic and socioeconomic factors was tested using appropriate statistical tests. The results are presented hereafter for each association.. 27.

(33) LUXURY CONSUMPTION VERSUS AGE Figure 1 and Table 2 below show the descriptive statistics for the age variable in each category of the binary response variable of luxury consumption.. 立. 政治大. ‧. ‧ 國. 學 y. Nat. sit. n. al. er. io. Figure 5: Boxplot age versus luxury consumption. Ch. eTable n g c3: h i. i n U. v. Descriptive statistics of age versus luxury consumption. Age. Lux Binary. N. Mean. Std. Deviation. Std. Error Mean. 0. 18. 37.67. 15.423. 3.635. 1. 46. 34.48. 14.776. 2.179. The mean age is about 34.48 years in the series of 46 respondents who consume luxury products and about 37.67 years in the series of 18 28.

(34) respondents who do not. We therefore notice a mean age difference of about 3.188 in absolute value between the 2 categories of the binary response variable, with a similar standard deviation from the mean in the two groups. A Levene’s test for the equality of variances between the two groups was performed before conducting the appropriate t-test. A Student t-test for the equality of means was then implemented to see if the mean age difference reported above is statistically significant from 0. The associated results are presented in Table A.1 in the Appendix. The Levene’s test fails to reject the null hypothesis of variance equality at the. 政治大 usual significance level of 5% (p-value > 5%). Therefore, the appropriate 立. t-test assumes equality of variances between the two groups and the results. ‧ 國. 學. show that we cannot reject the null hypothesis that the mean between the. ‧. two groups are statistically different. Hence, there is no statistically. io. er. products and those who do not.. sit. y. Nat. significant difference in terms of age between those who consumes luxury. n. a. iv. l C CATEGORICAL DEMOGRAPHIC LUXURY CONSUMPTION VERSUS FACTORS n. hengchi U. Table 3 presents the counts or absolute frequencies for each association between the categories luxury consumption (binary) and the other categorical demographic factors.. 29.

(35) Table 4: Demographic factors - Frequencies and chi-square tests. Variables. Categories Male Female No Yes No Yes. Gender Only-child Children. Lux Binary 0. 1. 8 10 17 1 10 8. 23 23 36 10 29 17. Pearson chi2 test p-value 0.689 0.123 0.581. 政治大. Significance level: *1%, **5%,***10%. 立. From this table, it is clear that there is no absolute difference between. ‧ 國. 學. women and men among those who consume luxury products, while the. ‧. difference remains marginal among those who do not consume. We notice. y. Nat. a difference in terms of absolute counts towards luxury consumption for. er. io. sit. those who are only-child. Indeed, on 11 only child basis, 10 claim consuming luxury good. In a larger sample, the P-value of 0.123 may be. al. n. v i n significant at 10% level. However, tests fail to reject C h Pearson chi-square engchi U the null hypothesis of independence between luxury consumption and the each of the three categorical demographic factors, which suggests that. there is no statistical difference in terms of gender, only-child and children between those who consume and those who do not consume luxury products in Taïwan. Hence, hypothesis 1, only child may consume more luxury goods and services, may not be statistically verified in this research.. 30.

(36) LUXURY CONSUMPTION VERSUS CATEGORICAL SOCIO-ECONOMIC FACTORS The results of counts and Pearson chi-square independence tests between the dependent, binary response variable (luxury consumption) and the other categorical socio-economic variables in the sample are presented in Table 4.. Table 5: Socio-economic factors - Frequencies and chi-square tests. 政治 Lux Binary 大 Categories 立 0 1. n. engchi. 0.592. y. sit. ‧ 國. io. Ch. 5 31 9 1 2 13 5 3 1 1 15 4 2 19 27 29 17 27 5 4 2 2 6 17. ‧. Nat. al. 4 10 4 0 0 7 1 0 0 0 4 3 3 5 13 8 10 7 3 1 2 0 5 8. 學. High School Undergraduate Study Master Doctoral Labor Employee Private owner Corporate executive Military service Status Unemployed Student Hosewife Retired No Couple Yes No Partner live Yes <20K 20-40K 40-60K Partner income 60-80K 80-100K >100K <20K. Pearson chi2 test (2-sided p-value). er. Variables. i n U. v. 0.501. 0.315 0.176. 0.553. 0.752 31.

(37) 20-40K 40-60K 60-80K 80-100K >100K No Yes No Yes No Yes No Yes. Household income. SIK SINK DIK DINK. 4 2 0 0 4 18 0 12 6 10 8 14 4. 10 4 3 3 9 43 3 26 20 33 13 36 10. 0.267 0.457 0.215 0.966. Significance level: *1%,**5% ,***10%. 政治大 From these results, we 立 observe some differences in terms of counts but the. ‧ 國. 學. associated Pearson’s chi-square tests all fail to reject the null hypothesis of independence between luxury consumption and the other categorical socio-. ‧. sit. io. er. Nat. to statistically non-significant results.. y. economic variables. One potential reason is the small sample size leading. n. Therefore, there is noastatistical evidence of a clear v profile of luxury. i l C n consumption among the interviewed h e n grespondents. c h i U However, based on the count results presented in Table 4, below is a list of potential characteristics that could be associated with luxury consumption and that could eventually lead to significant differences in a larger sample:  Only-child: no;  Children: no;  Study level: undergraduate; 32.

(38)  Status: employee and student;  Couple: yes;  Living with partner: no;  Partner income: <20k;  Income: <40k;  DIK & DINCK: yes;. Demonstrating statistical evidence of the association between the above characteristics and luxury consumption would require more data coming. 4.2. Shopping Trends. 學. ‧ 國. 治政大 significance positively from a larger survey, since test statistics and thus 立 depend on sample size. ‧ y. sit. Nat. The next objective of the analysis is to investigate what are the shopping. io. er. trends among the sample of respondents. In particular, the objective is to evaluate what and howathey consume. One question of interest is to know. n. iv l C n how frequently Taiwanese people h econsume i U products. Table 6 below n g c hluxury reports the results for the 64 respondents. During the past 6 months at the time of the survey, a majority of them consumed luxury products less than twice while about one fourth consumed more than five times, which represents quite a significant proportion.. 33.

(39) Table 6: Shopping frequencies Shopping frequency 1 2 3 4 5 >5 Total. Count 20 13 11 0 5 15 64. Percent 31.3 20.3 17.2 0.0 7.8 23.4 100. The next question of interest is to know what kind of luxury products or. 政治大. services the respondents consume the most in general. Table 7 below. 立. reports the proportions of respondents who effectively buy in each of the. ‧ 國. 學. luxury product categories.. n. al. er. io. sit. y. Nat. Frequencies. ‧. Table 7: Absolute and relative frequencies by products/services category. Ch. engchi. i n U. v. 34.

(40) From the above chart, we see that a high majority of respondents spends the most on travelling and the least on expensive sports. Other categories like high-class restaurants, fashion apparels, bags and leather goods also have a fairly significant proportion of respondents. 4.3. Purchase factors. Another important question of interest is to know whether emotional factors like the shopping experience, the emotion factor, the logo exposure,. 政治大 associated to the consumption 立 of luxury products.. the social motivation or individual satisfaction are relevant fators. ‧ 國. 學. The table below reports the counts for each association between the binary. ‧. response variable luxury consumption and the multinomial response. y. er. io. sit. exposure.. Nat. variable related to shopping experience, eomotion factor, and logo. n. Table 8: a i v tests Purchase factors l C- Frequencies and chi-square n hengchi U Variables Shopping Experience Emotional Attachement Logo exposure. Categories Don’t care Enjoy Enjoy a lot Don’t care Taïwan Western Strongly disagree Disagree Agree. Lux Binary 0. 1. 4 6 8 7 2 9. 2 22 22 8 2 36. 1. 0. 8 9. 18 19. Pearson chi2 test p-value 0.080***. 0.160. 0.094***. 35.

(41) Strongly agree. 0. 9. Significance level: *1%,**5% ,***10% From the above table, we see that those who consume luxury products clearly enjoy the shopping experience of doing so. The results of Pearson’s chi-square test suggest that we can reject the null hypothesis of independence at the 10% significance level, therefore providing some statistical evidence of an association between shopping experience and luxury consumption. This result could become even more significant (i.e.. 政治大. non-rejection of the null at a lower significance level) in a larger survey. 立. with more respondents.. ‧ 國. 學. One possible implication of this result for marketing purposes could be to. ‧. render the luxury shopping experience even more enjoyable so that people. Nat. sit. y. would feel even more confortable and confident when buying luxury. n. al. er. io. products and services.. C. i n U. v. h eattachement, Regarding product emotional n g c h i it seems that those who consume luxury products demonstrate preferences towards products from Western origin rather than Taïwanese products. However, the results of Pearson’s Chi-square test suggest that we cannot reject the null hypothesis at the 5% or 10% significance level. Therefore, there is no statistical evidence, but a tendency, of association between luxury consumption and product origin.. 36.

(42) The results of the associated Pearson’s Chi-square test suggest that the luxury consumption and logo exposure are statistically dependent at the 10% significance level, therefore providing some significant evidence of association between brand display and luxury consumption. This already somehow validates the expectation that the exposition of the brand name or logo is an important factor of luxury consumption. As for the association between shopping experience and luxury consumption, the latter result could become even more significant in a larger sample since the sample. 政治大 rejection of the null hypothesis. This confirm the hypothesis 2: logo 立 size positively affects test statistics and therefore significance for the. exposure has significant impact on the consumption. ‧ 國. 學. SOCIAL MOTIVE VERSUS INDIVIDUAL SATISFACTION. ‧ y. sit. Nat. Finally, we wanted to know whether the social motive and individual. io. er. satisfaction factors are correlated and, if so, in which direction. From the. n. table below, we see thata both factors are negatively vcorrelated, suggesting. i l C n that the more someone cares about h e nsocial i U the less his/her personal g c hfeelings utility and vice-versa. However, the associated p-value is 0.204 > 0.05 so the correlation is not statistically different from 0 at the usual 5% significance level.. 37.

(43) Table 9: Social motive versus individual satisfaction Social Individual Motive Satisfaction Pearson Correlation Sig. (2-tailed) N. Social Motive. 4.4. Logistic regressions. 立. 1 64. -0.161 0.204 64. 政治大. As explained in the methodology section, the logit model was selected to. ‧ 國. 學. model the probability of buying luxury products as a function of individual characteristics or covariates like demographic and socio-economic factors. ‧. and emotional factors.. sit. y. Nat. er. io. In order to not loose too much degree of freedom and to avoid over-. n. identification, the logitaofl the probability of buying i v luxury products was. n U e n g c demographic hi regressed on different sets of variables: and soci-economic. Ch. covariates, and other purchase factors covariates. Table 10 reports the regression results for the estimation of the logit model with demographic and socio-economic covariantes only.. 38.

(44) Table 10: Demographic/socio-economic factors – Logit regression results Variables Gender Age Only-child Children College Graduate Employee Private owner Student Housewife Retired Income < 20k Income 20-40k Income 40-60k Couple Partner live Partner income < 20k Partner income 20-40k Partner income 40-60k Partner income 60-80k Constant N. Obs Pseudo R-squared. 學. er. sit. y. ‧. Nat. io. p-value exp(coeff.) 0.876 1.145 0.953 1.005 0.146 5.755 0.518 2.457 0.118 0.119 0.922 0.865 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.367 0.195 0.596 2.093 0.747 1.902 0.921 0.838 0.718 0.539 0.712 0.510 0.449 0.355 0.955 1.161 0.904 0.832 0.000 883,105.543 55 0.2221. 政治大. ‧ 國. 立. Coeff. 0.135 0.005 1.750 0.899 -2.133 -0.145 -13.537 -11.644 -10.249 -12.554 -14.570 -1.635 0.738 0.643 -0.177 -0.618 -0.674 -1.036 0.150 -0.184 13.691. Significance level: *1%, **5%,***10%. n. al. Ch. i. i n U. v. n g cofhthe considered demographic and From the above table, we see thatenone socio-economic factors have a statistically significant impact on the probability of luxury consumption, except the variable related to respondents’ status. The coefficients related to all other variables are not statistically significantly different from 0 since the associated p-values of the Wald test statistics are greater than the usual significance level of 5%. The Nagelkerke pseudo R-squared is about 22.21%, therefore suggesting. 39.

(45) that it remains something desired not explained by the current set of explanatory variables.. Nonetheless, in a larger sample, one could potentially expect a significantly positive impact of only-child on the probability of buying luxury products, since the associated p-value is one of the lowest among all. For example, assuming that the coefficient on only-child could be statistically different from 0 in a larger sample, the above results would suggest that the estimated odds ratio of an individual who is only-child versus an individual. 治政大someone who is the only who is not is about 5.75, therefore suggesting that 立 child in a family has an odds of buying luxury products that is more than 5 ‧ 國. 學. times the odds of an individual who is not the only child in a family.. ‧. Table 11 below presents the regression results for the estimation of the logit. y. Nat. Table 11:. n. er. io. a. sit. model with the purchase factor covariates.. v. Purchasel factors n i results C - Logit regression. hengchi U. Variables Emotion negative Emotion positive Experience don't care Experience enjoy so much Brand display don't care Brand display strongly agree Social motive Individual satisfaction Constant N Obs Pseudo R-squared. Coeff. -0.156 -2.180 -1.323 -1.028 -2.219 -1.373 0.441 0.021 1.694. p-value exp(coeff.) 0.879 0.855 0.066 0.113 0.266 0.240 0.358 0.293 0.109 0.194 0.253 0.465 1.555 0.026** 1.021 0.886 5.443 0.379 55 0.2221 40.

(46) Significance level: *1%, **5% ,***10%. From the above table, we notice that the coefficient related to social motive is statistically significantly different from 0 at the usual 5% level, therefore suggesting that the associated variable have a significant impact on the probability of luxury consumption. The finding confirm hypothesis 3: People consume in order to show off. All the other coefficients are not statistically different from 0 at the 5% level so the associated variables (emotional attachement, shopping. 政治大. experience, brand display, and individual satisfaction) do not have a. 立. significant impact on the probability of luxury consumption, at least in the. ‧ 國. 學. present analysis.. ‧. Regarding the variable related to social motive, the estimated odds ratio is. y. Nat. sit. about 1.5, which suggests that the odds of luxury consumption is 1.5 times. n. luxury consumption forathose l who do not care.. Ch. engchi. er. io. higher for consumers who care about social recognition than the odds of. i n U. v. 41.

(47) Chapter 5: Conclusion Many factors appear to be significant contributing in shift in demand for consumption of luxury lifestyle. However, as a result of the analysis presented above we could not find clear and concrete statistical evidence of a particular consumer profile associated to luxury consumption in terms of demographic and socio-economic characteristics. Actually, all profiles. 政治大 income’s levels, luxury立 brands must diversify the price offer of the goods. are subject to consume luxury goods or services in Taiwan. Due to different. ‧ 國. 學. or services. Indeed, consuming luxury life style is becoming the norm. We are facing a mass consumption. Since all profiles a subject to consume,. ‧. marketers should carefully segment the customers in order to target a wide. y. sit. Nat. public. The recent successful association between Karl Lagerfeld (from. io. er. Chanel) and H&M (called “masstige phenomenum”) should inspire other. n. luxury brands to meeta the high demand in affordable luxury goods v consumption.. i l C n Second-hand or h erenting h i U goods n g cluxury. may probably be. developed in Asian countries.. Interpretation of significant results (significant in a larger sample or tendencies): In the Chi-Square test, the factor shopping experience is associated to luxury consumption, probably, at the significance level of 10%, due to the 42.

(48) high interest for customer services related to luxury consumption in Asia. Companies should consider the fact that consumers are particularly demanding when consuming luxury goods or service in brand-stores. Staff training and other attentions should be a priority to fully satisfy customers. Indeed, consuming the service of the sale seems as much important then the good it-self. Hence online service should not be a priority on luxury market. In order to make sure customers appreciate specific brand service, survey may be conducted orally by an amployee of the brand store.. 立. 政治大. ‧ 國. 學. In Table 11, logit regression results show a statistical significance for the variable social motivation. The importance for social media use may be a. ‧. reason why many respondents show high social need. As noticed in the. sit. y. Nat. introduction, cultural purpose should be one of the reasons. In Asia, due to. io. er. face issue, social recognition need may be particularly high. Therefore, other people’s appreciation would definitely be important for most. al. n. v i n C hfor social mediaUmust be taken into account. consumers. Therefore, the use engchi Brand companies may have special marketing action in order to highlight. they cutomers. For instance, inviting famous TV show or other actors to private contests would be a good strategy making buzz on social media. The Guests will appreciate sharing similar experience to celebrities. It will be opportunities for showing up high standart of life style on social media.. 43.

(49) According to the research, the logo exposure factor is significant for luxury consumption. Since Taiwanese consumer have hight social recognition expectation, the willingness to exhibit symbols is still particularly present. Luxury brand companies may keep strategies of “showing off”. However, the maturity of the market may evaluate in the near future.. 政治大 be significant and. The same table indicates that in a larger sample emotional attachment (positive emotion) could. 立. relevant for luxury. ‧ 國. 學. consumption. This may be explained by the fact that classic western brands are building their image up through decades. Offering strong values such. ‧. as family, tradition, savoir-faire. The new luxury brand must be careful to. sit. y. Nat. properly build their image. Due to the irrational dimension involved into. io. er. the decision-making process, the marketer must focus on creating the history of the brand. For example, today’s trends value is more. al. n. v i n C hAnother example environmental or minimalism. e n g c h i U would be using the image of existing brand as Chanel or Dior in order to develop a sub-brand. To diversificate popular brands will allow targeting new segments. For example, young generation or customers with lower budgets. Using their famous images the brand will benefit a large visibility.. 44.

(50) Top 3 luxury goods and services consumption 1. High-class restaurants Having dinner in a high-class restaurant is getting usual for a large size of respondants. Generally, food is clearly in the Taiwanese culture. However, since the Taiwanese market is getting more mature, it is clear that consumers may have certain high demand when sharing dinner with friends or family. Flavor, apparence of the dishes and the fastness of the. 政治大. service must be carrefuly taken into account by the establishement.. 立. 2. Spa and other cares. ‧ 國. 學. Taking care of them-self seems usual for the Taiwanese consumers. Hot. ‧. springs and massage also have important part in the local culture.. y. sit. Nat. Neverthless, going to the spa center is definitely showing strong interest. io. er. for lux. Different services for beauty and wellness are proposed in order to make ladies and men a in the best condition. Since having the time for. n. iv l C n it-self is the highest lux in h nowadays, it proofs e n g c h i U that some people fulfill basic need and have the necessary income. 3. High labelled apparel & fashion The sentence “to wear means to be” is taking sense when watching at the results. Therefore, to have the right dress up is essential for most of respondants. Wearing brands is the faster way to rank a person in term of wealth. Accessories are also essential for consumers.. 45.

(51) APPENDIX. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 47.

(52) 台灣消費者購買奢侈品行為研究 Luxury consumption - behavior analysis (Taipei) Part 1/4: 人口統計問答題 - Demographic questions 1. 你是台灣人嗎? - Are you Taiwanese? ○是 ○不是 2. 你是在台灣長大的嗎? - Did you grow up in Taiwan? ○是 ○不是 3. 你的性別? - What is your gender? ○男生 ○女生 4. 請選擇您對於奢侈品牌的態度 Please select the statement that represent your attitude regarding luxury goods. (Luxury PRODUCTS such as Versace, Armany, Chanel, LV, or Luxury SERVICES such as Spa in five stars Hotel, doing Golf, going to High class restaurant). 政治大 ○ 1. 能使生活品質提升即可合理購買- The quality of life has improved, it is reasonable to consume ○ 2. 不夠實際的消費 - It is too立 expensive, wasteful and unnecessary to consume. ‧ 國. 學. ○ 3. 無需奢侈品- Not necessarily, subject to availability 5. 你是哪一年出生的? - In which year were you born? _______. ‧. 6. 你有幾個兄弟姊妹? - How many brother(s) and sister(s) do you have? _______. sit. y. Nat. 7. 你有幾個小孩? - How many Children do you have? _______. er. al. n. have received?. io. 8. 你的最高學歷? What is the highest level of school you have completed or the highest degree you. Ch. ○ 1. 高中 - High school degree or Less ○ 2. 大學 - Graduate degree. i n U. v. 碩士 i - Master degree e n g○ c3. h. ○ 4. 博士 - Doctoral degree or more. 9. 下列哪一項是您目前的工作狀態? 如果還未工作，請跳過並到第 12 題作答題作答Which of the following categories best describes your current status? If not employed, please go on question 12. ○ 1. 勞工 - Laborer. ○ 5. 軍職人員 - Military service Agent. ○ 2. 職員 - Employee. ○ 6. 沒在上班，找工作中 - Not employed. ○ 3. 私人企業主 - Private Entreprise Owner. ○ 7. 學生 - Student. ○ 4. 公司行號執行長 - Corporate Executive. ○ 8. 家庭主婦 - Housewife ○ 9. 退休 – Retired. 48.

(53) 10. 你平均一個月的收入有多少? On average, what is your income per month in TWD? ○<20K. ○60K 至 80K. ○20K 至 40K. ○80K 至 100K. ○40K 至 60K. ○>100K. 11. 下列哪一項符合您現在的感情狀態? 如果單身，請跳過並到第 14 題作答題作答 Are you in Relationship? If not in relationship, please go on question 14. ○是 ○不是 12. 你跟你的配偶住在一起嗎? - Do you live with your Partner? ○是 ○不是 13. 您配偶每月的收入有多少? - On average, what is the income of your Partner?. 治至 80K 政 ○60K 大 ○80K 至 100K. ○<20. 立. ○20K 至 40K ○40K 至 60K. ○>100. ‧ 國. 學. Part 2/4: 購物趨向購物趨向 - Shopping trends. ‧. 14. 請從下列所有選項中勾選出 3 項你最喜歡以及最有興趣的奢侈品牌類別?. sit. y. Nat. What are the 5 categories of luxurious goods or services that you consume the most?. al. □9. 手飾/手表 - Jewel/watches. n. □2. 背包/皮製品 - Bags/Leather Good □3. 鞋子/鞋類 - Shoes/Footwear. □4. 皮膚保養品 - Skin care product. Ch. □5. 香檳和酒 - Champagne and spirit. er. io. □1. 服裝/時尚 - Apparel/Fashion. □10. 家用電器 - Home appliance. i n U. v. □11. 高級運動(高爾夫、騎馬、賽車) -. e n g Expensive c h i sports (Golf, horsing, racing, etc.). □6. 旅行 - Travelling. □12. 名車 - Luxurious Car. □7. 高級餐廳 - High class restaurant. □13. 其他(請詳細舉例) - Other (please. □8. 泡湯、桑拿、或按摩 - Spa and other. specify)__________. care 15. 在過去的半年裡，你買過幾次奢侈品或享受幾次高級服務的花費? In the past 6 months, how frequently did you consume luxury goods or services ? ○1 次 - 1 time or less. ○4 次 - 4 times. ○2 次 - 2 times. ○5 次 - 5 times. ○3 次 - 3 times. ○6 次以上 - More than 5 times. 49.

(54) 16. How often per year do you purchase “Branded Accessories Fashion goods”? 您購買奢侈品牌的時尚配件的頻率 1. 皮夾 - Wallet. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 2. 包包 - handbags. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 3. 圍巾 - Scarf. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 4. 唇膏 - Lipstick. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 5. 項鍊、耳環 - Neckless/ Earring ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含） 6. 太陽眼鏡 Sun Glasses. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 7. 帽子 - Hat/Cap. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 8. 鞋子 - Shoes/Trainers. ○決不 ○1 次 ○2 次 ○3 次 ○4 次 ○5 次以上（含）. 17. 您偏好的品牌種類 - Do you prefer “Taiwanese Fashion Brands” (Athena Chuang,. 政治大 □ 1. 歐美奢侈品牌 - Western Luxury Brands 立 □ 2. 台灣品牌 - Taiwanese Brands. Fabitoria, WXY, Sweet Villains…) or “Classic Western” (Chanel, Hermes…) Luxury Brands?. 18. 您購物時的感受 What is your feeling when shopping?. 我喜歡一點. I do not care. I enjoy a little. 我非常喜歡 I enjoy so much. n. al. er. io. sit. y. Nat. 您購買奢侈品牌時的感受 - When purchasing high labelled brands, how do you enjoy the Shopping Moment?. 我不在乎. ‧. ‧ 國. 學. □ 3. 皆非 - None of them. Ch. engchi. i n U. v. 19. 您對品牌表現手法的感受 What is your feeling about brand display? 非常不同意 Strongly 不同意同意 Disagree Disagree Agree 我認為品牌的商標必須明顯地出現在商品上 - I think Logo Brand Exposure must be well displaied on the Good.. 非常同意 Strongly Agree. 50.

(55) 20. Social Motivation >< Individual Satisfaction Please rank the following statements 從 1 到 10(從弱度到強度級別) 請參考下列表中的每一段話並依照數字勾選符合您的情形: On a scale from 1 to 10 (1 being the lowest intensity and 10 being the strongest intensity) 2 1 2 3 4 5 6 7 8 9 跟隨當今流行對我很重要、且我期待大家對我配件做出正面評價 – To follow current trends is important to me, and I am looking forward for having positive comments on my outfit (in daily life, from my Family, my friends, Social Media etc …). 立. ‧ 國. 2. 3. 4. 5. 6. 7. 8. 9. Nat. n. al. er. io. sit. y. ‧. 1. 我不在意他人對我的意見、我購買我喜歡的配件而不受他人左右 – I I do not pay attention about people’s opinion. I purchase goods I like whatever people think.. 政治大. 學. 21. 10. Ch. engchi. i n U. v. 51. 10.

(56) 我的名字叫 Claire Glorieux. 我是來自比利時的經濟學碩士研究生就讀於台灣國立政治大學，正在研究台灣的消費者對於奢侈品的購買與高品質的花費思想以及調查目前市場上的經濟趨勢。請您花一點時間(6 分鐘)以你們最真實的角度和想法完成這份調查問卷來幫助我的研究，我和我的老師 Tsoyu Calvin Lin 博士會非常地感謝您，並且保證會正當地在學術上使用這些珍貴的答案。所有的回答都會以匿名的身分與自我意願的方式記錄。提醒您，這則調查問卷上的任何答案都只有一次的回答機會。請幫助我在 FB 上多分享這則調查問卷!. 政治大有任何對於這項研究的問題或想法，請與我聯繫。立. ‧ 國. 學 ‧. Claire Glorieux Office of IMES 聯絡方式: +886-2-29393091 ext. 51255. y. Nat. [email protected] 政大應用經濟社會發展英語碩士. n. er. io. al. sit. 國立政治大學 www.imes.nccu.edu.tw. Ch. engchi. i n U. v. 52.

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