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Sneakerheads' Assessment of Sneaker Value and Behaviors

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Sneakerheads' Assessment of Sneaker Value and Behaviors AN ABSTRACT OF THE DISSERTATION OF Jin Woo Choi for the degree of Doctor of Philosophy in Design and Human Environment presented on June 12, 2017. Title: Sneakerheads’ Assessment of Sneaker Value and Behaviors throughout the Sneaker Ownership Cycle. Abstract approved: Brigitte Gaal Cluver Minjeong Kim The purpose of the present study was to investigate value perceptions and consumption behaviors of sneakerheads who are mixed-role resellers of sneakers. “Sneakerhead” is a term given to those who collect and wear sneakers with a vast amount of effort and resources (Semmelhack, Garcia, Lepri, Willis, & Hatfield, 2015). “Mixed-role resellers” is a term given to individuals who collect, use, and resell consumer goods (Chu & Liao, 2007). Traditional consumer behavior frameworks mostly focus on behaviors surrounding pre-acquisition, purchase, and use of goods initially purchased by the consumer for his or her own use (Boyd & McConocha, 1996). These frameworks do not necessarily explain behaviors surrounding goods initially purchased with the intention to resell to others, such as researching predicted resale value during pre-acquisition, using controversial methods to obtain products during acquisition, and taking special measure to keep a product in pristine condition. While the resale market has expanded due to internet and social media, resale behavior has not drawn much attention from researchers. To address this gap, the author took a qualitative approach to gain an understanding of value perception and behaviors when consumers purchase goods with the intention to resell. The three research questions are: 1) What factors into mixed-role reseller sneakerheads’ perception of a sneaker’s value? 2) What behaviors are exhibited by mixed-role reseller sneakerheads during pre- acquisition, acquisition, physical possession, and resale of the sneakers they intend to resell; what motivates these behaviors? 3) What do mixed-role reseller sneakerheads like and dislike about the sneaker resale market? A total of 25 in-depth interviews were conducted using a semi-structured interview guide. Interviewees were recruited through posts on sneakerhead community websites and snowball sampling. To qualify for participation in the study, interviewees needed to fit the description of a sneakerhead and a mixed-role reseller of sneakers. Results show how the interviewees evaluate the value of sneakers they intend to resell, what behaviors interviewees exhibit during the pre-acquisition, acquisition, physical possession, and disposition stages pertaining to sneakers they intend to resell, and how the interviewees felt about the resale market in general. First, data show that sneakers can hold monetary, emotional, functional, and/or social value. Most discussion about sneaker value centered on monetary value. Findings show that interviewees’ perceptions of monetary value were influenced by sneaker model rarity, celebrity endorsement of sneakers, collaboration between brands and celebrities, retro marketing, and sneaker condition. Second, the interviewees who purchased sneakers with resale intention demonstrated behaviors that are noteworthy in various stages of the Inventory Ownership Cycle (IOC) (Boyd & McConocha, 1996). When interviewees considered purchasing sneakers they intended to resale, they did an extensive information search prior to purchase to predict resale price, purchased multiple pairs with controversial methods (e.g., using bots and back-dooring), did not wear or carefully wore the sneakers, utilized various resale channel (e.g., eBay, social media, and mobile applications), and took measures to minimize physical and financial risks of reselling. Third, data show that while interviewees often had both positive and negative affects towards the resale market, they tended to have more negative affects towards resellers who used controversial methods to acquire sneakers. However, the interviewees seemed to accept these negative aspects of the resale market and said nothing can be done to change it. This study has implications for both researchers and business practitioners. For researchers in consumer behavior, this study provides insight into how resale intention can influence behaviors throughout the IOC (Boyd & McConocha, 1996). For business practitioners, findings from this study call attention to the need to consider consumers who purchase for personal use and consumers who purchase for resale as different market segments. It also calls out the need for brand managers to preserve this unique consumer culture and reduce negative outcomes caused by reselling. ©Copyright by Jin Woo Choi June 12, 2017 All Rights Reserved Sneakerheads’ Assessment of Sneaker Value and Behaviors throughout the Sneaker Ownership Cycle by Jin Woo Choi A DISSERTATION submitted to Oregon State University in partial fulfillment of the requirements for the degree of Doctor of Philosophy Presented June 12, 2017 Commencement June 2017 Doctor of Philosophy dissertation of Jin Woo Choi presented on June 12, 2017 APPROVED: Major Professor, representing Design and Human Environment Dean of the College of Business Dean of the Graduate School I understand that my dissertation will become part of the permanent collection of Oregon State University libraries. My signature below authorizes release of my dissertation to any reader upon request. Jin Woo Choi, Author ACKNOWLEDGEMENTS I would like to thank everyone who helped me go through this dissertation. I want to say thank you to my co-advisors, Dr. Cluver and Dr. Kim, and the committee members, Dr. Bee, Dr. Ebbeck, and Dr. Campbell. Your feedbacks were essential for my dissertation. I also want to say thank you to Dr. Tolar-Burton, Dr. Bernieri, and Dr. Barnhart. I learned a lot from the classes that I took from you. Additionally, if I did not have the Graduate Writing Center assistants on my side, I wouldn’t have made it. Thank you, Chrish, Robert, and Adam. I also want to express my gratitude to the cycling team and ALI staffs who let me enjoy the nature of Oregon. Lastly, I want to say thank you to my wife, Minji, and my family for supporting me unconditionally. Words cannot describe the feeling, the experience, and my gratitude. TABLE OF CONTENTS Page CHAPTER 1 INTRODUCTION ........................................................................................... 1 PROBLEM STATEMENT ..................................................................................................... 5 PURPOSE OF STUDY ......................................................................................................... 7 RESEARCH QUESTIONS ..................................................................................................... 8 DEFINITION OF TERMS ...................................................................................................... 8 CHAPTER 2 LITERATURE REVIEW ................................................................................ 15 SNEAKERHEADS ............................................................................................................ 15 COLLECTING ......................................................................................................... 16 HISTORY OF SNEAKER COLLECTING .................................................................... 18 RESALE BEHAVIOR ........................................................................................................ 21 RESALE MARKET .................................................................................................. 22 TYPES OF RESELLERS ........................................................................................... 26 VALUE OF THE SNEAKERS ............................................................................................... 33 MEANING TRANSFER THEORY .............................................................................. 34 PRICE GAP BETWEEN THE RETAIL AND RESALE ................................................... 53 INVENTORY OWNERSHIP CYCLE OF SNEAKERHEADS ............................................................. 56 PRE-ACQUISITION ................................................................................................. 59 ACQUISITION ........................................................................................................ 62 PHYSICAL POSSESSION ......................................................................................... 63 DISPOSITION ......................................................................................................... 64 TABLE OF CONTENTS (Continued) Page AFFCETS TOWARDS THE SNEAKER RESALE MARKET ............................................................. 66 POSITIVE AFFECT ................................................................................................. 67 NEGATIVE AFFECT ............................................................................................... 68 CHAPTER 3 METHODS .................................................................................................. 72 IN-DEPTH INTERVIEWS ................................................................................................... 73 QUESTIONNAIRE DEVELOPMENT .......................................................................... 74 SAMPLE SELECTION .............................................................................................. 75 DATA COLLECTION ............................................................................................... 77 DATA ANALYSIS ..........................................................................................................
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