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Consumer Behavior of Luxury Fashion and Accessory

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School of Sustainable Development of Society and Technology EFO705 - Master Thesis MIMA program - International Marketing Examiner: Ole Liljefors “An Exploratory Study on Young Thai Women Consumer Behavior toward Purchasing Luxury Fashion Brands” By Kamolwan Tovikkai (851125) Wiwatchai Jirawattananukool (841111) Group number 2462 Tutor Konstantin Lampou Date June 2, 2010 Abstract Date: June 2, 2010 Program: MIMA – International Marketing Course name: Master Thesis (EFO 705) Title: An Exploratory Study on Thailand‟s Young Women: Consumer Behavior toward Purchasing Luxury Fashion Brands Authors: Kamolwan Tovikkai (851125) Wiwatchai Jirawattananukool (841111) Group number: 2462 Tutor: Konstantin Lampou Problem: If and how personal value, social recognition, and demographics impact Thai female students luxury fashion brand purchases and which marketing strategies should be used to influence their purchase intention? Purpose: -To identify what motivates Thai female students in purchasing luxury fashion brands -To identify the most effective strategies to use in penetrating the market and keeping the loyalty of customers Thailand. Method: Quantitative research method via survey was used for this research. Survey questionnaires were distributed to sample groups. The variables used in this paper personal values, social, recognition, intention to buy products, and demographics. Both primary and secondary type of data collection were used for this research. Conclusion: Based on the demographic information, there are two indicators that are significant to purchase intentions of Thai female students on luxury fashion brands. Social status is one of the significant indicators of social ii recognition variable. There is a strong level of relationship on Thai female students toward luxury fashion products. Personal Values‟ indicators can be utilized on Thai female students as the following; materialism, the need for uniqueness, conformity, and vanity. All of them have strong levels of significance. However, Ethnocentrism has no relationship and effect with the luxury fashion product in Thailand. Key words: Thai female students, Luxury fashion products, Luxury fashion brands, Consumer behavior iii Acknowledgement During the phase of doing this thesis paper, the authors have faced a lot of difficulties, confusions and restrictions. The authors are very thankful to those who have contributed in facilitating the authors‟ thesis. Without them, this piece of work will not be completely accomplished. First of all, the authors would like to express their gratitude to the project adviser, Konstantin Lampou, for being such a supportive and dependable tutor throughout the semester. The work has dramatically improved because of his inputs and suggestions. The authors would also like to thank, Tobias Eltebrandt, the program coordinator, who has contributed his time in implicating the authors‟ work. Secondly, the authors are appreciative of the assistance of their panelist during each seminar which is group 2456, plus, those in other groups who patiently reviewed the work and gave remarkable recommendations. Thirdly, the authors would like to extend their gratefulness to those who devoted their time in filling out the questionnaire during the survey. The information gained from the survey was instrumental in producing great results. In addition, the authors are grateful to their friends who have dedicated their time in forwarding the questionnaire to their other friends. Last but not least, the authors are happy to thank their families who have been generous in giving words of encouragement. The success of this research will not be possible without them. Kamolwan Tovikkai Wiwatchai Jirawattananukool iv Table of Contents 1. Introduction ................................................................................................................................... 1 1.1 Background Research .................................................................................................................... 1 1.2 Luxury Background ....................................................................................................................... 2 1.3 Problem Statement ........................................................................................................................ 2 1.4 Research Questions ....................................................................................................................... 3 1.5 The aim and purpose .................................................................................................................... 3 2. Literature review ........................................................................................................................... 4 2.1 Definitions of Luxury .................................................................................................................... 4 2.2 Personal Values ............................................................................................................................. 5 2.3 Social recognition .......................................................................................................................... 6 2.4 Demographics ................................................................................................................................ 7 2.5 Conceptual Framework ................................................................................................................. 8 3. Methodology................................................................................................................................. 10 3.1 Topic Selection ............................................................................................................................ 11 3.2 Data Collection ............................................................................................................................ 12 3.2.1 Primary data......................................................................................................................... 12 3.2.2 Secondary data ..................................................................................................................... 15 3.3 Reliability of result and evaluation ............................................................................................. 15 4. Research Findings and Data Analysis ....................................................................................... 16 4.1 Descriptive Statistics ................................................................................................................... 16 4.2 Hypotheses Testing ..................................................................................................................... 21 Hypothesis 2: At least one pair of spending on luxury fashion products towards purchasing intension is difference. ................................................................................................................... 23 Hypothesis 3: At least one pair of frequency of purchasing global luxury fashion products towards purchasing intension is difference. .................................................................................. 23 Hypothesis 4: There is different between Intend to buy luxury fashion products next year and purchasing intension ..................................................................................................................... 24 v Hypothesis 5: At least one pair of re-purchase the same brand next time towards purchasing intension is difference .................................................................................................................... 24 Hypothesis 6: ................................................................................................................................. 25 Hypothesis 7: There are different between personal values & social recognition towards purchasing intension. .................................................................................................................... 26 Hypothesis 8: There are relationship between personal values & social recognition’s factors towards purchasing intension. ...................................................................................................... 27 Hypothesis 9: There are differences between personal values & social recognition and types of luxury preference persons. ............................................................................................................ 29 5. Conclusions and Recommendations .......................................................................................... 34 Reference Lists ...................................................................................................................................... 36 Appendix 1: Questionnaire form ........................................................................................................... 40 Appendix 2: SPSS output ...................................................................................................................... 45 Appendix 3: Luxury fashion market in Thailand .................................................................................. 72 vi List of figures Figure 2.1: The conceptual framework model: the relationships of all variables ................................... 8 Figure 3.1: The research process ........................................................................................................... 10 Figure 4.1: Line chart between personal values & social recognition
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