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The effect of social comparison orientation on luxury purchase intentions

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  • Pillai, Kishore Gopalakrishna
  • Nair, Smitha R.

Abstract

The effect of social comparison orientation on luxury purchase intentions has attracted scant attention from researchers. Drawing from social comparison theory and luxury consumption literature, and using data from two countries, UK, which is more individualistic, and India, which is more collectivist, the study demonstrates a significant effect of social comparison orientation on luxury purchase intentions in India, but not in the UK. It also demonstrates the indirect effect of SCO on luxury purchase intentions in both countries. These findings explain luxury consumption that are based on individual’s propensity to engage in social comparisons besides the mediation of this effect by price related constructs. Results suggest that managers in more collectivist countries can derive greater benefits from comparison oriented communication and must emphasise more the positive role of price of luxury products in communications. The findings lead to several other managerial implications as well as theoretical implications, which are outlined.

Suggested Citation

  • Pillai, Kishore Gopalakrishna & Nair, Smitha R., 2021. "The effect of social comparison orientation on luxury purchase intentions," Journal of Business Research, Elsevier, vol. 134(C), pages 89-100.
    • Handle: RePEc:eee:jbrese:v:134:y:2021:i:c:p:89-100
    DOI: 10.1016/j.jbusres.2021.05.033
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