The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption

This paper investigates the effect of Schwartz's (1992) four cultural value orientations on the values consumers ascribe to luxury products. In response to well-documented criticisms of assessing cultural values as aggregates measured at the nation level, this study examines the effects of value orientation measured at the individual level. Using survey data from U.S. consumers, the study shows that cultural values influence consumers' perceptions of the usability, uniqueness, quality, and social luxury values. Self-enhancement and social luxury values are the key drivers of consumers' proclivity for luxury consumption. A post hoc analysis reveals four luxury consumers groups: “unconcerned,” “functionalists,” “moderately-eager,” and “luxury-enthusiasts.” People with high self-enhancement and self-transcendence values are more likely to be luxury-enthusiasts, whereas functionalists and unconcerned share similar cultural value profiles. Luxury-enthusiasts have the highest proclivity for luxury consumption, followed by moderates and functionalists. These findings have marketing implications for segmenting luxury customers in a cross-cultural setting.