SYNOPSIS: UNDERSTANDING THE MODERATING EFFECT OF MOTIVATIONAL VALUES ON YOUNG CONSUMERS’ RESPONSES TO LUXURY BRANDS: A CROSS-CULTURAL STUDY OF SOUTH KOREA AND THE USA
This study examined the impact of cultural differences on the attitudes and purchase decisions of young consumers towards luxury brands by applying the motivational values of luxury consumption. This paper is set to bring a comparison between consumers in South Korea and the US. The Easterners are said to be collectivists while the Westerners are said to be individualists. This brings about the disparity in these two cultures which has also been contributed to by economic globalization as well as an increase in the production of luxury products. It is also important to note the difference in culture influences the perception of luxury products as well.
Luxury brands have mostly been associated with social goals. Traditional the term luxury brand mostly captured a singular dimension however this concept has since evolved into five dimensions. The five dimensions have been divided into two major categories, Interpersonal motivation, which consists of three from the five, and personal motivation, which consists of two from the five. The Eastern culture is said to be more focused on the interpersonal which deals with how one is perceived by the public while the western culture is more bent towards the personal which focuses on individual style and preferences. The eastern cutler consists more of the East Asia communities while the Western culture consists more of the US. However, not all findings agree with the above statements since some East Asian communities such as the Indians exhibit mixed characteristics.
A study was carried out to determine what motivates the young people of these two different cultures to purchase luxury brands. The participant method was used where several young consumers were recruited and across the two cultures. The results showed that the indeed was a disparity in how the South Korean consumers perceived luxury brands and how Americans perceived luxury brands. It also reflected the two dimensions of collectivism and individualism were by South Korean consumers appeared to be more of the collectivist culture while the Americans showed more of individualism culture. However, the limitation of the study brought to light that it would have been more beneficial if the comparison was done between countries that shared the same culture instead of cross-culture since within these cultures there is a product life cycle for each market.