Luxury value perceptions in an emerging economy: A comparative analysis of luxury products and services in Thailand

Abstract

This research aims to clarify what values constitute the meaning of luxury and set luxury products and services apart from non-luxury ones based on the perceptions of consumers in Thailand. Underpinned by the theory of psychological ownership, it proposes that consumers’ sense of possession and emotional bond with target luxuries can take the place of material ownership in luxury consumption. This is the first study to integrate immaterial luxury services as a standalone business sector when examining luxury value perceptions. Rich qualitative data was gathered through in-depth semi-structured interviews conducted with 40 individuals who are regular consumers of luxury products and services in Thailand—embracing purposive sampling technique. Subsequently, thematic analysis technique was adopted to analyse large data sets, identify key themes, and interpret thematic patterns and relationships derived from the data.

The findings reveal that Thai consumers prioritise personal values when assessing all aspects of luxury (i.e., luxury concepts, products, and services)— followed by functional, financial, and social values. This value-based conceptualisation of luxury offers an unorthodox outlook on luxury that is rather subjective, dematerialised, and ephemeral in nature. Additionally, while luxury products and services seem to share their prioritised order of value dimensions, their elemental luxury value perceptions are profoundly different within the two most salient personal and functional value dimensions. Thus, this research puts forward that luxury services should be regarded as a distinct luxury offering when examining luxury value perceptions. This thesis offers a deeper understanding of consumer psychology in relation to luxury concept and consumption that significantly contributes to both academic and business domains. In essence, it posits that today’s luxury consumption entails more than mere product attributes and that luxury management should shift from managerial-centric to consumer-centric going forward.