Determinants of Korean consumer’s behavior in purchasing luxury brand name products

Abstract

The objective of this study is to identify the important factors that lead to Koreans’ purchase on luxury brand products. This study also suggests the strategy for developing campaign promoting the sale of luxury brand products. This study collected data from 359 Korean people, aged between 20-30 years old in Sin-Chon neighborhood, Seoul, South Korea, during March – April, 2012. Out of 400 questionnaires that have been distributed to the respondents, 359 questionnaires (89.75%) were received. Descriptive statistic is used in this study. The results show that most of the respondents are female, ag 18-20 years old. Top item is hand bag and top brand is MCM that is originally a German luxury brand but now resurrection by Korean. Moreover, the results show that the important factors that lead Korean consumers to purchase luxury brand products the most is self-identity value, followed by quality value and usability value. Korean purchasing decision has evolved over time. Korean consumers do not purchase luxury brand name products because they want to show off like in the past, but they move forward to the fit in stage. This is when consumers decide to buy luxury products because they want to belong in the society. For the strategy for developing campaign on luxury brand product that suit with the young Korean consumers, except from items that have high quality, look good, last long and perform as they expected, we suggest by focusing on the presenters of the brand. Presenters should have many characters to suit with the style of the consumers, which will help them show their style through that product and want to support that brand. We suggest that the companies should be adjusted to match with behavior of their target group according to age group, income level and gender aspects.