5th INTERNATIONAL CONSUMER BRAND RELATIONSHIPS CONFERENCE 18-20 May 2017 Porto, Portugal ATTITUDES TOWARDS LUXURY BRANDS: COMPARING HOMOSEXUALS AND HETEROSEXUALS Arnaldo Coelho - Universidade de Coimbra Gisela Alves - CECS- Universidade do Minho Cristela Bairrada - Universidade de Coimbra António Barros - Instituto Politécnico do Porto

Presentation Structure Abstract Introduction Conceptual development and research hypotheses Method Sample and data collection Findings and discussion Conclusions, Limitations and Future research 5th International Consumer Brand Relationships Conference

ABSTRACT Consumer behavior and its changes represents a very important theme among marketing professionals. This study develops and tests a model to analyses some determinants (Social Influence, Materialism, Success and Vanity) of consumer attitudes towards luxury brands and the intention of purchase in the luxury market. The groups which were chosen to be investigated were LGBT and hetero, once they represent a niche of the current society in constant development with a high purchasing power. In order to get the expected results, a questionnaire was developed. The result of the research applied to 434 homosexuals and 403 heterosexuals residing in Portugal and Brazil, has shown some differences regarding the literature review, caused by the specificity and particular characteristics of the sample which was studied. Data were analysed through a confirmatory factor analysis and structural equations model. The results show that, generally, Social Influence, Success and Physical Vanity has an impact on consumer attitudes towards luxury brands and intention of purchase and consumer attitudes towards luxury brands have an impact on intention of purchase in luxury brands. This research work is valuable and relevant because, the reason why homosexuals and heterosexuals individuals purchase luxury products is not a well studied field. Keywords: Antecedents, Purchase intention; Luxury goods, Homosexuals and Heterosexuals

5th International Consumer Brand Relationships Conference 1. Introduction “Luxury consumer behavior is still a relatively new area of research” (Heine, 2010, p.132). “The value perceptions associated with luxury goods are poorly understood and under-investigated” (Shukla & Purani, 2012, p. 1418). “People of different genders, races, or ages define and relate differently to luxury” (Nwankwo, Hamelin & Khaled, 2014, p. 736). As it has already been said, this research aims to compare the buying motivations of luxury goods of two different segments: homosexual and heterosexual people. To the best of our knowledge, this study is the first that empirically tests such potential differences. 5th International Consumer Brand Relationships Conference

2. Conceptual development and research hypotheses The word ‘luxury’ refers to products or services of a very high standard (Shukla & Purani, 2012). The main characteristics of luxury brands are their premium quality and premium price, a heritage of craftsmanship, recognizable style, uniqueness and global reputation (Nueno & Quelch, 1998). The market for luxury has a huge importance for brands. Global sales of luxury brands, of high-end apparel, accessories, watches and jewels, and other products are projected to rise up to 170 billion Euros ($236 billion) in 2009 (Roberts, 2010). These figures are confirmed by Business Week (2010), pointing to an amount for the luxury sector of around $240 retail billion worldwide. 5th International Consumer Brand Relationships Conference

3. Method Research hypotheses The main purpose of this research is to identify the factors that affect the purchasing intentions of luxury goods by heterosexual and homosexual individuals. Figure 1- Conceptual Model 5th International Consumer Brand Relationships Conference

4. Sample and data collection 837 individuals agreed to complete the questionnaire online. 48,1% Hetero and 51,9% homosexuals resident of Portugal and Brazil; 45% were Portuguese and 55% were Brazilian; 40,5% female and 59,5% male; 64,3% aged between 18 and 30, 22,6% between 31 and 40, 9,6% aged between 41 and 55 3,6% above 56. 5th International Consumer Brand Relationships Conference

5. Findings and discussion Amos 21 was used to perform confirmatory factor analysis and structural equation modelling to test the proposed hypotheses. The final model shows a good fit (incremental fit index =0.935; tucker lewis index=0.924; comparative fit index =0.935; root mean square error of approximation=0.06; chi square/degree of freedom=4,121). The following table presents the final results for the overall sample. Table 1- Results 5th International Consumer Brand Relationships Conference

5. Findings and discussion H1 is supporting in both samples H2 is supporting in sample 2 but not in sample 1. H3 and H4 fails to support. H5 is supported in both samples. H6 is supported in sample 1 but not in sample 2. Results support these predictions but only for the physical dimension of vanity, supporting in both samples H7A and H8A but only for sample 1 because in sample 2 the effect is negative but not H7B and H8B. H9 is supported in both samples. 5th International Consumer Brand Relationships Conference

6. Conclusions, Limitations and Future Research Social influence is positively related to Attitudes towards luxury brands. This result is in line with previous studies, (Hung et al., 2011) since it shows that external factors also contribute to perceived value when the purpose of a luxury purchase means wealth, social status, and / or seeking approval. In this way, the individual is stimulated to buy luxury products by social influence. Social influence contributes to purchase intention in sample 2 but not in sample 1. Maybe because both groups attributed different degrees of importance to social influence. This factor only effectively leads to the purchase intention in the second group (Heterosexuals). Contrary to expectations, materialism is not related to Attitudes towards luxury brands and Purchase intention. The results show that perhaps respondents associate materialism with common products and not necessarily with luxury brands or products. 5th International Consumer Brand Relationships Conference

6. Conclusions, Limitations and Future Research Success was positively related to Attitudes towards luxury brands. As we have seen before, people who want success are individuals who believe that their possessions are the center of their lives. Possessions are essential for their satisfaction and they tend to evaluate their own success and the success of other people by the number and the quality of their possessions (Comegys & Fitzmaurice, 2006). This is the main reason for them to have a positive attitude towards luxury brands and to want to buy these kinds of products. Success contributes to purchase intention in sample 1 but not in sample 2. These results show that maybe respondents of the first group give more importance to overall success than the members of the second group. 5th International Consumer Brand Relationships Conference

6. Conclusions, Limitations and Future Research Vanity, either physical vanity or achievement vanity, was predicted to be positively related to Attitudes towards luxury brands and Purchase intention. The results support these predictions but only for the physical dimension of vanity, supporting in both samples H7A and H8A but only for sample 1 because in sample 2 the effect is negative but not H7B and H8B. These results are according to studies developed by Hung et al. (2011) that showed that vanity is highly related to the consumption of luxury fashion brands, since individuals are prone to spending on high prestige products and are consumers who are constantly buying new products to satisfy their self-esteem. Finally, as predicted, Attitudes towards luxury brands have, in both samples, a positive effect in Purchase intention. As we have seen before, according to Heine (2010), luxury brands are considered as conducting quality by consumers, being associated with a high level of price, aesthetics, rarity, among others. They are products which are considered as unique, inaccessible and representing status and power and that is why they arouse great desire to acquire them. 5th International Consumer Brand Relationships Conference

6. Conclusions, Limitations and Future Research This research is the first to test a model regarding the antecedents of purchase intention and attitudes towards luxury brands for the LGBT public, and therefore further research should test the structure in additional contexts. Research could replicate the findings in extreme individualist (e.g., United States) or collectivist (e.g., Asian) cultures to test whether cultural forces moderate the identified relationships. In terms of managerial recommendations, the results are important for companies wishing to enter the LGBT market, by providing information about the determinants of the purchase intention of luxury goods and, consequently, contributing to the selection of the strategic elements to rely on to differentiate, in order to match their specific needs and wants. 5th International Consumer Brand Relationships Conference

6. Conclusions, Limitations and Future Research Further research is necessary; a comparison between Portugal and Brazil would be of particular interest. Finally, other avenues of future research could interest both researchers in the area of luxury brands and others wishing to learn more about the LGBT public in a brand context. 5th International Consumer Brand Relationships Conference

5th International Consumer Brand Relationships Conference Thank you giselamariamaiaalves@gmail.com 5th International Consumer Brand Relationships Conference