Explaining variation in luxury goods consumption: A core-self evaluation perspective

This dissertation aims to explore luxury goods consumption behavior by elaborating its various forms and to examine the relationship between those forms and a psychological concept regarding individual differences in consumers' self-appraisals. In line with this aim, a conceptual model was developed that includes core self-evaluation, comprising of self-esteem, generalized self-efficacy, internal locus of control and neuroticism. Six distinct forms of luxury goods consumption behavior were also included in the model and were collected under two general titles: conspicuous and inconspicuous consumption. To empirically test this model, two separate studies were done. Firstly, as there is no known scale to measure inconspicuous consumption, a pilot study for scale development was carried out with 263 respondents via an online survey method. Both exploratory and confirmatory factor analyses were used to validate the scale. Secondly, the proposed comprehensive model was tested using path analysis. With purposive sampling that targets a certain age range and income level, data were collected from 194 subjects via an online survey method. Following these analyses, a reliable and valid inconspicuous consumption scale was obtained. Statistically significant relationships between core self-evaluation and each form of luxury goods consumption behavior were detected. To the best of the author's knowledge, along with having introduced a new scale into the literature, this dissertation has used the concept of core self-evaluation in the field of marketing for the first time. Keywords: Luxury; Inconspicuous consumption; Conspicuous consumption; Core selfevaluation; Branding