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ISSN : 1229-8778
Despite the emerging growth of luxury shopping online, there have been few studies examining what happens when luxury brands are sold online, from the perspectives of product quality and online shopping values perspective. Thus, this study developed an online shopping model, which was then empirically tested with structural equation modeling. Using a two-factorial research design, this study looked at a luxury brand (Chanel) by comparing a massbrand (Uniqlo) as the control variable. Data was obtained, using a within - subject survey, from 275 luxury consumers. Overall, the results showed that people perceived the brand quality of luxury and mass brands differently, when these products were sold online. Luxury consumers had the low quality perception on luxury brands online, and the positive relationship between the quality perception and shopping value for luxury brands was weaker than for mass brands. In contrast to the previous shopping literature, the study found that the online shopping values for luxury brands and entertainment did not affect purchase intention. Financial risk had a strong negative impact on online shopping values and positively influenced search intention. The results found that the online shopping values did not influence purchase intention online because of the low perception of luxury brand quality and a perception of high financial risk perception associated with online shopping. For the managerial implication, both luxury manufacturers and online retailers should be cautious when selling luxury brands online. They need to develop better online shopping value offerings, such as low financial risk and high entertainment.
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