Nitin Soni
@iimraipur.ac.in
Post Doc Fellow IIM Raipur
Indian Institute of Management Raipur
Scopus Publications
Scopus Publications
Nitin Soni and Sushant Kumar
Emerald
PurposeLuxury consumption has evolved, and two important reasons behind the change include globalization and the COVID-19 crisis. These factors have led to the rise of new luxury consumption, which is different from traditional luxury consumption. This study examines how consumers’ identities shape their intentions to consume traditional luxury and new luxury brands.Design/methodology/approachThe theoretical underpinnings of the schema congruity theory and heuristic systematic framework were applied to understand the role of identities in determining consumers’ regulatory focus, price luxuriousness inference and preference for traditional and new luxury brands.FindingsFindings suggest that the global identity of consumers shapes their promotion focus and price luxuriousness inferences. However, their local identities induce a prevention goal. Consumers with such a goal are unlikely to make price luxuriousness inferences. Further, these inferences lead to the choice of traditional luxury over new luxury brands. The results also establish the moderating effects of consumer flexibility.Originality/valueThe extant literature is inconclusive on the role of globalization in luxury consumption and ignores new luxury brands. The current study shows the impact of identities and regulatory focus on traditional and new luxury consumption. The findings also indicate consumers’ regulatory focus and price luxuriousness inference as the reasons behind the influence. The paper also implies that consumers open to renting, sharing or buying second-hand goods will prefer new luxury over traditional luxury brands.
Nitin Soni, Jagrook Dawra, and Kanupriya Katyal
Emerald
PurposeThis study shows the influence of consumers' goal and strategy of maximization on the process behind their behavioral response to price.Design/methodology/approachData was collected through a 2×2 experimental design involving 314 respondents and analyzed using PLS-SEM.FindingsThe results show that when buyers maximize, their transaction value and acquisition value perceptions predict their behavioral response to deals and discounts. Further, these buyers do not consider sales price information to form their internal reference price. On the other hand, when buyers satisfice, their transaction value perceptions predict the behavioral responses to price deals, and the relationship between transaction value and the behavioral response is not mediated by acquisition value. Further, such buyers consider sales price to form their internal reference price.Originality/valueThe theory of purchase value assumes that consumers seek to maximize their value. Our work relaxes this assumption to show how value maximizers (and satisficers) differ in the process of value formation and their responses to price promotions.
Kanupriya Katyal, Jagrook Dawra, and Nitin Soni
Elsevier BV
Nitin Soni and Jagrook Dawra
Emerald
Purpose An open question of behavioral pricing literature is: What are the factors which influence consumers’ judgments of acquisition value and transaction value? An important framework to explain consumers’ shopping and purchase decisions is their decision-making styles. This paper aims to examine the influence of consumers’ decision-making styles, that is, perfectionistic high-quality conscious, brand conscious-price equals quality, novelty-fashion conscious, recreational-hedonistic, price conscious-value for money, impulsive-careless, habitual-brand loyal and confused by overchoice on their judgments of acquisition value and transaction value. Design/methodology/approach From the literature, a conceptual framework was formulated. Data was collected from a survey of 304 respondents. The measurement model was tested using exploratory factor analysis and confirmatory factor analysis. The structural model was tested using structural equation modeling. Findings The consumers’ judgments of acquisition value and transaction value vary with their decision-making styles. The measurement and structural models exhibited good fit, and 12 of the 16 proposed hypotheses were found to be significant. Research limitations/implications The respondents for this research study were urban and postgraduate students. Practical implications The results of this study can help managers personalize their promotional offers and market offerings targeted at consumers with different decision-making styles. Originality/value Behavioral pricing literature has not convincingly shown that consumers make the judgments of the two values, acquisition value and transaction value, in a purchase scenario. There is limited literature on the impact of decision-making styles on the marketing variables. The results of this study contribute to the literature by showing that consumers make the judgments of these two values, and these judgments vary with their decision-making styles. Also, this is one of only a few studies to examine the two components of the purchase value in an Indian context.