Millennial Consumers Perceptions on Luxury Goods: Capturing Antecedents for Brand Resonance in the Emerging Market Context

Abstract

Research relating to luxury brand resonance has typically focused on millennial consumers in developed countries. This has consequentially caused a lack of theory regarding how millennial consumers in developing countries build brand resonance with luxury brands. To fill this research gap, the current research examines millennial consumers’ characteristics from developing countries. To test our model, we used structural equation modeling with 252 survey samples collected from China in 2019.

This research identifies that the characteristics of millennial consumers in developing countries interact with the brand identification process to generate brand resonance. In doing so, this paper is able to identify the characteristics of developing countries millennial consumers. Secondly, this research also identifies that millennial consumers in developing countries are a unique cohort who have their own brand identification and assessment process. This study directs the way firms enable brand resonance for millennial consumers in developing countries.

Keywords:

• Millennial consumers
• Developing market
• Cognitive identification
• Affective identification
• Brand resonance

1. Introduction

When similarities exist in a specific consumer group, marketers can offer similar products, services, and experiences to a large number of consumers so that they may be able to build more effective and efficient marketing strategies in response to customer consumption behaviors (Parment 2013). However, differences in cultural, political and economic factors among consumers are difficult to identify in the current integrated global market. Therefore, classification of consumer groups, which have a homogenous bond has long been in the interests of many researchers (Jin et al. 2015). Identification of the millennial consumers is one of the most successful segmentations achieved so far. To some extent, the previous millennial research has provided a strong ground for analyzing the ‘why consumers buy’ and implementing retail strategies.

However, our understanding of the ‘why millennials buy’ phenomenon is still constrained. The number of millennials in developing countries are increasing rapidly with population growth (e.g., India, China and South East Asian countries). According to Gapper (2018), millennials make up 86% of the population in developing countries. In fact, millennial consumers already outnumber the population of baby boomers by four million (Weber 2017). Such an increasing number of millennial consumers in developing markets requires investigations to identify their shopping patterns. In doing so, developing market millennial consumers may supply new opportunities for international businesses and firms (Jin et al. 2015; Lee and Tai 2006).

The current study explores the millennial consumers’ shopping motivation and its affective mechanism in formatting brand resonance with luxury brands within the context of developing countries. Millennial consumers’ shopping patterns are identified as social influenced, brand image affective and information intensive behavior in developed countries (Parment 2013; Smith 2012, 2011). However, there has been a scarcity in research that revealed why and how millennial consumers build their purchase intention in developing countries. To resolve this issue, this paper theorize that the characteristics of millennials in developed countries can be applied to those in developing countries, but such characteristics are generated by cognitive and affective brand identification and resonance forming processes. With regard to the characteristics of millennials, this paper employs the discussion on social influenced, emotional and information intensive shopping patterns as the antecedents. To capture the impact of millennial purchase intentions, we adopt brand salience and resonance as a consequence.

For the research context, namely developing country, we have chosen the Chinese luxury market for two reasons. First, Chinese millennials represents consumer segmentation of millennial consumers in developing economies. The number of Chinese millennial consumers will overtake US millennials by 2035. As such, this provides a suitable respondent sample to explore. Second, by focusing on the Chinese luxury market, more specific and explicit shopping patterns of Chinese millennial consumers will be captured. It is known that a third of Chinese millennials intend to buy luxury items (Gapper 2018).

By segmenting the international consumers in two different aspects, namely generational cohorts and the level of economic development, the current research will support international marketers to plan with consumer-oriented strategies that match and can take advantage of consumer preference and behavior in an international setting.

2. Literature review

2.1. Luxury brand consumption in China

China’s luxury market has been notable in both its size and growth. China has emerged as the new test market for high-end products. Substantial growth in China’s economy during the last two decades has contributed to soaring consumer interest in luxury brands. Chinese luxury consumption was ranked among the top three countries globally in 2010, only behind the United States and Japan. It is estimated that by 2025, China will claim the biggest share of the global luxury market, even after the world economy would have returned to pre pandemic levels (www.fashionunited.uk). Recognizing the robust spending power of Chinese consumers on major global luxury brands, brands such as Bulgari, Gucci, and Rolls-Royce have augmented their marketing efforts in China. Data from the World Luxury Association (WLA) shows that the value of luxury brands expenditure in China has increased by US$6 billion each year (www.luxurychina.org). Chinese millennial consumers are increasingly brand aware, and they intend to invest in luxury fashion brands (Bruce and Kratz 2007). Regarding luxury brand purchase, research on Chinese consumer behavior have identify five specific attributes that can influence the intention of consumers to buy luxury products: social status, face (that is pride and dignity related to one’s achievements), collectivism, connections and affect (Walley et al. 2013). Godey et al. (2013) found that Chinese consumers’ perception for luxury brand was closely linked to prestige, extravagance and conspicuousness. Overall Chinese consumers of luxury brand place huge emphases on the origin (France, Italy, Germany, Japan and United States) of the product that they consume (Mundel, Soopramanien, and Huddleston 2021). The luxury fashion goods mostly consumed in China include apparel, accessories, handbags, shoes, watches and jewelry for which the brand name brings social status and symbolic meaning to its owner (Vigneron and Johnson 2004). Therefore, understanding millennial consumers’ characteristics toward luxury brand perceptions in China offers potential for market planning.

Although it is tempting to attribute the growth of luxury brand consumption in China purely to growth in GDP, there are other factors relating to social environment and interpersonal interaction (Country of Origin, Brand prestige and Normative Influence) that have contributed to this trend.

According to Giada Mainolfi (2020), the current Chinese society places great importance on normative Influence. Normative influence is the need to identify with others through a brand (Bearden, Netemeyer, and Teel 1989). The prevalence of normative influence, along with the recognized materialistic values of the Chinese has created a fertile ground for the growth and success of many international brands. By imitating influential people who represent wealthy values, Chinese consumers feel more confident when selecting expensive luxury brands. As Yang (1981) stated, young Chinese people are concerned with their images among their peers, and often seek the inclusion of a certain social group through owning luxury brands. In addition, Chinese consumers consider products or goods made in western countries as a positive factor, and thus attribute more positive value to foreign brands that reflect the western style to which they aspire to gain access (Zhou and Wong 2008). Therefore, Chinese individuals are consumers who indulge in the purchase of branded products that have a distinguished name and reputation in the market.

2.2. China and Western perception of luxury Brand consumption

With China’s phenomenal economic growth, penetration of western culture into the country has increased the desire for luxury brand and lifestyle. This situation has led to the influx of western companies who intend to keep their brand image consistent worldwide. As such, these brands sell the same designs and products in China as found in various markets. However, China has a unique cultural background, which may well explain why Chinese consumers differ significantly from western countries (Zhan and He 2012). According to Zou, Xu, and Shi (2015), luxury consumers in China prefer to buy products that are designed specifically for their country as well as those that incorporate Chinese imagery. Therefore, it is reasonable to assume that much of the literature on luxury brands that have been developed in western countries cannot be extended into China

First, the main body of luxury consumption in China consists of young people, with an age range of 20-40 years old. This is in contrast with the western markets, where senior consumers between 40-70 years old dominate the larger segment of the luxury market (Wang, Sun, and Song 2011). Such differences may be due to the drastic social and economic changes that have been occurring in China over the past three decades. The young generation are becoming a significant segment of luxury consumption (Zou, Xu, and Shi (2015). Elder Chinese, who experienced massive political campaigns and cultural revolution lived a frugal life for a long time, and hence are less likely to adapt to a luxury life style (Wang, Sun, and Song 2011).

Second, consumption of luxury products in China is product driven or item driven. This consumption is concentrated more on personal products such as cosmetics, bags, watches, jewelry and other similar items. Over the past few decades, most premium brands have witnessed an increase in sales. Yet a different perspective shows how consumers in developed markets tend to seek family vacations and time saving services in contrast to buying luxury goods (KPMG 2011).

Third, Chinese luxury market has a huge problem with counterfeit products. Valuing authentic luxury products in the Chinese market is a daunting task. Counterfeit products offer low prices to luxury brands. As such, the sales of real luxury brands have been eroded by the sales of counterfeit products. On the contrary, it is argued that the availability of counterfeit products may help to increase brand awareness, thereby making the authentic product more popular (Nia and Zaichkowsky 2000). Such a situation with counterfeit products is rarely produce in western markets.

Despite the unlikely similarities between China and Western countries, Chinese millennials’ worldviews have been influenced by an influx of individualistic beliefs akin to those in Western cultures. For example, Chan, Zhang & Wang (2006) pointed out that millennials in urban China are prone to higher degrees of materialism which has been fueled by Chinese parents who experienced a lack of wealth in their youth and as such are keen to provide expensive lifestyles to younger generation. Adhering to this, Mundel, Soopramanien, and Huddleston (2021) suggest that Chinese millennials are less price sensitive to and are willing to pay more for luxury brand than western consumers. It is possible because the material value of a gift is perceived to be important for gaining and maintaining good guanxi. Guanxi is considered to be a Chinese and unique way of valuing interpersonal relationship (Chen and Kim 2013). As such, in other not to lose guanxi relationship, Chinese consumer will opt to buy very expensive luxury brand

2.3. Millennial consumer and luxury Brand consumption

The current competitive business environment requires brand managers to target their products successfully at segment across national frontiers. To do so, greater insights into how consumer attitudes and preferences are made is critical in determining consumer purchase intention (Cleveland, Laroche, and Papadopoulos 2009; Steenkamp, Ter Hofstede, and Wedel 1999). This is because behavioral traits of this specific generational cohorts will provide substantial benefits such as insights regarding the patterns of developing their values, preferences and attitude toward marketing strategies (Parment 2013). One of the most significant dilemmas facing international marketers is the degree to which marketing strategies should be standardized globally versus customized to local conditions (Cleveland, Laroche, and Papadopoulos 2009). From this perspective, the homogeneity of millennial consumers is also used and tested for different marketing strategies (Jin et al. 2015; Parment 2013)

Millennial consumers refer to individuals that were born from 1980 to 2000 (Gurǎu 2012; Purani, Kumar, and Sahadev 2019). In part due to globalization, millennial consumers emerged in the age of economic growth, expansion of social media and mixed international culture (Lee and Tai 2006; Lissitsa and Kol 2016; Parment 2013). According to Goldmansachs, millennial consumers’ technology savvy characteristics have changed the retail industry (Goldmansachs 2019). With product and price comparison on their wireless mobile devices, millennial consumers have pressured brand retailers to lower their prices. With the emergence of the internet, millennial consumers have expanded their control over an extended global market by supplying their reviews and opinions through a multitude of websites (Smith 2011).

The distinctive characteristics of millennial consumers related to their buying behavior are discussed in the literature review. One of the distinctive characteristics of millennial consumers is that they appreciate a large amount of information as a new opportunity to navigate (Ordun 2015; Parment 2013). So, to them, innovation is a continuous social change to adapt and involve in their decision-making process (Weber 2017). In a similar vein, due to social media, this generation is more global in shopping preferences and experiences (Weber 2017). In an international setting, product information is frequently not clear so physical distance emerges and consumers are required to use IT to access information they require. In this process, young consumers use IT in a diverse way to increase their purchasing intention while increasing their informedness (Han and Kim 2019). On the other hand, the intense and immediate access to information supports millennial consumers to be more connected with others which causes their decision making to be largely influenced by social norms. This is due to the fact that they see their peers and acquaintances as credible information sources (Smith 2012). In this sense, subjective norms from peer groups such as influencers, colleagues, friends and relatives is a crucial factor which influenced their purchase response (Purani, Kumar, and Sahadev 2019). Studies further described that millennial consumers are more materialistic so they place significant importance on image and fame. According to Weber (2017) millennial consumers are very self-expression and emotion focused in purchase intention development (Parment 2013). In this regard, they are brand and image conscious cohorts who seek social status (Eastman and Thomas 2013; Valentine and Powers 2013). In a similar vein, some research identified that millennial consumers have a strong sense of brand awareness (Gurǎu 2012). Moreover, with regard to foreign products, cosmopolitanism and ethnocentrism are identified as critical antecedents in developing their purchase intention (Jin et al. 2015).

In our literature review, we identified that the majority of research has focused on millennial consumers in developed countries, neglecting those in developing countries (see Table 1). This geographically and economically biased approach to the millennial consumers provides a constrained understanding to the international marketers, especially in the context of brand resonance.

Table 1. Literature on millennial consumer behaviors (developed vs. developing countries).

Studies	Main findings	Data collected from
Parment (2013)	Segmenting by age (Millennial) provides a richer segmentation for shopping behavior analysis	Developed countries (Europe and Sweden)
Lee and Tai (2006)	Young consumers in a developing country is largely affected by mass media so they are allowed to develop favorable attitude to global brands	Developing country (Kazakhstan)
Lissitsa and Kol (2016)	Segmenting the millennial consumer is valid to analyze the trend of internet adoption and online purchasing behavior	Developed country (Israel)
Purani, Kumar, and Sahadev (2019)	Millennial consumers innovativeness and peer influence plays crucial roles in their e-loyalty formation	Developing countries (India)
Tjandra, Omar, and Ensor (2015)	Millennial consumers in developed countries perceive better quality toward the products made in advanced countries and also pay attention to the associated ethical issue on manufacturing the products. Millennial consumers in developing countries only consider the functionality of the products.	Developed & developing countries
Weber (2017)	Millennial consumers are self-reliant and independent consumer group so personal value is more appreciated.	Developed countries (USA)
Smith (2012)	Digital marketing strategies are effective to attract attention of millennial consumers as they repeatedly use websites and use online reviews.	Developed countries (USA)
Valentine and Powers (2013)	In life style analysis, millennial consumers are experiencers to socialized strives, to seek social status and achievers who care about self-images.	Developed countries (USA)
Smith (2011)	Digital marketing is an effective strategy for millennial consumers. However, the marketing tools should support them in efficient, comparable, and incentive-based shopping.	Developed countries (USA)
Bilgihan (2016)	For millennial consumers, trust and brand equity are key precursors of e-loyalty in online shopping	Developed countries (USA)
Gurǎu (2012)	For developed country millennial consumers novelty, quality, reliability, reputation, value for money and environmental values are critical elements to evaluate products but in developing countries, value for money and convenience are important factors.	Developed (France) & developing countries (Rumania)

Even though consumer consumption is no longer hindered by global boundaries due to the emergence of a common class and mass media (Hume 2010; Lee and Tai 2006; Smith 2011), the attitude and preference of millennials can be diverse, based on economic and market context (Gurǎu 2012). In fact, a few works explored shopping patterns of millennial consumers in transit economies and provided limited discussions that are lacking comprehensive and integrative understanding of the current international marketing strategies. For instance, Tjandra, Omar, and Ensor (2015) attempted to identify the perspectives of millennial consumers (in developed and developing countries) on the Country of Origin. In their work, the distinctive characteristics of developing countries’ millennials emerge. Even though they are young consumers, the functionality rather than reputation is regarded as critical motivation in new brand consumption. Even though Tjandra, Omar, and Ensor (2015) identified the difference of millennial consumers in two different economically developed stages, they do not offer a complete theory regarding how the millennial consumers develop brand resonance in developing countries.

We capture a research opportunity in such biased literature toward developing countries. As such, there have been no studies that have looked specifically into millennial shopping patterns on developing economy luxury markets. Addressing this gap would deliver important contributions for researchers and managers. More importantly, this work would help provide a theory-based understanding on how to segment the transit economy markets and how to formulate targeted brand marketing strategy initiatives.

3. Material and method

3.1. Research hypothesis and key variables

To represent millennial consumer’s characteristics, we adopt COO (country of origin) information, normative influence and brand prestige as three key antecedents which mirrors their characteristics respectively. Furthermore, to capture the way such characteristics affect brand assessment process and generate consumer loyalty, the current study explores if millennial consumers’ characteristics affect the brand identification process and brand resonance. Figure 1 illustrates the characteristics and roles of millennial consumers in emerging markets

Figure 1. A research framework of this study.

3.2. Evaluation process of millennial consumers

3.2.1. Cognitive identification

When consumers actively respond and engage to specific brands, consumers are more likely to have a stronger willingness to buy it. In the consumer engagement literature, some researchers have mentioned cognitive identification to capture the idea of consumer evaluation process. Cognition is a recognized dimension of participation in consumer literary processes. Specific examples of cognitive dimensions which illustrate consumer brand engagement are positive, sustained, and even complex cognitive processes (Sprott, Czellar, and Spangenberg 2009). Mollen and Wilson (2010) adopted a more explicit experience approach. They advocated cognitive identification as the psychological state that website users experience during their interaction with the website interface. Mollen and Wilson (2010) also identified that consumer cognitive identification is often associated with self-esteem.

Hollebeek’s Hollebeek (2011) use of cognitive identification reflects the return of the customer’s perceived brand-related benefits, with a certain degree of focus on brand-related ideas and brand interaction. Hollebeek (2011) defines cognitive identification as a customer’s interaction with a particular brand.

Cognitive identification is often related to consumer’s self-esteem, self-worth. Consumers can maintain or enhance self-esteem by purchasing luxury brands (Truong and McColl 2011). In an international context, Chinese consumers can gain recognition from surrounding people and promote self-esteem by purchasing luxury brands, which means that cognitive identification plays an important role in the purchase of luxury brands by Chinese consumers.

3.2.2. Affective identification

According to Hollebeek (2011), consumers can acquire strong, positive effects with their selected brands by being passionate about the brand, and in some cases, obsessive. In this sense, affective identification represents consumer’s degree of positive brand-related affection (Hollebeek 2011).

When dealing with consumption, emotions may be influenced by consumer beliefs and evaluations of products. Some studies have shown that emotions are affected by a sense of belonging. It is important to understand the affective identification of consumers when buying a luxury brand. Affective identification is based on the consumer’s perception of the state of the environment. While consumers’ emotions are influenced by their evaluation and interpretation of their environment (Del Bosque and San Martín 2008).

Chinese consumers use luxury brands to classify or distinguish themselves from those consumers around them. They try to incorporate the symbolic meanings that luxury brands brings to their own social identities, which constitutes consumers’ affective identification for luxury brands. Consumers are eager to adapt to lifestyles that demonstrate social status and to differentiate themselves from non-affluent lifestyles, which affect their resonance of brands (Vigneron and Johnson 2004).

3.3. Hypothesis development

3.3.1. Coo information and consumer’s identification of luxury Brand

When international consumers are not familiar with the product information, especially its origin and other product specification, Country of origin (COO), can provide a “halo” that influence the consumers’ intention to buy foreign products as it directly and indirectly affects consumers’ beliefs and overall evaluation of the products (Han and Kim 2019; Tjandra, Omar, and Ensor 2015; Mockaitis, Salciuviene, and Ghauri 2013). In many countries, product labels require marketers to disclose the origin of the product and other specifications. According to a study carried out by Piron (2000), COO information of a product is a powerful determinant of purchasing behavior of consumers. Especially when purchasing luxury brands, COO information seems to have a greater effect on consumer purchasing decisions rather than the product itself. A positive image of COO may provide consumers with positive impression and reputation.

For example, consumers have recognized that the production of high quality and technology products requires a well-trained and well-educated workforce (Verlegh and Steenkamp 1999). Therefore, they believe these products to be of better quality because they are produced in developed countries.

The influence of COO information can also be attributed to strong national sentiment and intrinsic cultural contents of countries, which might be formed during either a direct experience with foreigners, or an indirect experience through art, education or mass media (Verlegh and Steenkamp 1999).

H 1：COO preference has a positive effect on cognitive identification.

H 2：COO preference has a positive effect on affective identification.

3.3.2. Brand prestige and consumer Brand identification process

Based on previous research, Bhattacharya, Rao, and Glynn (1995) suggests that good brand prestige can often be used as an indicator of brand success because people believe that a highly acclaimed brand is successful. If prestige is considered successful and well known by consumers, it can also enhance their pride in their peer groups by supplying good brand prestige. Bergami and Bagozzi (2000) pointed out that when consumers connect themselves to a highly respected brand, they generate positive recognition. This has led people to connect themselves with well-known luxury brands to enhance their self-esteem.

Inherent value and luxurious image are key features that may make a brand be considered prestigious, therefore, brand prestige is defined as a relatively high status of brand-related product positioning (Hwang and Hyun 2012). Consumers choose a prestigious brand as a signal of social status, wealth or power, and are closely related to the individual’s self-concept and social image. Brand consumers of luxury goods do not only obtain actual benefits of well-known brands, but also obtain intangible benefits.

Similarly, in the luxury goods industry, customers expect not only to obtain high-quality, excellent design and quality benefits, but also expect to interact with other famous customers through brand prestige to form intangible benefits. Consumers tend to view the consumption of luxury brands as a sign of social status and wealth because not all consumers can afford luxury brands (Vigneron and Johnson 2004; Tsai, Yang, and Liu 2013). As brand prestige is established as an important predictor of the brand identification, we aim to suppose that:

H 3：Brand prestige has a positive effect on cognitive identification.

H 4：Brand prestige has a positive effect on affective identification.

3.3.3. Normative influence and consumer’s identification of luxury Brand

People buy products not only because of its function, but also because of what it symbolizes. A luxury brand represents a special element in consumer cultures (Torelli and Kaikati 2009). Because of this, luxury brands with unique and irreplaceable characteristics have attracted consumers’ constant purchase under the influence of social norms. In other words, normative influence is regarded as the extent to which an individual is influenced by other people in the normative field.

Gopinath and Nyer (2009) describe normative influence as the need to identify one’s self-image through a brand. This implies that, consumers buy products to get in touch with some social events, experiences, and generate interactions around them. So normative influence is sometimes characterized as the desire to stay continually connected with what others are doing (Przybylski et al. 2013). It is easy to make consumers feel disintegrated when they break away from the group of members in the society. In order to resolve this anxiety, many consumers get a stronger tendency to imitate and follow others behavior by purchasing specific products (Alt 2015).

Consumers often purchase product to copy their peers’ purchasing experiences. Such a comparative criterion for self-evaluation or a source of personal norms can be referred to as a normative influence (Batra 2001). Consumers perceive information about the brand from the people around them, and buy the same brand as the people around them to enhance their self-image. Take luxury brands as an example, for Chinese consumers, the purchase of luxury brands takes precedence over local brands. This may be due to the added value of the luxury brand source on consumer’s self-image and help users gain social acceptance and recognition (Batra 2001) and also social comparison (Zhang and Kim 2012).

Therefore, we hypothesize that:

H 5：Normative influence has a positive effect on cognitive identification.

H 6：Normative influence has a positive effect on affective identification

3.3.4. Consumer’s brand identification process and luxury Brand salience

In the field of consumer behavior, many studies have shown that consumer cognitive preferences have a positive effect on consumer buying behavior (Brodie et al. 2013; Hollebeek 2011). Cognitive identification is based on the product information available to customers, which refers to the mission and product salience level of consumers in consumer market activities.

Leon and Kanuk (2010) suggested that cognitive preferences would arise when product attributes are different among the same product category. According to prior research, consumers spend less time, use different information search patterns, and often use strategies that directly compare brand salience with respect to the choice of standards, as well as the brands they choose to purchase in different ways. When related to consumer cognitive identification, saliency concepts are often associated with the ability of a project to stand out from its environment or context, a manifestation that is often translated into long-term memory accessibility. In short, some brands are more likely to be noted and some brands are more likely to be retrieved from the long-term memory of consumers (Romaniuk and Sharp 2004). In previous studies however, the impact of consumer cognitive identification on brand salience was easily overlooked.

Affective identification is the establishment of meaningful links with other consumers and the experience of caring for other consumer’s emotions. Affection is not a time-limited emotion, but a summary mechanism of emotional processing which reflects the persistence of communication (Wiedmann, Hennigs, and Siebels 2009).

Belk (2013) demonstrated the concept of self-propensity that people view their property as part of their identity. So consumers who have an affective identification for a specific brand can use the perception of brand transfer to extend their satisfaction to summarize similar brands to replicate the impression of wealth. Brand salience is often considered to be a persistent state of the consumer, so it is inaccurate to evaluate it based on transient phenomena (Schaufeli, Bakker, and Salanova 2006). Therefore, brand salience will increase when consumers are familiar with a brand. Affective identification, on the other hand, is the establishment of meaningful connections with other consumers, and it is not subject to time constraints, and thus reflects the lasting aspect of salience (Hollebeek 2011). After consumers’ current affective identification long-term affective memories are created, consumers are able to recall the brand immediately. Therefore, we aim to develop hypotheses as below:

H 7：Cognitive identification has a positive effect on luxury brand salience.

H 8：Affective identification has a positive effect on luxury brand salience.

3.3.5. Brand salience and luxury Brand resonance

Brand salience refers to the power of brand in the minds of consumers. Lu, Chang, and Chang (2014) studied that when consumers are more familiar with a brand, their brand salience will increase. This will also increase their confidence in the brand and consumers will be more likely to trust the brand and have a more positive brand resonance. Brand resonance is defined as the nature of the relationship between the consumer and the brand and also the extent to which they believe it is in sync with the brand (Keller 2001). In the study of Keller (2001), brand resonance can be divided into four factors: behavioral loyalty, attitudinal attachment, sense of community and active engagement. Keller (2001) pointed out that in order to resonate with a brand, consumers not only need to use the brand’s products frequently, but also need to actively pay attention to the brand-related information, forming a strong psychological attachment to the brand.

Many researchers believe that the higher the brand salience level, the higher the consumer’s resonance level for the brand (Hsin Kuang, Huery Ren, and Ya Ting 2009). Based on study of Hutter et al. (2013), brand salience can be seen as process that makes consumers aware of the label. According to Hutter et al. (2013), there are three reasons why brands salience should stand out during consumers’ decision making. First, when consumers make a purchase decision, it is important to consider the brand itself. Strengthening brand salience would increase the likelihood that consumers will purchase the brand. Secondly, brand salience could influence consumers to reconsider brand decisions. Even if a consumer’s brand participation is low, even basic brand salience might influence brand selection. Lastly, brand salience affects the formation of brand image and brand strength (see Figure 2). The necessary condition for establishing a relationship between consumers and brands is the presence of brands in the minds of consumers. Based on above arguments we suppose that:

Figure 2. Research model.

H 9：Luxury brand salience has a positive effect on luxury brand resonance.

3.4. Methodology

3.4.1. Sampling

This paper investigates factors that influence millennial consumers’ consumption pattern by focusing on the Chinese luxury market. This study uses selected respondents representing Chinese millennial consumers as research targets surveyed through March to May 2018. They were chosen based on their strong interests and consumption experience of luxury brand in the Chinese market. Respondents were required to answer the designed questions based on their general feeling of luxury brands with brand personality and evaluation of their preferred luxury brand. For example, in the questioning part relating to brand prestige, respondents are required to answer whether the specific brand is very prestigious or is committed to deliver on its claims

In addition, quota sampling was used to collect different samples of gender, age and occupation. While quota sampling belongs to the category of a non-probability sampling method, samples should accurately reflect the characteristics of the population when units are selected correctly.

3.4.2. Constructs and measurement items

This study constructed the measurement items by using previous studies for each variable. The survey objects of this survey were asked to state his or her agreement on each item, using the 5-point Likert-type Scale with anchors ranging from “strongly disagree (=1)” to “strongly agree (=5)”. There were 7 constructs, 24 questions and 3 demographic questions in total.

Items measuring COO information preference were selected from research of Mohd, Nasser, and Mohamad (2007); items measuring brand prestige were selected from Baek (2010); normative influence was measured using items developed by Przybylski et al. (2013). Measurement items from Hollebeek (2011) were used to measure cognitive identification and affective identification. Items measuring luxury brand salience were created from those developed by Yoo and MacInnis (2005) and Mohd, Nasser, and Mohamad (2007), while items measuring luxury brand resonance were selected from research of Sprott, Czellar, and Spangenberg (2009). Table 2 shows the measurement items of this study.

Table 2. Measurement items.

COO preference	The country where the luxury brand originates is highly technological advance. The country where the luxury brand originates has high quality in its workmanship. The country where the luxury brand originates is prestigious.	Mohd, Nasser, and Mohamad (2007)
Brand prestige	This luxury brand has the ability to deliver what it promises. This luxury brand is very prestigious. This luxury brand is committed to deliver on its claims. 4. What luxury brand stands for what is important to me.	Baek (2010)
Normative influence	I get anxious when I don’t know which luxury brand is popular among my friends. It is important that I continue to keep in touch with what my friends are buying. 3. When I buy a new luxury brand it is important for me to share the details online	Przybylski et al. (2013)
Cognitive identification	Using luxury brand gets me to think about this brand. I think about luxury brand a lot when I’m using it. Using luxury brand stimulates my interest to learn more about this brand.	Hollebeek (2011)
Affective identification	I feel very positive when using luxury brand. Using luxury brand makes me happy. 3. I feel good when I use luxury brand.	Hollebeek (2011)
Luxury brand salience	I know how the symbol of luxury brand looks like I have no difficulties in imagining luxury brand in my mind I can recognize luxury brand among other competing brands. 4. Characteristics of luxury brand comes to my mind quickly.	Yoo and MacInnis (2005) Mohd, Nasser, and Mohamad (2007)
Luxury brand resonance	1. I feel as if I have a close personal connection with the luxury brand I prefer. 2. I can identify with important luxury brand in my life. 3. There are links between luxury brand that I prefer and how I view myself. 4. My favorite luxury brand is an important indication of who I am	Sprott, Czellar, and Spangenberg (2009)

4. Empirical results

4.1. Sample characteristics

The questionnaire of this study was conducted through online and offline surveys in China. A total of 252 questionnaire were valid. The characteristics of the samples are given in Table 3. According to the valid samples collected, it consists of 100 males (39.7%) and 152 females (60.3%). Regarding age group 11 consumers are under 20 years (4.4%), 104 consumers are in their 20 s (41.3%), 85 consumers are in their 30 s (33.7%), 34 consumers are in their 40 s (13.5%), and 18 consumers are over 50 s (7.1%). In addition, 88 consumers (34.9%) are students, 120 consumers (47.6%) are office workers, 26 consumers (10.3%) are self-employed, 5 consumers (2.0%) are public employees and 13 consumers (5.2%) selected other as their occupation.

Table 3. Sample characteristics.

Variable	Category	Frequency	Percent (%)
Gender	Male	100	39.7
	Female	152	60.3
	Total	252	100
Age	Under 20 s	11	4.4
	20s	104	41.3
	30s	85	33.7
	40s	62	20.6
	Total	252	100
Occupation	Student	88	34.9
	Office worker	120	47.6
	Self-employed	26	10.3
	Public-employee	5	2.0
	Other	13	5.2
	Total	252	100

4.2. Means, standard deviations, and correlations among constructs

The correlation matrix with mean scores and standard deviations are presented in Table 4. Out of all the mean values amongst each construct, the mean of cognitive identification is the highest with 3.500, whereas COO preference is the lowest with 2.908.

Table 4. Correlations among constructs.

	①	②	③	④	⑤	⑥	⑦
①	1
②	-.248***	1
③	.029	.236***	1
④	.102	.226***	.283***	1
⑤	.071	.269***	.385***	.220***	1
⑥	.097	.350***	.421***	.314***	.388***	1
⑦	.090	.308***	.410***	.253***	.332***	.447***	1
Mean	2.908	3.416	3.496	3.500	3.497	3.429	3.398
S.D.	.885	.640	.784	.663	.682	.705	.700

① COO preference, ② Brand prestige, ③ Normative influence, ④ Cognitive identification, ⑤ Affective identification, ⑥ Luxury brand salience, ⑦ Luxury brand resonance Note. *** p < 0.01

As for the correlations among constructs, there are three evaluation criteria on luxury brand, normative influence that has both the highest correlation with cognitive identification (r =.283, p < .01) and affective identification (r =.385, p < .01), which is followed by brand prestige (r = .226, p < .01; r = .269, p < .01). While COO preference shows no correlation with cognitive identification and affective identification.

As for the relationship between consumers’ identification and their luxury brand salience, consumers’ affective identification shows a higher correlation with luxury brand salience (r =.388, p < .01) than with cognitive identification (r =.314, p < .01).

Regarding the correlations among luxury brand resonance, luxury brand salience has the highest correlation with luxury brand resonance (r =.447, p < .01), followed by normative influence (r =.410, p < .01).

4.3. Measure validation

The research model consists of seven variables and nine related causal pathways, requiring a structural equation modeling (SEM) analysis. Therefore, this study first performed a reliability test, if the reliability coefficient is higher than 0.6, it is considered to be reliable. Therefore, SPSS 24.0 and Amos 18 statistical program was use to carried out exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results of the exploratory factor analysis (EFA) are tabulated in Table 5, the Cronbach’s Alpha coefficient of COO preference is .846, brand prestige is .775, normative influence is .845, cognitive identification is .841, affective identification is .819, luxury brand salience is .827, and luxury brand resonance is .828. All of these items are higher than 0.6, thus, the variables have great internal consistency reliability.

Table 5. Exploratory factor analysis.

Constructs Items Components Reliability
LBR2							.780
LBR3							.851
LBR4							.830
COO preference	COO1	.897							.846
	COO2	.850
	COO3	.876
Brand prestige	BP1		.751						.775
	BP2		.794
	BP3		.635
	BP4		.746
Normative influence	NI1			.849					.845
	NI2			.831
	NI3			.770
Cognitive identification	CI1				.839				.841
	CI2				.804
	CI3				.774
Affective identification	AI1					.848			.819
	AI2					.816
	AI3					.702
Luxury brand salience	LBS1						.799		.827
	LBS2						.813
	LBS3						.787
	LBS4						.710
Luxury brand resonance	LBR1							.667	.828

The results of the confirmatory factor analysis (CFA) are tabulated in Table 6. All three criteria for convergence effectiveness meet the recommended threshold. CR is from .857 to .896, and AVE is from .6 to .716. The load of the items is greater than the recommended cutoff of 0.7. In addition, the average variance extracted for each construct is also satisfactory. Also, the item reliability meets or exceed the arbitrary benchmark. Furthermore, an additional series of confirmatory factor analysis on the construct correlations show that none of the correlations are sufficiently high to influence discriminant validity.

Table 6. Confirmatory factor analysis.

Constructs	Items	Factor Loading	S.E.	Std. Loading	t value	CR	AVE
LBR2	1.133	.102	.608	11.064***
LBR3	1.179	.103	.724	11.392***
LBR4	1.128	.105	.689	10.797***
COO preference	COO1	1	–	.805	–	.883	.716
	COO2	.823	.060	.723	13.752***
	COO3	.959	.067	.767	14.413***
Brand prestige	BP1	1	–	.564	–	.857	.600
	BP2	.848	.141	.630	5.999***
	BP3	1.490	.176	.403	8.487***
	BP4	1.512	.178	.557	8.497***
Normative influence	NI1	1	–	.721	–	.882	.713
	NI2	1.309	.111	.691	11.837***
	NI3	1.282	.108	.593	11.876***
Cognitive identification	CI1	1	–	.704	–	.879	.707
	CI2	.817	.081	.646	10.039***
	CI3	.717	.075	.599	9.519***
Affective identification	AI1	1	–	.719	–	.858	.670
	AI2	1.056	.098	.666	10.753***
	AI3	.890	.098	.493	9.121***
Luxury brand salience	LBS1	1	–	.638	–	.896	.684
	LBS2	1.045	.080	.661	13.074***
	LBS3	.896	.073	.619	12.334***
	LBS4	.930	.077	.504	12.040***
Luxury brand resonance	LBR1	1	–	.445	–	.896	.685

Note. *** p < 0.01

4.4. Test of research model

In this study, we validated the study model using the structural equation model (SEM) performed by Amos 18.0. In general, the chi-square test used the following indexes to measure the fitness of the model: significance level associated with chi-square, fitness index (GFI), adjusted fitness index (AGFI), standard Index (NFI), incremental fit index (IFI), comparative fit index (CFI), and approximate root mean square error (RMSEA). The fitted model indicates that the value is less than 3, GFI, NFI, CFI IFI, value ≥ 90, AGFI value ≥ 80, RMSEA value ≤ 08 degrees of freedom.

By using Amos 18.0, the results are shown in Figure 3. The results are as follows: =487.394 (P = 0.0), df = 240, GFI=.861, AGFI=.826, NFI=.840, IFI=.912, CFI=.911, RMSEA=.06. The R² value of cognitive preference and affective preference are 16.4% and 29.3%, respectively, while luxury brand salience is 35.2%, and luxury brand resonance is 27.0%. Thus, based on the results, the current research suggests that the model is statistically valid.

Figure 3. Result of research model.

The survey results shows that the COO preference has a positive impact on both cognitive identification and affective identification (respectively β = .15, and β =.17, p < .05). Therefore, hypothesis 1 and hypothesis 2 are supported. At the same time, brand prestige has a positive impact on cognitive identification and affective identification (respectively β = .21, p < .05 and β =.29, p < .01). Also, normative influence has a positive impact on both cognitive identification and affective identification (respectively β = .28, and β =.39, p < .01). Therefore, hypothesis 3, hypothesis 4, hypothesis 5 and hypothesis 6 are supported.

Both cognitive identification and affective identification have positive effects on luxury brand salience (respectively β = .31 and β = .45, p<.01). Thus, hypothesis 7 and hypothesis 8 are supported.

Lastly, we studied the impact of luxury brand salience on luxury brand resonance. The results showed that luxury brand resonance has a positive impact on luxury brand salience β = .52 (p < .01). Therefore, hypothesis 9 is supported. The above results are listed in Table 7.

Table 7. Path analysis.

	Path	Coefficient	Result
H1	COO preference [graphic] Cognitive identification	.15**	Support
H2	COO preference [graphic] Affective identification	.17**	Support
H3	Brand prestige [graphic] Cognitive identification	.21**	Support
H4	Brand prestige [graphic] Affective identification	.29***	Support
H5	Normative influence [graphic] Cognitive identification	.28***	Support
H6	Normative influence [graphic] Affective identification	.39***	Support
H7	Cognitive identification [graphic] Luxury brand salience	.31***	Support
H8	Affective identification [graphic] Luxury brand salience	.45***	Support
H9	Luxury brand salience [graphic] Luxury brand resonance	.52***	Support

Note. *** p < 0.01, ** p < 0.05

5. Conclusion

5.1. Discussion

Consumer segmentation using millennial cohorts in developed countries has been extensively discussed. So, plenty of targeted policy initiatives for consumers in advanced countries are cultivated in the current literature. However, there has been lack of research that explores the millennial shopping patterns in developing countries. In this paper, to investigate how millennials in developing countries develop their purchasing intention, we explore the shopping patterns and characteristics of millennial consumers in China. By doing so we explore how the shopping patterns affect the brand evaluation process of consumers. The Chinese luxury market provided an appropriate interface to test our research framework with its explicit characteristics that mirror millennial consumers in a developing economy. With rapid economic development and the increase in disposable income, China has become one of the biggest emerging markets where millennial consumers are showing their strong shopping patterns. Therefore, a better understanding of Chinese millennial consumers’ luxury brand preferences may theorize their shopping patterns and help the millennial consumer industry to posit China as the largest business market in international context.

In specific, this paper examines the interactions paths that affect consumers’ cognitive identification and affective identification. According to the empirical test results, the COO preference, brand prestige and normative influence all have a positive effect on consumers’ cognitive identification and affective identification. When Chinese millennial consumers buy luxury brands, they will be influenced by the surrounding consumers (social and community-oriented consumers). Furthermore, this implies that Chinese millennial consumers are more likely to buy luxury brands to integrate themselves into their peer groups. This will allow them to be networked and informed on shopping opportunities in a specific social group. With the positive role of COO, our research framework confirms that Chinese millennial consumers also accept the vast information as a good chance to explore the information required in their purchasing decision.

Secondly, cognitive identification and affective identification are consistent with our expectations and have an impact on luxury brand salience. Affective identification has a greater positive impact on brand salience than cognitive identification. Luxury goods are unique, rare and are high-quality, such as Samsung mobile phone or camera. This implies that luxury brands can provide more affective identification to its user. For luxury brands, the brand distinctiveness of luxury brands can help consumers improve their unique self-image and positively influence others through the symbolic meaning of luxury brands, thereby enhancing their social influence.

Lastly, the influence of luxury brand salience on luxury brand resonance is positive. When consumers search for a luxury item, brand salience can provide a sense of assurance to the consumer. When it is their first time to buy luxury brands, consumers will choose well-known luxury brands. Brand salience can make consumers resonate with the brand and make the most appropriate purchase decisions, especially when consumers lack information about the brand.

5.2. Implications and limitations

In this paper, the following theoretical significance is obtained by analyzing the results of the research model. This study pays attention to the shopping patterns of Chinese market by exploring the millennial consumers’ shopping motivation and its affective mechanism in forming purchasing intention within the context of developing countries.

First, although research on brand resonance has been conducted for many years, previous research may be somewhat unbalanced or incomplete with many loopholes. Associated with the millennial consumer shopping patterns, this paper looks at consumer cognition identification, affective identification and luxury brand salience as the premise of brand resonance, and demonstrates that cognitive identification and affective identification indirectly affect brand resonance through luxury brand salience. With this empirical research our understanding on brand identification process in previous research has been expanded to the context of the millennial consumers in developing countries. Second, this paper puts forward two factors of cognitive identification and affective identification as the premise to influence brand salience. Consumers can obtain cognitive identification and affective identification based on the country-of-origin information, brand prestige provided by the brand, and the normative influence consumers receive. Therefore, cognitive identification and affective identification may also indirectly influence luxury brand resonance through luxury brand salience. Finally, with the given situation in which international companies consider developing markets as future key locations for long-term and sustainable growth (Shan and Khan 2016), this study directs the way firms promote brand resonance for millennial consumers in developing countries.

Although we have made implications above, there are still some limitations in this study that require further research. The future discussion directions are as follows:

Firstly, the purpose of this paper is to explore the reasons that influence luxury brand resonance. In the sample selection, we only select Chinese consumers as the survey target, not including consumers in other parts of Asia or consumers in Africa, Americas and Europe. Therefore, this study may lack explanatory power. Secondly, the survey of the current study primarily captures a cross-sectional view of constructs. It is possible that Chinese millennial consumers’ taste of luxury brand might be different after a certain period. Thus, a longitudinal study is necessary to investigate time-variant impacts.

COO preference, brand prestige and normative influence that consumers accept may vary based on different personality. Therefore, this article lacks brand segmentation. More detailed brand categorization can bring more accurate data to researchers.

Author contribution

All authors listed have made a substantial, direct and intellectual contribution to the work, and approved it for publication

Informed consent statement

Informed consent was obtained from all subjects involved in the study.

Conflict of interest statement

The authors declare no conflict of interest

Data availability statement

Datasets are available on request.

Additional information

Funding

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.