Therefore, this study believes that the association exits between reference groups influence and purchase of luxury goods.
To empirically proven this association, the first hypothesis of this study is formed as followed: The conspicuous consumption is used to display wealth, power and status.
The researches show that “conspicuousness of a product was positively related to its susceptibility to reference group influence” (Vigneron and Johnson, 1999).
Besides that, identity or self concept also has been display from the consumers to show the status and wealth.
Figure 3.1 provides an insight into the relationship between both set of variables.
A hypothesis can be defined as “a supposition made on the basis of limited evidence as a starting point for further investigation” (
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According to Luong Thi Bich Thuy (2008), “the consumer’s quality perception would play a positive role over his or her perception of prestige over the same brand if the consumer perceived the brand as having an excellent level of quality”.
Thus, the following hypothesis is formed for the association between perceived quality vale and purchase of luxury goods.