The influence of new media on brand perception and purchase intention of luxury brands

: the example of Ives Saint Laurent

Abstract

Social media enables marketers to address consumers directly through creative and innovative marketing strategies. By using different platforms, content can be adapted to fit the needs of different target groups. In addition, previous research indicates that word-of-mouth, being a strong influencer on the customer’s perception in any purchase situation, also plays a big role in social media. However, social media is not being used in a similar vein across different products/brands. In fact, the luxury segment is considered a digital latecomer, wanting to be in control of distribution channels and thus being slow to pick up on digital and e-commerce trends. This study examines how social media tools influence consumers’ perception and purchase intention of luxury brands, with a special focus on the brand Yves Saint Laurent Beauté. By exposing 151 respondents to different kinds of consumer-generated-content, this study proposes a model that assesses the influence of such social media content on luxury brand perception and purchase intention. The study tests the hypothesized model using a between-subject design by comparing pre- and post-luxury perceptions. The results indicate that social media has a positive impact on the purchase intention and brand perception of luxury products. Additionally, results show that this effect holds true for both, luxury affine and luxury averse respondents, but results are not always similar across social media tools. Thus, the study advices luxury brand managers to apply customized social media tools, depending on the segment they are targeting.

Date of Award	15 Feb 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rita Coelho do Vale (Supervisor)