Assessing the moderating effect of subjective norm on luxury purchase intention : a study of Gen Y consumers in India

Purpose: Although Generation Y consumers contribute significantly to the luxury market, still there is a limited amount of research conducted to explain their luxury consumption behavior, particularly in context of emerging markets like India. The main objectives of this study are to understand the key factors that affect luxury purchase intentions of Generation Y consumers using the theory of planned behavior (TPB) and to examine the moderating effect of subjective norm on other TPB variables, namely, attitude and perceived behavioral control. Design/methodology/approach: Purposive sampling method was used to collect data from Generation Y luxury fashion consumers in New Delhi, India. Confirmatory factor analysis and structural equation modeling was employed to analyze the data. Findings: The findings of this study revealed subjective norm and perceived behavioral control were positively related to luxury purchase intentions. Further, subjective norm was found to moderate the relationship between attitude and luxury purchase intentions. Originality/value: This study will help consumer behavior researchers and practitioners to understand the core reason behind luxury purchase intentions of Generation Y consumers in India. It will enable luxury brand companies to create suitable marketing strategies which align with the mindset of this new demographic segment.