Luxury tourism and purchase intention factors: a mixed approach applied to luxury goods

The luxury tourism sector faces new challenges post-pandemic, needing to adapt to evolving consumer purchasing behaviors. Unlike previous perceptions, luxury tourism is now more susceptible to economic fluctuations. The study aims to understand this shift by analyzing the behavior of luxury goods-buying tourists in the context of COVID-19, to help companies revise their marketing strategies and offerings. Contemporary luxury travelers prioritize authentic and unique experiences, marking a shift towards more discreet consumption and a deeper appreciation for the meaning behind their purchases. Luxury in tourism now entails enrichment, personal development, and self-realization for the tourist. However, the post-pandemic landscape necessitates a reassessment of traditional luxury perceptions. Luxury is now defined as products and services with higher quality, taste, and aspiration, but still accessible to a broader market. While luxury goods consumer spending has increased significantly in recent years in several countries, luxury brand managers face complexities in marketing luxury goods, demanding an image of quality, performance, and authenticity, essentially selling a lifestyle experience. Existing research hasn't fully explored the interplay between factors motivating luxury brand purchase intentions during the pandemic or integrated consumer vanity and corporate social responsibility (CSR) within the context of environmental influence. This study addresses these gaps by empirically analyzing luxury brand purchase intention during the COVID-19 period. Specifically, it investigates the effects of perceived value, vanity, pricing, word-of-mouth (WOM), social influence, and corporate social responsibility (CSR) on purchase intention. The study utilizes a mixed methodology combining Partial Least Squares Structural Equation Modeling (PLS-SEM) and Fuzzy-Set Qualitative Comparative Analysis (fsQCA) to provide a more comprehensive understanding of these factors, their interrelationships and how they might combine to impact purchasing decisions. This theoretical contribution focuses on understanding luxury consumer behavior post-pandemic, adapting existing frameworks to present circumstances.

The literature review examines previous studies on luxury goods consumption by tourists, both pre- and post-COVID-19. Early studies focused on a product-centered view of luxury, emphasizing elitism, exclusivity, symbolism, prestige, and status acquisition through public display. However, these studies lacked a complete consideration of environmental and behavioral factors influencing tourist behavior. Later research acknowledged the growing importance of experiential aspects in luxury purchases, highlighting hedonic value, the role of experiences, and the socio-psychological nature of luxury purchases in relation to tourists' sense of self. The studies highlight the need to consider cultural variables, intrinsic factors, regional context, and the psychological aspects of luxury purchases, as well as the growing importance of sustainability. Pre-pandemic research largely focused on individual factors (perceived value, social influence, vanity), while post-pandemic studies increasingly emphasize the role of WOM and experiences. This paper builds upon this existing research by incorporating a broader range of variables and employing a mixed-methods approach.

The study employed a mixed-methods approach combining PLS-SEM and fsQCA. Data were collected via an online survey of foreign tourists who had purchased luxury goods in Spain (Mallorca, Ibiza, Barcelona, and Madrid). Convenience sampling was used, targeting tourists leaving luxury brand stores. A total of 522 usable responses were obtained. A 7-point Likert scale measured variables adapted from relevant studies (Perceived Value, Vanity, Behavioral Intention, Price Value, CSR, Social Influence, and WOM). PLS-SEM, using SmartPLS 3 software, was used to assess the relationships between variables and test hypotheses. The study conducted reliability and validity checks, including Cronbach's alpha, composite reliability, average variance extracted (AVE), and heterotrait-monotrait ratio of correlations (HTMT) to ensure the quality of the data and measurements. To address potential endogeneity, the study employed a robustness check using the Gaussian copulas approach, which helps to determine whether there is endogeneity in the model. To complement the PLS-SEM analysis and address causal complexity in consumer decisions, a Fuzzy-Set Qualitative Comparative Analysis (fsQCA) was conducted. This involved data calibration using percentile-based fuzzy sets and the construction and analysis of truth tables to identify the configurations of factors leading to purchase intention. To test the predictive validity of the model, the fsQCA analysis was replicated on a randomly-split subsample and the results applied to a holdout sample.

PLS-SEM results indicated that price image, vanity, WOM, and social influence positively and significantly influenced purchase intention. CSR and perceived value were not significant predictors. Price image, vanity, and WOM had the strongest influence. The model explained 54.3% of the variance in purchase intention. WOM (26.97%) and price (14.05%) were the most influential constructs. Post-survey questions revealed that 90% of respondents did not increase luxury purchases during the pandemic, and 61% preferred in-person shopping. fsQCA identified perceived value and vanity as necessary conditions for purchase intention. Analysis of sufficient conditions revealed several configurations leading to purchase intention, highlighting the complexity of the decision-making process. The analysis further showed that while several combinations of constructs can lead to the same outcome, social influence and WOM consistently emerge as core conditions. Social influence was present in all seven solutions identified, along with WOM and PRICE forming the basis of different solutions. The predictive validity test, using a randomly split sample, revealed high consistency values (above 0.7) for several models, indicating robust predictions.

The findings highlight the complexity of luxury purchase decisions. While PLS-SEM identified key individual factors, fsQCA revealed multiple configurations that could result in purchase intention, confirming the importance of context and combining factors. The insignificance of CSR is notable. This could be attributed to the contradiction between luxury's focus on social stratification and the values of sustainability and ethics. The strong influence of WOM and social influence reflect the importance of social dynamics in luxury consumption. The perceived value's role as a necessary but not sufficient condition suggests its importance is intertwined with other factors and the experiential nature of luxury consumption. This study challenges traditional views on luxury consumption by demonstrating that purchase intention is not driven by single, linear effects but rather by complex interactions between multiple factors.

This study provides a nuanced understanding of luxury tourism purchase intentions, using a mixed-methods approach. It reveals the crucial role of price image, vanity, WOM, and social influence, while highlighting the complex interplay between these factors. CSR and perceived value are less direct influencers, but still hold importance within certain combinations of factors. The findings offer valuable insights for luxury brand management, suggesting tailored strategies for different customer profiles and emphasizing the importance of social influence and communication. Further research could explore cross-cultural comparisons and longitudinal studies to confirm and extend these findings.

The study's limitations include the inherent subjectivity of the concept of 'luxury' and the reliance on convenience sampling, which could affect the generalizability of the results. The sample, focused on foreign tourists in Spain, might not fully represent the diversity of luxury consumers globally. Future research could address these limitations by incorporating broader samples, qualitative data, and cross-cultural analysis.