The global fashion market, projected at USD 1.5 trillion in 2020, is experiencing rapid growth driven by increased purchasing power, international fashion outlets, evolving consumer tastes, and foreign direct investment. Social media has also significantly impacted the spread of luxury brands. European and US brands dominate the market share for branded apparel, with European brands particularly prominent in the luxury sector. This study investigates the impact of COO (specifically US and European brands) on consumer purchase decisions for luxury and fast fashion, exploring conspicuous consumption as a mediating factor. This research addresses a gap in existing literature by focusing on the COO's influence on fast fashion purchase decisions, and expanding the understanding of conspicuous consumption's role in both luxury and fast fashion.

While many studies examine COO's impact on consumer purchase decisions across various products, few focus on the fashion industry, particularly on fast fashion. Consumers often lack complete knowledge about a brand's COO due to global manufacturing practices. However, consumer attitudes toward a country influence their product evaluations. Purchase decisions are affected by consumer perceptions of a product and its origin, with luxury brands distinguished by quality, price, brand history, and uniqueness. Conspicuous consumption, the act of displaying possessions to enhance status, plays a crucial role in luxury purchases. The study aims to investigate how COO impacts purchase decisions in both luxury and fast fashion, mediating the effect through conspicuous consumption.

This descriptive quantitative study utilized a questionnaire survey distributed to female undergraduate and graduate students and faculty at two major Saudi Arabian universities (Riyadh and Jeddah). The survey, initially drafted in English and then translated to Arabic, included sections on actual purchase decisions of 29 brands (9 European and 6 US luxury brands, 9 European and 5 US fast fashion brands), COO recognition, COO effect measurement (using scales adapted from Nagashima and Roth & Romeo), and conspicuous consumption measurement (using scales adapted from Marcoux et al. and O'Cass & McEwen). Demographic data (age, income, education, marital status) was also collected. A total of 443 completed surveys were collected. Data analysis involved confirmatory factor analysis (CFA), structural equation modeling (SEM), reliability analysis (Cronbach's alpha), and paired-samples t-tests. The CFA examined the factor structure of conspicuous consumption. The SEM tested the hypotheses concerning relationships between COO, conspicuous consumption, and purchase decisions. Paired t-tests compared evaluations of US vs. European brands for luxury and fast fashion.

The SEM supported the hypothesis of a positive relationship between COO and consumer purchase decisions for luxury fashion (H1), but not the hypothesized negative relationship between COO and fast fashion purchase decisions (H2). Conspicuous consumption acted as a mediator in the relationship between COO and purchase decisions for both luxury and fast fashion (H5), positively related to luxury brand purchases (H6), but not negatively related to fast fashion purchases as originally hypothesized (H7). Contrary to H3, US luxury brands were evaluated higher than European luxury brands. In line with H4, US fast fashion brands were rated higher than European fast fashion brands. The most frequently purchased brands were Zara, H&M, and Mango (European fast fashion) and Calvin Klein, Coach, and Michael Kors (US luxury fashion). The reliability analysis indicated acceptable internal consistency (Cronbach's alpha = 0.715) for the conspicuous consumption scale.

The study's findings highlight the importance of COO in influencing purchase decisions for both luxury and fast fashion among Saudi female consumers. The mediation effect of conspicuous consumption supports the idea that brand image and status signaling play a critical role, even for fast fashion purchases. The higher evaluation of US brands might be attributed to pricing strategies making them more accessible, despite the prevalence of European brands in the market. The unexpected positive relationship between conspicuous consumption and fast fashion suggests that social status signaling is not exclusive to luxury goods and needs further investigation.

This study contributes to the literature by examining the impact of COO on fast fashion purchase decisions and the mediating role of conspicuous consumption in both luxury and fast fashion. The findings have implications for fashion marketing strategies, highlighting the importance of brand origin and price positioning in different market segments. Future research should explore the influence of conspicuous consumption on other types of clothing (unbranded, secondhand, counterfeit) and expand the geographic scope to other regions.

Limitations include the survey's reliance on actual purchase decisions rather than purchase intentions, potential ambiguity in differentiating between luxury and fast fashion brands, and the sample's restriction to two Saudi Arabian cities. Future research should address these limitations by incorporating purchase intentions, clearer brand categorization, and broader geographic representation, particularly including other GCC countries.