The impact of country of origin on consumer purchase decision of luxury vs. fast fashion: case of Saudi female consumers

The paper investigates whether and how country of origin (COO) influences Saudi female consumers’ purchase decisions for luxury versus fast fashion. It situates the study within the rapidly growing global apparel market, where womenswear and branded apparel dominate sales and European and US brands hold major market shares. Given mixed evidence about COO effects and a paucity of research in fashion—especially fast fashion—the study asks: Does the COO effect differ in importance for purchasing luxury vs. fast fashion? It aims to clarify COO’s role across these segments and to test conspicuous consumption as a mediator, extending conspicuous consumption theory beyond luxury into fast fashion.

The literature notes consumers’ limited knowledge of brands’ COO, especially in fashion where brands may be headquartered in one country but manufacture elsewhere. COO is defined as the location of the brand owner’s head office. Prior studies show consumers’ attitudes toward countries shape product evaluations independent of product attributes, and COO effects can vary by product category. Luxury brands are characterized by prestige, quality, heritage, and exclusivity; motivations include status signaling, uniqueness, self-expression, and hedonic benefits. Fast fashion is characterized by quick response, trendiness, and frequent wardrobe turnover. Evidence on COO’s influence is stronger for luxury than non-luxury goods; some studies find limited COO impact on purchase decisions in general markets. The review also links conspicuous consumption—visible consumption to enhance social status—to luxury signaling and brand prominence, and explores whether it might also relate to fast fashion (largely untested). Hypotheses developed: H1: Positive relationship between COO and consumer purchase decisions of luxury fashion. H2: Negative relationship between COO and consumer purchase decisions of fast fashion. H3: European luxury brands evaluated higher than US luxury brands. H4: US fast fashion brands evaluated higher than European fast fashion brands. H5: Conspicuous consumption mediates the relationship between COO and purchase decisions (luxury and fast fashion). H6: Conspicuous consumption positively relates to purchase decisions of luxury brands. H7: Conspicuous consumption negatively relates to purchase decisions of fast fashion.

Design: Descriptive quantitative analytical study using a survey and model-based analysis to test hypothesized relationships among COO, conspicuous consumption (mediator), and consumer purchase decisions for luxury vs. fast fashion. Model and variables: Independent variable: COO (US vs. Europe). Dependent variables: consumer purchase decision for luxury and for fast fashion. Mediator: conspicuous consumption. Also included: evaluations of US vs. European brands in both segments. Instrument: Questionnaire with five parts: (1) Actual purchase behavior/frequency for 29 brands: Luxury—9 European (Hermes, Chanel, Dior, Louis Vuitton, Burberry, Gucci, Fendi, Balenciaga, Loewe) and 6 US (Coach, Carolina Herrera, Tory Burch, Calvin Klein, Michael Kors, Ralph Lauren). Fast fashion—9 European (Zara, H&M, Mango, Miss Selfridge, Next, S. Oliver, Gerry Weber, Stradivarius, Bershka) and 5 US (Forever 21, Gap, Guess, American Eagle Outfitters, Victoria’s Secret). Brand COOs and classifications were verified via brand histories and reviewed by five fashion experts. (2) Knowledge of COO for both luxury and fast fashion; participants indicated COO for each brand (correct COO revealed after response), with European suborigins (France, UK, Italy, Spain, Germany, Sweden) and US. (3) COO effect measures adapted from Nagashima (1970) and Roth & Romeo (1992), focusing on fashion-relevant dimensions; seven items assessing associations between dimensions and countries for both segments. (4) Conspicuous consumption scale adapted from Marcoux et al. (1997) and O’Cass & McEwen (2004); six Likert items (5-point). (5) Demographics (age, income, education, marital status). Sampling and data collection: Random sampling via email distribution to undergraduate students, graduate students, and faculty at two largest Saudi universities (Riyadh and Jeddah), targeting women only (gender-segregated universities facilitate access). Survey built in Google Forms; English questionnaire translated to Arabic; pre-test with four bilingual students led to refinements. Informed consent obtained. Data collected June–August 2021; 443 complete responses. Analysis: Data screened in Stata MP 13.0; reliability (Cronbach’s alpha) computed in Stata; CFA and SEM in IBM Amos 25; paired-samples t-tests in IBM SPSS 23. CFA assessed the latent conspicuous consumption factor; one item with low loading ("I choose fashion brands that show who I am") was removed; revised CFA achieved acceptable albeit borderline fit (normed χ2=5.112, TLI=.858, CFI=.953, RMSEA=.096, 90% CI [0.061, 0.135], p<0.05). SEM specified paths from COO (US/Europe for luxury and fast fashion) to conspicuous consumption and to purchase decisions (luxury and fast fashion), and from conspicuous consumption to both purchase decisions. Paired t-tests compared evaluations of European vs. US brands within luxury and fast fashion.

Descriptives: Fast fashion purchases were substantially higher than luxury purchases across brands. COO recognition accuracy was highest for French, Italian, and American brands, lower for British, Spanish, German, and Swedish brands. CFA/Reliability: Conspicuous consumption scale showed acceptable internal consistency (Cronbach’s alpha = 0.715) after dropping one low-loading item. SEM paths (significant results positive unless noted): - COO fast fashion (US) → Conspicuous consumption: 0.069 (SE 0.024), p<0.01. - Conspicuous consumption → Purchase decision (luxury): 5.295 (SE 1.021), p<0.001. - Conspicuous consumption → Purchase decision (fast fashion): 6.378 (SE 1.044), p<0.001. - COO luxury (US) → Purchase decision (fast fashion): 3.880 (SE 0.587), p<0.001. - COO luxury (Europe) → Purchase decision (fast fashion): 2.732 (SE 0.555), p<0.001. - COO fast fashion (US) → Purchase decision (luxury): 0.558 (SE 0.371), ns; → Purchase decision (fast fashion): 2.036 (SE 0.371), p<0.001. - COO fast fashion (Europe) → Purchase decision (luxury): 0.788 (SE 0.358), p<0.05; → Purchase decision (fast fashion): 1.217 (SE 0.358), p<0.001. Support for hypotheses in SEM: H1 supported (positive COO–luxury purchase link). H5 supported (mediation via conspicuous consumption). H6 supported (conspicuous consumption positively related to luxury purchases). H2 not supported (no negative COO–fast fashion purchase link). H7 not supported; direction was positive rather than negative between conspicuous consumption and fast fashion purchase. Paired-sample t-tests (brand evaluations): - European vs. US luxury brands: t(442)=6.562, p<.001; European mean=4.430 (SD=2.078) lower than US mean=5.444 (SD=3.485), contradicting H3. - European vs. US fast fashion brands: t(442)=17.219, p<.001; European mean=3.306 (SD=2.263) lower than US mean=6.280 (SD=3.393), supporting H4. Overall: Positive COO effects on purchase decisions for both segments; conspicuous consumption positively influences and mediates effects, and US brands were evaluated higher than European ones in both luxury and fast fashion among Saudi female consumers.

Findings affirm a positive COO effect on luxury purchasing and extend this effect to fast fashion, contrary to the hypothesis of a negative COO influence for fast fashion. This likely reflects respondents’ stronger recognition and favorable associations with French, Italian, and US brands. Conspicuous consumption significantly and positively influenced purchase decisions for both luxury and fast fashion and mediated COO effects, indicating that COO can enhance status-related motives that in turn raise purchase likelihood across segments. Contrary to expectations, European luxury brands were evaluated lower than US luxury brands; the authors suggest relative affordability and perceived value of US luxury brands may drive higher evaluations. For fast fashion, US brands were evaluated higher than European brands, aligning with prior evidence of positive attitudes toward US brands. Notably, conspicuous consumption was positively rather than negatively related to fast fashion purchases, suggesting that even non-luxury branded fashion can serve as a vehicle for visible consumption within this context. These results broaden conspicuous consumption theory beyond luxury, highlighting the role of branding and COO cues across fashion tiers.

The study contributes by (1) examining COO effects on fast fashion purchase decisions—a relatively underexplored area—and (2) demonstrating conspicuous consumption as a mediator between COO and purchase behavior for both luxury and fast fashion, extending its relevance beyond luxury. Practically, retailers should emphasize brand origin cues on labels and in communications to bolster brand image and leverage positive COO associations. In Saudi Arabia, US brands were most favored in both segments, suggesting expansion opportunities for US fashion firms and benchmarking opportunities for others. Future research should more clearly classify brand tiers, examine conspicuous consumption’s role in fast fashion relative to unbranded, second-hand, and counterfeit products, and broaden sampling beyond two Saudi cities to include other regions and countries in the GCC and Middle East for enhanced generalizability.

- Measurement and classification: The actual purchase decision index and brand classifications (luxury vs. fast fashion) were author-developed and, despite expert review, may still involve ambiguity; participants might have confused categories. - Scope and sampling: The sample comprised women affiliated with two large universities in Riyadh and Jeddah, limiting geographic and demographic generalizability. - Construct boundary clarity: The boundary between luxury and fast fashion is not always clear to consumers, potentially affecting responses. - Research gaps: Lack of prior work on conspicuous consumption and fast fashion limits comparative interpretation; calls for comparisons with unbranded, second-hand, and counterfeit products. - Language and translation: Although pre-tested and translated, survey language differences could introduce subtle measurement variance.