Luxury Goods’ Perception Within Millennials Cohort: Evidence against global homogeneity myth.

Abstract

The purpose of this paper is to identify and explain areas of homogeneity/ internal diversity of Generation Y in appraising value drivers of luxury goods; to compare the perception of luxury goods’ value (CVPL) of Generation X and Y and explain the grounds of perception uniformity/ dissimilarity. Perception of luxury goods’ value (CVPL) by Generation Y (Millennials) consumers from “rising and old” luxury consumption markets (Saudi Arabia, Poland, Turkey, Portugal and Germany). A mixed methodology was employed: structured e-questionnaire with adopted scales from Wiedmann et al. (2009), Vigneron and Johnson (2004), and Holbrook (1999, 2006); and, qualitative approach with focus group interviews with Millennials and non- Millennials. A sample of 1193 from five countries was analyzed. Data were divided and analyzed for country and cohorts’ specifics. Millennials are an internally diversified cohort; they consist of at least two sub-groups: younger, single, early stage carrier builders and more family, status-oriented older professionals that resemble Generation X in CVPL. Millennials also demonstrate strong country-specific differences in evaluating luxury value drivers; global consumption behavioral patterns are permeated by local cultural influences. Even though Millennials do not differ from Generation Y in their perception of luxury goods values, they visibly demonstrate different consumer behavior in the area of digital tools usage. This work brings attention to the luxury industry and consumption in a cross-cultural approach, its perception of luxury goods’ value and points of perception uniformity/dissimilarity among Millennials. For the luxury brand marketers, practical implications of this contrasts have huge potential to consumer profiles and marketing strategies.