Investigation of the effects of luxury brand perception and brand preference on purchase intention of luxury products

Conspicuous consumption is a fairly universal phenomenon although possibly more pervasive in developed countries. It can be said, conspicuous consumption is more common in some cultures that have a tendency to materialism. Every country in terms of political, technological, cultural and economic environment is different. This paper deepens understanding of why consumers are willing to buy the luxury high end, automobiles provide. The head of the country of origin influences evaluations of how people tend to buy luxury automobiles are used and which of the demographic factors have most influenced the understanding of the luxury brand. The populations of this study are the owners of the automobiles Toyota, Hyundai and Kia Motors in Tehran. A comparison was made between German made Mercedes Benz and Japanese made Lexus luxury automobiles brands. The final sample consists of a total of 390 participants. Data analysis is used in structural equation modeling. The findings show that variables of hedonic, unique, and quality value are significantly higher than conspicuous and social values. They have more of a role in forming of luxury brand perception in Iranian consumers. This study is useful for marketers to understand their target market and how their customers evaluate products and make buying decisions. The five perceived values of luxury automobiles can be used as guidelines for salesmen to sell successfully to customers.