Understanding consumer preferences in the luxury and affordable fashion bag market

Ms. Yashica R. Randive, Fashion Management Scholar, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus

Abstract 

The fashion bags market has been progressing in the global marketplace from mere functional applications with fashion bags as a demonstration of self-expression and lifestyle and social identity. The aim of this study is to explore the preferences in the luxury and affordable fashion bag market from the viewpoint of the customer by examining the prominent attitude-related variable measures such as value, quality perceptions, status enhancement perceptions, and perceived usability. With a focus on the research methodology in the form of the integration of results from peer-reviewed literature studies for the demonstration of prevailing patterns and determinations in the influence of decision-making for the customer, it has been observed that though the influence in luxury fashion bags has been remaining in the realms of mere emotional applications and demonstration such as status and prestige associated with the brands, there has been an impetus in the direction of mere functional applications and usability in the fashion bags market.

Keywords: Consumer Preference, Fashion Bags, Perceived Value, Perceived Quality, Status Enhancement, Perceived Practicality, Luxury and Affordable Brands, Purchase Intention

Introduction

With the growth of the global fashion Industry, more and more people are using handbags to express themselves and their lifestyle. What was once considered just another type of product is now considered a form of artistic interpretation and self-expression in relation to one's lifestyle, as well as an indication of one's social status and style, through fashion bags. As a result of this development in the market for handbags, consumers today have many options, both luxury and affordable fashion bags, and therefore their decision-making regarding the purchase of a handbag is becoming more complicated and attitude-driven.

Psychological and perceptual influences contribute to consumer preferences for both luxury and affordable fashion bags. The formation of consumer attitudes regarding the choice of fashion products is influenced by a range of psychological factors such as an individual’s personal experience, social influences, and expectations. Among these, perceived value, perceived quality, status enhancement, and perceived practicality are key attitude-related variables that shape consumer decision-making in the fashion bag segment.

Perceived value of a product lies in how consumers feel about the amount they spent compared to the benefits they receive. Consumers typically perceive luxury fashion handbags to have a high perceived value due to factors such as exclusivity, brand prestige, and high-quality materials compared to affordable fashion handbags which are perceived to have lower perceived value due to their affordability and the fact that they have trendy styles. Perceived quality is a measure of what consumers think of how durable a product is, how well it was crafted, and how well it performs. Luxury brands are usually associated with higher-quality clothing, while affordable brands are typically associated with acceptable-quality clothing meant to be worn daily.

The use of bags also has a significant impact on consumer behavior regarding fashion purchases, as consumers express their status and achievement through the purchase of luxury fashion bags. Therefore, potential consumers are drawn to the status-enhancing capabilities of owning a luxury fashion bag because it contributes to elevating their social image. However, if consumers prefer utility and cost effectiveness, then they may decide to purchase an affordable fashion bag instead of a luxury one. The perceived utility of the bag relates to its ability to meet the needs of consumers, including usefulness, comfort, versatility, and the extent to which it meets the demands of daily life. Additionally, affordable fashion bags are seen as more utilitarian than luxury fashion bags due to the ease of upkeep and ability to use regular and luxury bags interchangeably.

Understanding how these attitude-related variables influence consumer preference is essential for fashion brands and marketers. This study aims to examine consumer preferences for luxury and affordable fashion bags by analyzing the impact of perceived value, perceived quality, status enhancement, and perceived practicality. The findings of this research will provide valuable insights into consumer attitudes and help brands develop effective product and marketing strategies aligned with consumer expectations.

Objectives

• To review literature related to understand consumer preferences in the luxury and affordable fashion bag market.
• To theoretically analyze the reviews
• To suggest an appropriate plan of action based on the above given topic.

Research Methodology

This research follows a theoretical qualitative approach by reviewing papers in the relevant area. It synthesizes key findings from peer-reviewed journals and scholarly articles to build a conceptual framework. Data was thematically analyzed to identify patterns, gaps, and implications for future studies in textile and fashion management. The review encompasses sources from recent publications, ensuring contemporary relevance to industry trends. Ethical considerations guided the selection, prioritizing open-access and credible publications.

Literature Review

Salehzadeh and Pool (2017) investigated the role of brand attitude, perceived value, and purchase intention in terms of worldwide luxury brands offered in the Iranian market. Salehzadeh and Pool conducted a study using a structural equation modeling method and proved that the attitude of a brand is a positive contributor to perceived value in terms of social, personal, and functional aspects. Moreover, the study showed that perceived value is a direct predecessor to the purchase intention of luxury brands demonstrated by consumers. The study clearly indicates that a positive attitude toward a brand is a crucial factor in creating a good perceived value of the brand, which ultimately results in enhancing purchase intentions of luxury brands. Salehzadeh and Pool’s study integrates brand attitude, perceived value, and purchase intentions in a unified framework to present a clear understanding of consumer behavior in luxury brands. The study also clarifies the importance of brand management practices in developing countries to enhance purchase intentions of luxury brands by improving brand attitudes.

Lim (2009) explored the concept of “Luxe-Bargain Shopping,” which threw light on the emerging trend of massclusivity in the luxury market, where luxury brands became more accessible as well as affordable. The study proposed an empirical framework to analyze the impact of luxury brand and bargain-related consumer attitudes like prestige sensitivity and fashion leadership, and bargain-related attitudes like price mavenism and sale proneness on perceived product value and perceived transaction value as a whole. The findings of the research carried out through an online survey on 500 respondents revealed the fact that luxury as well as bargain-related customer attitudes significantly explained the perceived value generated through the act of Luxe-Bargain Shopping. The findings further revealed the fact that perceived value indirectly influenced the post-interactional behavioral intention to make additional purchases of luxury brands at a bargain price through the act of consumer satisfaction, and the direct influence on bargain sales intention was refuted. Perceived value further influenced the customer intention to make additional purchases of luxury brands at the full price. The current study is based on the idea of bargain seeking and luxury consumption and offers an emerging idea regarding luxury consumption behavior.

Mundel, Huddleston, and Vodermeier in their exploratory research investigated how the perception of the term ‘affordable luxuries’ varies from or differs to the conception of traditional luxury from a consumer perspective. The research focused on the cohorts of millennials to find out whether there is any difference in the perception of luxury and affordable luxury goods, which products are perceived to fall into the category of affordable luxuries, and how much consumers are willing to spend on such products. The research showed that consumers have similar notions about the quality of luxury goods and those of affordable luxuries, which are described in different terms. The research showed that affordable luxuries are considered ‘tools of image enhancement, status signaling, which supports the explanation for conspicuous consumption.’ The research contains guidelines related to pricing in the domain of affordable luxuries. The research offers important pointers related to the symbolic, quality, and status notions connected to the perception of ‘affordable luxuries’ and can certainly provide an important perspective on how consumers relate to concepts of value, quality, and status in an important study on comparing ‘luxury’ and ‘affordable’ fashion goods. 

Joshi (2015) examined the factors influencing consumer buying behaviour of luxury goods, with a specific focus on young consumers aged 20–26 in Finland. Using a survey that included both quantitative and qualitative questions, the study identified quality, price, and aesthetics as the most significant characteristics influencing luxury purchase decisions. The findings also highlighted the importance of symbolic factors such as status, rarity, and buying experience, supporting the view that luxury consumption is largely hedonic and desire-driven rather than need-based. Although social media is often considered an important marketing tool for luxury brands, the study found it to have limited influence on actual purchase behaviour within the sample. Overall, the research reinforces the role of perceived quality, price, and status-related 

Singh analyzed the behavior patterns exhibited by consumers in the Indian market for luxury fashion brands, and the focus is on the younger generation aged 18-25 years. It is asserted in the research that the purchasing behavior in the Indian market is dominated by the functional requirements of consumers, such as price, fit, and level of income, and the importance of status, durability, and endorsement by celebrities is relatively low. The findings have shown the increasing relevance of purchasing experience, organized shopping, and sources of information, such as word-of-mouth and the internet, in the purchasing process. This research indicates Indian consumers are extremely sensitive to price and quality-conscious, and it is necessary for the marketers to introduce a balanced pricing and a balanced product mix. This research offers significant information in the Indian market for attitude-related factors and luxury fashion consumption. 

Chu Lo et al. (2021) examined consumer preferences using a discrete choice experiment, regarding luxury handbags and identified parameters that affect luxury handbag purchases. In a study involving Chinese consumers, they concluded that, aside from a large number of people favoring logo-engraved luxury handbags, a considerable number of consumers preferred luxury handbags with less visible logos, thereby supporting the prevalence of inconspicuous consumption. Status consumption and income were identified as important determinants of logo preference, and price and social factors were shown to differ depending on luxury brands. This study underscores the significance of status consumption, perceived value, and social influences in determining luxury handbag preferences among consumers.

Kusumawardhani, Sumarwan, and Krisnatuti examined consumer behavior in the preference of branded bags in the Indonesian context, analyzing the role of reference groups, social status, pricing, place, and product quality. The study surveyed 164 consumers of branded bags like Kate Spade, Michael Kors, Coach, Longchamp, and Tory Burch, which used multiple regressions and cross-tab analyses. The research discovered that reference groups, pricing, place, and product quality were important factors determining consumer preference for branded bags, while the role of attitude was insignificant. The research showed how social status and pricing factors impact the purchase decision, indicating that the role of branded bags is not only utilitarian but also symbolic. The research gives important inputs to marketers on factors determining consumer behavior in the purchase of branded bags.

Putri conducted research on the prominent product characteristics that drive consumer preferences towards the bag product category in the fashion sector using a conjoint analysis methodology. In her research, she narrowed her focus on the three prominent bag characteristics, namely color, designs, and materials. Her investigation included data collection among 60 female consumers targeting the acquisition of Efve products. Her findings indicated that the prominent product characteristic that drives consumers towards the bag product category is its color characteristics, followed by designs and materials. Consumers demonstrated preference for the warm cool color combination feature of her products represented by the frame bag designs and the fabric material.

Lee initiated the study on purchasing behavior of bags and design preference among consumers, comparing and contrasting the results among male and female consumers of various ages. This study collected data from 400 male and female respondents aged 20 to 50 years and identified four primary purchasing criteria for bags, namely practicality, symbolism, aesthetics, and economy, of which economy was identified as the primary factor. Results also indicated that consumers prefer non-media and store-centered sources of information while purchasing bags. To design the products in accordance with the preference of consumers, classic design, shoulder design, black color, natural leather, and medium-sized bags were identified as the most preferred choice among customers. This research identified variations in purchasing and design preference for bags among male and female customers and customers of various ages, indicating the requirement of segment-based marketing of products.

Jajoo and Mandhare conducted a comparative research study to understand the buying behaviors of customers in relation to branded and non-branded lifestyle products such as bags, footwear, clothing, and timepieces in the Indian market. The researchers revealed that while customers aspire to buy the high-quality nature of branded products, social status, and satisfaction, non-branded products were preferred for the factors of affordability, trendy designs, easy access, and variety. It was also revealed that peer pressure, social influence, financial status, quality, and comfort were the most important parameters in deciding the purchase of both branded and non-branded products. Interestingly, while the research revealed the branded products to be the best, the greater number of customers preferred non-branded products, especially bags and other lifestyle products.

A study conducted by Oe, Sunpakit, Yamaoka, and Liang in 2018 focused on exploring consumers’ perceptions of conspicuousness in the premium handbag industry, based upon Thai consumers. The results showed that consumers’ purchase intentions were unaffected by their perception of conspicuous values, contrary to what is expected from Asian consumers in terms of conspicuous consumption behaviors. The results showed that personal values had more of an effect than social values in promoting purchase behavior in premium handbags. The significance of this study is important to understand more about status behaviors, as consumers shift towards more inconspicuous behavior in purchasing premium products like luxurious handbags.

Lee Ga-Na and Shin Su-Yun analyzed the purchase behavior of Luxury fashion bags for females in the 20s and 30s by manipulating types of consumption values. Based on data collected from 518 female respondents who had purchased Luxury fashion bags, the study derived four types of consumption values for the purchase behavior of Luxury fashion bags for young females in the 20s and 30s in Korea. The study finds that these four types of consumption values demonstrate differences in purchase motivation, selection standards, sources of information, purchase rate, amount of purchase, purchase location, and standards of selecting stores. However, the highest levels of satisfaction for product, price, and store experience are shown by the rare and emotional pursuit type of consumption value.

Insight from Literature Review

The literature shows that the perceived value, perceived quality, status enhancement, and practicality shape consumer attitude toward fashion bags. While symbolic benefits such as status, image, and emotional satisfaction have been a significant rational for the purchase of a luxury bag, studies conducted in recent years tend to focus more on functional value, affordability, and usability, particularly among young consumers. Various researchers indicate that perceived value is a critical mediator to connect brand attitude and purchase intention, whereas conspicuous consumption is considered less influential than personal and functional values. Overall, the trends in both luxury and affordable bags are influenced by a combination of emotional, symbolic, and practical drivers.

Findings

The various studies reviewed above individually and collectively index that consumer attitudes on fashion bags can be driven by the various permutations and combinations of perceived value, quality, status enhancement, and practicality. Even as luxury bags continue and substantiate their value based on symbolic parameters such as status, brand identity, and satisfaction, there appears to be a discernible shift in the direction of functional parameters such as affordability, usage, and price-quality value, especially in the case of the younger generation of consumers. What emerges as an important determinant and mediator in the direction of brand attitude and purchase intention in the case of either luxury and affordable brands is perceived value. Additionally, there appears to be evidence suggesting that conspicuous consumption seems to make way for discreet and personalized consumer value in the majority of consumer decisions.

Conclusion 

This study explored consumer preference for luxury and affordable fashion bags by identifying the process through which attitude-based variables, such as perceived value, perceived quality, status enhancement, and perceived practicality, are linked, according to the findings from a theoretical review of existing literature. Results show that the fashion bag industry, when it comes to consumer decision-making, is not exclusively driven by status and luxury value. Instead, the fashion industry not only serves the purpose of luxury enhancement but is increasingly driven by functionality, affordability, and practicability. While luxury fashion bags are driven by emotional and psychological value, affordable fashion bags serve to meet practical requirements, showcasing an equally balanced structure for consumer preferences. The most convincing factor in establishing the link between brand and purchase intention for fashion bags in the luxury and affordable fashion bag markets is perceived value. The paper further throws light on the declining trend to consume and indulge in conspicuous fashion, shifting towards more subtle and personalized approaches. 

References

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