Studies Regarding Willingness Of Purchase Luxury Online By The New Generation Of Consumers

Along with the enormous development of the Internet, E-commerce is gradually changing the traditional business forms, at the meantime developing a profound impact on consumer behaviors. The E-commerce enterprises have aimed at the fast growing luxury market in China. And many luxury brands give back positive responses. Under the current economic crisis, luxury goods companies are changing the cautious attitude towards the Internet due to the joint efforts of capital advancement and E-commerce development. Because of the huge price difference between the E-commerce providers and the actual entities, luxury brands become booming their online business. Despise the close cooperation of investors, online business and luxury goods companies, soon do they realize a missing participant-consumers. If the luxury price online is too high, it will lose the attractiveness to customers and the purpose for doing business on the Internet. If the price is too low, it will undermine the core luxury elements, and will not be accepted by mainstream high-end consumers. Luxury is different from general merchandise; low price cannot bring those enterprises long-term development, but serious fallacious problems. Thus, it starts the debate of the supply chain and target customers in the Chinese market. It is a question whether luxury, this unique commodity form suits the network channel; and whether this channel attributes to consumer value perception and purchase motivations. This paper will take consumer’s point of view to analyze the usage of customer-perceived value theory.Chinese Internet users age from18to40years old. According to the report released by Bain Capital, the average age of luxury consumers in China is15years younger than that of the rest of the world. About55%of those Chinese consumers are between25and34years old. The new generation of consumers grew up with the prevalence of the Internet, and is the main network users. Therefore, this paper mainly studies the new generation of consumers as the luxury purchasing power from three aspects-consumer perceived value theory model, consumer perceived value of luxury, and consumer perceived value of network channels.This paper selects four measurement dimensions of the network channels. It introduces Vickers and Franck’s (2003) three proposed values-functional, experiential and symbolic values respectively to study the willingness of online luxury purchases.As the new economic environment emerges, especially the rapid development of E-commerce, customers mostly concentrate on the perception of the channel, but lack the awareness of products themselves and the online shopping experience. E-commerce is affected not only by the impact of the property, but also perceived by the value of the product.Luxury online consumption also suffers frustrations. On the one hand, industry practitioners and investors are over optimistic about the prospects of the luxury online market, and strongly advance the pace in this field. On the other hand, social development and behavioral concepts as well as the purchasing power are not fully mature. The consumption behavior is not the result of market maturity, but the driven of brands reputation and capital capability.The contributions of this study are:Luxury e-commerce development shows high expectations of the practitioners, the dual characteristics of high investment and the downturn of the market situations, which causes a huge waste of resources and false prosperity. This article focuses on domestic consumer characteristics to discover the possibilities and the future of the luxury E-commerce market. It stands on the network channels base to explore the possible improvements and breakthroughs in this area. The author especially distinguishes the differences and relationships between the customer perception of online consumption and the customer perception of luxury goods. It provides inspirations to the questions of supply chain and consumer acceptance in the luxury E-commerce booming phenomenon.The major conclusions of this study are:Luxury E-commerce is affected by quality, value and cost of the channel. Consumers perception of the channel not only direct impacts on their judgment of the channel value, but also indirect impacts on the value of the goods sold on the channel.This paper classifies fourteen attributes of the Internet channel from product quality, service quality, experience value to customer costs. The study results show that the luxury customer perceived value is not only influenced by personal and social factors, but also by the aggregate network channels product quality, service, experience and cost as a whole.Among consumers who shop luxury goods online, the products and channels functional and experiential values have significant effects on customer purchasing intentions. During the online shopping experience, customer perceived value is the key to influence purchasing motivations and customer behaviors.In the luxury E-commerce development process, luxury good consumers judgments are affected by the product quality of the network channels, customer cost awareness, service standards and the overall experiences. The network channel attribute itself plays a vital role in the customer perceived value, and further affects customers’willingness to buy. Hence, it is essential to think about how to optimize the property of E-commerce with the luxury online shopping experience.