International Journal of Marketing Studies; Vol. 10, No. 4; 2018 ISSN 1918-719X E-ISSN 1918-7203 Published by Canadian Center of Science and Education 26 Value-Based Segmentation of U.S. Luxury Consumers: Conceptual Replication and Model Validation Sonali Diddi 1 & Srikant Manchiraju 2 1 Department of Design & Merchandising, Colorado State University, Fort Collins, USA 2 The Jim Moran School, Florida State University, Tallahassee, USA Correspondence: Sonali Diddi, 1574 Campus Delivery, Department of Design & Merchandising, Colorado State University, Fort Collins, Colorado, 80523, USA. Tel: 1-970-491-6715. Received: September 8, 2018 Accepted: October 9, 2018 Online Published: November 24, 2018 doi:10.5539/ijms.v10n4p26 URL: https://doi.org/10.5539/ijms.v10n4p26 Abstract The primary objective of this study was to understand the U.S. consumers’ luxury value perceptions using Luxury Value Perception (LVP) model (Wiedmann, Hennigs & Siebel, 2009). The study replicated the procedure used in Wiedmann et al.’s (2009) article to validate the dimensions of the LVP model in the U.S. context. Data were collected using an online survey through Amazon Mechanical Turk. The findings revealed the applicability of the LVP model in the U.S. context and revealed interesting differences in luxury value perceptions among U.S. and German consumers. This study advances theory as it is the first to validate the latent luxury value construct as influenced by individual, social and functional luxury value perceptions in the U.S. context. The LVP model helped identify luxury value drivers of U.S. consumers and cluster them in homogenous segments. These findings may potentially help U.S. luxury brand marketers to know the needs and values of different customer segments, ultimately helping them to develop effective brand positioning strategies in a competitive marketplace. Keywords: consumption, luxury, Luxury Value Perception model, market segmentation, values 1. Introduction The luxury market continues to grow substantially worldwide. According to Deloitte’s Global Powers of Luxury Goods report (2017), the global luxury market was worth US$212 billion in 2015 with an average luxury goods sales of top 100 companies equaling to $2.1 billion. Globally, the luxury market grew by 5% to an estimated $1.5 trillion in 2017 (Bain, 2017). Though the U.S. is leading sales – approximately $85 billion in the global luxury market, it experienced a slow growth in 2016. Industry experts predict the U.S. luxury goods market to increase by a further US$18.5 billion by 2021 (Danzinger, 2017; Roberts, 2017). In sum, luxury consumption is on the rise and is more dynamic today than previous decades. Marketers have realized the importance of understanding the new luxury consumer, and will need to accommodate digital savvy consumers who increasingly lead on-the-go lifestyles. Previous research focused on issues such as luxury consumption as a social strategy (Nelissen & Meijers, 2011), attitudes toward luxury (Dubois & Laurent, 1994), the luxury wine trade (Reyneke, Pitt, & Berthon, 2011), happiness and luxury consumption (Hudders & Pandelaere, 2012), status signaling with luxury goods (Han, Nunes, & Drèze, 2010), self-congruity and luxury brands (Liu, Li, Mizerski, & Soh, 2012), counterfeit luxury brands (Wilcox, Kim, & Sen, 2009), and attitudes towards luxury restaurants (Lee & Hwang, 2011). Although the existing studies related to luxury consumption are helpful, they contribute little toward our understanding of luxury products’ marketing and monitoring in the fast changing retail environment (Vigneron & Johnson, 1999, 2004; Wiedmann et al., 2009). Given the projected growth of the U.S. luxury market and changing consumer demographics and psychographics, it is imperative that luxury scholars and marketers understand consumers’ motivations to buy luxury. Wiedmann et al.’s (2009) study was one of the earliest studies to explore consumers’ luxury value perceptions. They developed a multidimensional concept of luxury value perceptions that encompassed financial, functional, individual and social components to identify different types of luxury consumers. To the researchers knowledge, very little has been examined from consumers’ luxury value perceptions especially after the 2008 global recession. Luxury retail has also evolved exponentially in the past decade with online luxury offerngs, diffusion