Volume 3 Issue 9 (September 2021) PP. 184-208
DOI 10.35631/AIJBES.39014
Copyright © GLOBAL ACADEMIC EXCELLENCE (M) SDN BHD - All rights reserved
184
ADVANCED INTERNATIONAL JOURNAL OF
BUSINESS, ENTREPRENEURSHIP AND SMES
(AIJBES)
www.aijbes.com
THE INFLUENCE OF MATERIALISM VALUES TOWARDS
YOUNG CONSUMERS’ LUXURY FASHION PURCHASE
INTENTION IN INDONESIA
Erlin Dwi Septiana
1*
, Annisa Rahmani Qastharin
2
1
School of Business and Management, Institut Teknologi Bandung, Indonesia
Email: erlin_dwi@sbm-itb.ac.id
2
School of Business and Management, Institut Teknologi Bandung, Indonesia
Email: annisa.rahmani@sbm-itb.ac.id
*
Corresponding Author
Article Info: Abstract:
Article history:
Received date: 29.06.2021
Revised date: 25.07.2021
Accepted date: 16.08.2021
Published date: 02.09.2021
To cite this document:
Septiana, E. D., & Qastharin, A. R.
(2021). The Influence of Materialism
Values towards Young Consumers’
Luxury Fashion Purchase Intention in
Indonesia. Advanced International
Journal of Business,
Entrepreneurship and SMEs, 3 (9),
184-208.
DOI: 10.35631/AIJBES.39014.
This work is licensed under CC BY 4.0
Indonesia became one country of luxury fashion global expansion to
developing markets. Indonesia has a large number of high-net-worth
individuals that continue rising steadily, boosting sales of luxury fashion
products. The luxury fashion industry in Indonesia is forecasted to expand by
7.98% annually. Indonesia's young consumers have shown their potential to be
attracted by luxury fashion companies. Aligned with greater income and higher
exposure of luxury fashion obtained by young consumers in Indonesia, it is
predicted to be aligned with the increase of materialism values. Materialism
values have proven to positively influence luxury brand consumption in several
countries and are composed of social recognition, appealing appearance,
financial success, defining success, acquiring centrality, and pursuit of
happiness. Yet, it is unclear whether materialism values are also influential
towards young luxury fashion consumers' in Indonesia. This research has the
purpose to identify the variables of materialism values that positively influence
purchase intention and give recommendations that can be implemented by
luxury fashion companies to generate stronger marketing strategies. The
quantitative method using an online questionnaire is used with the judgemental
sampling technique. The data gathered from 317 respondents is tested using
PLS-SEM. The research findings show the influential variables of materialism
that positively influence brand engagement in self-concept as the mediating
variable and have a positive indirect effect towards purchase intention from the
strongest to weakest effects respectively are acquisition centrality, appealing
appearance, the pursuit of happiness, and social recognition. The
recommendation that can be implemented by luxury fashion companies is
designing the advertisements and campaigns that are able to bring out the