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The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1355-5855.htm

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“Income vs. education” revisited – the roles of “family face” and gender in Chinese consumers’ luxury consumption Tingting Mo

Received 20 December 2019 Revised 22 June 2020 30 July 2020 Accepted 16 August 2020

Zhongnan University of Economics and Law, Wuhan, China Abstract Purpose – The transgenerational influence of inherited family capital on consumers’ luxury consumption has been studied recently in the mature luxury market. However, little research explores this topic in the emerging luxury market. In China’s Confucian culture, “family face” as part of “family inheritance” has been conceptualized as a factor driving luxury consumption. However, this hypothesis has not been empirically tested. The current research, therefore, seeks to examine the impact of economic and cultural capital on Chinese consumers’ luxury consumption within the family inheritance context and the roles that face concern and gender play to reveal the particularities of a specific emerging luxury market. Design/methodology/approach – A sample of 324 Chinese consumers was recruited in Shanghai. With the full sample, the author first assessed the effects of economic and educational capital (both personal and family sources) and face concern on luxury consumption using regression analyses. Next, the author conducted the regression analyses again by gender. Findings – Unlike trends in the mature luxury market, Chinese consumers’ educational levels do not drive their luxury consumption, and the transgenerational influence of economic and cultural capital functions as a negative factor. Influenced by the patrilineal tradition, higher levels of luxury consumption to compensate for parents’ lower income and educational levels and to enhance family face are found only in the male consumer group, but not in the female group. Originality/value – This research contributes to expanding the current understanding of emerging luxury markets and how the Confucian tradition influences Chinese consumers’ luxury consumption through gender role norms. Keywords Income level, Educational level, Luxury consumption, Concern for face, Gender, China Paper type Research paper

1. Introduction Members of the dominant class – defined by Pierre Bourdieu (1984) as those who possess superior economic, cultural and social capital in a society – are usually considered the primary consumers of luxury goods. Their economic capital provides the purchasing power, whereas their cultural capital reinforces the distinction between upper (dominant) and lower classes through consumption practices that signal hierarchical differences in taste (Bourdieu, 1984). Marketing scholars further confirm that higher income and educational levels translate into an increased level of luxury consumption (Dubois and Laurent, 1993). In Bourdieu’s class analysis, an individual’s economic and cultural capital is also assessed along the dimension of the family of origin. Individual income and educational levelsconstituteone’s economic and cultural capital; moreover, the individual’s family of origin confers resources and power that enhance such capital. Luxury consumption serves as a means of coping with aversive psychological states, such as a lack of selfesteem (Chaplin and John, 2007). Meanwhile, the individual’s higher level of materialism can be caused by economic deprivation experienced during childhood (Ahuvia and Wong, 2002). Asia Pacific Journal of Marketing and Logistics Vol. 33 No. 4, 2021 pp. 1052-1070 © Emerald Publishing Limited 1355-5855 DOI 10.1108/APJML-12-2019-0733

The author thanks Prof. Nancy Wong for her generous help and guidance on the initial version of the manuscript. The author would also like to thank the editor and the two reviewers for their constructive comments and useful suggestions. The author gratefully acknowledges the grant from National Natural Science Foundation of China (Project No. 71072152).

Both school and family are important agencies for inculcating “taste” (Bourdieu, 1984). However, littleresearch examinesthe influence of thefamily of origin on an individual’sluxury consumption. Previous examinations of “income versus education” in the context of luxury consumption havefocused mainly on mature European markets (Dubois and Laurent, 1993). Recent research has shifted to focus on the transgenerational influence of family inheritance on consumers’ luxury consumption in mature markets (Kessous et al., 2017; Lacroix and Jolibert, 2017). However, these results may not be upheld in emerging markets where luxury consumption belongs to not only the elite class but also the more modest social classes (Truong et al., 2009). Unlike traditional luxury brands, so-called “new luxury” lines have emerged with high brand prestige similar to traditional luxury brands but with more accessible prices than traditional luxury brands (Silverstein et al., 2008 ). This concept appealsdirectly to the luxury consumers in emerging markets (Nueno and Quelch, 1998; Truong et al., 2009). The new luxury concept targets the mass market while maintaining its brand conspicuousness. This phenomenon contradicts the classic theory of social distinction that highlights the equivalency between social class/taste and luxury consumption (Bourdieu, 1984). Such a contradiction is understudied particularly within the family inheritance context in emerging markets. The capital necessary to empower consumers’ luxury consumption is usually earned by the consumers rather than inherited from their families in emerging markets such as China (Kapferer and Valette-Florence, 2019). Therefore, this research’s first objective is to understand the extent to which the economic and cultural capital conferred by both personal sources (one’s own income and education) and the family of origin (parents’ economic situations and educational levels) influences an individual’s luxury consumption in the emerging market. Given the importance and impressive potential of China as an emerging luxury market (Heine and Gutsatz, 2015; Seo and Buchanan-Oliver, 2015), this study focuses on the Chinese luxury goods market. It has economic importance and cultural characteristics that are different from well-researched Western markets. Unlike “personal taste” in Western societies, “family face” has been identified as a major factor influencing luxury consumption in China (Wong and Ahuvia, 1998). Independent Westerners tend to be driven by internal motivations such as personal taste and individual preference, whereas interdependent Easterners are more likely to be influenced by external factors including face pressure and others’ opinions in luxury consumption (Wong and Ahuvia, 1998). In China, honoring parents and family by being successful in social competition is an important responsibility (Lan et al., 2009). Enhancing the family’s status and reputation through acquiring luxury goods is therefore part of the game (Wong and Ahuvia, 1998). Previous research has investigated the impact of face pressure on luxury consumption (Li and Su, 2007; Monkhouse et al., 2012), but the face effect within the family context has not been explored to date. Furthermore, the traditional Chinese family’s patrilineal system emphasizes the male-centered line of descent, which prioritizes the male heir in family inheritance (Hu and Scott, 2016). Consequently, Chinese males feel more responsibility than females do to honor their parents and family (Lan et al., 2009). However, the extent to which capital and responsibilities inherited from the family influence male and female consumers’ respective luxury consumption behaviors is understudied. Given the family’s importan t role in Chinese culture (Hsu, 1971) and the different gender roles in terms of enhancing “family face” in Chinese families (Lan et al., 2009), a second objective of this research involves examining the roles of face concern and gender in Chinese consumers’ luxury consumption within the family inheritance context. With a sample consisting of 324 Chinese consumers recruited in Shanghai, we first assess the effects of economic and educational levels and face concern on luxury consumption. Next, we examine the role of gender in particular by analyzing the data according to gender. Finally, we discuss the implications, limitations and future directions for this research.

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2. Literature review 2.1 Economic capital, cultural capital and luxury consumption Luxury is the opposite of necessity; it is tightly linked to the scarcity of supply and an extremely high price (Berry, 1994). Therefore, luxury goods are usually consumed by people rich in economic capital for different motives, such as the nobility’s interest in maintaining their position in the hierarchical structure (Smith, 1776) and the leisure class’s desire to show off (Veblen, 1899). In postmodern society, luxury has evolved to “emotional luxury,” meaning that, beyond the traditional motive of signaling economic capital, postmodern luxury consumption also involves significant expressions of personal and experiential elements (Atwal and Williams, 2009; Kapferer, 1998; Lee and Youn, 2020; Lipovetsky, 2007). This shift echoes the social distinction theory of Bourdieu (1984), who argues that one’s affiliation with a higher social class is not only decided by high economic capital but also very significantly reflected by cultural capital such as taste and cultural knowledge. Such cultural capital is expressed through daily life activities including consumption practices. In the area of marketing, researchers have shown that higher income and educational levels lead to increased levels of luxury consumption in European markets (Dubois and Laurent, 1993). Luxury consumption is different between Western and Eastern markets in terms of consumer motives (Wong and Ahuvia, 1998; Seo and Buchanan-Oliver, 2015; Xiao et al., 2018; Zakaria et al., 2020), value perception (Mo and Wong, 2019; Shukla and Purani, 2012; Tuu et al., 2017) and brand preference (Zhan and He, 2012). However, income’s role as an important driver of luxury consumption should not be different in China because income level determines purchasing power. Given its emerging market nature, a higher educational level is not necessarily related to higher luxury consumption in China. such as China, consumers tend to acquire more affordable luxury goods to fulfill their desire hus, the new luxury concept emerged to target mass consumers with a branding strategy that highlights the prestigious status of its users but that restrains the price at an accessible level (Nueno and Quelch, 1998; Truong et al., 2009). Because of the new luxury brands’ lower entry prices, luxury consumption no longer requires prescriptions such as luxury “taste” conferred by cultural capital (Bourdieu, 1984). On the contrary, consumers can freely connect to their new luxury brands regardless of their social circle (Nobre and Sim~ oes, 2019). Therefore, we do not expect that educational level affects Chinese consumers’ luxury consumption as it does for European consumers. Accordingly, we hypothesize the following: H1a. Consumers’ income levels are positively linked to their luxury consumption in China. H1b. Consumers’ educational levels have a nonsignificant influence on their luxury consumption in China. In Bourdieu (1984)’s analysis, economic and cultural capitals are not only constituted by an individuals’ own income and educational levels but also include the resources and “habitus” conferred by the family of origin. Luxury items can be inherited (Kessous et al., 2017; Lacroix and Jolibert, 2017). Moreover, the “class habitus” – such as lifestyles, values and attitudes – can also be shaped in the family. In this way, the family environment also influences one’s consumption practices (Almeida and Agante, 2016). From the economic perspective, the parents’ better economic situation may provide children with better material conditions. From the perspective of cultural capital, the parents’ “cultural habitus” can influence the formation of children’s values, attitudes, knowledge and behaviors in consumption (Almeida and Agante, 2016). For example, the educational background of the parents, especially the mother’s educational level, is positively related to

the adolescents’ choice of healthy food (Patrick and Nicklas, 2005). In the same way, consumers’ luxury consumption can be positively driven by consumers’ parents’ good educational background. Consider a child growing up in a middle-class family in which the parents are both well-educated and savvy customers of luxury brands. This child would be very likely to become a consumer familiar with luxury goods in adulthood. However, in emerging markets, most luxury consumers rise from humble beginnings (Godart and Zhao, 2014). Their luxury consumption is empowered by the wealth they earned themselves because most Chinese families were poor before the economic revolution in 1979 (Kapferer and Valette-Florence, 2019). Therefore, it is unlikely that the family could inherit the wealth or cultivate the “taste” that together encourage Chinese consumers’ luxury consumption. Nevertheless, family may impact Chinese consumers luxury consumption in other ways. environment of economic deprivation during childhood (Ahuvia and Wong, 2002). People tend to consume material goods to compensate for their feelings of self-doubt (Chang and Arkin, 2002) and low self-esteem (Chaplin and John, 2007; Cui et al., 2019). An individual’s family economic situation is positively related to that individual’s self-esteem (Twenge and Campbell, 2002). People high in materialism tend to consume more luxury goods (Wong and Ahuvia, 1998). Therefore, the parents’ poorer economic situation may lead to the higher luxury consumption intention of the parents’ offspring. M (Wong and Ahuvia, 1998). Compared to the previous generation, who lived with lower economic and educational levels, the younger generation in the Chinese family who earns a better living and achieves greater academic success than its parents is very likely to engage more in luxury consumption to signal its upward social standing and honor its family (Lan et al., 2009). Thus, we hypothesize as follows: H2a. A negative relationship should exist between people’s luxury consumption and their parents’ economic situation. Consumers tend to consume more (less) luxury goods if their parents’ economic situation is worse (better). H2b. A negative relationship should exist between people’s luxury consumption and their parents’ educational level. Consumers tend to consume more (less) luxury goods if their parents’ educational level is lower (higher). 2.2 Luxury consumption and “family face” in China Family is highly valued as an important institution that diffuses cultural influences among individuals in China. Family is regarded as an even more powerful educational agency than school in Chinese communities (Hsu, 1971). The collectivistic nature of Chinese culture is reflected in the country’s strong family tradition, and an individual’s behavior is very much influenced by family and group members (Stanworth, 2009; Yau, 1988). (Hu, 1944). Chinese concern for face (Chan et al., 2009) consists of personal qualities, wealth, social connections and authority that can be gained, maintained and enhanced through social interaction (Ho, 1976). Gaining face is regarded as vertical face work because it leads to higher social standings and power in social hierarchy (Leung and Chan, 2003). Luxury goods serve to signal one’s wealth and social status. Therefore, (Li and Su, 2007; Monkhouse et al., 2012). Face concern should be a positive driver of Chinese consumers’ luxury consumption. We posit as follows:

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H3a. Concern for face is positively linked to Chinese consumers’ luxury consumption. Furthermore, in (Yau, 1988). Hence, luxury consumption enhances not only one’s personal face but also one’s “family face” (Wong and Ahuvia, 1998). Compared to Western consumers, Chinese consumers pay more attention to the public reputation of their families as gained through luxury consumption because wealth and status represent not only one’s own achievement but also the position of one’s family (Wong and Ahuvia, 1998). If someone is concerned about face, he/she would be more likely to consume luxury goods to enhance family face. In this manner, individual face concern extends to become concern for family face. If the economic and cultural levels of parents are relatively low, luxury consumption is very likely to be used as a way to compensate for this deficiency to enhance face for the whole family. . Therefore, we expect that face concern functions as a moderator in the relationship between people’s luxury consumption and their parents’ economic and educational levels. Concern for face intensifies the motive for compensating for a family’s unpleasant economic situation and insufficient cultural capital through luxury consumption. We hypothesize the following: H3b. Concern for face strengthens the negative relationship between Chinese consumers’ luxury consumption and the consumers’ parents’ economic situation. H3c. Concern for face strengthens the negative relationship between Chinese consumers’ luxury consumption and the consumers’ parents’ educational levels. 2.3 The role of gender Gender is a key factor that has been widely explored in the literature on luxury consumption. Based on evolutionary theory, previous research found that women generally engage more in luxury consumption than men do because of women’s affect-related traits and roles, such as caregiving and emotional (Roux et al., 2017; Stokburger-Sauer and Teichmann, 2013), whereas men consume more luxury goods when their mating goal is activated (Bradshaw et al., 2019; El Hazzouri et al., 2019; Janssens et al., 2011). These findings revealed fundamental psychological differences in luxury consumption between women and men. However, the gender effect within a particular cultural context is seldom studied. In the traditional Chinese family, the patrilineal system plays an important role. Patrilineality regulates the family inheritance norm that prescribes the male-centered line of descent and inheritance (Hu and Scott, 2016). Although Chinese men have greater entitlement than women do to inherit the family wealth, these men also bear more family obligations, including honoring the parents (Lan et al., 2009). Honoring the parents and the family involves the acquisition of luxury goods to signal one’s higher social standing in Chinese culture (Wong and Ahuvia, 1998). If purchasing luxury goods highlights greater achievements in terms of accumulated wealth and academic success than those accomplished by the previous generation (as hypothesized in H2a and H2b), then male consumers, who bear greater responsibility for honoring the family, would engage more in luxury consumption. Therefore, we hypothesize the following: H4a. The negative relationship between people’s luxury consumption and their parents’ economic situation is more significant for men than it is for women. H4b. The negative relationship between people’s luxury consumption and their parents’ educational level is more significant for men than it is for women.

If men feel more obliged than women do to take responsibility for enhancing family face in the Chinese cultural context, men are also likely to be more concerned about the face enhancement value of luxury goods. Therefore, we further posit the following: H4c. The positive influence of concern for face on luxury consumption is stronger for men than it is for women. Following the same reasoning, if consumers engage more in luxury consumption to signal their improved social standings in terms of higher income and educational levels than their parents because of face concern (as hypothesized in H3b and H3c), men would be more driven by this motive than women would be due to men...