immigrants' use of prestige brands to convey status - Emerald
immigrants' use of prestige brands to convey status - Emerald
immigrants' use of prestige brands to convey status - Emerald
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If they could see me now: immigrants’ <strong>use</strong> <strong>of</strong><br />
<strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak<br />
The School <strong>of</strong> Human and Consumer Science, Ohio University, Athens, Ohio, USA, and<br />
Jane Z. Sojka<br />
College <strong>of</strong> Business Administration, Ohio University, Athens, Ohio, USA<br />
Abstract<br />
Purpose – The purpose <strong>of</strong> this study is <strong>to</strong> examine the degree <strong>of</strong> ethnic identity and demographic characteristics (the length <strong>of</strong> residency in the USA,<br />
education, income, age, and origin <strong>of</strong> ethnicity) in relation <strong>to</strong> brand purchases for <strong>status</strong>.<br />
Design/methodology/approach – The research is based on a survey <strong>of</strong> 324 retail cus<strong>to</strong>mers <strong>of</strong> Hispanics (n ¼ 173) and Asians (n ¼ 151) with<br />
analysis performed using regression analysis, t-tests, and ANCOVA.<br />
Findings – The stronger an immigrant identifies with his/her ethnic culture, the more likely he/she is <strong>to</strong> purchase high-priced branded products for<br />
<strong>status</strong> purposes. Immigrants with higher incomes are more likely <strong>to</strong> purchase high- priced <strong>prestige</strong> <strong>brands</strong>. Younger immigrants report a greater<br />
propensity <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>. No relationship with the dependent variable was found with length <strong>of</strong> time in the USA, education,<br />
and origin <strong>of</strong> ethnicities <strong>of</strong> immigrants.<br />
Originality/value – The major contribution <strong>of</strong> this research is <strong>to</strong> demonstrate the importance <strong>of</strong> ethnic identity strength, <strong>to</strong> reveal the major<br />
demographic variables on immigrant consumer behaviors, and <strong>to</strong> identify means by which practitioners can effectively <strong>use</strong> ethnicity strength, income,<br />
and age <strong>to</strong> target immigrant consumers.<br />
Keywords Prices, Brands, Social <strong>status</strong>, Ethnic groups, Consumer behaviour, United States <strong>of</strong> America<br />
Paper type Research paper<br />
An executive summary for managers and executive<br />
readers can be found at the end <strong>of</strong> this article.<br />
Introduction<br />
Consumers are drawn <strong>to</strong> purchase brand-name products for<br />
multiple reasons. On a very basic level, brand names enhance<br />
product liking (Klink, 2001), act as memory cues (Keller et al.,<br />
1998; Walvis, 2008) and simplify consumer choice (Ambler,<br />
1997). In the case <strong>of</strong> brand extensions, brand names help<br />
consumers avoid risk; instead <strong>of</strong> experimenting with an<br />
unfamiliar product, consumers can rely on a trusted brand<br />
extended <strong>to</strong> a new product category (Aaker and Keller, 1990;<br />
Boush and Loken, 1991). Consumers also <strong>use</strong> brand names<br />
as indica<strong>to</strong>rs <strong>of</strong> product attributes (Wanke et al., 2007).<br />
Hence, consumers <strong>use</strong> <strong>brands</strong> in a variety <strong>of</strong> ways <strong>to</strong> help<br />
make purchase decisions.<br />
Companies <strong>use</strong> high prices, or <strong>prestige</strong> pricing, <strong>to</strong> position<br />
<strong>brands</strong> as high quality and exclusive (Vigneron and Johnson,<br />
1999). Hence, a high-priced brand signals <strong>status</strong> <strong>to</strong><br />
consumers. The <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> as a surrogate for<br />
<strong>status</strong> is especially applicable <strong>to</strong> immigrants. Immigrants<br />
reflect their ethnic identity and distinctive demographic<br />
characteristics, cultural heritage, and belief system in their<br />
shopping behaviors (Fowler et al., 2007). A review <strong>of</strong> the<br />
The current issue and full text archive <strong>of</strong> this journal is available at<br />
www.emeraldinsight.com/0736-3761.htm<br />
Journal <strong>of</strong> Consumer Marketing<br />
27/4 (2010) 371–380<br />
q <strong>Emerald</strong> Group Publishing Limited [ISSN 0736-3761]<br />
[DOI 10.1108/07363761011052404]<br />
relevant literature on consumer socialization suggests that<br />
socio structural variables such as gender, age, and<br />
socioeconomic <strong>status</strong> should be examined in an exploration<br />
<strong>of</strong> brand sensitivity (Beaudoin and Lachance, 2006).<br />
For immigrants, purchase and consumption <strong>of</strong> <strong>prestige</strong><br />
<strong>brands</strong> may be a way <strong>of</strong> establishing themselves in a new<br />
world and new culture. If this is the case, we would expect <strong>to</strong><br />
see differences depending on the degree <strong>of</strong> identification with<br />
their ethnic subculture. In early studies on the degree <strong>of</strong><br />
ethnic identification, Hirschman (1981) emphasized that the<br />
degree <strong>of</strong> ethnic identification determines the individual level<br />
<strong>of</strong> commitment <strong>to</strong> host culture norms and consumption. In<br />
addition, Deshpande et al. (1986), in their study <strong>of</strong> the<br />
intensity <strong>of</strong> ethnic affiliation, pointed out that measuring the<br />
strength <strong>of</strong> ethnic identification among ethnic groups is<br />
necessary. They concluded that within the same general<br />
ethnic group, individuals vary in their levels <strong>of</strong> identification.<br />
These researchers found greater similarity between weak<br />
Hispanic identifiers and Anglos than between the two strong<br />
and weak Hispanic identifier groups in terms <strong>of</strong> preference for<br />
<strong>prestige</strong> and ethnically advertised <strong>brands</strong>.<br />
Our study explores Hispanics and Asian immigrants and<br />
their propensity <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
According <strong>to</strong> US Census Bureau (2005) data, the nation’s<br />
foreign-born population accounts for 12 percent <strong>of</strong> the <strong>to</strong>tal<br />
US population. Both Hispanic and Asian groups are among<br />
the fastest growing consumers in the US population. Both<br />
Hispanic and Asian groups maintain geographic<br />
concentration in where they live, which enables marketers <strong>to</strong><br />
reach them strategically. Yet, for these two immigrant<br />
populations, cultural and socio-economic environments are<br />
different. For example, large numbers <strong>of</strong> Hispanics are from<br />
Mexico and maintain a strong Catholic religious affiliation. In<br />
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Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
contrast, Asians tend <strong>to</strong> have higher education, income levels,<br />
and subsequent spending power than their Hispanic<br />
immigrant counterparts.<br />
Specifically, we examine the relationship between<br />
purchasing high-priced <strong>prestige</strong> brand items with these two<br />
immigrant populations’ strength <strong>of</strong> ethnic identity and<br />
demographic characteristics. With this study, we hope <strong>to</strong><br />
contribute <strong>to</strong> the limited body <strong>of</strong> research on the effects <strong>of</strong><br />
ethnic identity strength and socio structural variables on<br />
recent immigrant consumer behaviors. To practitioners, we<br />
hope <strong>to</strong> provide with directions regarding how <strong>to</strong> target recent<br />
immigrant consumers.<br />
Theoretical framework<br />
Price-based <strong>prestige</strong> purchase behavior<br />
In their study <strong>of</strong> <strong>prestige</strong>-seeking purchase behavior, Vigneron<br />
and Johnson (1999) categorized <strong>prestige</strong>-seeking purchase<br />
motivation in<strong>to</strong> four quadrants:<br />
1 Veblenian;<br />
2 snobs;<br />
3 band wagons; and<br />
4 hedonists (see Figure 1).<br />
These quadrants were based on the importance/unimportance<br />
<strong>of</strong> price as an indica<strong>to</strong>r <strong>of</strong> <strong>prestige</strong> and the public/private<br />
consciousness <strong>of</strong> the consumer. For immigrants, the<br />
Veblenian effect appears especially appropriate in gaining an<br />
understanding <strong>of</strong> purchase motivation.<br />
Conspicuous consumption, which is the same for Veblenian<br />
effect in this context, is the <strong>use</strong> <strong>of</strong> products <strong>to</strong> signal wealth<br />
and infer <strong>status</strong> and <strong>prestige</strong> (Veblen, 1899). For conspicuous<br />
consumers, a higher priced product is equated with a higher<br />
<strong>convey</strong>ed <strong>status</strong> (Lichtenstein et al., 1993). Hence, according<br />
<strong>to</strong> conspicuous consumption, consumers motivated by selfexpression<br />
<strong>of</strong> <strong>status</strong> would be more likely <strong>to</strong> view price as an<br />
indica<strong>to</strong>r <strong>of</strong> a <strong>prestige</strong> than other consumers. Coupling high<br />
price with a brand known for <strong>prestige</strong> would be especially<br />
appealing <strong>to</strong> consumers motivated <strong>to</strong> purchase products that<br />
<strong>convey</strong> <strong>status</strong> and wealth.<br />
Literature review and hypotheses<br />
The rational, emotional, and social utility <strong>of</strong> <strong>brands</strong> in<br />
private<br />
Brands serve as extrinsic cues for consumers in addition <strong>to</strong><br />
price. Brands simplify the purchase process in addition <strong>to</strong><br />
<strong>convey</strong>ing rational, emotional, and social utility value <strong>to</strong><br />
Figure 1 Conceptual framework <strong>of</strong> <strong>prestige</strong>-seeking consumer<br />
behavior<br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
consumers. Rational utility is <strong>use</strong>d by consumers for<br />
evaluation purposes. Performance, quality, price, reliability,<br />
and logistics are examples <strong>of</strong> rational fac<strong>to</strong>rs considered by<br />
consumers when choosing a brand name product (Blackwell<br />
and Stephan, 2004; Cohen and Areni, 1991;Vazquez et al.,<br />
2002). More specifically, research has found consumers rely<br />
on <strong>brands</strong> <strong>to</strong> ascertain product functions (Bhat and Reddy,<br />
1998; Long and Schiffman, 2000), product innovativeness<br />
(Ambler, 1997; de Cherna<strong>to</strong>ny, 1993), and product reliability<br />
(Dawar and Parker, 1994; Keller, 1998). Using the utilitarian<br />
contributions <strong>of</strong> the brand aids consumers in product choice<br />
based on rational needs.<br />
Brands also contribute emotional value based on hedonic<br />
aspects <strong>of</strong> brand and product (Bhattacharya and Sen, 2003;<br />
Thomson et al., 2005; Vazquez et al., 2002). This symbolic<br />
utility has been <strong>convey</strong>ed through aesthetics (Forsythe et al.,<br />
1999; Na et al., 2008; Schmitt and Simonson, 1997), novelty<br />
(Long and Schiffman, 2000; Sheth et al., 1991), and<br />
emotional experience (Ambler, 1997; Bhat and Reddy,<br />
1998; Long and Schiffman, 2000). Consumers form<br />
emotion-laden attachments <strong>to</strong> <strong>brands</strong> that characterize the<br />
consumer/brand relationship (Ball and Tasaki, 1992;<br />
Mikulincer et al., 2001). Brand attachment has been shown<br />
<strong>to</strong> influence the effectiveness <strong>of</strong> brand extensions (Fedorikhin<br />
et al., 2008; Kim et al., 2007).<br />
Furthermore, <strong>brands</strong> serve a social function by providing<br />
personal identities for consumers through symbolic meanings,<br />
thereby helping consumers reinforce their personal selfconcept<br />
(O’Cass and Frost, 2002). Self-concept is a<br />
multidimensional construct indicating the attitudes and<br />
perceptions people hold <strong>of</strong> themselves (Mehta, 1999).<br />
Possessions, including branded products, are endowed with<br />
symbolic meaning that then reflect and reinforce who we are<br />
(Belk et al., 1982). According <strong>to</strong> self-congruity theory,<br />
consumers seek out possessions that are congruent with<br />
their self-concept (Sirgy et al., 1997). Brands can be <strong>use</strong>d <strong>to</strong><br />
reflect who we are and may take on the role <strong>of</strong> an extended<br />
self (Belk et al., 1982). For example, “We don’t buy jeans –<br />
we buy Levi’s; we don’t buy sunglasses, we buy Ray Ban and<br />
we do not buy water – we buy Perrier” (Kohli and Thakor,<br />
1997, p. 207). Hence, matching brand images and personality<br />
help consumers establish and reinforce their self-concept.<br />
Brand symbolism in public<br />
Brands reinforce individual identity as well as possess<br />
symbolic properties on a group level that can <strong>convey</strong> social<br />
meanings within groups (Jevons et al., 2005; O’Cass and<br />
Frost, 2002; Workman, 1998). Particularly in the USA, where<br />
necessities are easily obtained by all, the social meaning <strong>of</strong><br />
goods may be the dominate fac<strong>to</strong>r in product purchase and<br />
consumption decisions. Social <strong>status</strong> represents one example<br />
<strong>of</strong> a symbolic meaning <strong>convey</strong>ed through high-priced <strong>brands</strong><br />
(Motameni and Shahrokhi, 1998). Publicly-consumed<br />
products – both branded necessities such as Rolex watches<br />
or Lexus cars, and luxury products such as boats and club<br />
memberships – are also indica<strong>to</strong>rs <strong>of</strong> social <strong>status</strong> (Bearden<br />
and Etzel, 1982; Workman, 1988). Even a product as simple<br />
as jeans can <strong>convey</strong> information on the <strong>status</strong> <strong>of</strong> the wearer. In<br />
a study <strong>of</strong> clothing purchases, it was found that respondents<br />
rated people who wore designer (e.g. Polo) or brand name<br />
(e.g. Seven) jeans more highly than those clothed in an<br />
ordinary (e.g. Route 66) s<strong>to</strong>re brand (Workman, 1988).<br />
372
Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
Although brand, price, and other extrinsic cues (e.g.<br />
country <strong>of</strong> origin, design features) can be <strong>use</strong>d by consumers<br />
as surrogate indica<strong>to</strong>rs <strong>of</strong> quality and value (Dawar and<br />
Parker, 1994; Dodds et al., 1991; Rao and Monroe, 1989),<br />
<strong>prestige</strong> <strong>brands</strong> – so signified by expensive prices – indicate<br />
<strong>status</strong> and wealth (Vigneron and Johnson, 1999). Hence,<br />
<strong>prestige</strong> <strong>brands</strong> create value for the consumer by providing<br />
<strong>status</strong> recognition (from family, friends, and reference groups)<br />
and communicating the role position <strong>of</strong> the brand <strong>use</strong>r<br />
(Langer, 1997; Zinkhan and Prenshaw, 1994). Wealth as<br />
demonstrated through material possessions provides one <strong>of</strong><br />
the strongest measures <strong>of</strong> <strong>status</strong> and social success (Byrne,<br />
1999). For consumers, visible consumption <strong>of</strong> <strong>status</strong> <strong>brands</strong><br />
essentially defines success and the notion <strong>of</strong> having “made it”<br />
in society (Langer, 1997).<br />
Immigrants and the purchase <strong>of</strong> <strong>prestige</strong> <strong>brands</strong><br />
Ethnic identity – or how people in the ethnic group relate<br />
within their own group as well as their larger society (Berry,<br />
1980) – has been found <strong>to</strong> influence purchases (Dyer et al.,<br />
2006), price reactions (Ackerman and Tellis, 2001), brand<br />
loyalty (Saegert et al., 1985), and acceptance <strong>of</strong> brand<br />
extensions (Monga and John, 2007). Immigrants who have<br />
assimilated in<strong>to</strong> the host (USA) culture, thereby reducing<br />
ethnic identity with their original home culture, may not need<br />
<strong>to</strong> rely on surrogate means, such as <strong>prestige</strong> <strong>brands</strong>, <strong>to</strong><br />
establish <strong>status</strong> and reinforce self-concept. However, for<br />
example, immigrants who maintain strong ethnic ties <strong>to</strong> their<br />
home culture yet no longer have the occupation, home,<br />
community position, and so on <strong>to</strong> reinforce their self-concept<br />
and identity may rely on other means for establishing <strong>status</strong>,<br />
wealth, and power. It is those with strong ethnic identity, and<br />
presumably less assimilation, who would turn <strong>to</strong> surrogate<br />
measures, such as <strong>prestige</strong> <strong>brands</strong>, <strong>to</strong> establish <strong>status</strong>.<br />
Researchers have noted multiple differences between<br />
cultures with regard <strong>to</strong> purchase behavior (Monga and John,<br />
2007). For example, price is not considered an important<br />
quality cue for Mexican women (Dunn, 1996) and Korean<br />
consumers have a distinct preference for foreign <strong>brands</strong> (Park<br />
et al., 2008). Although each immigrant <strong>to</strong> the USA brings<br />
unique aspects <strong>of</strong> the native culture with him/her, the<br />
underlying immigration experience may be similar. Regardless<br />
<strong>of</strong> home culture, an immigrant arrives in a new culture with<br />
no identity, limited means <strong>of</strong> communicating self-concept,<br />
and at least initially, lack <strong>of</strong> traditional means <strong>of</strong> <strong>status</strong><br />
through job title, income, social <strong>status</strong>, or reference groups.<br />
Hence, for an immigrant, product purchase and consumption<br />
may be an important means <strong>of</strong> establishing themselves in a<br />
new world. If <strong>brands</strong> are <strong>use</strong>d by immigrants as a visible<br />
demonstration <strong>of</strong> <strong>status</strong>, based on the Vigneron and Johnson<br />
(1999) framework, we suspect that immigrants with higher<br />
degrees <strong>of</strong> ethnic identification would be more likely <strong>to</strong><br />
purchase expensive <strong>prestige</strong> <strong>brands</strong> as indicated by the<br />
Veblenian effect. Hence, the following hypothesis is proposed:<br />
H1. The degree <strong>of</strong> ethnic identification <strong>of</strong> immigrants (i.e.<br />
Hispanic and Asian) <strong>to</strong> the USA will be related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
The meaning <strong>of</strong> cultural artifacts, including product<br />
symbolism, is a learned process as part <strong>of</strong> acculturation. For<br />
example, trucks may be just another form <strong>of</strong> travel for French<br />
consumers, but <strong>to</strong> Americans, trucks symbolize freedom,<br />
ruggedness, and a sense <strong>of</strong> adventure. Symbolic properties <strong>of</strong><br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
<strong>brands</strong> would require a longer residency in order for<br />
immigrants <strong>to</strong> acquire the symbolic brand meaning.<br />
However, high-priced <strong>prestige</strong> <strong>brands</strong> <strong>convey</strong> <strong>status</strong>, in part,<br />
on the basis <strong>of</strong> their price. Hence, once the price is established<br />
as “expensive” the symbolic meaning <strong>of</strong> <strong>prestige</strong> is <strong>convey</strong>ed.<br />
If the veblen effect accurately identifies the motivation behind<br />
immigrant <strong>prestige</strong> brand purchases, we would expect length<br />
<strong>of</strong> US residency <strong>to</strong> have no relation on the propensity <strong>to</strong> select<br />
high-priced <strong>prestige</strong> <strong>brands</strong>. Therefore, the following<br />
hypothesis is proposed:<br />
H2. The length <strong>of</strong> residency in the USA will have no<br />
relation <strong>to</strong> a preference for high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
As newcomers <strong>to</strong> a strange land, in a sense, immigrants may<br />
see themselves as innova<strong>to</strong>rs or early adopters in terms <strong>of</strong><br />
trying new products and <strong>brands</strong> unavailable in their home<br />
cultures. Whereas they may be comfortable with existing<br />
<strong>brands</strong> in their home culture, the new environment, the<br />
unavailability <strong>of</strong> familiar <strong>brands</strong> or some combination there<strong>of</strong><br />
may propel immigrants <strong>to</strong> experiment with purchasing new<br />
<strong>brands</strong> similar <strong>to</strong> innova<strong>to</strong>rs or early adopters who are among<br />
the first <strong>to</strong> buy new products. Like products new <strong>to</strong> the<br />
market, high-priced <strong>prestige</strong> <strong>brands</strong> are more costly and<br />
therefore would require increased resources – income and<br />
education – <strong>to</strong> obtain (Rogers, 2003). To that end, the<br />
following hypotheses are proposed:<br />
H3. Education levels will be significantly related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
H4. Income levels will be significantly related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
The age <strong>of</strong> an immigrant may also influence a preference for<br />
high-priced <strong>prestige</strong> products. Extant research across cultures<br />
has shown that <strong>status</strong>-seeking young people prefer foreign<br />
luxury <strong>brands</strong> (Park et al., 2008; Phau and Leng, 2008).<br />
Young people – lacking careers, income, and other means <strong>of</strong><br />
communicating <strong>status</strong> – turn <strong>to</strong> clothing and other visible<br />
products <strong>to</strong> reveal or establish <strong>status</strong> and feel good about<br />
themselves (Daters, 1990). Research has found that young<br />
people identify and prefer <strong>status</strong> <strong>brands</strong> more readily than<br />
older consumers and that brand sensitivity tends <strong>to</strong> decrease<br />
with age (Beaudoin and Lachance, 2006; Belk et al., 1982;<br />
O’Cass and Frost, 2002). Although young people from<br />
different cultures are grounded in unique cultural heritages,<br />
we suspect that, <strong>to</strong> a certain degree, young people are similar<br />
the world over and, regardless <strong>of</strong> cultural background, are<br />
more likely than older, more established people <strong>to</strong> purchase<br />
expensive <strong>prestige</strong> products. Hence, we propose the following<br />
hypothesis:<br />
H5. Age <strong>of</strong> respondent will be significantly related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
Finally, one <strong>of</strong> the premises <strong>of</strong> this research is <strong>to</strong> demonstrate<br />
that the immigration process – not necessarily the culture<br />
from which one is immigrating – produces consumer<br />
behavior that can be generalized across cultures. If this is<br />
true, and people are people the world over, we should not see<br />
differences in preference for high-priced <strong>prestige</strong> brand<br />
products between origins <strong>of</strong> ethnicity <strong>of</strong> immigrants.<br />
Consequently:<br />
H6. Origin <strong>of</strong> ethnicity (i.e. Hispanic and Asian) will have<br />
no relation <strong>to</strong> a preference for high-priced <strong>prestige</strong><br />
<strong>brands</strong>.<br />
373
Method<br />
To more accurately capture ethnic identity and behavior in<br />
natural settings, this study employed field research conducted<br />
in retail shops located in ethnic neighborhoods (in the<br />
Chicago area). This approach allowed for a realistic<br />
examination <strong>of</strong> the effects <strong>of</strong> ethnic identity on shopping<br />
behavior (Forsythe et al., 1999). Retail s<strong>to</strong>re cus<strong>to</strong>mers were<br />
randomly selected in retail sites and they received a gift card<br />
($2) as an incentive. This study included only female<br />
cus<strong>to</strong>mers in order <strong>to</strong> eliminate the potential for gender<br />
bias. The surveys were prepared in English, Spanish, and<br />
Korean due <strong>to</strong> the large Korean population in the region.<br />
Translation and back-translation techniques were <strong>use</strong>d and<br />
bilingual researchers cross-examined both versions. The<br />
questionnaire <strong>to</strong>ok about 10 minutes <strong>to</strong> complete. Usable<br />
survey collection resulted in a <strong>to</strong>tal <strong>of</strong> 324. Two ethnic<br />
groups, Hispanics (n ¼ 173) and Asians (n ¼ 151)<br />
participated in this study. Demographic characteristics <strong>of</strong><br />
the respondents are presented in Table I.<br />
Measurements<br />
A price-brand <strong>prestige</strong> scale (Netemeyer et al., 1995)<br />
consisted <strong>of</strong> six questions; coefficient alpha reliability for the<br />
scale was 0.79 in this study. Participants were asked <strong>to</strong><br />
indicate the degree <strong>to</strong> which they agreed with each statement.<br />
The statements were measured on a five-point Likert-type<br />
scale (1 ¼ strongly disagree; 5 ¼ strongly agree). In this scale,<br />
a high score indicates that a consumer generally believes that<br />
purchasing high-priced <strong>brands</strong> lead <strong>to</strong> greater enjoyment and<br />
better impressions <strong>of</strong> her <strong>status</strong>. A lower score suggests that a<br />
Table I Demographic characteristics <strong>of</strong> participants<br />
Characteristics n Percent<br />
Residency in the USA<br />
Less than 3 years 55 17.0<br />
3-10 years 89 27.5<br />
11-15 years 51 15.7<br />
16-20 years 55 17.0<br />
Over 20 years 72 22.2<br />
Age<br />
25 years or less 116 35.8<br />
26-35 98 30.2<br />
36-45 51 15.7<br />
46-55 34 10.5<br />
Over 56 25 7.7<br />
Individual income<br />
Below $15,000 133 34.9<br />
$15,001-25,000 78 24.0<br />
$25,001-35,000 64 19.8<br />
$35,001-45,000 49 15.1<br />
Education<br />
Elementary 24 7.4<br />
Middle school 38 11.7<br />
High school 116 35.8<br />
Associate degree 66 20.4<br />
Undergraduate and beyond 80 24.7<br />
Note: n ¼ 324<br />
Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
consumer does not see a general association between price<br />
and <strong>prestige</strong>. A principal component fac<strong>to</strong>r analysis among<br />
these items resulted in one fac<strong>to</strong>r (see Table II). Fac<strong>to</strong>r<br />
loadings ranged from 0.57 <strong>to</strong> 0.79. Respondents were asked<br />
“how strongly do you identify with your ethnic culture?” <strong>to</strong><br />
measure their strength <strong>of</strong> ethnic identification. The statement<br />
was also measured on a five-point Likert-type scale<br />
(1 ¼ strongly disagree; 5 ¼ strongly agree).<br />
Results<br />
H1 through H5 were tested using regression analyses. The<br />
results (see Table III) indicated that the strength <strong>of</strong> ethnic<br />
identification (b ¼ 0.10, p , 0.05) and higher income<br />
(b ¼ 0.12, p , 0.05) predicted a preference for high-priced<br />
<strong>prestige</strong> <strong>brands</strong>. Age (b ¼ 20.27, p , 0.05) negatively related<br />
<strong>to</strong> the preference for high-priced <strong>prestige</strong> <strong>brands</strong>. Therefore,<br />
H1 (a degree <strong>of</strong> ethnic identification), H4 (income level), and<br />
H5 (age) were supported. These independent variables were<br />
significantly related <strong>to</strong> a preference for high-priced <strong>prestige</strong><br />
<strong>brands</strong>. Length <strong>of</strong> residency in the USA (b ¼ 0.09, p . 0.05)<br />
and education (b ¼ 20.05, p . 0.05) were not related <strong>to</strong><br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>. Therefore, H2 (the<br />
length <strong>of</strong> residency in the USA will have no relation <strong>to</strong> a<br />
Table II Question items and fac<strong>to</strong>r loadings for price-brand <strong>prestige</strong><br />
Items<br />
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Fac<strong>to</strong>r Cronbach’s<br />
loading a<br />
People notice when you buy the most expensive<br />
brand <strong>of</strong> a product 0.57 0.79<br />
Buying the most expensive brand <strong>of</strong> a product<br />
makes me feel classy 0.68<br />
I enjoy the <strong>prestige</strong> <strong>of</strong> buying a high-priced<br />
brand 0.70<br />
It says something <strong>to</strong> people when you buy the<br />
high- priced version <strong>of</strong> a product 0.74<br />
I have purchased the most expensive brand <strong>of</strong> a<br />
product just beca<strong>use</strong> I knew other people<br />
would notice 0.79<br />
Even for a relatively inexpensive product, I<br />
think that buying a costly brand is impressive 0.70<br />
Eigenvalues 2.97<br />
Percentage <strong>of</strong> variance 49.54<br />
Table III Regression analysis <strong>of</strong> the demographic characteristics on the<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong><br />
Standardized coefficients<br />
Demographic characteristics b t p<br />
Strength <strong>of</strong> ethnic identification 0.10 1.97 0.04<br />
Length <strong>of</strong> residency 0.09 1.73 0.08<br />
Education 20.06 20.05 0.34<br />
Income 0.12 2.05 0.04<br />
Age 20.27 24.50 0.00<br />
(constant) 2.8 11.35<br />
R 2 0.08<br />
F 4,313 ¼ 6.87,<br />
p # 0.05<br />
Adjusted R 2 .06<br />
374
Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>) was supported.<br />
However, H3 (education levels will be significantly related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong>) was not<br />
supported.<br />
To test H6 (there will be no significant differences between<br />
Hispanic and Asian immigrants and their preference for highpriced<br />
<strong>prestige</strong> <strong>brands</strong>), t-tests and ANCOVA analysis were<br />
<strong>use</strong>d. First, a t-test was conducted in order <strong>to</strong> compare the<br />
difference <strong>of</strong> preference for high-priced <strong>prestige</strong> brand among<br />
Hispanics and Asians. The result indicated that there was no<br />
significant difference ( p . 0.05) in the means <strong>of</strong> Hispanics<br />
(M ¼ 3.24) and Asians (M ¼ 3.09). Then, a series <strong>of</strong> t-tests<br />
were conducted in order <strong>to</strong> examine the demographic<br />
differences between these ethnics. The results <strong>of</strong> t-tests<br />
indicated that all demographic characteristics were<br />
significantly different between these two ethnics (Table IV).<br />
The results <strong>of</strong> each Levene’s test were not significant for all<br />
outcome measurements, which indicated that the assumption<br />
<strong>of</strong> homogeneity <strong>of</strong> variance was met for t-tests.<br />
Finally, these demographic variables were <strong>use</strong>d as covariates<br />
in ANCOVA analysis in order <strong>to</strong> consider demographic<br />
characteristic differences between ethnic groups in testing H6.<br />
The results indicated that there was still no difference in the<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong> among Hispanics<br />
and Asians (F ¼ 0.04, p . 0.05) regardless <strong>of</strong> their<br />
demographic characteristic differences. The results <strong>of</strong> the<br />
analysis with covariates indicated that demographic<br />
differences did not influence the initial result. Therefore, H6<br />
was supported (see Table V and Figure 2).<br />
Discussion and implications<br />
We conclude that immigrants who have a high degree <strong>of</strong><br />
ethnic identification, have higher income, and are younger in<br />
age are more likely <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
The preference for <strong>prestige</strong> <strong>brands</strong> was unrelated <strong>to</strong> years <strong>of</strong><br />
residency in the USA and education. Our results confirm and<br />
extend the work <strong>of</strong> others who have examined brand and<br />
pricing issues in cross-cultural contexts. Most notably, we<br />
extended the work <strong>of</strong> Forsythe et al. (1999) by examining two<br />
extrinsic cues – price and brand – as interpreted by<br />
immigrants from diverse cultural backgrounds.<br />
As predicted, immigrants with a high degree <strong>of</strong> ethnic<br />
identification indicated preferences for high-priced <strong>prestige</strong><br />
<strong>brands</strong>. The current study confirms and extends the results<br />
found by Deshpande et al. (1986). Deshpande et al.<br />
concluded that Hispanics who had a higher ethnic affiliation<br />
had a preference for purchasing high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
The present study found that the positive relationship<br />
between the degree <strong>of</strong> ethnic strength and preference for<br />
purchasing high-priced <strong>prestige</strong> <strong>brands</strong> not only applied <strong>to</strong><br />
Table V Hypotheses and results<br />
Hypotheses<br />
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H1. Immigrants <strong>to</strong> the USA with a high (as opposed<br />
<strong>to</strong> low) degree <strong>of</strong> ethnic identification will express<br />
a preference <strong>to</strong>ward the purchase <strong>of</strong> high-priced<br />
<strong>prestige</strong> <strong>brands</strong><br />
H2. The length <strong>of</strong> residency in the USA will have no<br />
relation <strong>to</strong> a preference for high- priced <strong>prestige</strong><br />
<strong>brands</strong><br />
H3. Education levels will be significantly related <strong>to</strong><br />
a preference for high-priced <strong>prestige</strong> <strong>brands</strong><br />
H4. Income levels will be significantly related <strong>to</strong> a<br />
preference for high-priced <strong>prestige</strong> <strong>brands</strong><br />
H5. Age <strong>of</strong> respondent will be significantly related<br />
<strong>to</strong> a preference for high- priced <strong>prestige</strong> <strong>brands</strong><br />
H6. Origin <strong>of</strong> ethnicity (i.e. Hispanic and Asian) will<br />
have no relation <strong>to</strong> a preference for high-priced<br />
<strong>prestige</strong> <strong>brands</strong><br />
Results<br />
Supported<br />
Supported<br />
Not supported<br />
Supported<br />
Supported<br />
Supported<br />
Figure 2 Model for recent immigrant consumer’s Veblenian behavior<br />
Hispanics but also <strong>to</strong> Asians. This study also found that<br />
there was no difference in preference for purchasing highpriced<br />
<strong>prestige</strong> <strong>brands</strong> between two diverse immigrant<br />
populations. Therefore, these findings imply that the<br />
preference for purchasing high-priced <strong>prestige</strong> <strong>brands</strong> <strong>to</strong><br />
reinforce and communicate <strong>status</strong> is related <strong>to</strong> the degree <strong>of</strong><br />
ethnic identification but not related <strong>to</strong> the origin <strong>of</strong><br />
ethnicities.<br />
Table IV Mean scores and t-tests between Hispanics and Asians on their demographic characteristics<br />
Hispanics (n 5 173) Asians (n 5 151)<br />
Demographic characteristics M SD M SD t(n5 324)<br />
Length <strong>of</strong> residency 3.1 1.4 2.8 1.4 3.37 *<br />
Education 2.8 1.0 4.1 0.9 211.13 **<br />
Income 1.7 0.9 2.5 1.1 26.87 **<br />
Age 1.8 1.3 2.6 1.0 26.25 **<br />
Note: M ¼ Means, SD ¼ Standard deviations (n ¼ 324); * p , 0.05; ** p , 0.001<br />
375
Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
Furthermore, our results show that younger immigrants are<br />
also more likely <strong>to</strong> prefer high-priced <strong>prestige</strong> <strong>brands</strong>, which is<br />
consistent with the results <strong>of</strong> studies examined in other<br />
countries. Beaudoin and Lachance’s (2006) study, which was<br />
conducted among Canadian adolescents, found that age was<br />
significantly related <strong>to</strong> brand sensitivity. Phau and Leng<br />
(2008) found that Australian teenagers, especially those that<br />
were <strong>status</strong>-seeking teenagers, had a positive attitude <strong>to</strong>ward<br />
foreign luxury <strong>brands</strong>. These findings suggest that there are<br />
similarities among age groups that may transcend crosscultural<br />
boundaries. Therefore, additional research increasing<br />
the sample size and the number <strong>of</strong> cultures represented is<br />
recommended.<br />
Theoretical implications<br />
Our results further extend the work <strong>of</strong> Vigneron and Johnson<br />
(1999) who studied consumer motivation <strong>to</strong> purchase highpriced<br />
<strong>prestige</strong> <strong>brands</strong>. Our results show preliminary support<br />
for the Veblenian effect (<strong>brands</strong> as indica<strong>to</strong>rs <strong>of</strong> <strong>status</strong>) with<br />
immigrant participants. In addition, our study identified<br />
demographic characteristics <strong>of</strong> immigrants that are<br />
significantly related <strong>to</strong> high-priced <strong>prestige</strong> <strong>brands</strong>. Income<br />
is a fac<strong>to</strong>r in establishing social class: an indica<strong>to</strong>r <strong>of</strong> <strong>status</strong>.<br />
Immigrants who have attained higher income levels have<br />
established <strong>status</strong>, wealth, and power; hence, they are able <strong>to</strong><br />
utilize high-priced <strong>prestige</strong> <strong>brands</strong> as a means <strong>to</strong> communicate<br />
their social standing as they desire. Additional research is<br />
needed <strong>to</strong> further substantiate the veblen motivational effect<br />
versus other possible motivations <strong>to</strong> account for immigrant<br />
purchases <strong>of</strong> <strong>prestige</strong> products in different socio structural<br />
variables.<br />
Practitioner implications<br />
The potential for generalization across cultural boundaries<br />
can prove cost-effective for practitioners targeting immigrants.<br />
Practitioners in the USA have been alerted <strong>to</strong> the need for<br />
distinguishing between subcultures within cultures, such as<br />
differences between various Asian populations (e.g. Korean,<br />
Japanese, Chinese, Vietnamese, etc.) or Hispanic/Latinos<br />
populations (e.g. Mexican, Puer<strong>to</strong> Rican, Cuban, Spanish).<br />
Products, promotions, and other marketing mix components<br />
must be individually tailored <strong>to</strong>ward each segment within<br />
each subculture; however, segmenting within a subculture<br />
becomes a costly proposition. Our research suggests that one<br />
aspect – high-priced <strong>prestige</strong> <strong>brands</strong> – might transcend<br />
culture and appeal <strong>to</strong> immigrants regardless <strong>of</strong> their home<br />
culture. The results <strong>of</strong> this research indicated that the<br />
preference for the high-priced <strong>prestige</strong> <strong>brands</strong> depends on the<br />
degree <strong>of</strong> ethnic identification rather than the origin <strong>of</strong><br />
ethnicities. Therefore, practitioners need <strong>to</strong> be aware <strong>of</strong> the<br />
intensity <strong>of</strong> ethnic affiliation as an important concept in their<br />
business. In addition <strong>to</strong> reducing the costs <strong>of</strong> targeting<br />
multiple sub-cultures within a culture, <strong>of</strong>fering high-priced<br />
<strong>prestige</strong> <strong>brands</strong> also provides higher mark-up and greater<br />
potential for pr<strong>of</strong>itability for retailers.<br />
To effectively target immigrant populations, our results<br />
suggest that brand name alone is not sufficient; the <strong>prestige</strong> <strong>of</strong><br />
the brand is further reinforced by its high price. Thus, it<br />
behooves retailers <strong>of</strong>fering high-priced <strong>prestige</strong> <strong>brands</strong> <strong>to</strong><br />
target those immigrants with higher incomes and ethnic<br />
identity. However, if these immigrants drawn <strong>to</strong> high-priced<br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
<strong>prestige</strong> <strong>brands</strong> are indeed early adopters as suggested by<br />
Rogers’ (2003) diffusion <strong>of</strong> innovation model, then a new<br />
market <strong>of</strong> early majority immigrants with lower income might<br />
be a secondary target market for retailers.<br />
To target early majority immigrants who aspire <strong>to</strong> the <strong>status</strong><br />
but lack the economic resources, sales promotion tactics<br />
might be <strong>use</strong>d. Sales promotions – short term price incentives<br />
<strong>to</strong> encourage sales without reducing the <strong>prestige</strong> indicated by<br />
price – would be one means <strong>of</strong> reaching price sensitive<br />
cus<strong>to</strong>mers without alienating existing markets. Sales<br />
promotion tactics such as rebates, price packs, two for ones,<br />
or bonus <strong>of</strong>fers could be <strong>use</strong>d <strong>to</strong> attract lower income early<br />
adopters trying <strong>to</strong> imitate innova<strong>to</strong>rs and early adopters.<br />
Additional research is needed <strong>to</strong> determine the most effective<br />
sales promotions <strong>to</strong> target immigrant populations and <strong>to</strong><br />
determine generalizability <strong>of</strong> these sales promotion tactics<br />
across cultures.<br />
When determining which high-priced <strong>prestige</strong> <strong>brands</strong> <strong>to</strong><br />
carry, it is suitable for practitioners <strong>to</strong> identify product/brand<br />
trends catering <strong>to</strong> younger consumers. Our results suggest<br />
that younger immigrants, like their American counterparts,<br />
are more disposed <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
Future research is needed <strong>to</strong> identify product categories and<br />
<strong>brands</strong> which are especially appealing <strong>to</strong> younger immigrants<br />
so that practitioners can capitalize on youthful propensities<br />
<strong>to</strong>ward high-priced <strong>prestige</strong> <strong>brands</strong>. Further research<br />
questions include the following. Is the propensity for highpriced<br />
<strong>brands</strong> a function <strong>of</strong> the need for young people <strong>to</strong><br />
establish themselves in the eyes <strong>of</strong> others? If so, we would<br />
expect <strong>to</strong> see similar behavior manifested (although not with<br />
branded products) in third world or economically deprived<br />
cultures. Or is the propensity <strong>to</strong>ward high-priced branded<br />
products a function <strong>of</strong> the “flat world” where the media and<br />
internet have facilitated cross-cultural communication?<br />
Additional research on young people’s attraction <strong>to</strong> highpriced<br />
<strong>prestige</strong> <strong>brands</strong> is warranted.<br />
Finally, for future research, the emphasis on price and<br />
brand as an indica<strong>to</strong>r <strong>of</strong> <strong>status</strong> raises interesting questions in<br />
terms <strong>of</strong> counterfeit products. Counterfeit products are<br />
similar <strong>to</strong> high-priced <strong>prestige</strong> products in that they <strong>of</strong>fer<br />
<strong>status</strong> at a glance. The difference is that counterfeits are not<br />
produced by the branded firm and are significantly less<br />
expensive <strong>to</strong> purchase. Would the high ethnic identification<br />
group who prefers high-priced <strong>prestige</strong> products be persuaded<br />
<strong>to</strong> purchase <strong>status</strong>-laden, but lower cost counterfeits? Our<br />
guess is no, but future research could further establish the<br />
importance <strong>of</strong> price in establishing brand <strong>status</strong> by comparing<br />
attitudes and purchase intentions for counterfeits versus<br />
actual branded products. Future research is needed <strong>to</strong> further<br />
generalize these results <strong>to</strong> other immigrant populations.<br />
Three limitations <strong>of</strong> this study should be noted. The<br />
participants were only females; therefore, the results cannot<br />
be applicable <strong>to</strong> males. The Hispanics and Asians ethnic<br />
groups who participated in this study were not identified by<br />
country <strong>of</strong> origin. Thus, further study may distinguish the<br />
country <strong>of</strong> origin among these ethnic groups. Finally, 58.9<br />
percent <strong>of</strong> the participants had an income that was under<br />
$25,000. Future study may include higher income immigrants<br />
<strong>to</strong> examine their preferences for high-priced <strong>prestige</strong> <strong>brands</strong><br />
as a means <strong>to</strong> <strong>convey</strong> <strong>status</strong>.<br />
376
Conclusions<br />
Despite the limitations <strong>of</strong> this study, it contributes <strong>to</strong> the<br />
literature and provides valuable implications for practitioners.<br />
Retailers understand that <strong>prestige</strong> luxury <strong>brands</strong> are desired<br />
by mass consumers including the growing ethnic populations<br />
who see a high-priced <strong>prestige</strong> brand as a <strong>status</strong> symbol.<br />
Previous studies <strong>of</strong>ten neglected <strong>to</strong> examine the degree <strong>of</strong><br />
ethnic identification and assumed that people within each<br />
ethnic group were homogeneous. This study confirmed that<br />
the degree <strong>of</strong> ethnic identification and the demographic<br />
characteristics were vital variables for understanding<br />
immigrant consumption behavior.<br />
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About the authors<br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
Lynn Eunjung Kwak is an Assistant Pr<strong>of</strong>essor at The School<br />
<strong>of</strong> Human and Consumer Science, Ohio University. Her<br />
Master’s degree was from University <strong>of</strong> Minnesota and her<br />
PhD from Florida State University. She teaches retail<br />
merchandising, product development, and strategic retail<br />
policy. Her research interests include ethnic consumer buying<br />
behavior and product development in retail industry. Lynn<br />
Eunjung Kwak is the corresponding author and can be<br />
contacted at: Kwak@ohio.edu<br />
Jane Z. Sojka graduated with honors in English from<br />
Indiana University and obtained her MBA from Wichita State<br />
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Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
University and her PhD from Washing<strong>to</strong>n State University.<br />
She is a recent recipient <strong>of</strong> Ohio University’s University<br />
Pr<strong>of</strong>essor teaching award and is the current Robert<br />
H. Freeman Pr<strong>of</strong>essor <strong>of</strong> Marketing. Dr Sojka has worked<br />
as a marketing consultant prior <strong>to</strong> being employed as<br />
materials manager for the Coleman Company. Research<br />
interests include affect and decision processing, relationship<br />
selling, visual/verbal communication, branding, and food<br />
purchase/consumption.<br />
Executive summary and implications for<br />
managers and executives<br />
This summary has been provided <strong>to</strong> allow managers and executives<br />
a rapid appreciation <strong>of</strong> the content <strong>of</strong> this article. Those with a<br />
particular interest in the <strong>to</strong>pic covered may then read the article in<br />
<strong>to</strong><strong>to</strong> <strong>to</strong> take advantage <strong>of</strong> the more comprehensive description <strong>of</strong> the<br />
research undertaken and its results <strong>to</strong> get the full benefits <strong>of</strong> the<br />
material present.<br />
Consumers justify the purchase <strong>of</strong> brand named products<br />
based on the value ascribed <strong>to</strong> the brand. Immigrant<br />
consumers currently represent about 12 percent <strong>of</strong> the<br />
current USA. (US Census Bureau, 2005). Hispanics and<br />
Asian ethnic groups are the fastest growing populations in the<br />
USA, in terms <strong>of</strong> size and spending power. It therefore<br />
behooves retailers <strong>to</strong> understand the buying behavior <strong>of</strong> these<br />
significant ethnic groups. While previous research has tended<br />
<strong>to</strong>ward segmenting these ethnic groups in<strong>to</strong> smaller, subcultural<br />
segments, we take the opposite approach and look for<br />
similarities in buying behavior so that practitioners may gain<br />
from economies <strong>of</strong> scale. This paper examines propensity <strong>to</strong><br />
purchase high-priced <strong>prestige</strong> <strong>brands</strong> by Hispanic and Asia<br />
immigrant consumers.<br />
Degree <strong>of</strong> ethnicity and brand value<br />
Consumers <strong>use</strong> high-priced <strong>prestige</strong> <strong>brands</strong> as a means <strong>of</strong><br />
<strong>convey</strong>ing <strong>status</strong>. According <strong>to</strong> Veblen, conspicuous<br />
consumption allows people <strong>to</strong> project an image <strong>of</strong> success or<br />
<strong>status</strong> via purchases that <strong>convey</strong> meaning. High-priced<br />
<strong>prestige</strong> branded products (such as Gucci sunglasses or<br />
Louie Vuit<strong>to</strong>n purses) may be <strong>use</strong>d by the consumer <strong>to</strong><br />
<strong>convey</strong> a <strong>status</strong> image <strong>to</strong> others. The need <strong>to</strong> <strong>use</strong> high-price<br />
<strong>status</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong> may be particularly <strong>use</strong>ful <strong>to</strong><br />
immigrant populations in the USA.<br />
Immigrants <strong>to</strong> the USA may arrive in a new culture with no<br />
identity, limited means <strong>of</strong> communicating self-concept, and at<br />
least initially, lack <strong>of</strong> traditional means <strong>of</strong> <strong>status</strong> through job<br />
title, income, social <strong>status</strong>, or reference groups. Hence, for<br />
immigrant populations, product purchase and consumption<br />
may be an important means <strong>of</strong> establishing themselves in a<br />
new world.<br />
This paper investigates the proposition that immigrants<br />
with higher degrees <strong>of</strong> ethnic identification are more likely <strong>to</strong><br />
purchase expensive <strong>prestige</strong> <strong>brands</strong>. Immigrants, who have<br />
assimilated in<strong>to</strong> the host (US) culture, thereby reducing<br />
ethnic identity with their original home culture, may not need<br />
<strong>to</strong> rely on surrogate means, such as <strong>prestige</strong> <strong>brands</strong>, <strong>to</strong><br />
establish <strong>status</strong> and reinforce self-concept. However those<br />
immigrants who retain strong ties with their ethnic identity<br />
(regardless <strong>of</strong> years in the USA) may be prone <strong>to</strong> high-price<br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
brand purchases <strong>to</strong> <strong>convey</strong> <strong>status</strong> and reinforce their selfconcept.<br />
One <strong>of</strong> the premises <strong>of</strong> this research is <strong>to</strong> demonstrate that<br />
the immigration process – not the culture from which one is<br />
immigrating – produces consumer behavior that can be<br />
generalized across cultures. If this is true, we would expect<br />
similar preferences for high-priced <strong>prestige</strong> brand products<br />
regardless <strong>of</strong> different ethnic origins <strong>of</strong> immigrants. In<br />
addition <strong>to</strong> examining the effects <strong>of</strong> ethnic identification,<br />
years in the USA, education, income and age are also<br />
investigated for propensity <strong>to</strong> purchase high-priced branded<br />
products.<br />
Study and results<br />
The degree <strong>of</strong> ethnic identity and demographic characteristics<br />
(the length <strong>of</strong> residency in the USA, education, income, age,<br />
and origin <strong>of</strong> ethnicity) were examined in relation <strong>to</strong> brand<br />
purchases for <strong>status</strong>. Data were collected in a large,<br />
Midwestern city at a retail outlet where immigrant<br />
populations shop. Using both English and translated<br />
surveys, degree <strong>of</strong> ethnic identity, propensity <strong>to</strong>ward brand<br />
purchases were collected via established scales; the remaining<br />
variables were single-item questions. A <strong>to</strong>tal <strong>of</strong> 324 immigrant<br />
consumers participated in the research with both ethnic<br />
groups similarly represented (Hispanics; n ¼ 173 and Asians;<br />
n ¼ 151).<br />
Results show degree <strong>of</strong> ethnic identity, income, and age<br />
predict the purchase <strong>of</strong> high-priced <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong><br />
<strong>status</strong>. Stronger identity with his/her ethnic culture, results in<br />
a greater likelihood <strong>to</strong> purchase high-priced branded products<br />
for <strong>status</strong> purposes. Similarly, immigrants with high incomes<br />
are more likely <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>. And,<br />
consistent with US research on teens, age was found <strong>to</strong> be<br />
inversely related <strong>to</strong> brand purchases. Younger immigrants<br />
report a greater propensity <strong>to</strong> purchase high-priced <strong>prestige</strong><br />
<strong>brands</strong>. The propensity <strong>to</strong> purchase high-priced <strong>prestige</strong><br />
<strong>brands</strong> was not related <strong>to</strong> immigrants’ length <strong>of</strong> time in the<br />
USA, education, or origin <strong>of</strong> ethnicity.<br />
Marketing implications and ideas for further research<br />
Marketing theory purports that marketing components must<br />
be individually tailored <strong>to</strong> successfully target each segment<br />
within each subculture; however, segmenting within a<br />
subculture becomes a costly proposition. Our research<br />
suggests that one aspect – high-priced <strong>prestige</strong> <strong>brands</strong> –<br />
might transcend culture and appeal <strong>to</strong> immigrants regardless<br />
<strong>of</strong> their home culture. The results <strong>of</strong> this research indicated<br />
that the preference for the high-priced <strong>prestige</strong> <strong>brands</strong><br />
depends on the degree <strong>of</strong> ethnic identification rather than<br />
the ethnic origin <strong>of</strong> immigrants. Therefore, practitioners need<br />
<strong>to</strong> be aware <strong>of</strong> the intensity <strong>of</strong> ethnic affiliation – not just<br />
ethnic affiliation – as an important concept in understanding<br />
their cus<strong>to</strong>mers’ purchase behaviors. In addition <strong>to</strong> reducing<br />
the costs <strong>of</strong> targeting multiple sub-cultures within a culture,<br />
<strong>of</strong>fering high-priced <strong>prestige</strong> <strong>brands</strong> also provides higher<br />
mark-up and greater potential for pr<strong>of</strong>itability for retailers. In<br />
short, our results suggest that retailers targeting immigrant<br />
consumers with high degrees <strong>of</strong> ethnic identification, high<br />
income, and/or younger in age should include high-priced<br />
<strong>prestige</strong> <strong>brands</strong> in their product lines.<br />
In addition <strong>to</strong> targeting immigrants who maintain strong<br />
ethnic identities, immigrants who aspire <strong>to</strong> <strong>status</strong> but lack<br />
economic resources, might also be susceptible <strong>to</strong> purchase<br />
379
Immigrants’ <strong>use</strong> <strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong><br />
Lynn Eunjung Kwak and Jane Z. Sojka<br />
high-priced <strong>prestige</strong> <strong>brands</strong> for <strong>status</strong> purposes. Beca<strong>use</strong> the<br />
high price signals <strong>status</strong>, sales promotion tactics (short term<br />
incentives <strong>to</strong> encourage sales), instead <strong>of</strong> permanent price<br />
reductions, should be <strong>use</strong>d. Coupons, rebates, buy-one-ge<strong>to</strong>ne<br />
half-<strong>of</strong>f sales promotions could be one means <strong>of</strong> reaching<br />
price sensitive cus<strong>to</strong>mers without alienating existing markets.<br />
Additional research is needed <strong>to</strong> determine the most effective<br />
sales promotions <strong>to</strong> target immigrant populations and <strong>to</strong><br />
determine generalizability <strong>of</strong> these sales promotion tactics<br />
across additional cultures.<br />
When determining which high-priced <strong>prestige</strong> <strong>brands</strong> <strong>to</strong><br />
carry, it is suitable for practitioners <strong>to</strong> identify product/brand<br />
trends catering <strong>to</strong> younger consumers. Results suggest that<br />
younger immigrants, like their American counterparts, are<br />
more disposed <strong>to</strong> purchase high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
Journal <strong>of</strong> Consumer Marketing<br />
Volume 27 · Number 4 · 2010 · 371–380<br />
Future research is needed <strong>to</strong> identify product categories and<br />
<strong>brands</strong> which are especially appealing <strong>to</strong> younger immigrants<br />
so that practitioners can capitalize on youthful propensities<br />
<strong>to</strong>ward high-priced <strong>prestige</strong> <strong>brands</strong>.<br />
In conclusion, our research suggests that immigrants with<br />
stronger ethnic identity, with high income, and who are<br />
younger in age, have a greater propensity <strong>to</strong> purchase highpriced<br />
<strong>prestige</strong> brand products as a form <strong>of</strong> <strong>status</strong>. These<br />
results were consistent across two different cultures: Hispanic<br />
and Asian. Our results suggest that the process <strong>of</strong><br />
immigration, not just the home culture, may contribute <strong>to</strong><br />
purchase preferences in the host US culture.<br />
(A précis <strong>of</strong> the article “If they could see me now: immigrants’ <strong>use</strong><br />
<strong>of</strong> <strong>prestige</strong> <strong>brands</strong> <strong>to</strong> <strong>convey</strong> <strong>status</strong>”.)<br />
To purchase reprints <strong>of</strong> this article please e-mail: reprints@emeraldinsight.com<br />
Or visit our web site for further details: www.emeraldinsight.com/reprints<br />
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