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.

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