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The Perfection of The Narcissistic Self A Qualitative Study On Luxury Consumption and Customer Equity
The Perfection of The Narcissistic Self A Qualitative Study On Luxury Consumption and Customer Equity
a r t i c l e i n f o a b s t r a c t
Article history: This study explores the buying behaviors of the two types of narcissistic orientations, covert and overt, to see the
Received 1 December 2014 differences in purchasing behavior and psychology in luxury consumption and their different contributions to
Received in revised form 1 September 2015 customer equity of luxury brands. Covert narcissistic consumptions show counterfeit product consuming behav-
Accepted 1 December 2015
iors and a fast purchasing cycle, prefer to have trendy items, value quantity more than quality, and choose loud
Available online 19 April 2016
luxury goods. On the other hand, overt narcissistic consumption shows socially responsible consuming behaviors
Keywords:
and a comparatively slower purchasing cycle, the preference to have classic and limited symbolic items, prioritiz-
Narcissism ing quality over quantity, and choosing quiet luxury goods. This research confirms that the two types of narcis-
Overt and covert narcissism sistic orientations encourage people to have different modalities in luxury consumption and make different
Luxury consumption contributions to customer equity of luxury brands.
Customer equity © 2016 Published by Elsevier Inc.
Luxury brands
Consumer behavior
http://dx.doi.org/10.1016/j.jbusres.2015.12.073
0148-2963/© 2016 Published by Elsevier Inc.
3814 Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819
Table 1
Summary of Research Findings.
Common grounds in luxury consumption • Express themselves with luxury brand attributes in various ways
• Use luxury items as their sociopsychological resource
• Utilize luxury items as essential means for social activities
• Passionately indulge in luxury brands shopping
• Crave compliments and admirations from others
• Choose to purchase luxury brands even with a financial burden
Brand equity • Consume luxury brands to cover up psychological inferiority • Consume luxury brands to express psychological
• Concerned with the visibility of the logos and the public's de- superiority
sirability of luxury brands • Focus on brands' image, reputation, tradition, and
• Desire public recognition and evaluation of luxury brand distinctiveness
• Believe that luxury brands positive image and popularity make • Equate luxury brands' overall impressions and
themselves look positive and popular meanings with self-image
• Purchase counterfeits • Focus on expressed self-image which affects
preferences for luxury items
• Prefer to buy genuine products rather than
counterfeits
Value equity • Prefer low price • Consider expensive prices and low convenience
• Have no doubt about product quality as less important issues in their purchase
• Consider ‘showing off’ the biggest benefit from purchasing • Believe that luxury items deserve high price
luxury items • Refuse low quality items and counterfeits
• Sell out old luxury items to make money for the purchase of • Prefer socially responsible items or
new trendy items environment-friendly items
Relationship equity • Interests move along with trends (no attachment left behind • Highly loyal to luxury brands which they feel
with the brand) congruent with.
• Purchase popular items with lowest price possible • Expect special recognition and treatments due to
• Feel happy about owning various luxury brand items the high price they paid for luxury brands
• Do not feel the need to be loyal to luxury brands • Prefer to have limited edition items
• Participate in loyalty and affinity programs to
express their wealth
Customer equity consists of three parts: brand equity, value equity, and survive in a highly competitive environment without feeling of shame
relationship equity (Blattberg & Deighton, 1996). Monitoring and mea- or getting behind than others. Such behaviors become prerequisites
suring customer equity has become critically essential to survival in a and crucial values for gratifying their lives (Lasch, 1980).
competitive market environment. People with narcissism overly respect and treat themselves in an
The roles of narcissistic consumption have been continuously ex- egotistical way. They desire successful lives, influential social power,
panded in the customer equity of luxury brands. Despite the fact that in- compliments from others, goodwill, kindness, and special treatment
creasing narcissistic consumptions (covert and overt) show different with high self-expectations in their psychology. To accomplish this,
tendencies in peoples' psychology and behavior, previous research has they easily sacrifice their other desires and emotions (Emmons, 1987;
not directly explored consumers with the two types of narcissistic ori- Lasch, 1980; Mazlish, 1982; Park & Kang, 2013; Watson, Grisham,
entations. Therefore, explicit empirical research regarding narcissistic Trotter, & Biderman, 1984). Narcissism leads to create their own ideal
purchasing psychology and behavior of luxury brands is needed and images and develop a self-concept systematically.
their influence on customer equity should be defined. This study tries Normal narcissism helps people psychologically well adjust to pro-
to grasp the different luxury consuming behaviors of covert and overt moting a positive self-image and encouraging themselves to succeed
narcissism by qualitative approaches in order to understand their ef- in self-development contexts. Furthermore, psychologically healthy
fects on the customer equity of luxury brands. Qualitative research narcissism claims social ascendency, takes a positive view about oneself,
methods are suitable for examining deep psychology and comprehen- and has a mindset of flexible self-encouragement and achievement
sive behavior in narcissistic luxury consumption. (Ackerman et al., 2010; Pincus & Lukowitsky, 2010).
Hence, this study will examine the following research questions: According to Akhtar and Thomson (1982) and Hendin and Cheek
(1997), overt narcissism(Grandiosity-Exhibitionism) permits grandios-
1. Is narcissistic consumption an important factor in luxury brands? ity that leads to direct expression of exhibitionism, self-importance, and
2. How does narcissism influence consumer psychology and behavior a preoccupation with attention and admiration from others. The studies
in luxury consumption? also argue that the attributes of overt narcissism are pursuit of social
3. How does narcissistic consumption contribute to the customer equi- success, lack of depth, ignoring and devaluating others, strong aspira-
ty of luxury brands? tion, and passion for ethics, social politics, and aesthetic issues. They
have less feelings of depression, inferiority, and psychological anxiety
2. Literature review than covert narcissists (Hendin & Cheek, 1997; Park & Kang, 2013).
Akhtar and Thomson (1982) argue that overt narcissists have reinforced
2.1. Narcissistic consumption in luxury market self-respect, sense of privilege and invulnerability, ignoring and
devaluating others, passion for social success, strong ambitions, high
The term ‘narcissism’ is from Greek mythology, and British sexolo- consideration about ethical, sociopolitical, and aesthetic issues, and real-
gist Havelock Ellis mentions the term in psychology for the first time ity perception from self-centered perspectives.
in 1898. Since then, Freud (1914/1957) applied narcissism as a psycho- Belk, Mayer, and Bahn (1982) suggest that consumers disclose their
logical variable and, subsequently, narcissism research has been self-concepts by making purchase decisions. The goal of such behavior is
expanding to various disciplines (Campbell, Foster, Sedikides, & to become their ideal images (Das, 2015; Schuhmacher, von Janda, &
Spencer, 2007). Narcissism is defined as a self-loving tendency that peo- Woodside, 2014). Sedikides et al. (2007) also state that the narcissists
ple have inside their minds. In modern society, capitalism and material- spruce up themselves upon their self-image motives because narcissism
ism incite people to build their self-esteem, elevate themselves, and dominates consumers' purchase decision-making process which relies
Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819 3815
on self-image motives. They like conspicuous consumption and tend to encourages more social interactions and positive social feedback
acquire expensive and scarce products (Kim & Lee, 2015; LaBarbera, (Baumeister & Leary, 1995; Leary, 1995). They achieve their ideal self-
1988). Thus, overt narcissism encourages people to show a preference images via conspicuous consumptions and feel satisfaction from others'
for genuine luxury products that have exclusivity, durability, high qual- responses to their luxury goods rather than the practical value in use.
ity, after-sales service, low social risk, status, ethicality, and legality The satisfaction from others' responses comes from having something
(Cheung & Prendergast, 2006; Yoo & Lee, 2009). The big reason for buy- that others cannot obtain easily, and it appears in the form of envying
ing genuine products, which is a sign of wealth and social superiority, is and fulfillment. According to Veblen (2007), the recognition of an
to get admiration from others because they are a part of elite groups individual's social state from others derives from their consumption.
(Mason, 1998; Nia & Zaichkowsky, 2000). However, luxury goods are comparatively more expensive, which
On the other hand, covert narcissism (Vulnerability-Sensitivity) creates financial barriers to many customers. The expensive prices of
brings uncertain feelings of grandeur, lack of self-confidence and initia- luxury goods are, sometimes, beyond some people's purchasing
tives, and vague feelings of depression. Covert narcissism shows hyper- power. Therefore, people look for substitutes to fulfill their desires,
sensitivity, inferiority, pursuit of social power and honor, craving for these substitutes are counterfeit goods. Even though they are illegal
compliments, strong jealousy, dissatisfaction of working and society, products, people buy them to earn the symbolic value of luxury brands.
fragile ego, and likelihood of conscience contamination. Self-concept is This phenomenon appears more frequent in Asian countries. Collectivis-
related to purchasing needs and motivations. Besser and Priel (2010) tic Asian culture makes people put more attention to surrounding peo-
state that covert narcissism makes people get easily distressed in a ple and trying to belong to their society. Such an atmosphere motivates
threatening interpersonal environment. They manifest interpersonal people to maintain their social face, dignity, and personal prestige, and
sensitivities in social situations where they may possibly experience a to try to increase their codependency (Markus & Kitayama, 1991).
feeling of shame. Self-protection appears because of the fear of negative These can relate to a consumers' narcissistic orientation.
evaluation. Negative evaluations from the audiences are a strong pun-
ishment to those who are socially hypersensitive and are trying to pro- 2.3. Consumers with narcissistic orientation and customer equity in luxury
tect their vulnerable self-esteem. market
Markus and Kitayama (1991) suggest that some of the motivations
of luxury consumption come from the desires to keep their dignity, The relationship with customers has become a critical issue and
prestige, social face, and class, to avoid isolation from the society they many firms recognize the strategic importance of customer relationship
are involved in, and to enhance the interdependence among the sur- management (CRM). Firms admit the relationship with customer as its
rounding people. They feel a sense of belonging to a wealthy group intangible assets and tools to manifest their sales in a long-term context
and want to let others realize that through luxury consumption (Nia & (Blattberg & Deighton, 1996). According to Blattberg and Deighton
Zaichkowsky, 2000). Prior researches prove that both overt and covert (1996), customer equity refers to a firms' strategic and intangible finan-
narcissism encourage people to show different characteristics and cial assets that have to be measured, monitored, and strengthened to
those characteristics encourage them to consume luxury items based maximize the long-term success.
on distinctive motivations of themselves. Lemon, Rust, and Zeithaml (2001) state that customer equity is the
discounted sum of lifetime values of a firm in a customer context
2.2. Impression management and luxury consumption which has three key drivers: brand equity, value equity, and relation-
ship equity. Brand equity is customers' subjective and emotional evalu-
Many consumers have upward consumption intentions and a con- ation of a certain brand which is strongly related to previously
spicuous consuming tendency. They feel pressured to adapt to sur- accumulated experiences and intangible assessment of the brand. The
rounding peoples' consumption level and to avoid a feeling of shame. key drivers of brand equity are customer brand awareness, customer
Individuals accept information, styles, attributes from the people they brand attitude, and customer perception of brand ethics. Value equity
feel referenced by social comparisons (Moschis, 1976). This encourages is a degree of utility benefits that customers objectively assess. It is
people to buy luxury goods excessively, which led luxury brands to be- based on the perceptions of what is given up for and what is received.
come one of the most profitable and the fastest growing types of brands Three key drivers of value equity are quality, price, and convenience. Re-
in market segments (Berthon, Pitt, Parent, & Berthon, 2009). lationship equity refers to the intangible asset that the firm acquires
Luxury widely refers to products or services that are in a very high after composing the relationship between the firm and customers.
standard (Shukla & Purani, 2012). However, the concept of luxury There are four key drivers of relationship equity, these are loyalty pro-
does not have substantial definitions yet. Consumers' commonly de- grams, special recognition and treatment programs, community-
sired characteristics from luxury items that include: beauty, rarity, qual- building programs, and knowledge-building programs (Leone et al.,
ity, price, and inspirational meaning of brands (Godey et al., 2013; Phau 2006; Rust, Lemon, & Zeithaml, 2004). However, the distinction be-
& Prendergast, 2000). Additionally, the motivations to acquire luxury tween brand equity and customer equity has raised a lot of concerns be-
goods are closely related to conspicuous consumption. Mason (1984) cause they share many factors in common. Both emphasize the
explains conspicuous consumption as a behavior which allows people importance of customers to maximize the firms' profit. To make it
to show off their ability to afford luxury goods or expensive goods. Con- clear, brand equity focuses on the prescriptive marketing guidelines
spicuous consumption strongly appears when consumers are involved and growth of marketing opportunities, while customer equity empha-
in impression management. sizes the bottom-line financial values and customer relationship man-
Impression management reflects how people control their identities agement (Leone et al., 2006).
and establish their ideal images of themselves. Impression management Narcissistic orientations allow people to desire successful lives, influ-
theory argues that consumers intend to adjust their behavior to develop ential social power, compliments from others, goodwill, kindness, and
a positive social image (Carver & Scheier, 1981; Goffman, 1959). Chen, special treatment with high self-expectations in their psychology
Shechter, and Chaiken (1996) and Baumeister and Leary (1995) state (Emmons, 1987; Lasch, 1980), which can lead to relationship equity.
that positive social impressions boost their social interactions and they In addition, consumers purchase luxury items to express their values
try to receive more positive social feedbacks, which are important which can be explained by narcissistic orientation. Those consumers
sources of one's self-esteem. who desire to have novelty, variety, and sensory gratification or plea-
According to Park and Kang (2013), people who have narcissistic sure show positive attitudes toward luxury brands. Such positive
orientations show a tendency toward impression management. They attitudes toward luxury consumption also significantly influence cus-
manage their impressions to maintain a favorable social image, which tomer equity of luxury brands (Kim et al., 2010; Park, Song, & Ko,
3816 Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819
2011). Because narcissistic orientation positively influences luxury con- with financial constraints. Narcissistic orientation was observed to sig-
sumption, this study aims to explore the two different types of con- nificantly affect luxury consumption.
sumers (covert and overt narcissistic orientations) and compare the
“People simply judge me by what I am wearing. Depending on what I
differences in their psychology, behavior and customer equity in luxury
wear, the way people treat me changes sometimes… I believe that lux-
consumption.
ury products play a certain role as seasonings or garnishes of a plate.
Something make more delicious and attractive for one's appetite. Luxu-
3. Research methodology
ry products allow myself more valuable and attractive.”
People consume to satisfy their desires by having devotion to self-
interests, pursuit of instant pleasures, and obsession with appearances.
These appear to help them maintain their distinctive identity (Lasch, 4.2. Psychological and behavioral characteristics of narcissistic orientation
1980; Park & Kang, 2013) Luxury goods are useful for the people in in luxury consumption
achieving such goals. Thus, this study aims to find the differences be-
tween the two types of narcissism in luxury consumption. To analyze Even though normal people have certain degrees of narcissistic ten-
the deep and complex psychology of consumers, focus group interviews dencies, the numbers of covert and overt narcissistic tendencies are
and depth interviews were conducted because qualitative research increasing due to the influence of the highly competitive social environ-
methods are suitable for determining why and how an issue is salient ment which encourages people to avoid feelings of shame or getting be-
(Silverman, 1998). Furthermore, these research methods provide a hind than others. It was observed that there are clear differences in the
deeper and more detailed understanding regarding certain questions consuming psychology and behavior between covert and overt narcis-
with fewer informants required (Litosseliti, 2003). sistic orientations.
To confirm their narcissistic orientation, this study used the Narcis-
sistic Personality Inventory (NPI) of Raskin and Hall (1981) and the Hy- 4.2.1. Covert type of narcissistic consumption
persensitive Narcissism Scale (HSNS) of Hendin and Cheek (1997). The
Narcissistic Personality Inventory (NPI) which uses a forced-choice for- 4.2.1.1. Counterfeit product consumption. The covert type of narcissism
mat and a self-report questionnaire that allows respondents to pick ei- emphasizes the symptoms of vulnerability and hypersensitivity which
ther narcissistic alternatives or non-narcissistic alternatives. Pincus are considered more as a psychodynamic dimension (Hendin & Cheek,
and Lukowitsky (2010) argue that NPI is preferred to capture overt nar- 1997). Because of its vulnerable attribute of self, it causes consumption
cissism. The Hypersensitive Narcissism Scale (HSNS), which is not cor- of luxury items. However, luxury items are mostly high priced and the
related with the NPI, is a 10-item measure using a 5-point scale that financial barrier is one of the unavoidable issues. Thus, they choose to
assesses covert narcissism (Hendin & Cheek, 1997). purchase counterfeit goods. The primary reason for consuming counter-
The informants (n = 30) were aged between their twenties and feit products is the price advantage. It may be that, as argued by Akhtar
fifties. 57% of them had overt narcissism and the remaining 43% had co- and Thomson (1982), covert narcissism leads to corrupted consciences.
vert narcissism with previous experiences in luxury consumption. The This may relate to the fragile self-esteem and behavior of self-protect
demographic characteristics of the informants are as follows: 53% of fe- and self-enhancing.
male and 47% of male, and 33% of 20s, 40% of 30s, 17% of 40s; and 10% of Covert narcissism makes people feel less guilt about buying illegal
50s. The occupations of informants varied and included undergraduate counterfeit products because achieving and keeping up their ideal im-
and graduate students (26%), office workers (27%), housewives (27%), ages are more important issues for them.
business men (7%), and others (13%). “Who knows that I'm carrying a fake Prada bag unless I say it out? No
People who agreed to join the qualitative research completed a sur- one can find out. That doesn't mean I always wear fakes. I do have orig-
vey which contained two narcissism scales and questions regarding de- inals, but if I wear originals for most days and wear a fake for once in a
mographic information. According to the pre-survey, pilot interviews while, people think the fake item as original… I know fakes are illegally
were conducted on those who have salient narcissism to confirm their produced and it is not nice doing so. But I can't stop. If I don't have
luxury consumption and sharable experiences. For the main research, enough money to buy what I need to buy, then there is no choice.”
carefully selected participants were gathered in seminar rooms that
were convenient for them.
In-Depth interviews (n = 10) were conducted at least twice for each 4.2.1.2. Must have trendy items. Consumers with covert narcissistic orien-
participant. For focus group interviews (n = 20), each group consisted tations become stressed and depressed when they find out that people
of four people who were in relatively similar stages of their lives. close to them have purchased recently released and popular items. It is
There was no history between or relationships among the participants their habit to check what other luxury items people own and to desire to
in order to allow them to share information freely and openly get some items before others do. This leads consumers to enjoy compli-
(Litosseliti, 2003). ments and envy about what they wear from others.
4. Findings “My friends or colleagues always ask me where I bought this or that,
how much they cost, and what brand they are. They often get surprised
4.1. Narcissistic orientation in luxury consumption after I tell them the price, because they are all super new items from
famous luxury brands, which they have never seen before … But some-
According to the qualitative research, narcissistic orientations were times that attention moves to others, I almost feel like I am humiliated,
found to play significant roles in luxury brand consumption. Consumers depressed, and ignored. I hate that feeling. So I always check out fashion
with narcissistic orientations express themselves through luxury brand blogs and enjoy mining information… I pretty much enjoy being an
attributes in various ways. They also use luxury items as their sociopsy- early-adopter. People admire my sense of style.”
chological resources and the luxury items are used as essential means
for their social activities. Consumers with narcissistic orientations pas-
sionately indulge in luxury brand shopping to buy what may positively 4.2.1.3. Quantity than quality. Consumers with covert narcissistic orien-
affect their social images as their own ideal images. They keep trying to tations prefer to value the number of items they can get for the same
reach out for their ideal images because they crave for compliments and price, rather than the quality. The variety of items they own is a crucial
admirations from others. Therefore, they consume luxury brands even point of their consumption.
Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819 3817
“I never wear the same outfit when I meet someone for several days in a example, they relate using the products made by artisans or products
row. I don't want to be seen outdated or look the same. I hate to hear made from high-quality materials to their elite parentage or academic
‘does she have that only?’ I need to differentiate myself from other peo- background from prestigious school.
ple and make myself stand out every day… I prefer to have a few Mi-
“My nature never allows the ambiguity. If it is, then it is. If it is not, it is
chael Kors or Mark Jacobs than one Chanel. Many bags make me feel
not. I hate hypocrites with no truthfulness and authenticity. I don't need
more fancy and sensible.”
many people who are not true to me. The quality of relationship is more
meaningful and I don't want to waste my time, money, and emotion…
Thus, I only buy something with good quality and efficiency. One high-
4.2.1.4. Fast purchasing cycle. Consumers with covert narcissistic orienta- quality good is better than many other junks…I even try to be a high-
tions want to have as many luxury items as they can afford. Thus, they quality person, too.”
want every new item of luxury brands to be in their hands. They sell
outdated items through online secondhand markets. As soon as they
get the money, they look for new items to buy. Some people show im- 4.2.2.3. Quiet luxury goods. Consumers with overt narcissism feel no need
pulsive buying behaviors. to elevate themselves with brand logos because their value of self or
“I love ties and watches. Ties coordinate with many of my outfits that I class is already high enough. They look down on people who wear
have. I visit stores every new season and buy new items… Ties are not loud goods and consider themselves superior. Thus, they avoid buying
that expensive but watches are. When I see a watch that I saw in a mag- loud items.
azine, I sell past seasons' watches at online communities. Most of the “Some people try to show their wealth with logo of brands. I understand
brand new items that I had bought before were so popular, so it was the reason of expression but I want to tell them that the value of self can-
pretty easy to sell them on online markets. Then I buy new items… Some not be measured by those products. Truly wealthy people do not need to
people may think that I'm very rich because I always have new items. try to show and they actually don't, because they already have the aura
But they don't know the truth behind it. It's even fun.” of the wealth… The products with no logo but made with good material
are more noble.”
4.2.1.5. Loud luxury goods. The logo exposures of the items need to be
loud because they want others to recognize the brands they own. 4.2.2.4. Socially responsible consumption. People prefer to consume
They do not feel the need to buy them if the items do not show the environment-friendly products and carry out exemplary consumption.
logos or the brand names. They desire to project socially advisable behaviors, because they believe
“Just like everyone has its own identity, all products own identities. If I themselves to be respectful, trustworthy, grand and modest.
buy a sweater, I prefer those with a big logo. I don't like the tiny size “This society I live in is very complicated and competitive. In this com-
of Ralph Lauren logo. But I love the big pony series that came out later. petitive environment, people easily become conscienceless. I feel very
I bought several T-shirts with big pony logos.” bad about it. So I try to live in a good and correct way, and I believe I
am a good model of righteousness and morality… If I see an advertise-
ment of a certain brand doing a promotion related to social-minded and
4.2.2. Overt type of narcissistic consumption eco-friendly campaigns, I buy their products, regardless of price, for my-
self and others as presents. Other people will use them and realize the
4.2.2.1. Genuine and exclusive product consumption. Overt narcissism has meaningfulness. I give them a chance to buy something made with a
also been known as a grandiosity narcissism that shows direct expres- good cause and how helpful it is for the environment. That's who I am
sions of exhibitionism and self-absorption, and a preoccupation with at- and I feel proud of myself. ”.
tention and admiration of their socially congruent behavior and
personality from others. In other words, people with overt narcissistic
orientation consider themselves as high class, like the high-quality 4.2.2.5. Slow purchasing cycle. To buy a certain products, they weigh the
products they consume. Thus, they prefer to wear classic and limited benefits that they can get from the product for comparatively longer
items. than others. The product needs to fulfill their own standards and should
The history and reputation of a luxury brand is very important. The not have any negative strains that may affect their social face or image.
meaningfulness of a product is a critical factor for consumers' purchas-
ing decision (Lee, Jeon, Li, & Park, 2015). If a certain luxury product is “Not only because the products I usually buy are pretty expensive, but
considered as a necessary item for the flaunting of wealth, they want also I have so many items I want to have, and therefore I cannot buy
to own it regardless of price. Therefore, they even apply for loans to them all. I now have a habit of thinking too deeply. ‘How much is it?
shop without financial constraints. Is it worth the price? Does it fit my image? How would people think
when I wear this? How is the reputation of the brand? What advantage
“Many people say that you must own Hermes Birkin or Kelly and Chanel will this product provide me? Are there any future negative effects from
2.0 in women's life time. Those bags can be used regardless of trends. having this?’ and etc. I am not a person who regrets the decisions I
The bag itself has heritage and reputation that trendy products don't made. I give myself at least a month to think about and then I decide
have… They are very expensive and Birkins and Kellys require you to to buy it or not. So it takes time to buy something. But after I buy it, I
get on the waitlist to order. Last time I waited for a year. Yet I could wait use it for a very long time.”
with no complaints, because I knew the bag was worth the long wait
and the loan interest. Definitely worth it.”
4.3. Customer equity and narcissistic consumers
4.2.2.2. Quality than quantity. People believe that the qualities of the 4.3.1. Brand equity
product they wear or use express the value of self and class. In the Brand equity refers to the customers' subjective and intangible as-
same vein, people with overt narcissistic orientations believe that one sessment of the brand which is built by brand image and meaning.
good-quality item lasts longer than a bulk of cheap items. They also This allows firms to attract new customers, remind customers about
feel self-congruency through the products they wear or use. For their products and services, and create emotional ties between
3818 Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819
customers and the firm (Lemon et al., 2001). Most luxury products have 4.3.3. Relationship equity
their own brand images and meanings. The two types of consumers Relationship equity is defined as the customers' tendencies to stick
have different perspectives and behaviors. with a brand. It has three key drivers; loyalty programs, special recogni-
Consumers with overt narcissism focus attention on certain brands' tion and treatment, and affinity programs. The firms should not only at-
image, reputation, tradition, and distinctiveness. They equate the tract new customers with great brands and provide values, but also
brand's overall impressions and meanings with their image. In the enhance the loyalty of the existing customers (Lemon et al., 2001). Con-
same vein, Johansson, Douglas, and Nonaka (1985) note that the brands' sumers with covert and overt narcissism show directly opposed
subjective image affects the evaluation and actual purchase of luxury behaviors.
items. In addition, people with overt narcissism have high involvement Consumers with covert narcissism are very sensitive to the public's
in aesthetical perspective of selves (Akhtar & Thomson, 1982). Kim et al. preferences. Their interests move along with the trends. They purchase
(2010) and Chae, Ko, and Han (2015) report that customers' involve- products that are both popular and as cheap as possible. Since they have
ment in the fashion industry positively affects their attitudes toward a lack of authentic involvement, they stay with the brand as long as the
luxury brands and this positive attitude encourages firms to have brand keeps its popularity. In case of a transition of popularity to anoth-
brand equity and customer lifetime value (CLV). er brand, consumers move as well, with no sign of attachment to the
In contrast, consumers with covert narcissism show a lack of an prior brand. Then, if the popularity comes back, they go back as well.
emotional attachment and subjective assessment toward luxury brands. This purchasing cycle is very natural in covert narcissistic orientation.
They are more concerned with the visibility of the logos, brands' desir- They do not feel the need to be loyal to certain brands and even feel
ability from the public and public recognition and evaluations of happy about owning products from various brands.
brand. People with covert narcissism have immoderate sensitivity to In contrast, consumers with overt narcissism build up trust between
compliments from others and feelings of inferiority (Akhtar & themselves and the firms, which means that they become highly loyal
Thomson, 1982). If a certain luxury brand is very popular and has a pos- to the brands when they believe that there exists a congruency between
itive image, then they consume their items, which, they believe, can themselves and the brand's overall image, reputation, brand concept,
make them popular and positive. As many popular and positive items etc. The products and services they consume are usually high priced.
as they acquire, they believe that their social image becomes more pop- This allows them to expect extra recognition and treatment from the
ular and positive as well. This strongly affects people with covert narcis- brands because they expend a great amount of money and express
sism to consume counterfeit products. Due to their financial barrier, their wealth by doing so. They consider that the expenditure should in-
they choose to purchase counterfeit products without hesitation. clude the special treatment from the firms. In the same vein, preference
of limited items is related to their desire to be treated as special cus-
4.3.2. Value equity tomers, as there is a limited number of people who own the same prod-
Value equity is the customers' objective assessment of the utility of a uct. Thus, they participate in the firms' loyalty and affinity programs,
brand which is related to the perceptions of what is given up for what is and enjoy special recognition and treatment. To be treated as special
received, and the key drivers that influence value equity are quality, customers, they continuously consume certain limited brands they
price, and convenience (Lemon et al., 2001). To achieve this equity, a feel loyal to. Belk (1988) and Solomon (1983) note that some people
firm's products and services should basically fulfill customer needs spend a great amount of money to express wealthy impression and
and expectations. Consumers with covert and overt narcissism provide affordability.
different attributes of value equity to the luxury brands.
Consumers with covert narcissism prefer low-priced luxury items 5. Discussions and implications
because expressing oneself with the luxury items is the most important
aspect in their consumption. The utility and quality of the products are People generally have a certain extent of narcissistic tendencies.
not usually considered. They believe that luxury items certainly have However, luxury brand consumers have comparatively more narcissis-
good quality, which is why people call those as luxury products. The ac- tic tendencies in accordance with their conspicuous needs and impres-
quirement of many luxury items provides the consumers with the ben- sion management. Increased uses of SNS (Social Network Services),
efit called ‘showing off.’ This is the biggest benefit they get from which allow people to have more chances to express themselves, and
purchasing luxury products. If the item's price does not meet their fi- a generalized luxury consuming atmosphere encourage those with nar-
nancial situation, they choose to buy counterfeit goods without realizing cissistic tendencies to keep consuming luxury brand products. Hence,
that they are committing illegal actions. In bad financial situations with exploration of consumers' narcissistic tendency and their customer eq-
high desires to buy new luxury items, they sell old items on second uity in luxury brand are in need of research.
handed markets to make money. This finding is congruent with To summarize the findings, overt narcissistic orientation provides
Akhtar and Thomson (1982). They note that covert narcissism is likely more valuable contributions to the customer equity of luxury brands.
to let people have corrupt consciences and have a lack of sincere in- Overt narcissistic orientation provides greater values to brand equity
volvement with any sorts of objects. of luxury brands. In terms of value equity, overt narcissism makes a sig-
However, people with overt narcissism have strong purchase inten- nificant contribution with the preference for genuine luxury products,
tions even when the product is high priced and is low in convenience, as willingness to pay a high price for the utility values of luxury brands
long as it is high in utility and quality. They believe that luxury items de- and avoiding counterfeit products. Overt narcissism also promotes
serve high prices because of their reputation, quality, tradition, and his- strong brand relationships through special treatments or recognitions
tory. Like the notion of ‘low price means low quality and high price such as special invitations for events, loyalty programs, etc. Therefore,
means high quality,’ Darke and Chung (2005) suggest that the price overt narcissistic orientation proved to offer superior value to the cus-
may influence the customers' perception of product quality. Consumers tomer equity of luxury brands. (See Table 1.)
with overt narcissism refuse to acquire low quality products, which in- This research, as the first study that explores narcissisms' effect on
clude counterfeit products, because they believe that what they wear consumer psychology and customer equity of luxury brands, may pro-
represent who they are. They have grandiosity that leads them to vide useful data for future researches in the area of customer equity
think ‘I wear high-quality luxury items because I am a person of dignity and luxury brand. In terms of theoretical contribution, this study may
and superiority’ or ‘I do not need to dress up to overly express what lux- provide comprehensive understanding and meaningful information
ury items I own, because I am a person of modesty and socially respon- about the deep psychology of narcissistic orientation influences on lux-
sible.’ Therefore, they also prefer to purchase socially responsible items ury consumptions, which will be very helpful in building concrete
or environment-friendly items to overtly express their identities. knowledge about the customers of luxury brands and their customer
Y.-J. Kang, S.-Y. Park / Journal of Business Research 69 (2016) 3813–3819 3819
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