Abstract
Over the past few years, the second-hand luxury goods industry has experienced rapid growth. Although previously dominated by developed markets, this increasing demand and growth is attributable to millennials in emerging markets, such as South Africa, who have increased disposable income, and greater access to global luxury trends. In addition, the growth of the second-hand luxury industry can be attributed to four key factors – the sustainability consciousness of consumers who consider the environmental effects of their purchasing decisions, the investment potential of second-hand goods, and the greater accessibility and affordability of these goods which often come at a lower price compared to brand-new luxury goods (IOL News, 2023). While South African millennials have been found to be materialistic and brand conscious, their price-sensitive nature has become one of the primary drivers for the growing demand for affordable luxury goods. However, most existing literature on luxury goods has primarily focused on the new luxury goods market. As such, the recent growth of the second-hand luxury goods market makes it a lucrative market to investigate; this study endeavoured to address this gap. For this reason, retailers of second-hand luxury goods need to anticipate and attain a greater understanding of millennials’ perception of value and how it influences their purchase intention.
The primary objective of the study was to determine the value perception and its impact on second-hand luxury goods purchase intention among millennials in South Africa. The target population of the study included millennials born between 1982 and 2000 (aged between 23- 41 years) (Rawlins, Indvik & Johnson, 2008), who reside in Gauteng or the Western Cape province and had the intention of purchasing second-hand luxury goods in the past 12 months. A quantitative non-probability research approach was adopted, and a three-stage sampling technique was used to identify and select 353 respondents’. Within the initial sampling stage, the selection of sampling units was done using quota sampling, in two provinces in South Africa, namely Gauteng and the Western Cape. The second sampling phase made use of convenience sampling, allowing for respondents’ to be selected based on their availability and ease of access. For the third sampling stage, sampling units were selected using purposive sampling, which enabled the use of the researcher’s own discretion to select suitable respondents’. Data were collected using computer-administered questionnaires which were adapted from pre-existing and validated scales. Descriptive analysis, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and structural equation modelling (SEM) were applied to achieve the primary and secondary objectives of the study.
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The result of the structural equation modelling indicated that pleasure and brand consciousness both have a positive and significant influence on millennials’ purchase intention of second-hand luxury goods. In addition, perceived risk was found to have a negative yet statistically significant influence on millennials’ purchase intention of second-hand luxury goods. Furthermore, face-saving was found to have a positive moderating relationship between three constructs (perceived risk, materialism, brand consciousness) and purchase intention. The findings of the study resulted in implications, nineteen (19) recommendations and ten (10) strategies that can be applied to the South African second-hand luxury industry to better understand consumers’ perception of value and improve the purchase intention of these goods among consumers, more so millennials. This research also contributed to the existing body of literature that has made use of the Mental Accounting Theory (MAT), Social Identity Theory (SIT) and Consumer Behaviour Theory (CBT) models for the purposes of understanding perceived value and purchase intention.