Editorial Board

A Refereed Monthly International Journal of Management

>Antecedents, Decisions & Outcomes of Sustainable Luxury Consumer Behaviour: A Systematic Literature Review & Future Research Agenda

Dr. Vijay Prakash Gupta
Associate Professor,

Institute of Business Management,

GLA University, Mathura, India.

Corresponding Author

Akanksha Aggarwal
Assistant Professor,

Department of Management and Commerce,

Sri Sathya Sai Institute of Higher Learning,

Anantapur Campus, A.P., India

Sai Alekya Ramavarapu
Student,

Department of Management and Commerce,

Sri Sathya Sai Institute of Higher Learning,

 Anantapur Campus, A.P., India

Abstract

The study presents a systematic literature review on sustainable luxury consumption behaviour (SLCB) in the light of SDG 12 and translates the findings of that literature into usable insights for researchers, marketers and policymakers. Using the antecedents, decisions and outcomes (ADO) framework, this study seeks to consolidate the area intersection between diametrically opposed ideas of luxury and sustainability. Based on extensive coverage of 57 studies published over a period of 17 years between 2005-2022, nascent literature on sustainable luxury consumption is reviewed. Three primary streams of research were identified: (1) how consumers purchase luxury items (2) how consumers use or consume luxury items (3) how consumers dispose luxury items, all three rooted in the generic attitudes of luxury consumers in their interactions with sustainability to lay out variables that pinpoint the aforementioned behavioural trends. The study also discusses influences of particular gender on SLCB. This study bears implications for managers, environmentalists, consumers and luxury enthusiasts. The research in area is nascent and many areas remain underexplored. By synthesising extant literature, the aim of this study was to identify gaps in knowledge and to prepare for a future research agenda guided by intersectionality.

Keywords: ADO framework, Systematic Literature Review, Conspicuous Consumption, Consumer Research, Green Behaviour, Luxury

Introduction

The world grapples with climate change, attributing it to human and industrial activity, impacting corporate operations. Climate change's nexus with sustainable development shifts responsibility to businesses, including the luxury industry. Criticisms of fast fashion's pollution extend to luxury, demanding sustainable practices. Investigating the 'green gap' is pivotal for the luxury industry to model business strategies for sustainability. Sustainable luxury consumption allows opulent living without environmental harm, aligning with global concern. Luxury's contradictions with sustainability are recent, now underscored by the Sustainable Development Goal12 (United Nations, 2018). Growing economies predictably lead to increased consumption, necessitating a shift in patterns. The pandemic has catalysed shifts in consumer behaviour, requiring nuanced understanding. Amid economic turbulence, the luxury sector remains resilient, with sustainability now a responsibility(Bain & Co., 2020). In the changing luxury landscape, academia plays a crucial role. This study synthesizes Sustainable Luxury Consumption Behavior (SLCB) research, addressing gaps and key questions, providing a comprehensive overview in the literature. While TCM and TCCM frameworks map the how, none identify the what of SLCB. Table 1 highlights inadequacies in previous reviews. Using the ADO framework, it focuses on antecedents, decisions, and outcomes, offering insights and guiding future research serving as a reference for current SLCB data. Top of Form

Table 1 Summary of extant reviews

Review Method – SLR as a Methodology

Synthesizing prior studies logically advances a subject (Ajay Kumar, 2020).This study addresses the gap in comprehensively reviewing luxury consumption literature related to biodiversity and sustainability. Systematic literature reviews (SLR), such as the SPAR-4-SLR framework, offer informative and scientific insights (Justin Paul W. M., 2021).Structured frameworks like ADO organize data, aligning with the study's focus on consumer behaviour. The study primarily entails sustainable luxury consumption, guiding the iterative search process for relevant keywords. Keywords were developed by identifying alternative vocabulary, considering spelling variations and using word-stem truncations. Executed on the Web of Science in September 2022, the search yielded 4,170 hits from 1989 to 2022. Papers unrelated to sustainable luxury consumption were excluded. The ADO framework guided the screening process (Table 2, Figure 1), focusing on the purchase, usage, disposal, and attitudes of sustainable luxury customers. The refined model discerns relevant factors.

Table 2 SPAR‐4‐SLR Framework for Systematic Review

Figure 1 Purification Process

Top of Form

Findings – SLR as an Outcome

SLR offers an updated understanding of the literature, providing a stimulating agenda for further research. That is, the 2 Ss, where "state-of-the-art" refers to the comprehensive mapping and recent summaries, while "stimulating agenda" refers to avenues for new literature (Justin Paul W. M., 2021). The section provides a snapshot of factors influencing green behaviours, in the context of luxury mapping the "state-of-the-art", providing an agenda for further research discussed later as a secondary effect.

Trends of Publication in Time

Figure 2 depicts the evolution of luxury-sustainability publications, highlighting the surge from 2012-2022, peaking during the pandemic. Historical luxury traces to ancient Greece, but modern conceptualization emerged with strategic investments (Yuri Seo, 2015). Environmental issues prompted luxury brands to reconsider sustainability.

Figure 2 Publication Trends

Trends of Journal Publications

Publications were found in 28 journals (Table 3), categorized by content rather than perceived title worth. The scope extended to interdisciplinary publications covering dress, body image, culture, and corporate ethics. Despite potential diversions from the main scope, these perspectives were integral to justifying variations in SLCB and its ADOs. The selected journals align with the ABDC Journal Ranking list.

Table 3 Journals disseminating SLCB research

Research Design Trends

Predominant research designs were empirical studies, conceptual studies, analytical or modelling methods, and quantitative studies (Table 4). The trend favours quantitative empirical approaches, indicating a need for balance with qualitative investigations.

Table 4  Trends in research

Sample Characteristics – Country

Among fifty-seven studies analysed, the US featured prominently, followed by China and India (Table 5). However, China's luxury market growth halted in 2022 due to zero-Covid policies paving way for emerging markets like India showing a forecasted luxury market growth potential of 3.5 times by 2030 (Bain & Co., 2022). Europe boasted seventeen studies, contrasting to Australia's two, reflecting nuances in the luxury landscape. France and Germany, lead European studies as their major luxury goods producers. The evolving global luxury landscape necessitates further investigation into SLCB in both mature and emerging markets.

Table 5 Most frequently surveyed countries

Streams of the Study

Three vital study streams were identified (Table 6), focusing on individual luxury goods purchases (26.32% of the sample), the overt use of luxury (1.75%), and the disposition of luxury (3.57%). Although the majority of studies (68.42%) focused on consumer attitudes without fitting neatly into the three streams, their insights and implications were integrated into the organizing framework. The complex nature of the subject matter prevented a rigid separation of research streams, underscoring the need for further consolidation.

Table 6 List of identified articles per research stream

The Conceptual Framework

Understanding the relationships within ADO dimensions is pivotal (Benito, 2018) addressing the WHY, WHAT, and HOW of SLCB (Justin Paul P. K., 2023). In this study, antecedents signify factors motivating SLCB. Decision variables delve into purchase decision factors, revealing how choices are made, driven by perceived outcomes. Post-purchase benefits represent the consequences of consuming sustainable luxury (Table 10).

Antecedents of SLCB

Amid the growing discourse on luxury's sustainability, attention has shifted to exploring its intertwined factors. Socio-demographic variables, including age, gender, and annual disposable income, are considered significant influencers (Anastasia Stathopoulou, 2019). Table7summarizes the antecedents' rudimentary relationship with SLCB, highlighting their significance. Sub-factors may yield positive, negative, or inconsequential outcomes, indicating no consensus among research.

Table 7 Antecedents of SLCB and their established relationships

Indirect Effects

A Moderators

Age and gender consistently emerge as significant moderating factors, influencing positive relationships but sometimes weakening them. Religious beliefs and the impact of collectivistic and individualistic nations on SLCB are noteworthy (Lini Zhang, 2019).

B Mediators

Research explores pathways involving variables and SLCB. Environmental considerations mediate the relationship between luxury spending and sustainability. Consumers experience heightened guilt when learning about the environmentally or socially unsustainable production in luxury fashion compared to mass-market products (Cesare Amatulli M. D., 2020). Investigating the mediating role of environmental concern and the need for distinctiveness between LC and sustainability is crucial, as both impact SLCB. Psychological variables, like hedonism and materialism exhibit varying mediating effects, across social groupings influencing self-perception and social fit (A. Minton & Geiger-Oneto, 2020). Examining situational characteristics, like the prevalence of durability-related or generic thoughts, aids in understanding relationship networks and associated consequences.

Decisions Variables

Table 8 compiles choice factors for selecting sustainable luxury goods, emphasizing the importance of product features as crucial decision-making factors. Historical value and the desire for superior quality impact post-purchase gratification and overall quality of life (Cesare Amatulli G. P., 2018; Achabou, 2020).

Table 8 Decisions of SLCB and their established relationships

Consequences of SLCB

Table 9provides a content analysis of SLCB effects, showcasing the significant impact of the bandwagon effect on sustainable behaviour (Mainolfi, 2020) and the interconnectedness of psychological variables, attitudes, and post-purchase well-being. Consumer behaviour strongly correlates with self-perception and emotional state, influencing post-purchase quality of life(Lini Zhang, 2019). Actively pursued green behaviours positively impact the association between factors and SLCB (Faheem Gul Gilal, 2019).

Table 9 Consequences of SLCB and their established relationships

SLCB and Gender

Research challenges gender as inherent, suggesting it as an accomplishment(Elyette Roux, 2017). Despite uniform environmental concern, men prioritize utility over luxury compared to women (Yael Steinhart, 2013). Men's green behaviour leans on external reasons, while women are intrinsically motivated. Analysing gender-based motivation aids green marketers targeting eco-friendly behaviour in women. Men's green behaviour is largely driven by external incentives, favouring social pressure more than women (Faheem Gul Gilal, 2019), narrowing the traditional gender gap in luxury consumption. Recognizing these discrepancies is crucial for nuanced gender understanding, demanding further study. Cultural construction of gender, rather than structural variables, is considered. Children learn gender distinctions culturally, influencing decision-making. Despite extensive luxury consumption literature, gender implications are uncertain, requiring more research. Public interest persists in gender disparities in consumer behaviour, especially in luxury consumption. Decades of gender research show discrepancies, emphasizing the need for comprehensive studies revealing nuanced differences in luxury consumption motivations across genders.

Future Research Agenda

Despite the expanding sustainable luxury sector, further research is needed for comprehensive coverage and to address gaps. This review consolidates academic perspectives on the luxury industry, focusing on consumer viewpoints and brand navigation. Future research recommendations within the ADO framework are outlined in Table 11. Exploring antecedents requires additional research to reconcile contradictions between luxury and sustainability. Encouraging contextual studies on socio-demographic aspects, including generational cohorts, geography, income, education, ethnicity, households, and employment, can yield valuable insights. For decision characteristics, examining the manufacturing of luxury goods, including various animal products and substitutes, broadens the perspective to include sustainability and animal welfare. Analysing price, brand, quality, and social qualities clarifies the decision matrix. Addressing barriers to sustainable luxury service consumption and studying factors influencing intentions are crucial, with potential insights from testing dimensions in both pre- and post-COVID settings. Regarding outcomes, much SLCB research focuses on antecedents, necessitating further research on the psychological and sociological aspects of luxury attitudes and behaviours, particularly their connection to sustainability. Understanding motivations, forces, and outcomes affecting people's quality of life involves researching luxury in the context of sustainability, collaborative consumerism, the sharing economy, and emerging constructs (Sheetal Jain, 2020). Discussions on sustainability boundaries include issues like reckless diamond mining, soil, and water contamination across industries (Cesare Amatulli M. D., 2020). Our hypothesis suggests that consciously backed sustainable behaviours lead to positive impacts on satisfaction and a superior quality of life through sustainable luxury purchasing patterns.

Table 11 Research agenda for SLCB

Summary

The study distinguishes the consumer persona and enhances the academic landscape by consolidating SLCB foundations. This work offers both scholarly contributions and practical insights for businesses and individuals, emphasizing the increasing necessity of sustainable luxury consumption. This review study aids the transition to conscious and conspicuous consumption by understanding customer needs. Assessing the ADO of SLCB, the study emphasizes its increasing necessity, justifying academic significance in our lives.

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