Factors influencing luxury fair trade purchase intention - Context in Ho Chi Minh city

Abstract

Purpose: This study investigates, compares the factors including learning history and purchase setting influence Fair trade purchase intention. The Behavior Perspective Model was adapted, and compare four scenarios represent luxury/ commodity good and open/closed purchase setting. Moreover, the research also compares two groups of participants who knew and not know about Fair Trade to investigate how their learning affects to purchase intention. Design/Approach: The samples of 180 Vietnamese participants were participated in web-based experiment. Partial least squares - structural equation modeling and Multigroup Analysis (PLS-SEM, PLS-MGA) has been applied to analyze and compare the data. Finding: The results found that there is a significant different between the effect of purchase setting on purchase intention for the luxury item. However, the study also reveals the impacts of learning history do not influence purchase intention between two groups of participants who knew and did not know about Fair Trade concept. The study has the theoretical contribution by adding social capital specifically bonding ties as the factor that increases the learning history of the customer. Practical Implication: support marketers promote the ethical luxury purchasing in the Vietnamese community. The study also emphasize how social network, and purchasing context can influence, and encourage consumer behavior to buy ethical luxury products.