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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -

Sun-Yong Kim, Jong-Chan Jeon

The Effect of Consumer Tendency for Masstige Brand on Purchasing


Patterns
- focusing on Mediating effect of Massitige Brand Image-
1
Sun-Yong Kim, 2Jong-Chan Jeon
1, First Author
Professor, Division of Media Design Contents, Hansung University, Seoul Korea.
sykim2466@hansung.ac.kr
2,Co Author
Professor, Division of Media Design Contents, Hansung University, Seoul Korea.
jcjeon45@hansung.ac.kr

Abstract
In 2000, the masstige brands were popular to the middle class of the whole world, various new
masstige brands are perceived to have prestige or high style but are affordable for a wide range of
customers. The purpose of this exploratory paper is to investigate the effects of the loyalty of masstige
brand on buying patterns and brand purchasing in the Korean side-by-side refrigerator.
Based on the theoretical arguments of consumer choice and masstige, we identified the concept and
theory about masstige branding. Then, we classified consumers of side-by-side refrigerators into two
types based on the factor analysis. Furthermore, we analyzed how the two groups differ in terms of
buying pattern and brand purchasing.
Data were obtained from a sample of 269 Korean consumers. The results demonstrate that the
loyalty pattern plays a key role in the consumption of masstige home electronic appliances. Especially
rational planning consumer group affected more positively on the purchase of side-by-side refrigerator
than others

Keywords: Masstige high-end product, Buying behavior, Lifestyle

1. Introduction

1.1. Research Background and Objective

Since the mid 1990s and 2000s, middle-class consumers have taken a keen interest in
masstige brands and this tendency has been growing. To meet their needs, companies are
carrying out masstige marketing activities as a market strategy. In addition, consumers’ needs
and tendency for emotional consumption are rapidly shifting to cerebral consumption as
consumers are shifting to emotion-oriented lifestyles. As the entire world suffer from economic
recession, the consumer markets such as garments, home appliances, and automobiles are more
bipolarized. In the middle of the bipolarization, the consumption consciousness and
consumption tendency of the middle class for premium goods stand (Seo Se Yeon, Whang Jin
Sook, 2007) [1]. Therefore a new consumer tendency has emerged that meets their needs for
products low in price but high in quality and to create emotional satisfaction simultaneously. It
is the consumer tendency for masstige brands. Masstige is a compound word of ‘Mass’ and
‘Prestige’.
One of the phenomena that represent the trend is masstige marketing. Masstige means the
connection of prestigious products along with mass consumption. As the income of the middle
class rose, it has become a tendency to consume products relatively low in price but good in
quality enough to enjoy emotional satisfaction. As the world market is more globalized and
united to a single market, the value and power of masstige brands are more distinctive.
Consumer-based brand equity is an added value to a product due to a brand settled down in a
consumer’s mind (Moore, 1993). It consists of brand loyalty, brand awareness, perceived
quality, and brand association. These elements of brand equity are important because they can
provide companies insight on which element they should reinforce to make a brand stronger
(Aaker, 1991). Existing studies concerning masstige brands mainly deal with value pursuant to
masstige brands. However, it is considered necessary to conduct a study on consumer tendency
and purchasing patterns for masstige brands in order to develop a strong masstige brand.

Advances in information Sciences and Service Sciences(AISS) 343


Volume5, Number15, October 2013
The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

This study was carried about on the market of two-door refrigerators, in which competition
is heated on masstige tendency both in design and marketing activity.

Figure 1. Change in the exterior surface


design of refrigerator [2]

As seen in Figure 1, the exterior (or surface) designs of the premium two-door refrigerators
among Korean masstige product categories, face active changes in color, design, pattern, and
material in accordance with the change of consumer preference. Such changes in exterior design
imprinted domestic masstige two-door refrigerators brands into consumers, having impact on
their preference and repeated purchase on certain brands (Aaker, 1993).
This study intends to examine the impact of consumer tendency, which is formed on brand
loyalty, on the process of repeated purchase of masstige brands. Asker (1993) suggested that
there are 5 groups of consumers in relation to brand loyalty, from non-loyal purchasers to
committed ones. Therefore, it is the objective of this study to understand how brand loyalty has
an impact on the purchase of masstige brands, which satisfy consumers’ emotions with the
brands of relatively low price but high quality products (Silverstein & Fiske, 2003).
To achieve its goals, the study applied brand loyalty, which is a differentiated consumption
tendency for a brand that represents an individual’s personality and preference, to the consumer
groups of premium two-door refrigerator and segmented them. The study also looked into the
impact of brand image, which is one of the characteristics of consumer purchase behaviors, on
the purchase patterns of the masstige home appliances. The findings of the study are expected to
be helpful for companies in discovering the purchase intentions of domestic consumers of the
masstige home appliances and establishing a positive communication and effective marketing
strategies of companies that aim to produce premium products.

1.2. Research Background and Objective


Prior to the study, precedent literature reviewed to collect all data necessary and, was analyzed and
compiled. In addition a preliminary study was carried out for prime source and a main survey was
conducted with self-administered questionnaires for the collection of the secondary data. That is, this
study carried out both literature review and empirical testing together for in-depth research. For the
objects of the research, males and females (above 20 years) living in Seoul, capital areas, Taejeon and

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Sun-Yong Kim, Jong-Chan Jeon

Cheonan were sampled for the research. The subjects have had experience of either using or purchasing
a two-door refrigerator. The survey was carried out both off line (the stores that sell the refrigerators)
and online (Internet). For the general review of masstige brands, the related theories, existing literature,
and technical texts were taken for reference. However, the precedent studies and technical texts in
other fields were accepted under the maximum objectivity in consideration of the difficulty of
collecting design-related studies of masstige.

2. Theoretical background

2.1. Social and Economic background of Masstige

After the WTO was launched in 1990s, the tendency to be both prestigious and
premium started in consumer markets in parallel with globalization. In 1997 when
South Korea had to ask the IMF for financial aid, the fixed idea that simple massive
consumption can be a driving force of economic growth was broken. In 2000, the US
economy fell into a recession and the bipolarization of the market started to take place
due to the world recession. Then, the tendency of premium consumption became fixated
and consumers began to consume more premium brands for themselves. Since masstige
brands were known widely in the domestic market in 2005, masstige has been
positioned all over the society as a breakthrough in the sluggish domestic market.
The bipolarization of income distribution changed consumer lifestyles in a way that consumers
diverted attention from the value of conspicuous consumption from the innate value of consumption,
which can be called cerebral consumption. Another characteristic[3] of the bipolarization was a
complex phenomenon in which both cerebral and premium (emotional) consumption existed at the
same time. In addition, me-tooism that imitates others and sensitive consumption tendency that a
consumer pursues his/her own value through it have formed the axis of the domestic consumer market.
This complex phenomenon of complexation is attributed to the appearance of ‘the new generation’,
who are mainly in their 20s or 30s and the mainstream of the current consumer market.

Table 1. Data source - the Ministry of Commerce, Industry and Energy, 2006 [4]
Rate of growth after 2006 Jan Feb Mar Apr May Jun
Sales of department store 11.6 5.3 6.3 8.2 7.6 7.1
Sales of hypermarket 18.9 -11.9 2.1 3.1 2.6 0.9
Sales of masstige brands -0.2 26.6 12.4 24.7 20.7 19.1
consumer expectation index (overall economy) 104.5 103.8 103.4 100.6 98 97.4

The Ministry of Commerce, Industry and Energy did a sample survey on 3 department stores and 3
hypermarkets in the first half of 2006 after a masstige brand was first introduced in Korea. The result
showed that the sales of masstige brands were gradually increasing in department stores while those in
the hypermarkets were declining. The growth of very high-priced and very low-priced brands makes
the bipolarization of consumption more apparent. At the same time, the expansion of self-centric
consumption which grows as apparently as the rate of bipolarization, makes the future of masstige
brands more promising. In addition, as a new segment of consumers in their 20s and 30s, who are the
main axis of the current consumption, are creating a more solid base for their social and economic
status. As their income rises, they recognize consumption as a tool to express themselves. This leads to
a consumer tendency to prefer masstige brands while cerebral and price-sensitive consumption
tendency grows, which is the phenomenon of complexity of consumption.
The differentiated consumption is leading to premium consumption, and ‘masstige’ brands are
meeting their needs for brands to be agreeable with their economic and emotional status. It is a global
phenomenon that such consumer tendencies overwhelm the overall pattern of consumption and is being
led by very artistic designs, which are sought for being competitively emotional, decorative, artistic,
fashionable, premium and prestigious. (Ko Young Ran, 2008)[5] The current masstige brands for the

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

masses, which is a more comprehensive concept of orienting to premium products at a reasonable price,
is emerging as a trend that can satisfy diverse and self-contradictory consumers (Silverstein, 2005, Seo
Se Yeon, 2006).

2.2. The Concept of Masstige Brands

The term ‘Masstige’ was first used in ‘Harvard Business Review’ by Michael Silverstein in BCG
USA. Like the doubtful truth ‘an ordinary eraser can also be a prestigious one when tagged with a
luxury brand’, it is true that prestigious brands play a role of enhancing their (consumers’) value. The
imported brands, which are so-called old luxury brands, actually do so but it is burdensome for
ordinary consumers to buy them to do so. ‘Masstige’ was born to satisfy this desire for luxury brands.
‘Masstige’ is a coined word with ‘mass’ (that means the public) and ‘prestige’. Masstige in this
study is referred to as prestigious brands purchased by the middle-class US consumers, which is the
majority of the country. They used to purchase products of middle or low price but recently have been
buying those of middle and high price to gain satisfaction from quality or purchasing emotion
(Silverstein & Fiske, 2003) .
‘Masstige’ is a concept driven from the trend that the US middle class with relatively high income
mainly seek products of high quality and low price (Silverstein & Fiske, 2003). Masstige brands allows
consumers, who wanted to purchase a luxury brand but couldn’t because of their high price, to have
access to it at a reasonable price but also of high quality, prestige and self-achievement (Truong et.al,.
2009). The masstige brands used by those who have such consumer tendencies are characterized as
having a lower price than old luxury brands, mass-artisanal production and pride and identity exclusive
for the users (Silverstein & Fiske, 2003; Park Jeong Hyun, 2004).

Figure 2. The Positioning of Masstige Brands In Terms of Figure 3. 3Types of Masstige Brand
Relative Price and Sales (Source: Silverstein & Fiske, The Source: Silverstein & Fiske, “Luxury for the Masses,
Trading up, 2003) [6] 2003,4 [6]

Through the comparison of the positioning of masstige brands and old luxury brands, Truong et.al. (2009) found
that the former is positioned in the middle between old luxury brands and middle-priced brands for both prestige and
price. Boston Consulting Group (BCG) classified masstige brands into 3 types like in Figure 3.

Silverstein & Fiske (2003)’s study shows that masstige brands have very distinctive differences from conventional
and old luxury brands (Table 2).

Table 2. Comparison of Brand Distinctions Source: Silverstein & Fiske, “The Trading up 2003 [7]
Masstige Brands Conventional Brands Old Luxury Brands
Affordability Affordable Biased Limited
Price Premium Low Price High Price
Production Mode Mass Artisanal Mass production Handmade
Social Base Value Driven Conformist Elitist

Masstige brands are easy to purchase like conventional brands and might easily lose its pursuing
value due to the decline of rarity value while old luxury brands are limited to consumers who are able
to purchase them. Therefore, masstige brands are positioned in a point where the maximum
affordability for conventional brands is added with premium products.

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

They (masstige consumers) are middle-class consumers who have a reasonable consumption tendency
for the brands of relatively low price but are high quality enough to gain emotional satisfaction.
In Kim Sun Sook (2006)’s study, she compared masstige brands and old luxury brands. Her finding
was that those who preferred masstige brands had a strong tendency for efficiency-pursuant
consumption. Those respondents were younger, unmarried, less educated and earned lower incomes
and showed a significant shopping tendency for efficient consumption. Those who were unmarried,
more educated and earned higher incomes turned out to have a leisure-pursuant shopping tendency.
And those who were married, more educated and earned high incomes proved to have a convenience-
pursuant shopping tendency. Her findings partially agree with the study of Kim Ji Yeon (2009) and
Park Hee Rang and Han Duk Woong (2006). As evidenced above, it is obvious that the consumption of
luxury brands is getting popularized and is especially noticeable in young consumer segments.

2.3. The Growth of Masstige Brands

Economists characterized the expansion of ‘masstige’ as one of many consumer trends after 2004. (The Consumer
Trend of the Next Year is Masstige, 2004) . In the same year, the distribution division of Maeil Economy Daily, a
domestic daily newspaper, chose ‘masstige’ as a popular keyword after 2004. ‘Masstige’, which was first known to
the Korean pubic in 2004, was mentioned in the report ‘Luxury for the Masses' (April, 2003) that “it has already
been firmly settled down in America” by Michael J. Silverstein, a BCG consultant, and Neil Fiske, CEO of Beth
&Wick (a US cosmetic company)
They mentioned that masstige brands took 20% (sales of 35 million dollars) of the US consumer 10 to
15%. The market is still growing. Furthermore, masstige is emerging in Indian market as well as in the
USA. Such masstige brands as ’Peter England' and 'Indigo' are now firmly established as representative
brands, so it shows that masstige is simply not a trend growing only in the USA. Those masstige
brands represent the consumption preference of middle-class consumers, which is recently changing.
Their consumption tendencies are different from those who seek for old luxury brands, which are
conspicuous and blindly pursuant.
The middle-class consumers of masstige brands try to find and consume the brands of a reasonable
price and of representing their value (LG Weekly Economy, 2003). The characteristics of recently
popular masstige brands are as follows. First, they are relatively expensive but mass-produced and sold.
Second, they present consumers with an identity and personal pride. Third, their prices are reasonable.
In a nutshell, their quality and images have ‘those of luxury brands’ but can be mass-produced and
distributed at a ‘reasonable price’. It is suggested that the popularization strategy with conventional
brands can’t be a core driving force for profit-generation anymore in a time when consumption pattern
are becoming more premium and diversified. The implication of the growing masstige market to
companies is somewhat simple.

2.4. Brand Loyalty and Purchasing Tendency

Consumers compare and evaluate the goods and services of various brands; have preference to a certain brand; and
develop a favorable relationship with it. Brand preference means a relative and cerebral relationship. On the other
hand, brand loyalty means a promise for continuous purchase on the basis of satisfied experience with the purchase
and consumption of a brand. It is often interpreted as a repeated (purchasing) behavior.
That is, brand loyalty is a behavioral tendency in which a consumer possesses a favorable attitude toward a certain
brand on the basis of past purchase experiences and repeats purchase of the same brand. It is defined as a favorable
attitude and repeated (purchase) behavior. Brand loyalty is the extent to which a consumer is committed to a certain
brand (Aaker, 1993).
According to Asker, consumers can be divided into 5 groups by the developing stage of brand loyalty
and it is said that a different marketing opportunity exists for each group. The first is the non-loyal
group, which often switch brands and is sensitive to price. They have some knowledge of individual
brands but the knowledge has little impact on their purchasing decision. They switch brands quite often.
The second is habitual buying group. They are satisfied with a certain brand to some extent or are at
least not discontented with it. Therefore, they keep repeating the purchase unless there is a significant
dissatisfaction. The second group is those consumers who perceive brand switching to be costly. When

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

they think of switching an existing brand to another , they consider the cost of time and money very
seriously. The fourth is a loyal consumer group that loves and feels familiar with a certain brand. They
prefer a certain brand because of its symbolic meaning, long experience of use and high quality, and
emotional attachment. The last and fifth group is the committed consumer group. [8] They know a
certain brand well and feel proud to use it. They think of the brand as a tool to express themselves.
They are loyal enough to recommend it to others and share the brand culture.

2.5. Image Preference and Purchasing Behavior

The fact that a brand has a potential power to induce consumers’ behavior can lead companies to
attempt to form favorable images of their brands on consumers’ mind. However, it is not necessarily
true that every consumer prefers good image unconditionally. He or she distinguishes an image fit to
him/herself and has a preference to it. Consumers reflect self image on product image and use goods
and services to express their personalities and personal traits (Sirgy, 1982). It means that each
consumer has a different image on the same brand. In forming such image, consumers’emotions are
said to be one of the strongest actors. In a general process of consumer behavior, a consumer integrates
both the logical aspects of a brand (performance, function, usage and so on) and the sensory
dimensions such as design and emotion in finding the value of the brand and purchases it (Monthly
Design, 2003). Accordingly, the tendency to consume the meaning and culture of a brand is more
important than that to consume the material product. Therefore, a tendency for sensory, impromptu and
emotional consumption brand rises as much as that for logical, reasonable and cerebral consumption
(Kim Tae Hee et al., 2009)
Looking into the studies on the brand image of fashion products, it is known that there are significant
differences in preferred images by consumer groups. Some prefer womanly, refined, decent images
while others like sporty and modern images (Choi Soon Ran et al., 2009)

3. Research Hypothesis and Model

3.1. Research Hypothesis

The more loyal a consumer is to a brand, the more he/she feels proud of purchasing a certain brand and repeating the
purchase of the brand and recommending it to others (Aaker, 1993). The consumer also has emotional satisfaction
by using a brand fit to his/her image in the relationship of brand loyalty and repeated purchases (Sirgy, 1982). That is,
the images of masstige brands have a direct impact on purchasing behavior (Choi Soon Ran et al., 2009).
This study sets the following hypotheses, based on the above review of precedent studies.

H1: The brand loyalty to masstige will have a positive impact on its brand image.
H2: The brand images of masstige will have a positive impact on the purchasing frequency of masstige
brands.

3.2. Research Model

Based on the above precedent studies, this study set those hypotheses and designed the following research model
like Figure 1 to analyze the brand loyalty (purchasing tendency), brand image (purchasing behavior) and brand
purchasing frequency (purchasing performance) of masstige.

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

Figure 4. Research Model

3.3. Operational Definition of Variables

The contents of the survey in this study have been determined through the preliminary survey with consumers,
based on the precedent studies. The operational definitions of the variables used in this study are shown below.
(1) The brand loyalty of masstige home appliance (two-door refrigerator)
To measure the brand loyalty of masstige home appliance (two-door refrigerator), a total of 12 questions were
adopted, based on the questions used in the study by Jeong Mi Sil (1997), Seo Sei Yeon (2006), Cho Hyun Ju and
Choi Sun Hyung (2009). The Five-point Likert scale was employed as measurement (1: ‘It’s not at all’ to 5: ‘It’s very
much so’)
(2) The selection criteria for masstige home appliance (two-door refrigerator)
For the elements of purchase decision of preferred masstige home appliance (two-door refrigerator), the images used
in Jung Eui Chul (2012)’s study were borrowed for the selection of the exterior design of the refrigerator). In addition,
total 12 questions were applied from the questions in the study of Choi Soon Ran (2004) and Seo Sei Yeon (2006) to
identify the preferred images in the purchase of masstige home appliance (two-door refrigerator). Five-point Likert
scale was employed as measurement (1: ‘It’s not at all’ to 5: ‘It’s very much so’).
(3) The purchase behavior of masstige home appliance (two-door refrigerator)
To measure the purchase behavior of masstige home appliance (two-door refrigerator), the questions in the study of
Seo Sei Yeon (2006) and Jeong Eui Chul (2012) were revised and complemented. 3(Three) brands were selected as
preferred masstige home appliance (two-door refrigerator) through the preliminary survey: Zipel, Dios and Klasse. 4
(Four) question items were prepared. The Five-point Likert scale was employed as measurement (1: ‘It’s not at all’ to
5: ‘It’s very much so’)

3.4. Analytical Method

Before a main survey, a preliminary survey was conducted with 300 consumers from May 13 to 18, 2013 to know
the preferred brands, reasons for this preference, the items of masstige home appliances they often purchase, and
buying places. The preliminary survey adopted a direct description method. The results from the preliminary survey
were used together with the questions used in the precedent studies to make a questionnaire, revised and
complemented to fit to the analysis of this study. Those males and females over 20 years who had had experience of
either using or purchasing a two-door refrigerator and live in Seoul and its metropolitan areas, capital areas, Taejeon
and Cheonan were sampled and asked to answer the questionnaire. The self-administered questionnaires were
distributed on the streets and through email. The main survey was carried out for 10 days, from May 21st to 28th, 2013.
A Total of 300 questionnaires were distributed, 31 were dropped out due to insincere responses and finally 269 were
used for statistical analysis. The collected data were analyzed by SPSS and AMOS for empirical analysis.

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

4. Empirical Analysis and Results

4.1. Demography of the Sample

Table 3. summarize the demography of the sample used for the empirical analysis.
Frequency Percentage (%)
Age -20s 42 15.6
30s 60 22.3
40s 126 48.8
50s - 41 15.2
Sum 269 100
Sex Male 69 25.7
Female 199 74.0
No Response 1 0.4
Sum 269 100
Merital Unmarried 61 22.7
Status married 206 76.6
No Response 2 0.8
Sum 269 100
Occupation Student (Undergraduate, graduate) 10 3.7
Fulltime housewife 88 32.7
Employed (including self-employed) 29 10.8
Professional 22 8.2
In service industry 14 5.2
Office worker 97 36.1
Unemployed 4 1.5
No Response 5 1.9
Sum 269 100
Monthly Income - 1M 17 6.3
(Unit: Million) 1M~2M 54 20.1
2M~3M 43 16.0
3M~4M 43 16.0
4M~5M 27 10.0
5M~6M 52 19.3
6M~7M 17 6.3
7M- 16 5.9
Sum 269 100

By age, (People in their 40s responded the most.(48.8%)) Female respondents (74.%) are more than males by sex
and married respondents are 76.6% by sex. By occupation, fulltime housewife (32.7%) and office workers (36.1%)
compose a high portion of total respondents. In terms of month income, 1 million to 2 million compose 20.1% and 5
million to 6 million compose 19.3%.

4.2. Factor Analysis and Reliability Test

Exploratory analysis and reliability tests were conducted to know if the variables included in this study can be
classified as independent factors. The Principal Component Model was employed for factor analysis and Varimax
rotation was adopted as factor rotation. Factors with Eigen value over 1 were chosen. And when a variable has 0.5 or
higher factor loading, it was considered significant. Factor loading indicates the correlated degree between
measurement variables and factors.
The factor analysis of the 12 questions related to brand loyalty showed that only 2 factors had a relatively high factor
loading value, so it can be said that convergent validity was secured. Internal consistency was tested the reliability test
(cronbach's α). The result is shown in Table 2.

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

Table 4. The Summary Table of Factor Analysis of Customer Loyalty


Factor 1 Factor 2
Measures
Emotional Loyalty Cerebral Loyalty
Select to purchase a brand among preferred brands 0.780
Purchased preferred brand even when its price rises 0.747
Kept buying preferred brand 0.663
If there was a preferred brand 0.646
Kept purchasing the brand because of the difficulty of searching to purchase 0.756
Preferred a conspicuous brand 0.840
Preferred the log or symbol of a brand 0.606
Preferred brand identity 0.659
Had pride through purchasing a preferred brand 0.657
Expressed your brand preference 0.705
Preferred brand quality 0.821
Recommended a preferred brand to others 0.745
Eigen value 6.488 1.470
Variance explanation power(%) 54.069 12.248
Cumulated variance explanation power (%) 54.069 66.317
Cronbach's a 0.890 0.864

The cumulated variance, which can be explained by emotional loyalty (factor 1) and cerebral loyalty (factor2)
explains 66.32% of the total variance.
Next, 14 (excluding 1 item due to low factor loading) of the total 15 questions items for preferred images of
masstige home appliance went under factor analysis. The resulting 4 factors turned out to have Eigen value above 1
and explained 67.48% of the total factors. The factor analysis is summarized in Table 3.
The driven 4 factors are: (factor 1) intellectual and premium image, (factor 2) classic and prestigious image,
(factor 3) young and sporty image, and (factor 4) decent and plain image. In the images of factor 1 (intellectual and
premium), the questions items about intellectual, refined, premium and modern images are included. Factor 1 has
18.85% of explanatory power. The questions about prestigious, rich, and classic images are included in factor 2
(classic and prestigious image). Factor 2 explains 13.97% of the total factors. Factor 3 (young and sporty image)
includes the questions about young-looking, splendid, sexy, casual and sporty image. It explains 22.25%. Factor 4
of decent and plain image contained the questions about decent and plain (simple) image, which explains 12.45%
of the total factors.

Table 5. The Summary of Factor Analysis of Preferred Brand Image


Measurement Component Eigen Value Variance (%) Cumulative (%) Chronbach's a
Measurement 1 2 3 4 Eigen Value Variance (%) Cumulative (%) Chronbach's a
1. Intellectual and Premium Image Intellectual Image .611 2.640 18.855 41.108 0.633
1. Intellectual and Premium Image Refined Image .713 2.640 18.855 41.108 0.633
1. Intellectual and Premium Image Premium Image .748 2.640 18.855 41.108 0.633
1. Intellectual and Premium Image Modern Image .840 2.640 18.855 41.108 0.633
2. Classic and Prestigious Image PrestigiousImage .714 1.956 13.970 55.078 0.765
2. Classic and Prestigious Image Rich Image .785 1.956 13.970 55.078 0.765
2. Classic and Prestigious Image Classic Image .562 1.956 13.970 55.078 0.765
3. Young and SportyImage Young-looking Image .611 3.115 22.253 22.253 0.784
3. Young and SportyImage Splendid Image .604 3.115 22.253 22.253 0.784
3. Young and SportyImage Sexy Image .777 3.115 22.253 22.253 0.784
3. Young and SportyImage Casual Image .824 3.115 22.253 22.253 0.784
3. Young and SportyImage Sporty Image .905 3.115 22.253 22.253 0.784
4. Decent and Plain Image Decent Image .843 1.737 12.405 67.484 0.614
4. Decent and Plain Image Plain Image .790 1.737 12.405 67.484 0.614

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
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4.3. Analytical Result and Hypothesis Test

In this chapter, the hypotheses about the relations among the brand loyalty (purchasing tendency), brand image
(purchasing behavior) and brand purchasing frequency (purchasing performance) of masstige were empirically tested.
To test the hypotheses, covariance structure analysis was used. Both hypotheses were accepted partially.
To test the adequacy of the research model, structure equation analysis was used with AMOS statistics tool. Maximum
likelihood (ML) was employed to test the measure measurement model and the model was evaluated by Goodness of Fit
Index (GFI). The analysis of the measurement model is summarized in Table 4. GFI of the model is χ²=854.984, df=111,
p=0.000, CFI=0.725, RMR=0.097, most of which are acceptable.

Table 6. The Summary of Measurement Model Analysis


Constructs Item after CFA Question Items Factor Loading Standardized Factor Loading C.R. p-value
Emotional Select to purchase a brand among preferred
0.552 0.468 7.756 0.000
Loyalty brands
Emotional Purchased preferred brand even when its
1.029 0.727 13.098 0.000
price rises
Loyalty 7 Kept buying preferred brand 0.891 0.725 13.053 0.000
Emotional If there was a preferred brand 0.991 0.751 13.670 0.000
Loyalty Kept purchasing the brand because of the
0.642 0.540 9.090 0.000
difficulty of searching to purchase
Emotional Preferred a conspicuous brand 1.034 0.758 13.846 0.000
Loyalty Preferred the log or symbol of a brand 1.002 0.779 14.360 0.000
Cerebral Loyalty Preferred brand identity 0.949 0.800 14.936 0.000
Cerebral Loyalty Had pride through purchasing a preferred
1 0.818 - 0.000
brand
5
Cerebral Loyalty Expressed your brand preference 0.974 0.811 15.217 0.000
Cerebral Loyalty Preferred brand quality 1.008 0.872 16.853 0.000
Cerebral Loyalty Recommended a preferred brand to others 1 0.817 - 0.000

χ²=854.984, df=111, p=0.000, CFI=0.725, RMR=0.097

The result of the hypothesis test showed that the brand loyalty to masstige home appliances (two-
door refrigerator) has a significant impact on the brand image (p=0.05) and the brand images also have
a significant impact on purchasing frequency of masstige brands (p=0.05).

Table 7. The Summary of Hypothesis Test Through AMOS


Standardized Path-
Hypothesis Path C.R. p-value Accepted/Rejected
Coefficient
E(ξ1) → I_1(η1) 0.292 2.185 0.029 Accepted
E(ξ1) → I_2(η1) 0.154 1.296 0.195 Rejected
E(ξ1) → I_3(η1) 0.188 1.595 0.111 Rejected
E(ξ1) → I_4(η1) -0.422 -3.179 0.001 Rejected
H1
C(ξ2) → I_1(η1) -0.270 -2.030 0.042 Rejected
C(ξ2) → I_2(η1) 0.326 2.722 0.006 Accepted
C(ξ2) → I_3(η1) 0.316 2.677 0.007 Accepted
C(ξ2) → I_4(η1) 0.601 4.493 0.000 Accepted
I_1(η1) → Purchasing Frequency(η2) 0.196 3.601 0.000 Accepted
I_2(η1) → Purchasing Frequency (η2) 0.166 2.974 0.003 Accepted
H2
I_3(η1) → Purchasing Frequency (η2) -0.041 -0.730 0.466 Rejected
I_4(η1) → Purchasing Frequency (η2) -0.385 -7.039 0.000 Accepted
E: Emotional brand loyalty C: Cerebral Brand Loyalty
I_1: Intellectual and Premium Image, I_2: Classic and Prestigious Image
I_3: Young and Sporty Image, I_4: Decent and Plain Image

When the results are looked into deeper, emotional brand loyalty had a positive impact only on the
intellectual and premium images while cerebral brand loyalty does so on all of classic, prestigious,
young, sporty, decent and plain but also the intellectual and premium images. As a result, it was found
that the exterior design of the domestic masstige two-door refrigerators do not give intellectual and

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The Effect of Consumer Tendency for Masstige Brand on Purchasing Patterns - focusing on Mediating effect of Massitige Brand Image -
Sun-Yong Kim, Jong-Chan Jeon

premium images to all of the customers with emotional or cerebral brand loyalty. Therefore, future
masstige marketing should be focused upon the rational aspects of the brand rather than emotional ones
to enhance customer loyalty to masstige brands. This finding can be explained by the relatively higher
price of a refrigerator than that of a fashion brand in consideration of the income level of customer. Or
it can be thought that the preference to masstige brands is not simply a tendency towards a premium
brand, but for the pattern of a rational and planned purchase. The latter assumption is identical with the
results of the study by Silverstein (2005) and Truong et.al. (2009).
Next, the analytical results of the impact of the preferred images of masstige home appliances on
purchase frequency are as follows. The reason why purchase frequency is important for brand loyalty
to masstige brands is, as Asker (2003) explained, high brand loyalty leads to higher purchase frequency.
The results show that when all of the consumer groups that prefer intellectual, premium, classic,
prestigious, decent and plain images except for those who prefer young and sporty images were
satisfied with the appealing image(s), their purchase frequency increased.
This result matches with the finding of the study by Sirgy (1982) and Choi Soon Ran (2009) that
brand image has the potential power to induce consumers’ behavior and consumers to reflect self
image onto product image and use goods and services to express their personalities and personal traits.

4. Conclusion
This study applied analytical view to masstige home appliances, which are newly popular, and
carried out an exploratory factor analysis on brand loyalty and image. As a result, it was proved that
the used measurements have convergent validity and internal consistency. In addition, it examined the
impact of the consumer tendency of masstige consumers on purchasing behavior (brand image) and
purchasing frequency (brand performance).
It was found through the series of tests that cerebral brand loyalty (of brand loyalty) has more
impact on brand image and purchase frequency than emotional brand loyalty (of brand loyalty). In the
meantime, it turned out that the brand images of the exterior designs of masstige two-door refrigerator
have a positive impact on the purchase frequency of all the customer groups except for the one that
prefer young and sporty images. The finding provides an implication on how masstige two-door
refrigerators should be positioned in terms of marketing, in consideration of the age of the consumer
group that prefers young and sporty images and the relatively high price of the item.

This study has the following implications.


First, it extended its research scope to home appliances. In particular, it is thought that emotional
marketing, which is coming to the center of marketing stream, might not be less effective for the two-
door refrigerator market, a category of relatively high price for income. Second, it demonstrated the
mediating effect of the brand images of masstige home appliances on purchasing behavior. It detected
that brand loyalty has an impact on purchase in a way that brand images from a product and its service
are matched with a consumer.
In conclusion, this study has significance in that it paved ground for companies to forecast the future
market of masstige home appliance and marketing strategy. However, it has limitations. The samples
are locally biased and the number of samples isn’t sufficient enough to carry out various tests. A
following study is expected to complement the shortcoming of this study and conduct a more broad
research on masstige brands

Acknowledgement

The authors would like to thank the anonymous referees for their sound advice and helpful
comments. This research was financially supported by Hansung University in 2013.

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