Factors Influencing Perceived Risk And Purchase Intention In The Hangzhou Luxurious Used-Car Market In China

Abstract

This study explores the factors shaping perceived risk and purchase intentions in the market for luxurious used cars in Hangzhou, China. As consumer behavior in emerging markets becomes increasingly sophisticated, understanding the underlying motivations behind luxury consumption is crucial for both marketers and academics. The research focuses on several key variables, including Perceived Luxurious Used-Car Consumption Value, Brand Consciousness, Brand Love, Experiential Value, and Self-Identity. These elements are assessed in relation to their impact on perceived risk and how they influence purchase decisions. Data was collected through a structured survey from 350 consumers who had shown interest in or engagement with luxurious used cars in Hangzhou. Structural Equation Modeling (SEM) was employed to analyze the relationships between these factors. The findings reveal that while perceived risk plays a significant role in shaping purchase intentions, other elements such as brand love and self-identity act as mitigating forces that reduce the impact of risk perception. This underscores the importance of creating strong emotional connections and value propositions in marketing strategies for luxury brands. The study also provides insights into how these factors vary among different demographic groups, suggesting that marketers should adopt a more segmented approach when targeting luxury consumers in China. Finally, the research highlights the potential for future studies to examine cross-market comparisons and evolving consumer behavior in other emerging economies. This study contributes to the literature on luxury consumption by offering a nuanced understanding of the psychological and social dynamics influencing the luxury used-car market in China.