Promotional Satisfaction in Kerala's Luxury Clothing Market: A Structural Equation Modelling Approach.
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Abstract
Even though luxury clothing brands are tapping into the NRI rich consumer market in Kerala and the estimated spending by this group on luxury goods is expected to touch INR 4,200 crores by end of 2023, there is a huge gap in what brands are doing in terms of promotional schemes and how customers would want them to be. This study therefore tries to model the five antecedents of the promotional schemes of luxury clothing brands, namely personalization of shopping experience (PSE), customer service quality (CSQ), awareness of promotions (AP), perception of brand exclusivity (PBE), and the influence of endorsements (IE) on overall promotional satisfaction (OSP) of customers. A sample size of 342 customers from three major cities in Kerala, namely Kochi, Thiruvananthapuram and Kozhikode were taken for this study. The measurement model was confirmed through Confirmatory Factor Analysis (CFA) with CFI value of 0.962 and RMSEA value of 0.048. The five antecedents of the promotional schemes of the studied samples also supported the hypothesized paths significantly at p < 0.001 level. The structural model also threw up some very interesting results, with the highest effect size being that of PBE (β = 0.341) followed by a huge gap of 72% in terms of effect size by AP (β = 0.198). Thus together the five antecedents of the promotional schemes of the studied samples explained as much as 68.7% of the variance in the overall promotional satisfaction (OSP) of the customers. The results therefore would clearly indicate to the luxury retailers in the studied market on how to allocate their promotional budgets between hosting exclusivity centered events and spreading awareness about the available promotions through mass media...
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