The role of perceived value in shaping luxury service customers’ self-brand connection

Abstract

Building on the literature on luxury consumption behavior, this study investigates customers’ perceived values on their patronage behavior toward luxury service brands. Partial least squares-structural equation modeling is used to test the research model with a sample of 177 American luxury hotel customers. The findings suggest that functional, individual, and social values from experiences influence customers’ perceived connection with a luxury service brand. The bond between customers and brands affects customers’ patronage behavior. Moreover, the role of the self-brand connection on the relationship between the perceived value and behavioral intention indicates that the impact of functional, individual, and social values on patronage behavior, and the self-brand connection is different depending on the perceived congruity with the luxury hotel brand. However, the affluent customers’ perception of financial value does not enhance the self-brand connection. The results suggest that it would be more effective for luxury hotel service providers to build strong and meaningful ties with customers. This study identifies the role of the self-brand connection in the relationships between multidimensional perceived value (i.e. financial, functional, individual, social) and loyal behavior in the luxury service context.