A cross-country analysis in the perception and evaluation of luxury products

The perception and evaluation of luxury and luxury products is subject to a dynamic structure and varies depending on the cultural context, but the luxury industry also has a strong global identity. This master's thesis examines how Generation Z in Germany and Italy perceives, evaluates and consumes luxury products and which motives lead to their consumer behavior. The focus is initially on luxury products in general, regardless of a certain product category and consideration of certain brands, in order to obtain a general overall picture of Generation Z's assessment. This evaluation will then be focused on the luxury brands Gucci and Prada, as well as the product categories handbags, backpacks and small leather goods. Based on a quantitative survey, using a Google Forms online questionnaire, with a total of 323 test subjects, including 135 Italian participants and 136 German participants, who were born between 1995 and 2010, this scientific study analyzes cultural similarities and differences. The evaluation was then carried out using SPSS, utilizing various quantitative statistical methods. The results show that Generation Z's interest in luxury products is only moderate in both groups and there are no significant differences between countries, which suggests that luxury is relevant for this target group, but not primarily anchored in consumer behavior. While exclusivity remains a universally valued attribute of luxury products, there are striking differences in price perception. The German Generation Z evaluates the price of luxury products primarily as an indicator of quality, while the Italian Generation Z links it more strongly with prestige and social recognition. A difference that can be explained by the more direct, functional evaluation in the low-context culture of Germany and the more symbolic meaning in the mid- to high-context culture of Italy. In addition, both groups show a growing interest in second-hand luxury products, with ethical and sustainable aspects merely supporting, but not decisive, purchasing motives for first-hand luxury products. The study makes clear, that luxury has a global identity, which results in many similarities in the perception and evaluation by Generation Z, and yet, depending on the cultural context, there are minor differences. Finally, it is important to emphasize, that psychological factors and emotional brand attachment play a significant role in the purchase decision. Consumers who identify with a brand, are proud of it, or feel loyalty or love for it, show a stronger intention to purchase, as was shown in the analysis using the brand Prada. The results provide valuable insights for the strategic positioning of luxury brands: A uniform global brand strategy is fundamentally possible and recommended, but nevertheless requires a targeted adaptation of certain elements to local cultural influences and consumption patterns.