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Article

The Secondary Luxury Consumer: An Investigation into Online Consumption

by
Kelcie Slaton
* and
Sanjukta Pookulangara
Department of Merchandising and Digital Retail, University of North Texas, Denton, TX 76201, USA
*
Author to whom correspondence should be addressed.
Sustainability 2022, 14(21), 13744; https://doi.org/10.3390/su142113744
Submission received: 29 September 2022 / Revised: 17 October 2022 / Accepted: 20 October 2022 / Published: 24 October 2022
(This article belongs to the Special Issue Data Analysis of Brand Sustainability and Consumer Satisfaction)
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Abstract

:
The secondary luxury market is a recent phenomenon attributed to changing consumer beliefs that influence their consumption process. The purpose of this study was to explain consumption behaviors of secondary luxury consumers by investigating secondary consumer beliefs and purchase intention, specifically in the context of online shopping. An online survey was created in Qualtrics to collect data. After a preliminary analysis, structural equation modeling was used to conduct a confirmatory factory analysis and to test the hypothesized relationships. The findings revealed that all consumer beliefs, including environmental, frugality, online retailing, and fashion consciousness, positively influenced consumers’ attitudes and subsequent purchase intention for second-hand luxury items from online secondary luxury retailers. This study added to the literature by utilizing the Theory of Planned Behavior framework and incorporating the secondary luxury consumer beliefs. Ultimately, the researchers were able to better understand this online secondary luxury consumer and what influences the consumer to purchase secondary luxury goods from online retailers such as The RealReal.

1. Introduction

The growth of the secondary luxury market can be attributed to the shifting attitudes of consumers and their acceptability to owning and wearing used luxury goods [1]. The luxury market is evolving based on changing consumer preferences [2] and research is needed to outline such changes. Consumers are interested in sustainable practices in their consumption behaviors [3], the treasure hunt of finding rare and unique items [4,5], and the ability to access luxury brands at an affordable price [6]. Furthermore, secondary luxury purchasers are driven by functional, psychological, and emotional as well as symbolic determinants [4,5,6,7].
According to Beauloye [8], the secondary luxury market is one where consumers can buy and sell used designer goods. Turunen and Leipamaa-Leskinen [5] defined secondary luxury as products that were previously owned and then sold on secondary channels. Sellers of used luxury goods often use an online consignment retailer to sell their products and buyers will use the same online platform to acquire these products at a discounted price [8]. The main difference between first-hand and secondary luxury is the price and extension of the product lifecycle [4].
The secondary luxury market has recently experienced a generational shift. According to Trotman [9], millennial and generation Z consumers are adopting secondary luxury items two and a half times faster than any other generational cohort. These consumers are characterized as those who shop with a purpose and are driven by a commitment to sustainability. Fortuitously, the very nature of the secondary market is in alignment with generation Zs’ and millennials’ growing interest of environmental consciousness and price sensitivity [10]. This has been supported by industry data [11], which stated that “the COVID-19 pandemic, with sustainability driving many consumers to embrace more conscious consumption through luxury resale” (para. 4). Additionally, this secondhand market represents $30 billion to $40 billion in value worldwide [12]. Furthermore, it is expected that by 2025, these two generations will account for approximately half of all global personal luxury goods sale [13], making these two cohorts highly attractive.
The rise of the secondary luxury market can also be accredited to online channels, with approximately 80 percent of luxury sales today being ‘digitally influenced’ [8]. This can also be contributed to the target market that is digitally competent and tends to shop online channels [14]. According to Beauloye [8], online secondary luxury retailers are helping drive the growth of the secondary market well beyond what secondary brick and mortar luxury retailers were able to in the past. Online channels include peer-to-peer websites and apps dedicated to selling secondary luxury items that allow for worldwide visibility [8]. Online secondary luxury retailers include Fashionphile, Vestiaire Collective, Rebag, The RealReal, Collector Square, The Outnet, and The Luxury Closet.
According to Grechko [15], the secondary luxury market is growing faster than the primary luxury market. Furthermore, there has been a heighted interest in secondary luxury goods by millennial and generation Z consumers who are digitally savvy, and shop online, and have an interest in sustainability. To date, there is a scarcity of literature relating to this phenomenon as well as the online secondary channel. Instead, past literature broadly has investigated collaborative consumption and second-hand luxury [5,16,17,18,19], but no studies looked specifically at online channels in the secondary luxury market. Therefore, the purpose of this study was to explain the consumption behaviors of secondary luxury consumers by investigating secondary consumer beliefs and purchase intention, specifically in the context of online shopping. The study’s model was adopted from Ajzen’s [20] theory of planned behavior and helped explain how different consumer collaborative consumption beliefs and elements from the theory of planned behavior influence the intention to purchase secondary luxury items from an online secondary luxury retailer.

2. Review of Literature

Secondary Luxury Market

Collaborative consumption is an emerging concept in retailing as consumers are now engaging in peer-to-peer commerce and sharing activities that include renting, lending, and trading goods and services [21]. Collaborative consumption is a type of sharing economy [22], specifically, the sharing of luxury products which is becoming popular with the advancement of digital platforms and the use of peer-to-peer systems [23]. According to Holmqvist et al. [24], the rise of the digitization and need for experience has created a situation where luxury can be accessed in many ways (i.e., renting, buying second-hand). The current study examined the secondary luxury market, specifically, the purchasing of secondary luxury goods for permanent ownership from online secondary luxury retailers.
Pantano and Stylos [18] explored the renting sector of the collaborative luxury market (e.g., Rent the Runway) and consumer motivators to rent luxury clothing. The authors’ findings revealed the need for outfit inspiration, a new avenue for consumption, needed items for a special event, and sustainability [18]. Similarly, Turunen and Leipamaa-Leskinen [5] (p. 62) identified five meanings of secondary luxury items including “sustainability, the real deal, pre-loved, risk investment, and unique find.” The authors concluded that consumers attribute luxury, value, and authenticity to secondary luxury even though the products are used [5]. Looking from a different perspective, Turunen et al. [19] qualitatively investigated the phenomenon of selling used luxury and concluded that the process of selling these luxury items empowered the individual as the item was considered an object of a financial transaction. In addition, consumers selling luxury items may be perceived as obtaining a higher social status or boosting their role as a sustainable consumer [19].
Although these studies introduce the concept of secondary luxury, there are no available studies looking at the motivations to buy secondary luxury from an online channel, specifically. Due to the lack of literature and the fact that luxury products are associated with a higher social status and consumer attachment [25,26], it is necessary that more research is conducted to understand the motivation of consumers of the secondary market [27,28,29]. This also provides further justification to the current study.

3. Theoretical Framework

According to Ajzen [20], a consumer’s decision-making process is complex. To further model this process, the theory of planned behavior (TPB) was adopted to help explain consumer behavior. TPB posits that attitude, subjective norms, and perceived behavioral control (PBC) influence a consumer’s behavioral intention [20]. TPB has been used in various studies involving luxury [30,31,32,33,34].
In this study, the authors expanded this framework to better reflect the online secondary luxury consumer and their beliefs regarding shopping for secondary luxury goods. For this framework, the consumer’s intention to purchase a secondary luxury item from an online secondary luxury retailer is influenced by antecedents such as attitudes, subjective norms, and PBC. In addition, secondary luxury consumer beliefs, such as environment, frugality, fashion consciousness, and online shopping, are predicted to influence consumer attitudes. Based on research from Cervellon et al. [4] and Guiot and Roux [35], the main motivators for secondary consumption are environmental and economic factors. In addition to these motivators, the authors of the current study suggested the addition of consumer interest in online shopping and fashion consciousness as consumer motivators. The usage of digital channels to distribute second-hand luxury items is important for both the secondary luxury and the consumer. Furthermore, it is suggested that consumers of the secondary luxury market are motivated by an “interest in fashion styles and someone’s appearance” [36] (p. 434) and can use second-hand luxury items to create their ideal appearance. Similar frameworks have been adopted from TPB to explain consumer behavior [37]; thus, this framework was deemed appropriate for this study.
The term “beliefs about the environment” refers to consumers’ concerns for the planet, which includes “environmental problems such as pollution, global warming, and chemical damage” [38] (p. 886). According to Guiot and Roux [35], Joung and Park-Poaps [39], and Silva et al. [40], consumers recycle clothing and engage in secondary consumption due to their interest in environmental concerns. Interestingly, researchers have been conflicted regarding whether environmental factors are a significant influence in purchasing of secondary products [35,41,42], thus the need to investigate this belief in the context of this study. However, Becker-Leifhold and Samira [43] concluded that consumers are more in tune with sustainable practices and are also motivated by sustainable reasons to consume secondary fashion products as it helps to decrease the carbon footprint and extend the product’s life. Furthermore, Jeong Seo and Kim [37] found beliefs about the environment had a significant relationship on consumer attitudes towards purchased secondary fashion items. Based on this review, the authors hypothesize:
Hypothesis 1a.
Beliefs about the environment will positively influence consumer’s attitudes of online secondary luxury retailers.
According to Lastovicka et al. [44] (p. 88), frugality is defined as “a unidimensional consumer lifestyle trait characterized by the degree to which consumers are both restrained in acquiring and in resourcefully using economic goods and services to achieve longer-term goals”. Factors such as price and value are crucial to frugal individuals, thus, these consumers prefer to purchase secondary products as they can consume products that are at a higher quality, but available at lower prices [4,45]. Based on this review, the authors hypothesize:
Hypothesis 1b.
Beliefs about frugality will positively influence consumer’s attitudes of online secondary luxury retailers.
Online shopping involves the activity of buying products and services over the internet. The internet has encouraged changes to how the modern retail industry operates [46]. The target consumers of the secondary luxury market are those that are digital savvy and embrace online shopping channels [14]. According to Okonkwo [47], luxury retailers, specifically secondary luxury retailers, are beginning to adopt sophisticated technologies to improve their online capabilities to capture the evolving consumer and promote brand awareness. Furthermore, there has also been an emphasis on the online retail store environment driven by the consumer [48]. There is little research involving buying secondary luxury products online yet purchasing secondary products from online channels have increased [49].
Liu et al. [50] investigated online luxury shoppers and found these consumers were motivated by convenience, price, and product availability while also having a positive attitude towards online shopping and having higher levels of online trust. Similarly, Maggioni et al. [51] found that online shopping allows consumers to search and compare prices, sales, and consumer benefits. Turunen and Poyry [49] found that online secondary luxury shoppers are goal-oriented, like bargain hunting, are impulsive, and are resale value conscious. These consumers also felt that buying secondary luxury online allowed for more useful comparisons and larger availability of global inventory [49]. Based on this review, the authors hypothesize:
Hypothesis 1c.
Beliefs about online shopping will positively influence consumer’s attitudes of online secondary luxury retailers.
According to Nam et al. [52], fashion consciousness refers to an individual’s mindfulness and attention to fashion. Fashion consciousness has also been defined as “…a person’s degree of involvement with clothing styles or fashions and implies an interest in fashion styles and someone’s appearance” [36] (p. 434). According to Naderi [53], fashion conscious consumers have a unique way of processing information and differ from other consumers on their beliefs, attitudes, and overall behaviors. Kautish and Sharma [54] investigated consumers in an online setting and found that those who were considered fashion conscious were more likely to behave (i.e., purchase) within that setting. Individuals characterized as being fashion conscious are more knowledgeable on fashion products [52]. In addition, these consumers value quality, are highly materialistic, and are more likely to purchase luxury items [14]. In addition, researchers such as Slaton and Pookulangara [55], Zhang and Kim [56], and Casidy et al. [57] have found fashion consciousness positively influenced consumer attitudes. Based on this review, the authors hypothesize:
Hypothesis 1d.
Beliefs about fashion consciousness will positively influence consumer’s attitudes of online secondary luxury retailers.
Attitudes are consumer evaluations of online secondary luxury retailers. Studies have supported a positive relationship between consumer attitudes and purchase intentions in relation to luxury products [56] and sneaker resale [55]. This has been supported by other studies [30,31,32,58]. Furthermore, Jeong Seo and Kim [37] investigated the purchase intention of secondary fashion and found that consumer attitudes positively influenced purchase intention. Based on this review, the authors hypothesize:
Hypothesis 2.
Consumer’s attitudes of online secondary luxury retailers will positively influence purchase intention of secondary luxury items.
According to Ajzen [20], subjective norms refer to the pressure an individual feels from others to engage in a behavior or the social pressure to act in a certain way. Based on a study done by Chen and Tung [59], an individual will seek out and use other’s opinions to ensure their optimal decision making. Subjective norms have been linked to purchase intention [30,31,55,58]. Therefore, the authors hypothesize:
Hypothesis 3.
Subjective norms will positively influence purchase intention of secondary luxury items.
The PBC in the context of this study is the consumer’s ability to purchase secondary luxury items. TPB is a variation of the theory of reasoned action as the PBC is added to help better predict purchase behavior [20]. This has been proved in many studies [20,31,60,61]. Based on the literature, the authors hypothesize:
Hypothesis 4.
Consumer’s PBC will positively influence purchase intention of secondary luxury items.
This study also examined the influence of subjective norms on attitudes and the PBC, much like Jeong Seo and Kim’s [37] study where this relationship was examined as they believed it was relevant in the context of secondary items. The authors concluded a positive relationship between subjective norms and consumer attitudes towards purchasing secondary items and suggested the consumer’s reference groups had a positive attitude towards these secondary items and this leads to purchasing of these items by the consumer. Therefore, it was deemed appropriate to expand the model in the current study. The target market of online secondary luxury consumers is greatly influenced by their reference groups and peers through WOM and social media [55]. Therefore, if the consumer’s peers are interested and accept the idea of second-hand luxury items and online secondary luxury retailers, the consumer will experience a higher attitude towards acquiring second-hand luxury items via online channels. Researchers have found a positive relationship between subjective norms and consumer attitudes [58]. This relationship has yet to be tested in the case of purchasing secondary luxury items online, therefore, the authors hypothesize:
Hypothesis 5a.
Subjective norms will positively influence consumer’s attitudes of online secondary luxury retailers.
Jeong Seo and Kim [37] also suggested subjective norms may influence the level of control over purchasing secondary fashion and found this relationship to be significant. Kim and Karpova [58] concluded that sharing of information, knowledge, and experience with other consumers can influence behavior. It is possible that this scenario would be similar in the case of purchasing secondary luxury items online; therefore, the authors hypothesize:
Hypothesis 5b.
Subjective norms will positively influence consumer’s PBC.
The framework and hypothesized relationships for this study are provided in Figure 1.

4. Materials and Methods

A quantitative method was chosen for this study based on the purpose and an online survey was created in Qualtrics. Prior to collecting data, approval from the Institutional Review Board was obtained. Secondary luxury consumers located in the US were recruited in partnership with Qualtrics Research Services. Qualtrics Research Services sought out participants who were considered secondary luxury consumers and distributed the survey to collect relevant data. Compared to data gathered from other survey methods, the reliability and validity of survey data collected from crowdsourcing sites has not been found to be significantly different [62]; thus, this has been deemed appropriate for this study.

Instruments

To ensure the participants were secondary luxury consumers, screener questions were added to the survey. Additionally, the survey consisted of attention checks, demographic questions, and items relating to the eight constructs. Based on parameters set by Nunnally and Bernstein [63], reliable scales (alpha > 0.70) were adopted, and some were modified in relation to the current study. Beliefs about the environment were measured using a three-item scale from Quoquab et al. [64]. Beliefs about frugality were measured using a four-item scale from Lastovicka et al. [44]. Beliefs about online retailing were measured using a five-item scale from Davis [65] and Punj [66]. Beliefs about fashion consciousness were measured using five items from multiple authors [52,67].
Attitudes were measured using four items from Park et al. [68] and Wakefield and Baker [69]. Subjective norms were measured using six items from Singh et al. [70]. The PBC was to measure using a two-item scale from De Cannière et al. [71]. Finally, purchase intention was measured using three items from Burton et al. [72] and Chiu et al. [73]. All scales items utilized seven-point Likert scales.

5. Results

From the data collection via Qualtrics, 270 surveys were usable at a rate of 19.7% (1374 total). Participants were screened out if they did not pass the screener questions, attention checks, or failed to complete any of the questions using a listwise deletion technique [74]. In addition, based on the recommendation of Kline [75] who suggested at least a sample size of 200, the authors requested 250 completed surveys from Qualtrics Research Services. Demographic data were reported from the use of frequency statistics in SPSS. To outline the sample’s demographics, 52.2% of the participants were female, 67.4% obtained a bachelor’s or graduate degree, 65.9% were Caucasian, and 55.5% had an income of USD 50,001–150,000. A breakdown of the sample’s demographics is provided in Table 1. To note, the sample was represented by millennial and generation Z consumers as they represent the target market of online secondary luxury [9,10].
A principal component factor analysis with varimax rotation was conducted in SPSS to report appropriate validity and reliability scores. With the parameters of an eigenvalue of 1 or greater, the factors were determined. As set parameters from Kline [75], items were kept if they loaded above 0.5 on their factor, but below 0.3 on any other factor. Eight factors, including environment, frugality, online shopping, fashion consciousness, attitudes, subjective norms, PBC, and purchase intention were confirmed based on uni-dimensionality, with 78.01% of the variance explained. Concluding internal consistency, the Cronbach’s alpha coefficients ranged from 0.79 to 0.94 [63]. CMB was also reported at 57%, slightly above the cut-off of 50% [76].
A confirmatory factor analysis through Structural Equation Modeling (SEM) in MPlus was conducted to check the construct dimensionality and the measurement model’s fit of latent variables. A measurement model, with 30 indicators and eight latent variables, was tested using a maximum-likelihood estimation procedure with a covariance matrix. The measurement model indicated an adequate fit (χ2 = 948.445; CFI = 0.93; RMSEA = 0.075; SRMR = 0.036) per suggested values from Kline [75]. The factor loadings were above 0.5 at a significant level (p < 0.001). Composite reliability for each latent variable (CR ≥ 0.70) and average variance extracted was satisfied (AVE ≥ 0.50) [63] showing discriminant validity (see Table 2).
The hypothesized relationships were tested through SEM in MPlus resulting in an adequate fit (χ2 = 112.749, df = 9, p = 0.0, RMSEA = 0.08, CFI = 0.93; SRMR = 0.08) (see Figure 2). To check multicollinearity, a correlation matrix was reported, and each variable correlation coefficient was below the cut-off of 0.80 [77] (Table 3). Hypotheses were accepted when parameter estimate t-values reported 2.00 or higher [78].
Consumer beliefs about the environment, frugality, online retailing, and fashion consciousness positively influenced attitudes supporting H1a (t = 14.09; p < 0.001), H1b (t = 13.93; p < 0.001), H1c (t = 14.35; p < 0.001), and H1d (t = 13.23; p < 0.001). Consumer attitudes about secondary luxury consumption positively influenced purchase intention supporting H2 (t = 10.92; p < 0.001). Subjective norms positively influence purchased intention supporting H3 (t = 7.21; p < 0.001). The PBC positively influenced purchase intention supporting H4 (t = 13.00; p < 0.001). Finally, subjective norms positively influenced attitudes and the PBC supporting H5a (t = 7.01; p < 0.001) and H5b (t = 4.64; p < 0.001). Thus, the findings revealed that all consumer beliefs, including environmental, frugality, online retailing, and fashion consciousness, positively influenced consumers’ attitudes and subsequent purchase intention for second-hand luxury items from online secondary luxury retailers. Furthermore, supporting the TPB framework with the addition of the secondary luxury consumer beliefs.

6. Discussion and Conclusions

The growing secondary luxury market is a recent phenomenon attributed to changing consumer beliefs that influence their consumption process. The consumer is embracing second-hand luxury and the market supports their buying power and demand for luxury goods [79]. This is supported by the fact that 62 percent of luxury consumers reported an interest in purchasing used luxury goods [80]. Furthermore, online channels are driving the growth of the secondary luxury market [8] as consumers are eagerly embracing the digital retail stores [14,47]. This can be attributed to the consumer beliefs of the environment, frugality, online retailing, and fashion consciousness, supported by the participants in this study who shop for secondary luxury items. Currently, there is a lack of literature investigating the secondary luxury market, the secondary luxury consumer, and the online platforms used to buy and sell pre-owned luxury goods. This paper attempted to explore this increasingly important business model of the secondary luxury market by investigating consumer behavior in relation to this concept utilizing the framework adopted from Ajzen’s [20] TPB.
Participants in this study have an interest in environmental sustainability which influences their consumption of second-hand luxury items hence supporting hypothesis 1a. It is concluded that concerns for the environment influenced consumers’ attitudes towards the consumption of secondary luxury goods through online retailers. This finding is supported by earlier research [35,39,40] and is supported by industry judgments that indicate millennial and generation Z consumers are shifting their consumption habits due to the fashion industry’s impact on the environment [9]. Furthermore, consumers are increasingly interested in sustainable practices in their consumption behaviors, with 70% of secondary luxury consumers stating that they “like the sustainable aspect” of second-hand consumption [3,12]. Additionally, online secondary luxury consumers like the idea of giving the luxury product a “second life” much like what was concluded by Borusiak et al. [41]. Eckhardt et al. [42] concluded that the secondary market significantly helps to reduce carbon emissions from manufacturing and disposing of clothes. Therefore, it can be assumed that these secondary luxury consumers are in tune with sustainable practices and are motivated to reduce overconsumption [12].
Beliefs about frugality influenced attitudes of secondary luxury consumer positively with respect to consumption of secondary luxury goods via online channels hence supporting hypothesis 1b. The participants in this study value the ability to access luxury brands at an affordable price. The online secondary luxury market offers used luxury goods, mostly at discounted prices, allowing consumers to have access to the luxury products they crave while restraining the amount spent [6]. This is supported by Cervellon et al. [4] who found that online secondary luxury consumers purchase secondary products due to higher quality items at lower prices. Furthermore, Claudia et al. [45] also concluded that young online consumers, including those potentially interested in secondary items, sought out good deals. It can also be presumed that the online secondary luxury market provides the accessibility of luxury products to frugal consumers. This finding also supports the rise of the new cohort of “frugal consumers” as well as generation Z and millennials’ spending habits [81].
The linkage between beliefs about online shopping and attitude towards buying secondary fashion from online secondary luxury retailers has not been widely examined. Given the fact that online secondary luxury market is growing, it is an important relationship to examine. The findings of the current study supported this relationship as participants embrace online as a shopping channel and allows them to search and purchase second-hand items. Thus, this confirmed hypothesis 1c. Like the findings from Cervellon et al. [4], Maggioni et al. [51], and Turunen and Leipämaa-Leskinen [5], online secondary luxury consumers enjoy engaging in the treasure hunt of finding rare and unique items online while also using the internet to compare prices and find the best deals on secondary luxury products. Furthermore, Turunen and Poyry [49] found that online secondary luxury shoppers are goal-oriented, enjoy bargain hunting, have high levels of impulsiveness and are resale value conscious. Hence, it can be concluded that shopping via online secondary luxury retailers allows consumers the ability to search specifically for luxury products available at various prices, styles, and brands due to the larger amount of inventory available at any time. This finding also supports industry data which revealed that online luxury shopping revenues will be valued at USD 136 billion by 2025 as more than one-third of purchases will be placed through digital channels [82]. Furthermore, the online retail store layout and environment with the ability to filter and have list and recommendations is also important to the online secondary consumer [48]. Therefore, while the online secondary consumers are browsing the online retailer for secondary luxury products, they would prefer a great online store environment.
Fashion consciousness positively influenced consumer attitudes towards online secondary luxury retailers hence supporting hypothesis 1d in this study. This finding is supported by Slaton and Pookulangara [55], Zhang and Kim [56], and Casidy et al. [57] who found a positive relationship between these variables. Comparably, Kautish and Sharma [54] also found that fashion consciousness will influence consumer behavioral intentions, such as purchasing, in an online setting. Fashion conscious consumers in this study purchase luxury products through secondary luxury online retailers as it meets their need to be trendy and display a knowledge of fashion. Millennials and generation Z consumers are moving away from department stores and mixing vintage and unique pieces to define their own style [9] and buying secondary luxury products online helps to create a certain appearance. The positive consumer attitude towards online secondary luxury platforms has support from the industry with designers such as Stella McCartney partnering with The RealReal and the luxury corporation Kering, which owns brands such as Gucci and Bottega Veneta, is investing in Vestiaire Collective [15].
This study also supported the connection between attitudes and purchase intention as the participants in this study who exhibited a positive attitude were more likely to purchase second-hand luxury items. Thus, this confirmed hypothesis 2. This relationship has been widely examined and supported [30,31,32,55,56,58]. It can be inferred that online secondary luxury consumers who exhibit a positive attitude towards online secondary retailers will more than likely purchase second-hand luxury products online. This finding supports industry data suggesting millennial and generation Z consumers are adopting secondary luxury items 2.5 times faster than any other generational cohort [8]. This finding also supports the idea that these consumers like shopping online as technological advances allow them to shop for secondary luxury products with confidence and makes it easier for them to browse at times that better fit their schedules [8], thus increasing the potential of purchase intention.
Subjective norms were also found to influence purchase intention thus confirming hypothesis 3. Like attitudes, this relationship has been examined and supported by previous research [30,31,55,58]. There is empirical evidence that friends and references groups impact the consumer decision-making process [83]. Previous studies have indicated that subjective norms have often been promoted by both marketers and policy markets to encourage behavior [84]. This is an important finding as subjective norms can be utilized by secondary luxury retailers as a marketing tactic to encourage secondary luxury shopping. It is important to note that purchasing secondary luxury products has been deemed to be a “sustainable” behavior by society. Finally, this finding supports the concept of the “Frugal Economy” [81]. Consumers are shifting their perspective on frugality, with consumers considering being labeled “frugal” as a compliment; hence, by using appropriate messaging targeting social norms, secondary luxury retailers can be perceived as having value for money and fulfilling heightened consumer expectations [81]. Thus, participants in this study are encouraged to look a certain way by their peers and the secondary luxury market allows them to create looks without spending too much to do so. In addition, these participants are also experiencing a societal shift where environmental sustainability is encouraged by peers, which influences them to consume in sustainable ways.
This study also investigated the influence of PBC on purchase intention. According to Armitage et al., PBC allows “the likelihood of successful behavioral performance and it will vary as a function of the perceived controllability toward performing a behavior” [85] (p. 618). The connection between the PBC and purchase intention has been assessed in previous research [20,31,60,61]. PBC was added to this study to capture information with respect to situations where consumers may lack complete volitional control [84] over shopping for secondary luxury products online. Specifically for this study, this could allude to the consumer’s ability to purchase secondary luxury items whether it is the availability of specific brands/sizes/styles, price, or internet capability as well as connected devices to make these purchases. Thus, this supported hypothesis 4. Additionally, some other factors that potentially impact PBC for second-hand luxury consumers could be with respect to the product itself such as authenticity, modification, and market control [86]. Therefore, it is reasonable to conclude the consumer must not only have the desires to purchase secondary luxury products but also considering additional factors that impact secondary luxury purchase behavior [87]. Participants in this study are knowledgeable about this market and expose themselves to the appropriate information to make good purchase decisions. When they feel they have such information, they are more likely to purchase. Secondary luxury retailers can help alleviate these concerns by revamping their business model by embracing digital, fight fraud and counterfeiting using artificial intelligence to identify fake goods and using blockchain technology to make investing in luxury assets easier and cheaper [86].
This study is the first to test the relationship between subjective norms and attitudes in the context of purchasing second-hand luxury items online. Past research confirmed the relationship between subjective norms and attitude for hospitality [88,89] and retail [58]. It is noteworthy that if consumers know that their reference groups support a behavior, they will have a more positive attitude and as a result, engage in that behavior more often [90]. The findings of this study indicate that subjective norms positively influenced attitude towards secondary luxury retailers thus supporting hypothesis 5a. This is an important finding given that generation Z and millennials trust product reviews and recommendations from friends and family, ensuring that their desired product will be socially acceptable [9]. It is suggested that retailers should move away from mainstream influencers to more ‘everyday influencers’ to include friends and family members as participants in this study are often pressured by these individuals. Additionally, the focus of these secondary luxury online retailers should move towards richer and more personalized engagement that enables the creation of consumer communities to foster personal connection.
This study also supported the influence of subjective norms on PBC thus confirming hypothesis 5b. The relationship between subjective norms and PBC has received support from previous studies [37,58]. This is a significant finding, especially since individuals reference other’s action “to decide the most effective course of action when the situation is novel, ambiguous, and uncertain” [91] (p. 155). Secondary luxury online retail is still relatively new with most luxury brands have yet to capitalize on this booming secondary market. Currently, there is a lot of uncertainty in terms of the product (e.g., style, authenticity, etc.), price, and availability, hence anything that a secondary luxury online retailer can do to alleviate this will increase the perception of control for their target consumer. Online secondary luxury retailers can utilize social media, nano, and micro influencers to engage with their consumer base. In other words, if secondary luxury retailers can influence the information provided from the consumer’s peers, this will increase the willingness and likelihood of acquiring the needed resources to purchase second-hand luxury items as supported by the participants in this study.

7. Implications and Future Research

This research attempted to fill the gap in the examination of the secondary luxury market by testing the framework including attitudes, subjective norms, and PBC and its influence on the consumer’s purchase intention, per TPB. Additionally, this study added to the literature by incorporating the secondary luxury consumer beliefs of environment, frugality, fashion consciousness, and online shopping. By testing this framework, researchers were able to better understand this online secondary luxury consumer and what influences the consumer to purchase secondary luxury goods from online retailers such as The RealReal. This study also examined the influence of subjective norms on both attitude and PBC in relation to online secondary luxury retailer, an important relationship given that secondary luxury sale online has great potential. Finally, the study findings supported what the industry is talking about, specifically when it comes to generation Z and the millennials—this is critical, especially given that there is a need to make academic research more relevant to business organizations and practitioners.
Online secondary luxury retailers are growing quickly and are drastically changing the luxury resale landscape to a more consolidated ecosystem [8]. A major benefit to secondary consumption includes extending the life of a product. This has shown to decrease the carbon footprint and promote environmental sustainability, thus helping to combat climate change and the increase in pollution from producing new merchandise. This study supported the consumer’s interest in environmental concerns influencing their consumption habits, suggesting that the luxury industry can move to a more environmentally sustainable direction with the secondary market.
The findings from a study such as this can help the online secondary luxury retailers better serve their consumers and continue an upward trajectory. In addition, findings can also help primary luxury brands and retailers to embrace the resale arena. Specifically, luxury brands may want to consider the product lifecycle which includes what happens after primary sale. Currently, Neiman Marcus, Farfetch, and Richemont are noted luxury retailers scaling up their own resale strategy as the market continues to grow [79]. Other luxury brands and retailers are hesitant as there is a fear of cannibalizing the sales of new products and diluting the exclusivity of the luxury market and its brands [8]. However, by acting on this opportunity, luxury brands can use resale as a long-term sustainability strategy and can support the demand for primary luxury products in the long term. It should be brought to light that entry into the secondary luxury market is challenging for those luxury retailers due to the random nature of the business model and authenticity concerns [79]; yet a study such as this can help with the careful planning required and to better predict consumer behaviors which will assist in the unpredictability of the secondary business model. In closing, the market is still in the early stages, and a proactive approach will help brands and retailers to shape demand and stake their claim in this lucrative and fast-growing marketspace.
The authors utilized Qualtrics Research Services to recruit participants for this study. Although the validity and reliability of this recruitment process has not shown to be significantly different from other recruitment methods [62], recruiting directly from secondary luxury retailer’s consumer databases would have been preferred. Therefore, future studies can replicate this study and recruit these consumers to confirm the results of this study. Furthermore, in this study, the authors did not specify secondary luxury products or categories which could be a limitation to the study. Future studies should focus on or define specific secondary luxury products or categories.
Future studies can expand to investigate the channel strategies for secondary retailers as well as explore traditional luxury retailers and their willingness to embrace the secondary market within their own merchandising strategies. In addition, a future study can utilize focus groups to investigate luxury fashion collaborative consumption from a sustainability point of view instead of focusing strictly on marketing aspects like the current study. To conclude, it is also important to acknowledge the evolution of consumer behavior and the impact of the environment and changes in society.

Author Contributions

Conceptualization, K.S.; methodology, K.S.; software, K.S. and S.P.; validation, K.S. and S.P.; formal analysis, K.S. and S.P.; investigation, K.S.; resources, K.S. and S.P.; data curation, K.S.; writing—original draft preparation, K.S. and S.P.; writing—review and editing, K.S. and S.P.; visualization, K.S.; supervision, K.S.; project administration, K.S. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

The study was approved by the Institutional Review Board of Iowa State University (protocol code 20-297 and 7/20/2020).

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study.

Data Availability Statement

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Conflicts of Interest

The authors declare no conflict of interest.

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Figure 1. The Online Secondary Luxury Consumer Behavior Proposed Framework.
Figure 1. The Online Secondary Luxury Consumer Behavior Proposed Framework.
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Figure 2. Latent model showing structural path coefficients between belief about the environment, frugality, online retailing, and fashion consciousness, attitudes, subjective norms, perceived behavioral control, and purchase intention. Note. χ2 = 112.749, df = 9, p = 0.0, RMSEA = 0.08, CFI = 0.93; SRMR = 0.08 standardized estimates shown (t-values in parentheses); * p < 0.001.
Figure 2. Latent model showing structural path coefficients between belief about the environment, frugality, online retailing, and fashion consciousness, attitudes, subjective norms, perceived behavioral control, and purchase intention. Note. χ2 = 112.749, df = 9, p = 0.0, RMSEA = 0.08, CFI = 0.93; SRMR = 0.08 standardized estimates shown (t-values in parentheses); * p < 0.001.
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Table
Table 1. Summary of Demographic Information.
Table 1. Summary of Demographic Information.
CharacteristicnPercent
Gender
   Female14152.2
   Male12847.4
   Other10.4
Age
   20–254617.0
   26–306423.7
   31–358130.0
   36–417929.3
Education
   High school degree (including GED)6022.2
   Associates or technical school degree2810.4
   Bachelor’s degree8933.0
   Graduate/Professional degree9133.7
   Other20.7
Ethnicity
   Caucasian17865.9
   Hispanic217.8
   African American/Black5118.9
   Asian72.6
   Other134.8
Income
   $25,000 and less3814.1
   $25,001 to $50,0002910.7
   $50,001 to $75,0003613.3
   $75,001 to $100,0005118.9
   $100,001 to $150,0006323.3
   $150,001 to $200,0003211.9
   Over $200,000217.8
Table
Table 2. Standardized Factor Loading, Construct Reliability, and Variance for Variables in the Measurement Model.
Table 2. Standardized Factor Loading, Construct Reliability, and Variance for Variables in the Measurement Model.
Standardized Factor LoadingComposite ReliabilityAVE
Beliefs about the Environment (α = 0.90) 0.800.57
1. I often pay extra money to purchase environmentally friendly luxury products.0.78
2. I purchase and use luxury products which are environmentally friendly.0.78
3. I use eco-friendly luxury products and services.0.71
Beliefs about Frugality (α = 0.90) 0.790.50
1. I am willing to wait on a luxury purchase I want so that I can save money.0.74
2. There are luxury things I resist buying today so I can save for tomorrow.0.74
3. If I can re-use an item I already have, there is no sense in buying something new.0.65
4. Making better use of my resources makes me feel good.0.63
Beliefs about Online Retailing (α = 0.94) 0.850.54
1. Online shopping for luxury is easier than shopping for luxury in stores.0.76
2. Buying luxury online is more convenient.0.76
3. Online shopping for luxury makes my life easier.0.74
4. The internet is the best place to buy items that are hard to find.0.71
5.Online shopping for luxury saves me time.0.71
Beliefs about Fashion Consciousness (α = 0.91) 0.830.50
1. The process of choosing a luxury product makes me feel ownership of my identity as a luxury consumer.0.74
2. My luxury fashion purchase is part of who I am.0.73
3. A luxury product allows me freedom to express who I am.0.72
4. The process of choosing a luxury product offers me freedom to express myself.0.71
5. My luxury fashion purchase helps me narrow the gap between who I am and what I try to be.0.62
Attitudes (α = 0.94) 0.880.65
1. The idea of an online luxury resale store is interesting to me.0.83
2. The idea of an online luxury resale store is appealing to me.0.82
3. The idea of an online luxury resale store is pleasant to me.0.81
4. I think an online luxury resale store would be good.0.76
Subjective Norms (α = 0.89) 0.870.63
1. I feel obligated to buy secondhand luxury.0.86
2. I expected to buy secondhand luxury.0.85
3. People who are important to me would recommend buying secondhand luxury.0.77
4. People who are important to me would understand my decision to buy secondhand luxury.0.69
Perceived Behavioral Control (α = 0.79) 0.700.54
1. It does not fully depend on me whether I will purchase secondary luxury fashion items from online luxury resale stores at least once during the upcoming season.0.90
2. I do not fully control the fact that I will buy luxury secondary fashion items from online luxury resale stores at least once during the upcoming season.0.90
Purchase Intention (α = 0.91) 0.830.62
1. I am likely to purchase products from an online luxury resale store.
2. It is possible for me to buy a product from an online luxury resale store.
3. I would consider a product from an online luxury resale store if I needed that product.
Table
Table 3. Correlation Matrix.
Table 3. Correlation Matrix.
Mean12345678
1. Beliefs about the Environment5.051
2. Beliefs about Frugality5.130.77 *1
3. Beliefs about Online Retailing5.070.71 *0.79 *1
4. Beliefs about Fashion Consciousness3.720.71 *0.77 *0.79 *1
5. Attitudes5.170.78 *0.82 *0.79 *0.73 *1
6. Subjective Norms5.010.71 *0.66 *0.69 *0.67 *0.65 *1
7. Perceived Behavioral Control3.630.16 *0.17 *0.21 *0.16 *0.23 *0.04 *1
8. Purchase Intention5.000.71 *0.71 *0.72 *0.67 *0.77 *0.58 *0.23 *1
* Correlation is significant at the 0.01 level (two-tailed).
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Slaton, K.; Pookulangara, S. The Secondary Luxury Consumer: An Investigation into Online Consumption. Sustainability 2022, 14, 13744. https://doi.org/10.3390/su142113744

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Slaton K, Pookulangara S. The Secondary Luxury Consumer: An Investigation into Online Consumption. Sustainability. 2022; 14(21):13744. https://doi.org/10.3390/su142113744

Chicago/Turabian Style

Slaton, Kelcie, and Sanjukta Pookulangara. 2022. "The Secondary Luxury Consumer: An Investigation into Online Consumption" Sustainability 14, no. 21: 13744. https://doi.org/10.3390/su142113744

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