Impact of Sustainability Practice Implementation towards Luxury Brand Perception and Purchase Decision on Generation Y and Z Sindhu Bhagaskara (a*), Nurdin Sobari (b)
a) Faculty Economic and Business University of Indonesia
Jalan Prof. Dr. Sudjono D Pusponegoro, Kampus Universitas Indonesia, Depok, West Java, Indonesia
*sindhu.bhagaskara01[at]ui.ac.id
b) Faculty Economic and Business University of Indonesia
Jalan Prof. Dr. Sudjono D Pusponegoro, Kampus Universitas Indonesia, Depok, West Java, Indonesia
Abstract
Sustainability is one of the most important concerns in almost every aspect in the present day. The scrutiny to have sustainability in luxury products has grown overtime. However, luxury and sustainability or one might call sustainable luxury might sound oxymoron, while in fact, they have a lot of attributes in common. The concept of sustainable luxury has been developed immensely to cater to the current largest demographic, Gen Y and Z. These two generations are more socially and environmentally conscious whilst also partake as the largest consumer demographic in luxury brands. This study examines the impact of implementing sustainability practice to luxury brands perception and purchase intention by Gen Y and Z. A quantitative survey research design was utilised in order to test the research model, in which 350 participants, divided into two groups, did an online survey with either a luxury fashion marketing campaign message and a luxury fashion marketing campaign with sustainability practice message then was analysed by using the structural equation modelling (SEM). The results of this study indicate sustainability practice implementation description positively impacts the purchase decision of luxury products by both generation Y and Z.
