The Impact of Status Seeking on Consumers’ Word of Mouth and Product Preference—A Comparison Between Luxury Hospitality Services and Luxury Goods

Abstract

Despite the rapid growth of the luxury hospitality market, academic research has largely neglected the differences between luxury hospitality services and luxury goods, as well as the role of status seeking on luxury consumption. Relying on the status consumption and experience recommendation theories, the authors examine the combined effects of consumer characteristics (need for status) and product type (hospitality services vs. goods) on consumers’ word-of-mouth intentions. The results suggest that parvenus, who are high in need for status, are more likely to talk about their luxury goods purchases than patricians, who are low in need for status. More interestingly, both parvenus and patricians indicate equally strong intentions to spread positive word of mouth on luxury hospitality purchases. This study also extends the experience recommendation theory and reveals that parvenus are less likely to choose luxury hospitality services than patricians to advance their happiness.