Financial self-discrepancy, consumer well-being, and luxury preferences: The moderating effect of access-based luxury formats

Financial self-discrepancy, consumer well-being, and luxury preferences: The moderating effect of access-based luxury formats

This study investigates how the gaps between current financial status and financial aspirations or obligations shape consumer well-being and luxury preferences. Drawing on self-discrepancy and regulatory focus theories, this study uncovers how financial actual–ideal and actual–ought discrepancies activate different compensatory behaviors through consumers' well-being states (eudaimonic vs. hedonic). Eight studies including six experimental and two cross-sectional designs (N = 1132) were conducted to test the proposed hypotheses. The results show that financial actual–ideal discrepancies increase, whilst actual–ought discrepancies reduce luxury preference. Eudaimonic well-being mediates the relationship between financial actual–ought discrepancies and luxury preference, while hedonic well-being shows no mediation effect for either self-discrepancy type. The effect of financial actual–ideal discrepancy on luxury preference was moderated by access-based luxury formats, with ideal-discrepant consumers preferring renting and second-hand options over co-ownership. This study contributes to positive psychology and luxury marketing by linking consumers' financial status, well-being, and luxury preference. This study also provides managerial guidance on aligning campaign timing strategies with consumers' financial self-discrepancies and highlights societal implications for fostering inclusivity and addressing ethical concerns in luxury preference.

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