Cognitive Dissonance in Chinese LuxuryConsumption Market

LIU Jianchang（刘建长），YUAN Ruizhi（袁睿志），LIU Martin J（刘任远），SUN Jing（孙 婧）

1Business School，Zhejiang Fashion Institute of Technology，Ningbo 315211，China

2Nottingham University Business School China，The University of Nottingham Ningbo China，Ningbo 315100，China

3Cass Business School，London EC1Y8TZ，UK

Introduction

The concept of cognitive dissonance，suggested by Festinger［1］，has prevailed in the study of both psychology and consumer behaviour since the 1950s［2-4］.Cognitive dissonance refers to individual's subjective perception of incompatibility between two self-relevant cognitions［5］.A cognition can be any forms of value，attitude，belief，knowledge，or behaviour.In other words，after having made a decision，individuals experience cognitive dissonance because of the negative aspects of the chosen alternative and the positive aspects of the non-chosen alternative.The cognitive dissonance can result in a psychological state of unpleasantness that motives the individual to reduce its aversive state by reducing the discrepancy between dissonance cognitions［5-6］.

Researchers claim that cognitive dissonance theory is the most practical of all the consistency theories when it applies to purchasing behaviours（e.g.，［3-4］）.In their studies when customers seek out information before or after buying，one critical reason is that they want to reduce the postdecision cognitive dissonance.Hasan and Nasreen［7］suggested that people tended to experience a higher level of cognitive dissonance in the process of luxury consumption.Consumers of luxury goods were more inclined to review their decisions about the purchases that they had made and examine whether they had made the right choices.The cognitive dissonance can result in a psychological state of unpleasantness that motives the individual to reduce its aversive state by reducing the discrepancy between dissonance cognitions［5-6］.Past studies on consumer behaviour have identified various actions to reduce the dissonance.For example，Keng and Liao［8］investigated that post-purchase dissonance influence post-purchase satisfaction and repurchase intention negatively.George and Edward［9］also examined that the degree of cognitive dissonance experienced by more involved consumers was less than that experienced by less involved consumers.This research aims to investigate to what extend Chinese consumers'cognitive dissonance negatively impacts on their re-purchase intention.Sweeny et al.［4］concluded that the dissonance varied according to the product types and the consumers'backgrounds［10］.Literature on cognitive dissonance has classified the construct into three dimensions.First，the emotional dissonance refers to the sequence of the psychological discomfort，e.g.，angry，hollow，disappointed［10］.Second，Sweeney et al.［4］defined the wisdom of purchase dimension as a person's recognition after the purchase has been made that they may not have needed the product or may not have selected the appropriate one.After having made a purchase，the consumers may doubt whether they needed the products which they purchased［7］，and feel anxious about whether they had chosen the most appropriate ones or rejected better ones.Finally，concern over the deal，defined as a person's recognition after the purchase has been made that they may have been influenced against their own beliefs by sales staff［4］，is another key dimension of cognitive dissonance.

China has experienced a significant level of growth in the economy in recent years.According to Sun et al.［11］，China was the second biggest market for luxury goods，and was expected to become the biggest market，taking the place of Japan，in 2015.Two main groups of consumers of luxury goods can be identified in China：the new rich and the emerging middle class［12］.Chinese consumers placed more emphasis on group orientation，interpersonal relationships and group norms.In particular，most Chinese consumers purchased luxury goods for others rather themselves.The objectives of the research under discussion were two-fold.First，this research aimed to clarify the dimensions of cognitive dissonance，which was proposed to be a multi-dimensional construct including emotional dissonance，wisdom of purchase and concern over deal.Second，by applying the cognitive dissonance theory into the Chinese luxury consumption，the research investigated the roles of cognitive dissonance in the relationship between Chinese culture and customers'repurchase intentions.

2 Conceptualization and Hypothesis Development

With more than 5000years history and diverse culture，China，one of the world's oldest origins of ancient civilization，has been perceived as being synonymous to mystery by the Western world.Chinese culture is shaped by Confucianism，Taoism，Buddhist，Legalism［13］，and other ideologies，such as group orientation（collectivism），Mianzi，Guanxi，and Buying out of Emotions，that categorized as sub-cultures.Specially，group orientation culture and Mianzi are closely connected with luxury consumption in interdependent environment as China.Group orientation emerges in-group adapting and fitting behavior that drives Chinese consumers to purchase luxury goods in order to be involved in group and represent group social statues.Similarly，Mianzi causes Chinese consumers to purchase luxury goods as showing off.Zhao et al.［14］also claimed that Chinese consumers emphasized on the enjoyment（buying out of emotion）in the purchase behavior more than the prestige or the social value of the products.Chinese culture inherits from one generation to the next；it deeply integrates people's overlook of world，value and life and permanently influences people's attitude and behavior.Though western culture influences and encourages Chinese consumers towards foreign luxury goods，uniqueness of Chinese culture drives luxury consumption to be in accordance with conformance，group enhancement，and social-status reason.

Hypothesis 1 The motivation of luxury consumption as saving Mianzi is directly related to cognitive dissonance.

Wang et al.［15］stated that saving Mianzi should be one of the most significant motivations when purchasing luxury goods.Mianzi refers to self-esteem and the desire for respect in the social network［16］.Though the concept of Mianzi prevails all over the world，it is a fundamental principle of social interaction in Confucian culture［11］.Many Chinese consumers purchase luxury goods to demonstrate their wealth and manifest their status in order to avoid losing Mianzi［17］.The conspicuous values and symbolic values of the luxury goods may reflect the wealth，status and success of the owners［18］.Chinese consumers purchase luxury goods to state their wealth and even to manifest their wealth status in order to avoid lose their face in the social comparison［17］.Chadha and Husband［17］in their book positioned China at the“show off”stage，suggesting that most Chinese consumer purchase luxury goods aims at standing out of the crowd and manifesting the premium social status.However，consumers are more likely to experience inconsistency when the decision or the behavior-related consequences are related to the others.Since the Mianzi is described as a social product accorded by other people［19］，the cognitive dissonance may be higher after the purchase，rethinking that whether they have chosen the right product to save Mianzi.Though Mianzi may enhance the self-confidence，it will be finally judged by self-related or social others.Accordingly，the authors developed the hypothesis that consumers who purchase luxury goods as a consequence of the desire to save Mianzi are more likely to experience cognitive dissonance.

Hypothesis 2 The motivation to consume luxury goods as a result of group orientation is inversely related to the experience of cognitive dissonance.

Group orientation has been discussed in many papers［20-22］，with the consensus that most Chinese consumers were under pressure to maintain in-group status.One of the most important presumptions regarding the arousal of cognitive dissonance is perceived freedom［2］.According to the Chinese culture，Chinese consumers highly value the opinion of others and therefore adjust their preferences in order to achieve a consensus within the group［15］.Thus，this means that the satisfaction arising from the purchase may be increased as a result of the acceptance of the social group，incurring less worry after purchase.For this reason，the authors developed the hypothesis that the motivation for luxury consumption as a result of group orientation is inversely related to the experience of cognitive dissonance.

Hypothesis 3 The motivation of luxury consumption as buying out of emotions is directly related to the experience of cognitive dissonance.

Buying out of emotions has two aspects，namely，impulse buying and hedonic consumption.Many researchers have examined the differences between luxuries and necessities，suggesting that luxury consumption was more hedonicorientated when compared with necessity consumption［23］.Impulse buying can be defined as sudden and unplanned purchases［24］.Saleem et al.［24］found that impulse buying behavior and hedonic consumption were directly related to cognitive dissonance.They also proposed that impulsive purchase and hedonic consumption behaviour should be categorized as being of low involvement in the purchasing process，so consumers may not have much control over the conflicts in their expectations［25］，resulting in the feelings of concern and regret about the purchases.As a consequence，the authors developed the hypothesis that the motivation to buying out of emotions is directly related to cognitive dissonance in luxury consumption

Hypothesis 4 The cognitive dissonance is inversely related to the repurchase intention.

Cognitive dissonance may reduce the consumer's intention to repurchase luxury goods.Sweeney et al.［4］stated that cognitive dissonance might have a negative impact on the consumer's satisfaction with the purchase and thereby decrease the repurchase intention.However，Yi and La［26］suggested that consumer satisfaction could not directly increase the repurchase intention.In addition，they suggested that loyalty and adjusted expectation should be regarded as the key elements in shaping the repurchase intention.The cognitive dissonance may influence the adjusted expectations and in turn the adjusted expectations influence the repurchase intention［26］.Thus，the authors developed the hypothesis that cognitive dissonance is inversely related to the repurchase intention.

3 Methodology

3.1 Data collection

The questionnaires were partly distributed in the University of Nottingham Ningbo，China.The annual tuition fee in this school is RMB 80 000，and thus the average consumption level in this school is relatively high.Questionnaires were also sent by email to associates who were known to have bought luxury goods.Those involved in the survey were required to have purchased luxury products in the past.Approximately 70questionnaires were collected in the University of Nottingham，Ningbo，China.Then，the questionnaires were distributed around the Heyi Plaza，the luxury shopping mall in Ningbo.The participants who were targeted were those who came out of the mall.The questionnaires were administered after having ascertained that the respondents had purchased luxury goods in the past.The questionnaires were then administered at the Zhuozhan Shopping mall，one of the most influential luxury shopping centers in Shenyang.In addition，copies of the questionnaire were distributed in Haixin Plaza in Qingdao，and subsequently，the electronically version of questionnaire was uploaded on the internet.Some of the responses were invalid since the participants had not purchased any luxury goods.The total number of copies of the questionnaire distributed was 270，and the number of valid responses was 255.

3.2 Data analysis method

As the multivariate nature of the model and the need to examine both the measurement properties of the construct scales and the hypothesized relationships among them，Par-tial Least Squares Path Structural Equation Modeling（SEMPLS）was employed.We adopted a two-step analysis approach recommended by Hallak et al.［27］.First，since the theoretical constructs in the structure model represent latent variables，which require a set of observed indicator variables for their reliability and validity by conducting Confirmatory Factor Analysis（CFA）.Second，based on this，the theoretical constructs'cause-effect relationships in the structural model can be tested to determine whether the data fitted the hypothesis.

3.3 Measurement items

To measure buying out of emotions，items were selected according to Ref.［15］，including“I often buy luxury on impulse”and“When I am depressed，I buy luxuries to make me happy.” To measure Mianzi，the variables used by Monkhouse et al.［28］were introduced，including，“I am concerned with not bringing shame to myself”；“I pay a lot of attention to how others see me”；“I am concerned with protecting the pride of my family”and“I feel ashamed if I lose my Mianzi”.To measure group orientation，“I recognize and respect social expectations，norms and practices”；“When I am uncertain about how to act in a social situation，I try to do the same as others do”；“When I buy the same things my friends buy，I feel closer to them”and“If there is a conflict between my interest and my family's interest，I'll put priority on mine”.The questions were posed on a 7-point Likert scale ranging from 1（strongly disagree）to 7（strongly agree）.

To measure cognitive dissonance，the 22-scale created by Sweeney et al.［4］was introduced on a 7-point Likert scale ranging from 1（strongly disagree）to 7（strongly agree）（Table 1）.The total score may be said to reflect the overall cognitive dissonance in luxury consumption.The higher scores indicate the higher cognitive dissonance the consumer experienced after the luxury consumption.Three dimensions were covered，including emotional dissonance，wisdom of purchase and concern over deal.The background information was to ascertain whether the data have statistical differences according to the careers，ages，income levels，regions，etc.

Table 1 Cognitive dissonance measurement items

Table 1 continued

To measure repurchase intention，the items were selected from the work of Hellier et al.［29］，including“Do you intend to continue to purchase luxury goods，at least the same amount，in the next 12months？”and“All things considered，how likely is it that you will actually purchase luxury goods，at least the same amount，in the next 12months？（1＝least likely，7＝most likely）”.

4 Results and Analyses

4.1 Assessing reflective measurement models

The conceptual model is shown in Fig.1.

Fig.1 Conceptual model

The overall model fit is satisfied with R2＝0.58.The consistency reliability could be tested by Cronbach's alphas.The Cronbach's alphas of the items are shown in Table 2.The range of the Cronbach's alphas is from 0.6612to 1.Cronbach's alphas of buying out of emotions，group orientation dissonance，repurchase intention，Mianzi，emotional dissonance，wisdom of purchase and concern over deal are in the domain above 7，which suggests that the consistency of the reliability should be regarded as satisfactory［30］.In order to test the consistency reliability，the composite reliability was taken in to account as well［31］.According to Table 2，the composite reliability of the items are 1（buying out of emotions），0.868 4（cognitive dissonance），1（repurchase intention），1（group orientation），0.832 7（Mianzi），0.839 5（emotional dissonance），0.847 6（wisdom of purchase）and 0.815 7（concern over deal）.All composite reliabilities are above advanced stages and should be regarded as satisfactory.

Table 2 Assessment of the model

Table 2 continued

The reliability of the indicators was assessed by means of Smart-PLS.Henseler et al.［31］stated that each indicator's variance of latent variables should above 50%.The results are shown in Table 3，suggesting that most of the indicators have absolute standardized outer loadings above 0.7.

For assessment of the validity，the AVE is a criterion of convergent validity.AVE more than 0.5suggest that the variables are of sufficient congruent validity.For the discriminant validity，the loadings of the indicators themselves are expected to be greater than the cross loadings.According to results shown in Table 3，most self-loadings are higher than the cross-loadings，and thus the discriminant validity can be ensured.

The second-order analysis of the construct of cognitive dissonance was also examined by two-step PLS analysis.Firstly，all the factor loadings of the reflective items of three dimensions are above 0.65，indicating reliable measurement items.In addition，the path coefficients show that there are significant relationships between three dimensions of the cognitive dissonance construct.Thus，it can be concluded that cognitive dissonance is a multi-dimensional construct，which includes：emotional dissonance，wisdom of purchase and concern over deal.

Table 3 Factor loadings

Table 3 continued

4.2 Assessing the structure model

Hypothesis 1 stated that the motivation of saving Mianzi in Chinese luxury consumption is directly related to cognitive dissonance.In this study，the estimates for path coefficients were employed to assess the structure model.Standard errors of the parameter estimates were obtained by bootstrapping the sample 5 000times［31］.The parameter estimates for the motivation（Mianzi）was 0.067 9with the t-test of 3.441 7.P＜0.05is considered significant.Therefore，we conclude that Mianzi is directly related to cognitive dissonance.Hypothesis 1 is supported.Hypothesis 2 states that the motivation of group orientation in Chinese luxury consumption is inversely related to cognitive dissonance.The parameter estimates for the motivation（group orientation）is-0.007 5 with the t-test of 2.826 1.Thus，Hypothesis 2is also supported.Similarly，Hypothesis 3，motivation of buying out of emotions in Chinese luxury consumption is directly related to cognitive dissonance，is accepted，given that the parameter is 0.686and the t-test is 2.531 1.

Table 4 Structuralpath estimates

However，Hypothesis 4 is rejected.The parameter of the driver cognitive dissonance is 0.042 0，which means that the dependent variable，repurchase intention，and the independent variable，cognitive dissonance is positively related，given that the t-test is 2.198 3.

5 Discussion

Since the Chinese market for luxury goods is growing significantly，knowing under what circumstances the consumers are more likely to have negative emotions towards luxury products is of crucial importance.Sweeney et al.［4］stated that cognitive dissonance could be regarded as one of the prevalent issues in the post-purchase domain.The main possible explanations could be that：（1）the purchase behaviour may not precisely reflect the true inner beliefs，attitudes or norms，thus consumers may rethink their purchase decisions；（2）no products are perfect，and thus the choice between two alternatives may cause consumers to reconsider their choices.

The research was undertaken in order to obtain further insights into cognitive dissonance of Chinese consumers in the area of luxury consumption by segmenting them based on their motivations.Three motivations were defined in this study，including saving Mianzi，group orientation and Buying out of Emotions.As the results suggested，there are direct relationships between Mianzi，buying out of emotions and cognitive dissonance in luxury consumption while the group orientation has an inverse relationship.Consumers motivated by saving Mianzi in the process of luxury consumption revealed a more likely tendency to arouse cognitive dissonance.Moreover，as predicted，the motivation of buying out of emotions in the process of consuming luxury goods may have triggered a higher level of cognitive dissonance after purchase.In addition，consumers who tried to achieve group orientation may have lower dissonance in the process of luxury consumption.

Consumers may experience higher cognitive dissonance after purchasing luxury goods if they are motivated to save Mianzi.The repurchase intention of the luxury goods is inversely related to the motivation of saving Mianzi，which means that there is a lower possibility for Mianzi-motivated consumers to perceive satisfied outcomes and brand loyalty.Luxury consumption is categorized as a form of conspicuous consumption，which has prestige value，in that it can be used to reflect social status and wealth.However，the findings suggested that consumers motivated by saving Mianzi tended to experience psychological discomfort after the purchase of the luxury goods.One explanation could be that the luxury goods failed to satisfy the needs of the consumers.Consumers who want to achieve group orientation and seek the acceptance of a group may experience a lower level of cognitive dissonance in the luxury consumption.The findings suggested that people who tend to utilize luxury goods to gain a sense of conformity within the group tend to repurchase luxury items.This group of consumers may be satisfied with the purchases they made and there will be limited psychological discomfort arising from the purchase.People may have fewer misgivings once the group approves of their possessions，because gaining social acceptance is the ultimate goal for the consumers of luxury goods motivated by group orientation.

The buying out of emotions may trigger cognitive dissonance，according to the findings from the questionnaire.Consumers may feel uncertain about their purchases due to the absence of rational calculations.Since the hedonic con-sumptions mainly depend on one's emotions rather than outside attributes such as others'influence，consumers may feel that only themselves are to blame.The Buying out of Emotions is inversely related to the wisdom of purchase and concern over deal but directly related to the emotional aspect.Consumers may experience Mianzi negative emotions after the purchases，but are rarely concerned about whether they made the right decision or were unduly influenced by the salesperson.This could be explained by the fact that，in the process of making the purchase，emotional motivators predominated so their sense of responsibility is greater.

Hypothesis 4 was rejected，suggesting that it is invalid to predict that the experience of the cognitive dissonance will reduce the repurchase intention of the luxury goods.However，the finding conflicts with those of the previous studies［4，10］.One possible explanation could be that the consumers might have already changed their attitudes by using dissonance-reduction strategies when they completed the questionnaires.Salzberger and Koller［3］described the cognitive dissonance as a fugitive condition and then emphasized that dissonance should be examined directly after the purchase behaviours.Since the dissonance may be accompanied by psychological discomfort，the resolution of dissonance based on the change of the attitude may be employed［1-2，4］.At the time of completing the questionnaire，the consumers may have already reduced their cognitive dissonance and changed their attitudes towards luxury consumption.Therefore，the relationship between cognitive dissonance and repurchase intention is critical.The luxury consumption in China differs from the consumptions in Western countries.In order to behave in a socially appropriate manner，sometimes a suitable luxury possession is essential for some special occasions.Moreover，gift-giving is a tradition in Chinese festivals.People in China tend to believe that the more expensive the gift the more sincerity will be shown.Thus，even if consumers in China experience cognitive dissonance，they may have to purchase luxury goods in the future.

Group orientation and Mianzi were found to be significantly positively related，suggesting that Chinese consumers are highly affected by the collectivism culture［15］.As a result，the collectivist culture can be regarded as the antecedent in the luxury consumption in China.However，the main purpose may determine the final possibility of triggering cognitive dissonance.A further finding from the data was that the level of the concern over deal was low in all three motivations.This suggests that，in China，the salespersons have limited influence on consumption behavior.

Cognitive dissonance arises when the behaviours are inconsistent with one's inner attributes［1］.Managers should discover what kinds of motivations are more likely to trigger cognitive dissonance.To avoid cognitive dissonance in luxury consumption，managers and marketing teams can focus on changing the attitudes towards luxury consumption in China.

6 Conclusions

This paper discussed cognitive dissonance in luxury consumption by examining different levels of cognitive dissonance in the context of three buying motivations，namely，Mianzi，group orientation and buying out of emotions.Cognitive dissonance was found to exist at higher levels with reference to the motivations of saving Mianzi and buying out of emotions.Mianzi culture is externally-oriented，suggesting that consumers tend to seek the approval and respect of others when they consume luxury products.Since cognitive dissonance was predicted to be higher when the decision was interpersonally related in the context of Eastern culture，the level of cognitive dissonance arising from the motivation of saving Mianzi was correspondingly relatively high.Consumers who purchase luxury goods as a result of the motivation of emotion are more likely to experience cognitive dissonance since the low-involvement may cause unwanted outcomes，and hence consumers may perceive that they are responsible for having made irrational purchases.In the case of group orientation motivation，consumers may experience less cognitive dissonance since the purchase behaviour is accepted or even encouraged by the group.Chinese consumers consider that the achievement of conformity，and group acceptance，are of paramount importance in the purchase decision.The consumers who are motivated to buy luxuries because of group orientation are less likely to experience any inconsistency between their attitudes and behaviours.Even though some of the cognitive elements may be dissonant due to the purchasing behaviour，consumers may feel that they are not responsible for the purchase since it is a low-choice dilemma.The paper illustrated that the repurchase intention was not affected by the cognitive dissonance.Though the conclusions differ from those of the existent literature，they may be explained by the special circumstances under which luxury goods are purchased in China，for example，as gifts.

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