South Korean consumers’ double standards for luxury consumption: The role of extrinsic incentive bias

We examined the relationship between the subject (self vs. others) and attitude toward luxury consumption, and analyzed the mediating effect of extrinsic incentive bias and the moderating effect of materialism on this relationship. To test the hypotheses we conducted an experiment with 256 South Korean participants. The results showed that consumers exhibited a more negative attitude toward luxury consumption by others compared to their own consumption of the same goods, and extrinsic incentive bias mediated this effect. Additionally, the disparity was more pronounced among consumers with greater materialistic values. These findings offer valuable insights for luxury brand managers seeking to understand the South Korean luxury market and its consumers.