Consumer Behavior

Material vs. Experiential Luxury Self-Gifting: Unveiling Psychological Mechanisms and Brand Equity Among Millennials and Generation Z

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Abstract

Drawing on self-determination theory, this study examined how luxury purchase types (material vs. experiential) influence psychological needs (psychological entitlement and ownership), subsequently shaping affective attitudes, self-gifting behavior, hedonic well-being, and brand equity. Additionally, income levels were tested as a moderator. This study employed a between-subjects experimental design (luxury purchase types: material vs. experiential), and 1,208 responses were collected. Material luxury purchases led to higher psychological ownership than experiential luxury purchases, while luxury types did not significantly influence psychological entitlement. Subsequently, psychological ownership solely increased affective attitudes, thereby enhancing luxury self-gifting, hedonic well-being, and brand equity. However, income level did not serve as a moderator. Our findings suggest that luxury indulgence is not exclusively reserved for high-income Millennials and Gen Z. This research provides valuable insights into luxury brands, suggesting a shift toward indulgence marketing strategies that prioritize personal values over status-driven consumption, thereby resonating more effectively with younger generations.

Keywords: Luxury self-gifting, Psychological entitlement, Psychological ownership

How to Cite:

Kim, S., Chang, H., Jones, R. P. & Jai, T. (., (2025) “Material vs. Experiential Luxury Self-Gifting: Unveiling Psychological Mechanisms and Brand Equity Among Millennials and Generation Z”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21927