The Effects of Young Generation’s Self-Congruity to Luxury Brands on Brand Loyalty through Brand Commitment

Purpose: The aim of this study is to verify the impact of actual self-congruity and ideal self-congruity on brand attachment, while considering the moderating effect of consumers’ gender characteristics. The study focuses on the millennial generation, a young consumer group in Korea. Furthermore, this research seeks to determine the causal relationship between brand attachment and brand commitment, attitudinal loyalty, and behavioral loyalty. Additionally, the study aims to confirm the mediating role of brand commitment in the relationship among these variables. Research design, data, and methodology: The data for this study were collected through individual interviews with 350 domestic millennial consumers who had recently shopped for luxury brands. A total of 339 valid questionnaires were analyzed for empirical analysis. The validity and reliability of the data, as well as the empirical analysis, were tested. The study employed a structural equation model analysis to verify the model fit and test the proposed research hypotheses. Results: Both actual self-congruity and ideal self-congruity exhibited a positive influence on brand attachment. Brand attachment, in turn, positively affected brand commitment and attitudinal loyalty, although it did not significantly impact behavioral loyalty. Brand commitment demonstrated a positive effect on both attitudinal loyalty and behavioral loyalty. Additionally, attitudinal loyalty had a positive impact on behavioral loyalty. The relationship between brand attachment and attitudinal loyalty was partially mediated by brand commitment, whereas the relationship between brand attachment and behavioral loyalty was fully mediated by brand commitment. Gender characteristics were found to moderate the relationship between actual self-congruity and brand attachment, but no moderating effect was observed between ideal self-congruity and brand attachment. Research implications or Originality: Luxury brand managers and marketers should recognize that millennials constitute the primary consumer base for luxury brands. It is crucial for them to develop brand strategies that align with the millennial identity. Specifically, strategies should be devised to enhance brand commitment and foster brand loyalty by incorporating self-concept elements that align with consumers’ gender characteristics.