About the Project
This project has been selected for consideration for a fully-funded Vice-Chancellor’s PhD Scholarship at Nottingham Trent University. Fifteen PhD projects will be funded across the University through the Vice-Chancellor’s PhD Scholarship Scheme for entry in 2015/16. Full details of the projects and the competition are available at
http://www.ntu.ac.uk/research/graduate_school/studentships/index.html
Recent research has highlighted the fact that the luxury retail sector is growing substantially in emerging markets (Leahy and Betts, 2010; Shukla, 2010; Tynan et al, 2010). This is particularly the case in Russia where the real value of sales of luxury goods grew by 4.6%, to US$10.3 billion in 2013. According to Euromonitor (2014) growth is set to continue with international investments in Russia signalling strong long-term potential growth for luxury goods and services. Indeed the UK Department of Trade and Investment has predicted that Russia will become the largest market in Europe by 2020. Previous studies have reported that the major driver to consume more, primarily symbolically and conspicuously (Veblen, 1899; Stanley, 1988; Hirschman, 1988; Elliott & Wattanasuwan, 1998; Winkelmann, 2012) in Russian society can be seen through the prism of the growth in disposable incomes, where Russia ranks highest with regard to average income amongst BRIC countries (Euromonitor, 2014). In recent years, there has been an increasing interest in analysing perceptions of luxury value as a whole and how it has influenced buying behaviour (Tynan et al., 2010; Wiedmann, 2007). Although some limited research has been carried out on luxury values within a Chinese and Indian context (Wiedeman et al, 2009; Vigneron & Johnson, 1999), no single study exists, which analyses how luxury goods and services are consumed and valued by the Russian purchaser.
The Russian consumption context offers a fertile ground for this research for a number of additional reasons: First, Russian cultural identity is very unique in Western civilisation and has not been explored in much detail in relation to the buyer behaviour literature (Kaufmann et al, 2012). According to Hofstede’s 6-D for cultural dimensions analysis (2014), Russia is determined by a high power distance, characterised by the huge discrepancy between the disadvantaged and advantaged sectors of the population. This has resulted in great importance being placed on status symbols manifest through the purchase of luxury goods and services. Second, there is a historic dimension driving consumption relating to the development of the country. Many believe that value placed on luxury represents a desire to return to Tsarist times where Russia was considered to symbolise success and affluence and products produced were of a much high quality (Euromonitor 2014). In short, the significant economic, political and societal changes in Russia over the last 100 years and the new and rapidly emerging consumer market has left a knowledge gap as to how luxury goods are valued and consumed by the Russian consumer.
This aim of this proposal therefore is to investigate the nature and drivers of conspicuous consumption amongst Russian consumers across a range of goods and services. To conceptualise this behaviour, the research will draw on Woodall’s (2003) theoretical framework of Value for the Customer analysis. This framework defines value for the customer around five value concepts; Marketing VC’, ‘Sale VC‘, ‘Derived VC’, Net VC’ and ‘Rational VC’. These provide a basis for the equation of overall benefits and sacrifices in the value proposition (Gale, 1994; Zeithaml, 1988).
The project objectives are
1. To identify the factors shaping the behaviour of Russian consumers buying luxury goods and services.
2. To consider conjoint economic functional, emotional and symbolic dimensions of the offering of luxury goods and services value composition in the Russian market.
3. To capture fivefold values of “Marketing VC’, ‘Sale VC‘, ‘Derived VC’, Net VC’ and ‘Rational VC’ based on the behaviour of Russian consumers.
4. To draw the value equation on the benefits and sacrifices for Russian consumers.
5. To provide research-informed evidence for marketers operating in the Russian luxury goods and services consumer market
Funding Notes
The scholarships will pay UK/EU fees (currently set at £3996 for 2014/15 and are revised annually) and provide a maintenance stipend linked to the RCUK rate (this is revised annually and is currently £13,863 for academic year 2014/15) for up to three years*. The scholarships are due to commence in October 2015.
References
Entry requirements
In order to be eligible to apply, you must hold, or expect to obtain by 1st October 2015, a Master’s degree, or a 1stClass/2.1 Bachelor’s degree in a relevant subject (including, where appropriate, training in the relevant research methods and, where relevant, laboratory experience).
Applications can be accepted from UK/EU and International students, but a successful non-EU candidate would be responsible for paying the difference between non-EU and UK/EU fees. (Full-time Fees for 2014/15 are £12,000 for non-EU students and £3,996 for UK/EU students). The minimum English language proficiency requirement for candidates who have not undertaken a higher degree at a UK HE institution is IELTS 6.5 (with a minimum of 6.0 in all skills)