The Impact of Cultural Aspects Related to COVID-19 on the Online Purchasing Behaviour of Low-End Luxury Brands by Female Millennials: A Study in E-Semiotics

Abstract

Background: Currently, the non-essential gods markets have suffered significant losses due to the COVID-19 pandemic. Online purchase remains a viable solution for brands to this crisis. However, luxury brand values and online values are at odds. Hence, determining if this applies to low-end luxury products is essential for establishing e-semiotic strategies that may produce an increase in sales. Aim: This investigation aims to examine and assess the impact of the COVID-19 Pandemic on e-semiotics and subsequently on the purchasing of lower-end online luxury products amongst working female Millennials. The main research question set for this study is: What is the impact of the COVID-19 Pandemic on the purchasing of lower-end online luxury products amongst working female millennials? Method: A quantitative method has been employed to determine the relationships established between sales dimensions, COVID-19 consumer behaviour dimensions and e-semiotic dimensions. A three-part questionnaire was developed and sent to the targeted participants via Qualtrics. Descriptive statistics were used for analysing demographic data and spending before and after the pandemic on low-end luxury products. Pearson Correlation analysis was used to establish the relationships between demographics and sales, purchase behaviour and e-semiotic dimensions, as well as between these categories. A linear regression model was used to determine the extent to which demographic variables (age, income, education, employment) affect e-semiotic categories. Results: The descriptive statistics indicated that the vast majority of participants felt that COVID-19 had ruined their physical shopping over online shopping (cumulative agreement percentage 56.9%). However, over 76% of participants had a tendency towards a full online shopping experience including innovative product displays, brand storytelling for expressing, and brands that focus on aspects that are similar to their life-style. Significant correlations were found between age and education (r=.49; p<0.000), income (r= 30; p<0.000) and the amount spent after the COVID-19 pandemic (r=.20; p<0.000). However, demographic variables were no longer significantly correlated with the amount spent after the pandemic. Logistic regression models found that only age can influence the preference for virtual catwalks (p<0.05; p<0.002) and brand storytelling (p<0.05; p<0.00) Conclusion: This study found evidence to support the theory that, due to COVID-19, consumers adopt a rational purchase behaviour regardless of specific demographic millennial categorisation, which in effect reduces the sales of low-end luxury goods. This theory may also apply to other crisis situations that cause significant social changes. Brands can respond through e-semiotic strategies to provide consumers with a fully optimised online shopping experience and by using adverting that focus on evoking emotions contrary to those produced by COVID-19.