The Impact of Social Identity on Brand Loyalty in Generation Z Luxury Goods Consumers

Abstract

The luxury goods market is undergoing significant transformation as Generation Z emerges as an increasingly influential consumer segment. Unlike previous generations, Generation Z places considerable emphasis on identity expression, social belonging, peer influence, digital communities, and authenticity when evaluating luxury brands. This study examines the impact of social identity on brand loyalty among Generation Z consumers of luxury goods. Social identity theory provides the theoretical foundation for understanding how consumers' perceptions of themselves and their membership in social groups influence their relationships with luxury brands. The study proposes that dimensions of social identity, including personal identity, social-group identification, peer influence, and symbolic self-expression, may significantly affect consumers' emotional attachment and loyalty toward luxury brands. Brand loyalty is considered in terms of consumers' intention to repurchase, willingness to recommend, preference for a particular luxury brand, and resistance to competing brands. The research aims to provide insights into how luxury brands can develop stronger and more meaningful relationships with Generation Z consumers by aligning brand identity with consumers' social and self-identities. The findings are expected to contribute to the academic literature on consumer behaviour, social identity, and luxury branding while offering practical implications for luxury brand managers seeking to engage and retain Generation Z consumers in an increasingly digital and socially connected marketplace.