Circular consumption innovation via renting: an exploration of consumer leadership identity and luxury brand equity
Sasikarn Chatvijit-Cook, Areti Tsitsakis Vogel, Nancy Nelson Hodges, Kittichai Watchravesringkan, Mackenzie Nalven, Kevin Bryan CookPurpose
This study investigates consumer identity and brand value changes within luxury rental consumption. The research provides early-stage insights on how rental consumption impacts both consumer leadership identity development and luxury brand equity through the early adoption of luxury rental consumption.
Design/methodology/approach
A mixed-methods approach was utilized. Study 1 employed a netnographic approach to investigate the development of leadership identities among rental engaged consumers who shared their experiences in social contexts. Study 2 implemented a within-subject design to examine how the renting impacted the evaluation of luxury brand equity.
Findings
The consumption, communication and development process of early engaged adopters in rental experiences revealed five distinct themes representing consumers' leadership identity development in Study 1. Study 2 results indicate that rental consumption decreased brand awareness, association and credibility; however, brand leadership and brand loyalty remained unaffected. The findings suggest that individual leadership identity developed through rental consumption is connected with the maintenance of brand leadership and brand loyalty.
Research limitations/implications
This research shows how leadership identity development and innovative status, for both consumers and engaged brands, are drivers that can nudge stakeholders toward sustainable consumption. This study does not account for potential agreements rental companies may have with the brands offered for rent.
Practical implications
The study provides insight for constituents at all levels of consumption related to circular consumption innovation. The study provides information on how luxury brands can adapt to changing modes of consumption. The study provides information on how early adopter rental consumption engagement influences their perceptions of brand equity.
Social implications
Understanding the relationship between identity development, consumption innovation and brand perception can further promote sustainable consumption practices. This study highlights the influential role of early adopters in promoting diffusion through identity development work and social system engagement.
Originality/value
This research contributes insights into the intersection of consumer identity development and brand equity in the context of luxury rental consumption. It demonstrates how consumer leadership development through rental experiences connects with brand perception maintenance, offering new perspectives on circular consumption innovation in traditionally exclusive industries.