Consumer Behavior Dynamics in the Premium Alcohol Segment: Implications for International Brand Positioning in Volatile Emerging Markets

Abstract

This empirical study examines the dynamics of consumer behavior in the premium alcohol industry and its relevance to the positioning strategies of international brands in the emerging markets environment. Based on primary survey data collected from 452 consumers living in the city of Lagos, Nigeria, and using partial least squares structural equation modeling (PLS-SEM), the study evaluates an integrated model comprising of factors such as social group influence, luxury value perception, mediation through brand equity, materialism/prestige seeking behavior, risk/benefit perceptions, and the moderation effect of market volatility. It is found that social group influences and brand equity have the greatest impact on purchase intention, whereas brand equity mediates completely the impact of luxury value perception on brand loyalty. The moderating effect of market volatility significantly enhances the positive effect of prestige seeking on purchase intention.