Consumer self-reported and testosterone responses to advertising of luxury goods in social context

Despite the growing demand for luxury goods, there is limited understanding about how consumers respond to luxury-goods advertising and how viewing advertising in different social contexts affects these responses. This study investigates the link between luxury goods advertising and expected utility from a biological perspective by looking at males’ hormonal responses to advertising of luxury versus non-luxury branded goods. Using traditional and consumer neuroscience methods, we collected salivary testosterone data pre- and post-ad viewing. Self-reported scores on social and quality value of the brands were compared to salivary testosterone levels from participants placed in different social conditions (Alone versus Together with another person). The results show that higher post-viewing testosterone levels were associated with higher scores on quality, but not on social value and only for branded goods viewed in the Together condition, compared to the Alone condition. These results suggest that changes in testosterone levels reflect a rewarding experience or activate social competitiveness when male consumers appraise the quality but not the social value of the advertised luxury goods and that social context modulates this effect.