Roosa Mustonen Luxury, sustainable or not? – exploring the impact of sustainability on consumer perceptions and purchase decisions in the luxury sector Case KARAAT Jewelry Vaasa 2025 School of Marketing and Communication Master’s thesis Marketing Management 2 UNIVERSITY OF VAASA School of Marketing and Communication Author: Roosa Mustonen Title of the Thesis: Luxury, sustainable or not? – exploring the impact of sustainabil- ity on consumer perceptions and purchase decisions in the luxury sector : Case KARAAT Jew- elry Degree: Master of of Science in Economics and Business Administration Programme: Marketing Management Supervisor: Catharina von Koskull Year: 2025 Sivumäärä: 73 ABSTRACT: This study explores how sustainability influences consumer perceptions and purchase decisions in the luxury goods market, with a specific focus on the luxury jewelry sector through a case study of Karaat Jewelry, a Finnish brand specializing in lab-grown diamonds. The research ad- dresses a growing interest in sustainable consumption and the evolving relationship between sustainability and luxury, two concepts often seen as conflicting. As sustainability has increas- ingly become an important theme in consumption, luxury brands are now facing the challenge of integrating sustainable practices while maintaining their exclusive and high-quality brand image. This research seeks to understand whether and how sustainability contributes to the perception of luxury, and how it shapes consumer purchase decisions, particularly among younger female consumers. The study adopts a qualitative methodology, conducting ten in-depth semi-struc- tured interviews with Finnish women aged 25-35 who are customers of Karaat Jewelry. The find- ings reveal that consumers perceive luxury as a multifaceted concept defined by high-quality craftsmanship, aesthetics, emotional value, and personal meaning, rather than just exclusivity or high price. Sustainability, while not the primary motivation for luxury purchases, significantly enhances the perceived value of luxury items when it is authentically embedded in the brand’s identity. Additionally, findings indicate that sustainability can serve as a decisive factor when other aspects, such as design, quality, and price, are meeting the consumer expectations. More- over, sustainability is most positively reviewed when it doesn’t compromise perceived product quality or craftsmanship. According to this research, consumers expect authenticity and trans- parency regarding sustainability in branding, and trust plays a critical role in evaluating these claims. Participants favor brands like Karaat Jewelry that demonstrate genuine transparency and commitment to sustainability, particularly in contrast to traditional luxury brands, which are often viewed with skepticism regarding greenwashing. While heritage brands may still get some flexibility because of their long-standing reputations, newer luxury brands are expected to meet higher standards when it comes to sustainability and to set a good example with sustainable practices. Managerially, this research provides insights for luxury brand strategists. It suggests that while traditional luxury values remain important, sustainability can be a powerful differen- tiator when communicated authentically and integrated seamlessly into a brand’s core offering. Brands should focus on building trust through transparency and using sustainability as a value- enhancing attribute, not a substitute for traditional luxury attributes. In conclusion, this thesis deepens the academic understanding of sustainable luxury by demonstrating that sustainability and luxury can coexist harmoniously. When implemented authentically and without compromis- ing quality, sustainability can enhance the emotional value and appeal of luxury products, posi- tioning brands like Karaat Jewelry favorably within the evolving expectations of the modern lux- ury consumer. KEYWORDS: luxury, luxury consumption, sustainable luxury, modern luxury 3 VAASAN YLIOPISTO Markkinoinnin ja viestinnän akateeminen yksikkö Tekijä: Roosa Mustonen Tutkielman nimi: Luxury, sustainable or not? – exploring the impact of sustainability on consumer perceptions and purchase decisions in the luxury sector : Case KARAAT Jewelry Tutkinto: Kauppatieteiden maisteri Tutkinto-ohjelma: Markkinoinnin johtamisen maisteriohjelma Ohjaaja: Catharina von Koskull Vuosi: 2025 Sivumäärä: 73 TIIVISTELMÄ: Tämä tutkimus tarkastelee vastuullisuutta ja sen vaikutusta kuluttajien käsityksiin sekä ostopäätöksiin luksustuotemarkkinoilla, erityisesti luksuskorumarkkinoilla. Tutkimuksen kohteena on suomalainen Karaat Jewelry, joka on erikoistunut laboratoriotimanttikoruihin. Tutkimus vastaa kasvavaan kiinnostukseen vastuullista kuluttamista ja vastuullisuuden sekä luksuksen välistä suhdetta kohtaan, käsitteitä, joita usein pidetään ristiriitaisina. Koska vastuullisuus on noussut yhä keskeisemmäksi teemaksi kuluttajakäyttäytymisessä, luksusbrändit kohtaavat haasteen: miten yhdistää vastuullisuus brändin eksklusiiviseen ja ylelliseen luksusimagoon. Tämän tutkimuksen tavoitteena on selvittää, miten vastuullisuus vaikuttaa luksuksen kokemukseen ja missä määrin se ohjaa ostopäätöksiä, erityisesti nuorten naiskuluttajien kohdalla. Tutkimus perustuu laadulliseen menetelmään ja koostuu kymmenestä puolistrukturoidusta haastattelusta, joihin osallistui 25–35-vuotiaita suomalaisia naisia, jotka ovat Karaat Jewelryn asiakkaita. Tulokset osoittavat, että kuluttajat kokevat luksuksen moniulotteisena ilmiönä, jota määrittävät korkea laatu, estetiikka, tunnepitoisuus ja henkilökohtainen merkityksellisyys pikemminkin kuin pelkkä eksklusiivisuus tai korkea hinta. Luksusostokset nähdään harkittuina tekoina, jotka usein liittyvät identiteettiin, elämän tärkeisiin hetkiin tai itsensä ilmaisemiseen. Vaikka vastuullisuus ei yleensä ole luksusostosten ensisijainen motiivi, se lisää niiden koettua arvoa silloin, kun se on aidosti osa brändin ydintä. Tutkimus osoittaa, että vastuullisuus voi olla ratkaiseva tekijä ostopäätöksessä, jos muut keskeiset kriteerit, kuten design ja estetiikka, laatu ja hinta, täyttävät kuluttajan odotukset. Kuluttajat suhtautuvat erityisen myönteisesti vastuullisuuteen silloin, kun se ei vaikuta negatiivisesti tuotteen laatuun. Tutkimuksen mukaan kuluttajat odottavat brändeiltä aitoutta ja läpinäkyvyyttä vastuullisuuteen liittyvissä väitteissä. Luottamus nousee keskeiseksi tekijäksi näiden arvioinnissa. Karaat Jewelryn kaltaiset brändit, jotka osoittavat todellista sitoutumista vastuullisuuteen ja kommunikoivat avoimesti toimintatavoistaan, koetaan uskottavampina kuin perinteiset luksusbrändit, joihin liitetään yhä usein epäluuloja viherpesusta. Tutkimus osoittaa, että perinteiset luksusbrändit saattavat edelleen hyötyä pitkästä historiastaan ja maineestaan, kun taas uudemmilta toimijoilta odotetaan korkeampia eettisiä standardeja ja suunnannäyttäjän roolia vastuullisessa liiketoiminnassa. Johtopäätöksenä tutkimus tarjoaa käytännönläheisiä näkökulmia luksusbrändien strategiatyöhön. Se osoittaa, että perinteiset luksusarvot ovat yhä merkityksellisiä, mutta vastuullisuus voi toimia vahvana erottautumistekijänä silloin, kun se on autenttisesti integroitu brändin ytimeen. Brändien tulisi panostaa luottamuksen rakentamiseen läpinäkyvyyden kautta ja nähdä vastuullisuus arvoa lisäävänä tekijänä, ei luksus-atribuuttien korvikkeena. Yhteenvetona voidaan todeta, että tutkimus syventää akateemista ymmärrystä vastuullisesta luksuksesta ja osoittaa, että luksus ja vastuullisuus voivat sopia yhteen. Kun vastuullisuus toteutetaan tinkimättä laadusta, se voi lisätä luksustuotteiden vetovoimaa, ja vahvistaa brändien, kuten Karaat Jewelryn, asemaa uuden sukupolven luksuskuluttajien silmissä. 4 AVAINSANAT: luxury, luxury consumption, sustainable luxury, modern luxury Contents 1 Introduction 7 1.1 Background and motivation 7 1.2 Research problem, objectives, and research questions 9 1.3 Research approach and methodology 10 1.4 Thesis structure 11 2 Theoretical framework and literature review 12 2.1 Luxury brands and luxury consumption 12 2.1.1 The concept of a brand 12 2.1.2 The concept of luxury 14 2.1.3 Luxury consumption 16 2.2 Sustainable luxury 18 2.2.1 Sustainable luxury as a concept 19 2.2.2 Sustainable luxury as a paradox 22 3 Research methodology 29 3.1 Research approach, data collection, and data analysis 29 3.2 The case company 33 3.3 The quality of data 34 4 Findings 37 4.1 Theme 1: Luxury and luxury consumption 37 4.1.1 Category 1: Definition and meaning of luxury 37 4.1.2 Category 2: Motivation for luxury consumption 42 4.2 Theme 2: Perceptions of sustainable luxury 44 4.2.1 Category 1: Compatibility of luxury and sustainability 45 4.2.2 Category 2: How sustainability shapes the luxury perception 47 4.3 Theme 3: Sustainability in luxury consumption 49 4.3.1 Category 1: The weight of sustainability in luxury purchases 49 4.3.2 Category 2: Key drivers of luxury consumption 52 5 5 Discussion 56 5.1 Theoretical implications 56 5.2 Managerial implications 61 5.3 Limitations of the study and future research suggestions 62 References 65 Appendices 70 Appendix 1. The interview questions for customers 70 Appendix 2. The usage of AI 73 6 Tables Table 1. The attributes of sustainable luxury and traditional luxury 27 7 1 Introduction In this chapter, the key elements of this research are outlined. The chapter begins by ex- ploring the background and motivation behind the thesis, highlighting the significance of this study and the context in which it is situated. This is followed by an introduction to the research problem, objectives, and research questions that guide this thesis, establishing a base for understanding the importance of the topic. Following this, this chapter present the research approach and methodology and display the structure of the thesis. 1.1 Background and motivation Brands have long served as a critical mechanism for distinguishing products and services. According to Keller (2013, p. 30), a brand is more than a name or logo, it represents unique qualities that set a product apart from its competitors. These qualities can be tangible, such as superior quality or craftsmanship, or intangible, including symbolic and emotional associations (Keller, 2013, p. 31; Ghodeswar, 2008, p. 5). Through these asso- ciations, brands establish a distinct identity and create value that goes beyond the func- tional utility of the products, shaping consumer perceptions and experiences. Branding is particularly crucial in the luxury sector, where products and services are often viewed as symbols of status, identity, and aspiration (Aggarwal et al., 2024, p. 181). Lux- ury brands differ from non-luxury brands by offering not just functionality but also exclu- sivity, heritage, social status, and emotional fulfillment (Lim et al. (2012). Luxury con- sumption is deeply tied to the symbolic and emotional dimensions of branding. Con- sumers often consume luxury products to express their values, aspirations, and social identity while seeking elevated experiences that go beyond functionality (Jain, 2019, p. 132; Chevalier & Mazzalovo, 2021, p. 11). However, the landscape of luxury consumption has shifted significantly in recent years, with sustainability emerging as a critical factor in consumer decision-making (Chang et al., 2022, p. 4; Aggarwal et al., 2024, p. 180; Jain, 2019, p. 132; Cuomo et al., 2019, p. 67). Modern consumers increasingly prioritize 8 brands’ ethical and environmentally responsible practices, such as the use of ecological materials or ethical working conditions, making luxury brands to adapt their strategies (Cuomo et al., 2019, pp. 1-2; Di Leo et al., 2023, pp. 1274-1275; Kapferer et al., 2014; Cervellon & Shammas, 2013, p. 91). However, there is much opposing data regarding how luxury consumers view sustainable luxury and how a brand’s sustainability impacts on consumer perceptions and purchase decisions. Previous studies show mixed results on how consumers see luxury brands’ sustainable and eco-friendly offerings (Cuomo et al., 2019, p. 67; Chang et al., 2022, pp. 2-4). Some research suggests that consumers value sustainable luxury and expect luxury brands to be sustainable (Aggarwal et al., 2024, p. 180; Jain, 2019, p. 132). On the other hand, some consumers perceive sustainability and luxury as conflicting (Kapferer & Michaut-Denizeau, 2020, p. 44; Beckham & Voyer, 2014, p. 245). Additionally, according to multiple studies luxury consumers show less interest in sustainability when making purchasing decisions (Chang et al., 2022, p. 13; Davies et al., 2012, p. 44; Deklihi et al., 2019, pp. 490-491). This contrast highlights a fundamental research gap: while sustain- ability is gaining importance, its influence on luxury brand perceptions and consumer purchase decisions remains complex. According to Chang et al., (2022, p.1), although luxury marketers acknowledge the sus- tainability concerns of consumers, there is limited number of studies examining con- sumer perceptions of sustainable luxury. Also, Husain et al. (2022, p. 595), Kunz et al. (2020, p. 560), and Aggarwal (2024, p. 181) highlight the need for future research on the relationship of sustainability and luxury in the luxury goods sector. This presented land- scape demonstrates a unique opportunity to explore how much brand’s sustainability influences consumer perceptions and purchase decisions within the luxury sector. The focus of this thesis arises from this pressing need to better understand how sustain- ability influences consumer perceptions and purchase decisions within the luxury mar- ket. Specifically, the motivation for this research lies in the need for comprehensive un- 9 derstanding regarding the concept of sustainable luxury. This study seeks to understand how sustainability influences consumers’ perceptions of luxury brands, how it impacts on luxury consumption, and how it compares to traditional luxury brand attributes, such as high-quality craftsmanship, brand heritage, artisanal design, and exclusivity. By exam- ining the perceptions, values, and motivations of luxury consumers, this research aims to investigate the role of sustainability in luxury consumption. The thesis will explore whether sustainability is a key factor for consumers when evaluating a luxury brand, and how it shapes their perceptions and purchase decisions. By examining these dynamics, the study will provide valuable insights to enhance luxury brands’ strategies and better align their branding efforts with consumer values. 1.2 Research problem, objectives, and research questions While the concept of sustainability has shifted from being a lesser-known topic to a cen- tral consumer expectation in recent years, there remains a significant research gap in understanding how luxury brand’s sustainability impacts on consumer perceptions and purchase decisions (Chang et al., 2022, p. 1). Also, Husain et al. (2022, p. 595) emphasize the need for future research on sustainability in luxury sector. Accordingly, Kunz et al. (2020, p. 560) highlight the need for further research in the luxury goods sector, particu- larly by exploring a wider range of luxury industries and using more in-depth methods to better understand consumers. Additionally, Kunz et al. (2020, pp. 549-551) highlight the importance of studying the relationship between luxury and sustainability from a mar- keting perspective. In addition to, Aggarwal (2024, p. 181) states that recent studies have highlighted the importance of examining luxury consumers’ values, especially regarding sustainability, and their impact on shaping perceptions of luxury brands and products. This thesis also addresses a critical gap in the diamond jewelry market, where limited research has been conducted on the connection of sustainability, luxury, and branding. This study aims to fill this gap by investigating how sustainability influences consumer perceptions and purchase decisions. 10 As consumers increasingly prioritize sustainability in their purchase decisions, it becomes important for luxury brands to understand how their brand’s sustainability is perceived. Therefore, this study aims to explore the influence of brand’s sustainability on consumer perceptions and purchase decisions within the luxury goods sector. This study will pro- vide luxury brand marketers valuable insights regarding luxury consumers’ perceptions regarding sustainable luxury, specifically in the luxury jewelry market. The primary objectives of this thesis are centered around understanding the role of sus- tainability in luxury consumption. The research aims to explore the impact of sustainabil- ity on luxury consumption from the perspective of the customers of the case company. By gaining insights into consumer motivations, values and perceptions, the study seeks to highlight how brand’s sustainability is perceived within the context of luxury goods. The thesis will also address the relative importance of sustainability compared to tradi- tional luxury brand attributes. Understanding this hierarchy of consumer priorities is es- sential for enhancing branding strategies of luxury brands. To guide this study, the following research questions have been formulated: 1. What are the key motivations driving luxury consumption and what does luxury mean to luxury consumers? 2. How does sustainability influence consumer perceptions of luxury brands and products? 3. What role does sustainability play in luxury consumption among other factors? 1.3 Research approach and methodology This study adopts a qualitative research approach, which is particularly suitable for ex- ploring complex topics that require deeper understanding. Unlike quantitative research, which focuses on numerical data analysis, qualitative research aims to capture rich, de- tailed information about human behaviors and perceptions. This approach is well-suited for this study because it enables the researcher to gain a deeper understanding of cus- 11 tomer perceptions, values, and motivations. The primary data collection method in this study is semi-structured interviews. Interviews provide an opportunity to engage directly with participants, allowing them to express their thoughts and opinions in their own words. By discussing with participants in an open semi-structured interview, this study seeks to uncover the motivations, values, and perceptions customers associate with the case company and luxury goods. A thematic analysis approach will be used to illustrate the data collected from the interviews. This involves categorizing the data to identify recurring themes and patterns. The findings from the analysis will be compared with ex- isting literature review to identify similarities, differences, and new insights. 1.4 Thesis structure This thesis is structured into five main chapters. The introduction outlines the back- ground and motivation for the thesis, identifying the research problem and objectives, presenting the research questions, and also providing an overview of the research ap- proach and methodology. Following the introduction, Chapter 2 presents a theoretical framework and literature review, providing theory of the concept of a brand, luxury con- sumption, and the complex concept of sustainable luxury. This chapter presents the the- oretical base for the study. Chapter 3 overviews the research methodology, detailing the approach, data collection methods, and the information of the case company. Moreover, it discusses the thematic analysis that will be used to analyze the interview data. Chapter 4 presents the findings, highlighting emerging insights from customer interviews, whereas chapter 5 discusses the key findings in relation to the theoretical framework, limitations, managerial implica- tions, and suggestions for future research. 12 2 Theoretical framework and literature review This chapter provides the theoretical foundation for this research, exploring key con- cepts related to luxury consumption and sustainable luxury. The chapter begins by defin- ing the fundamental concept of a brand and brand associations, highlighting their signifi- cance in building consumers perceptions. Following this, the chapter examines the con- cept of luxury and the needs and motivations behind luxury consumption. Lastly, the chapter introduces the concept of sustainable luxury, discussing the evolving relation- ship between luxury and sustainability, the paradoxes within sustainable luxury con- sumption, and the changing expectations of modern luxury consumers. This theoretical framework establishes the basis for understanding the dynamics of branding and sus- tainability within the luxury sector. 2.1 Luxury brands and luxury consumption Brands are more than just the identifiers of products. They represent a set of values, emotions, and experiences that differ them in the minds of consumers. Brands are linked to different associations, shaping how consumers perceive them. In the context of luxury, branding takes on an even deeper meaning, where exclusivity, craftsmanship, and sym- bolic value for instance play a crucial role (Kapferer, 2015, p. 718). Luxury consumers are driven by diverse needs which luxury brands are trying to fulfill. 2.1.1 The concept of a brand According to Keller (2013, p. 30) the concept of a brand has been established over cen- turies to distinguish and differentiate products and services from one another. A brand is more than just a product, as it includes unique qualities that set it apart from other prod- ucts and services designed to fulfill the same need (Keller, 2013, p. 31; Ghodeswar, 2008, p. 4). These differences can be tangible, related to product performance, or intangible, 13 related to emotional appeals (Keller, 2013, p. 31; Ghodeswar, 2008, p. 5). In summary, tangible elements are the physical assets such as quality, while intangible elements refer to the emotional and symbolic aspects, that shape perception and connection with the brand. Unlike a product, which is designed to meet a specific need, a brand has an iden- tity and values that appeal to consumers beyond the physical characteristics of the prod- uct. According to Ghodeswar (2008, p. 5), the brand “promise” represents the core bene- fits, both practical and emotional, that customers can expect when they use a brand’s products or services. A brand incorporates distinctive brand elements such as its name, logo, symbols, colors, slogans, and packaging (Ghodeswar, 2008, p. 4; Keller, 2013, p. 30). These elements help to identify and differentiate a product or service from others (Keller, 2013, p. 31; Ghodeswar, 2008, p. 4). However, Keller (2013, p. 30) and Kotler (2020, p. 304) empha- sizes that brands are much more than just a name or logo. According to Kotler (2020, p. 304) brands embody how consumers perceive and feel about a product, encompassing their perceptions, emotions, and everything the product or service represents to them. When a brand aligns with what consumers deeply care about, it fosters emotional con- nections that go beyond the product itself (Kotler, 2020, p. 304). According to Ghodeswar (2008, p. 5), an essential factor in branding is understanding the needs of consumers. Ghodeswar (2008, p. 5) highlights that many brands cater to a com- bination of functional, experiential, and symbolic needs (Ghodeswar, 2008, p. 5). Accord- ing to Ghodeswar (2008, p. 5), functional needs are those that drive consumers to look for products or services that solve practical consumption-related problems. A brand with a functional focus aims to meet these externally driven needs (Ghodeswar, 2008, p. 5). According to Ghodeswar (2008, p. 5), experiential needs, on the other hand, center around the desire for sensory enjoyment or mental stimulation. These needs are inter- nally motivated and focus on providing consumers experiences and feelings. Brands with an experiential approach aim to fulfill these desires by their offerings (Ghodeswar, 2008, p. 5). Furthermore, symbolic needs arise from an individual’s desire for self-expression 14 such as self-enhancement, role position, group membership, or ego identification (Ghodeswar, 2008, p. 5). These needs are more internally driven and tied to how people see themselves or wish to be perceived by others. Brands designed with a symbolic con- cept seek to connect consumers with their desired self-images (Ghodeswar, 2008, p. 5). Brand image is a key part of consumer decision-making, as it reflects the associations customers have about the brand and its products (Ghodeswar, 2008, p. 5; Keller, 2013, pp. 73-76). Brand associations can be divided into two main categories: attributes and benefits (Kotler, 2020, p. 309). Attributes refer to the specific features of a product or service, while benefits are the personal meanings that consumers link to them. At- tributes are the fundamental details that describe what the product is. Attributes em- phasize the specific characteristics or qualities of a product (Kotler, 2020, p. 309), whereas brand benefits highlight the positive outcomes or advantages that its product offers, such as enhanced performance (Kotler, 2020, p. 309). According to Kotler (2020, p. 310) and Henderson and Mihas (2000, p. 113), the most powerful and successful brands transcend simple attribute or benefit positioning. They are built around diverse factors that resonate deeply with consumers (Kotler, 2020, p. 310). According to Hender- son and Mihas, 2000, p. 113) strong brands emphasize both functional and emotional benefits that resonate with consumers. A brand represents the company’s promise to consistently offer customers a specific mix of features, benefits, and experiences (Kotler, 2020, p. 310). 2.1.2 The concept of luxury According to Chevalier and Mazzalovo (2021, p. 2) there is no single universal definition of luxury. Also, Aggarwal (2024, p. 181) note that defining and generalizing the terms luxury and a luxury brand is difficult. Additionally, Chandon et al. (2016) and Nwankwo et al. (2014, p. 736) highlight the same, emphasizing that the concept of luxury has evolved into a diverse concept that varies regarding the context and across time. According to Kapferer (2015, p. 717), the concept of luxury has transformed over time from a small 15 exclusive industry focused on craftsmanship, exclusivity, and long-term client relation- ships to a dynamic global market (Kapferer, 2015, p. 717). Luxury is today a complex concept that consumers use not only to express their core val- ues and identity but also to gain social approval (Cuomo et al., 2019, pp. 1-2). It is a multi- faced discourse that goes beyond the physical features of products or services. Aggarwal (2024, p. 182) suggests that the word luxury is commonly used to describe a product or service that is not essential but valued for its uniqueness, exceptional value, and high- quality craftsmanship, offering customers meaningful satisfaction. According to Gum- merus et al. (2024, pp. 184-185) the concept of luxury can be seen as provider-created, emphasizing that luxury is created within the brand, not by the consumers. Gummerus et al. (2024, pp. 184-185) state that from this perspective, luxury can be defined by offering characteristics, strategy, and value proposition. The key features of the offering charac- teristics are high price, high quality, and craftsmanship. The strategy contains exclusivity, rarity, and controlled distribution, while value proposition includes distinction and her- itage (Gummerus et al., 2024, p. 185). Luxury brands encompasses two main aspects; the productive approach which illustrates how luxury pieces are crafted and the perceptual approach which examines what psy- chological and social meanings are associated with these pieces (Chevalier & Mazzalovo, 2021, p. 8). From a productive approach, luxury is characterized by the quality of crafts- manship, materials, innovation, and expertise (Chevalier & Mazzalovo, 2021, p. 10). Ac- cording to Jain (2019, p. 132), Beckham & Voyer (2014, p. 245), and Di Leo et al. (2023, p. 1289), luxury also is consistently linked to attributes such as rarity and exclusivity. Also, Gummerus et al. (2024, p. 185) emphasize the same attributes in the luxury consump- tion. Moreover, luxury integrates the tradition with contemporary trends and creativity, embracing the merge of heritage and modernity (Chevalier & Mazzalovo, 2021, p. 10). The perceptual approach, on the other hand, focuses on how consumers experience and perceive luxury brands (Chevalier & Mazzalovo, 2021, p. 9). The perceptual approach primarily highlights the social status. Luxury items hold a strong symbolic value, as indi - 16 viduals can showcase their status and uniqueness via them (Chevalier & Mazzalovo, 2021, p. 9). In addition to social status, luxury is also built on hedonism, personal plea- sure, and indulgence (Di Leo et al., 2023, p. 1278; Jain, 2019, pp. 132-133; Beckham & Voyer, 2014, p. 245; Chang et al., 2022, p. 2; Deklihi et al., 2019, pp. 490-491). 2.1.3 Luxury consumption According to Chevalier and Mazzalovo (2021, p. 161) in the world of luxury, luxury items are more than just the products, they are unique exceptional objects that customers as- pire to own. What truly matters is the experience each customer has during the journey of owning the products of the brands over time (Chevalier and Mazzalovo, 2021, p. 161). Luxury brands offer consumers unique experiences and emotions that go beyond what general products provide, allowing consumers to feel connected to their lifestyle and personal stories (Chang et al., 2022, p. 1). According to Jain (2019, p. 132) and Deklihi et al. (2019, pp. 490-491), luxury brands and products transcend necessities and rather are often linked to dreams, desires, or aspirational lifestyles. Luxury brands blend aesthetics and functionality, offering consumers products that provide both personal pleasure and satisfaction (Jain, 2019, p. 132). Luxury brands and luxury consumers represent a unique customer segment, where the focus shifts from utility to emotional and social fulfillment (Chevalier and Mazzalovo, 2021, p. 161). This shift is crucial from a branding perspective, as it significantly influences consumer needs and values within the luxury goods sector. According to Aggarwal (2024, p. 182), consumer needs are the fundamental base for the consumers to buy luxury goods. These are functional needs, experiential needs, and sym- bolic needs (Aggarwal, 2024, p. 182; Chandon et al., 2016, p. 301). The functional needs refer to how consumer view the quality of luxury goods and services based on their per- formance and excellence, whereas the experiential needs are the needs which enhances the sensory pleasure of owning luxury goods (Aggarwal, 2024, p. 182; Chandon et al., 2016, p. 301). As luxury brands and products represent status, prestige, and wealth, the symbolic value comes from enhancing customer’s self-image and social recognition (Ag- 17 garwal, 2024, p. 182; Chandon et al., 2016, p. 301). In the context of luxury, functional needs are usually associated with high-quality standards consumers are expecting from a luxury brand (Aggarwal et al., 2024, p. 181). Experiential needs relate to the personal experience within luxury goods, such as feelings and emotions (Aggarwal et al., 2024, p. 181). Symbolic needs refer to the role of symbolic aspects, such as self-expression, iden- tity, and social status (Aggarwal et al., 2024, p. 181). Luxury as an experience is created by producing symbolic or experiential aspects, in addition to functional factors (Aggarwal et al., 2024, p. 181). Symbolic and experiential needs are at the core of consuming luxury. Thereby, luxury consumption combines the social aspiration and personal indulgence (Chevalier & Maz- zalovo, 2021, p. 11; Jain, 2019, p. 132; Deklihi et al., 2019, pp. 490-491; Lim et al., 2012, pp. 214-215). According to Lim et al. (2012, pp. 212-214), luxury consumers consider emotional and social aspects when purchasing luxury goods. Chevalier and Mazzalovo (2021, p. 9), Aggarwal et al. (2024, p. 181), Deklihi et al. (2019, p. 494), and Kapferer and Bastien (2009, p. 314) state that many luxury purchases are motivated by a desire to be- long to a distinct exclusive group of people, illustrating the social aspect of luxury. Kapferer and Bastien (2009, p. 314) note that luxury allow people to shape their social status based on their aspirations. Today, consumers have an opportunity to define their own status (Kapferer and Bastien, 2009, p. 314). Also, Jain (2019, p. 132) highlights the same stating that consumers often consume luxury to showcase status and gain social recognition. Accordingly, Gummerus et al. (2024, p. 186) underline that the value propo- sition of luxury has historically played a key role in differentiating social classes, and therefore luxury consumption is highly motivated by the desire to showcase status. Thereby, luxury consumption can be seen strongly linked to enhancing social status and to belong a distinct social group. Luxury purchases therefore serve as a form of self-ex- pression, allowing individuals to showcase their identity and social status (Aggarwal et al., 2024, p. 181). Accordingly, motivation to luxury consumption arises from emotional factors rather than practical utilities, embracing that symbolic and emotional aspects are the ones that matter to luxury buyers. 18 In addition to social aspect, consumers also seek personal pleasure with luxury products, highlighting the hedonistic side of consumption (Chevalier & Mazzalovo, 2021, p. 15; Chang et al., 2022, pp. 3-4). Lim et al. (2012) state that luxury consumers associate own- ing luxury products with positive emotional experiences, self-confidence, and status vali- dation, enhancing self-image and personal satisfaction. According to Roux et al. (2017, pp. 107-108) consumers associate purchasing luxury with four different attributes: re- finement, heritage, exclusivity, and elitism. Consumers expect luxury products to offer more than just functional value (Chevalier and Mazzalovo, 2021, p. 166; Chang et al., 2022, pp. 2-3). The emotional and social dimensions of luxury goods, such as the prestige of owning a rare or iconic item, play a significant role in driving consumer purchases (Chevalier and Mazzalovo, 2021, p. 167; Chang et al., 2022, pp. 2-3; Chandon et al., 2016, p. 301). According to Aggarwal et al. (2024, p. 181), Deklihi et al. (2019, pp. 490-491), and Chandon et al. (2016, p. 301), many luxury purchases are driven by symbolic meaning and enhancing self-worth and improving self-expression. Also, according to Chandon et al. (2016, p. 301), main motivations to purchase luxury goods are psychological benefits like self-esteem. Aggarwal et al. (2024, p. 181) and Deklihi et al. (2019, pp. 490-491) also state that aesthetics and personal enjoyment are key motivators behind many luxury purchases. Consumers often prioritize personal pleasure and aesthetic appeal over ratio- nal or utilitarian considerations (Chevalier and Mazzalovo, 2021, p. 168). This aligns with their desire for purchasing experiences that stimulate all the senses, which luxury brands carefully design to make their products more appealing (Chevalier and Mazzalovo, 2021, p. 166). 2.2 Sustainable luxury Sustainable products are those that offer positive social and environmental benefits to the consumers (Chang et al., 2022, p. 3). The concept of sustainability involves the appre- ciation of human well-being, improving the quality of life, and commitment to the com- munity (Jain, 2019, p. 132). Sustainable development means meeting today’s needs 19 without compromising the ability of future generations to meet theirs (Jain, 2019, p. 131). According to Chang et al. (2022, p. 4), sustainability is now a key factor in how con- sumers perceive the value of goods and services. Today more and more consumers are environmentally conscious and prefer brands that operate ethically and prioritize sus- tainability in their practices (Chang et al., 2022, p. 4; Aggarwal et al., 2024, p. 180), and this is why it is extremely important to understand how sustainability impacts on luxury consumption. 2.2.1 Sustainable luxury as a concept Over the past few years, the concept of luxury has gone through a significant transition, reshaping the traditional understanding of luxury. While traditional luxury has been linked to exclusivity and rarity, the new luxury embraces exceptionality without being exclusive but rather being accessible (Chevalier & Mazzalovo, 2021, p. 35). According to Chevalier and Mazzalovo (2021, p. 35) new luxury is both exclusive and accessible, and it emphasizes personal fulfillment and authenticity. The key difference between traditional and modern luxury is the relationship between social and individual aspects. The new luxury is more about personal satisfaction and self-expression rather than recognition and status (Chevalier & Mazzalovo, 2021, pp. 33-34; Di Leo et al., 2023, pp. 1274-1275; Nwankwo et al., 2014, p. 736). According to Aggarwal (2024, p. 181), while traditional luxury has long been associated with conspicuous consuming focusing on gaining social recognition and showing wealth, modern luxury consumers’ values, on the contrast, are more inconspicuous, emphasizing subtle consumption, meaningful experiences, per- sonal fulfillment, and sustainability (Aggarwal, 2024, p. 181). Modern luxury is also increasingly tied to values such as social and environmental re- sponsibility, moving away from being solely defined by price or purchasing power. In- stead, it now reflects a lifestyle shaped by emotional, experiential, and ethical values (Cuomo et al., 2019, pp. 1-2) emphasizing that modern consumers are not just purchas- ing luxury products but rather investing in the brand’s story, values, and the lifestyle it 20 represents. Also, worth noting is that while traditional luxury is often associated symbolic and experiential values, for modern luxury consumers the primary reason for choosing sustainable luxury brand is functional value, meaning the product must be durable, crafted carefully, and of the highest quality (Aggarwal, 2024, pp. 186-187). According to Aggarwal (2024, p. 182), these attributes will lead to more positive perception of the brand among sustainable luxury consumers. However, in addition to functional value, also symbolic and experiential value play an important role to sustainable luxury con- sumers, making these also essential in order to gain social status and enhance self-ex- pression. The luxury industry has changed and is changing as people’s values, beliefs, aspirations, and sense of responsibility evolve over time (Aggarwal et al., 2024, p. 180). Over the past few decades, the growing concentration on sustainability has made many luxury con- sumers more aware of social and environmental concerns (Chang et al., 2022, p. 1). Adopting responsible and sustainable practices, luxury consumers can encourage green consumption while benefiting both people and the planet. Nowadays, many luxury con- sumers want to buy high-quality products that have a positive impact on the planet and societies (Aggarwal et al., 2024, p. 180). Thereby, in recent years, the concept of luxury has gradually integrated sustainability into it, driven by the rise of consumers who priori- tize sustainable consumption and consciousness (Chang et al., 2022, p. 3; Aggarwal et al., 2024, p. 180, meaning that luxury brands are increasingly adapting their strategies to align with ethical practices, eco-friendly materials, and sustainable production methods. This shift has given rise to the concept of “sustainable luxury” (Chang et al., 2022, p. 1). Sustainable luxury refers to luxury brands that integrate ethical and environmental re- sponsibility to their operations and offerings and aim to provide consumers high-end products with positive social and ecological contributions (Chang et al., 2022, p. 2). Ac- cording to Di Leo et al. (2023, p. 1277), the concept of sustainable luxury is becoming a highly popular topic. Also, Chang et al. (2022, p. 1) highlight the same. Sustainable luxury is a growing trend and a developing concept that is gaining more influence, especially in the luxury jewelry industry (Chang et al., 2022, p. 1). According to Di Leo et al. (2023, pp. 21 1274-1275) the concept of sustainable luxury is gaining importance as brands have un- derstood the increasing valuation of sustainability among luxury consumers. Also, Car- cano (2013, p. 38) note that luxury brands increasingly view sustainability as a strategic advantage. Accordingly, luxury brands have progressively started promoting their sus- tainability (Kapferer, 2014, p. 3). The growing consumer awareness of ethical and envi- ronmental issues is pushing luxury brands to integrate sustainability into their strategies. According to several researchers, sustainability and luxury are conflicting concepts. His- torically, luxury and sustainability have been seen as incompatible concepts (Di Leo et al., 2023, p. 1277; Kapferer et al., 2014, p. 1; Beckham & Voyer, 2014, p. 245; Cervellon & Shammas, 2013, p. 91; Kunz et al., 2020, p. 560; Rolling and Sadachar, 2018, p. 805; Kapferer & Michaut-Denizeau, 2020, p. 44). According to Di Leo et al. (2023, p. 1289), sustainability requires transparency, ethical practices, and inclusivity, whereas luxury as a concept bases on prestige and exclusivity for instance. According to Beckham and Voyer (2014, p. 245) and Kunz et al. (2020, p. 560), many consumers see these two as conflicting. Beckham and Voyer (2014, p. 245) highlight that luxury is traditionally associ- ated with hedonism, status, affluence, rarity, while the concept of sustainability is linked to restraint, altruism, and moderation. Accordingly, core attributes of luxury goods, are not easily aligned with the principles of environmental conservation. Luxury items are typically associated with personal status, enjoyment, value, rarity, and uniqueness, quali- ties that do not naturally connect with sustainability (Chang et al., 2022, p. 2; Deklihi et al., 2019, pp. 490-491; Di Leo et al., 2023, pp. 1274-1275). Also, Di Leo et al. (2023, p. 1278) highlight that sustainability and luxury have seen as incompatible concepts, as sustainability includes values like equality and universalism, while the concept of luxury is built on exclusivity and hedonism. Additionally, according to Jain (2019, pp. 132-133), basic values of sustainability like restraint, humanitarianism, and temperance are in com- plete contrast with luxury values of rarity, hedonism, superfluity, and estheticism. The core ideas of sustainability are mindful consumption of resources, concern for human well-being and environmental needs, and appreciation for simplicity in living, whereas the concept of luxury is linked to seeking pleasure, valuing having more than necessary, 22 and looking for superficial appeal. Accordingly, consumers feel luxury and sustainability don’t inherently go together (Beckham & Voyer, 2014, p. 248). Also, Deklihi et al. (2019, p. 490) states the same, noting that while luxury is often associated with personal plea- sure, indulgence, and social status, the concept of sustainability embraces responsibility, social good and restraint. Moreover, sustainability is about appreciating equality and protecting resources, whereas luxury is often linked to using rare materials and incorpo- rating exclusivity (Deklihi et al., 2019, pp. 490). 2.2.2 Sustainable luxury as a paradox According to Chang et al. (2022, p. 2), there is much opposing data regarding perceptions and consumption of sustainable luxury. While some research data show insights that luxury consumers are interested in purchasing more sustainably and eco-friendly, some research indicates that consumers view sustainable luxury goods as lower quality or less desirable (Chang et al., 2022, pp. 2-3; Deklihi et al., 2019; Beckham & Voyer, 2014, p. 249). According to Beckham and Voyer (2014, p. 247), studies show that consumers view sustainable luxury products less luxurious than traditional luxury products. According to Deklihi et al. (2019, pp. 490-491), sustainability-related attributes, such as eco-friendly materials, are often perceived as reducing the quality of luxury products, and thereby the appeal of them. Di Leo et al. (2023, p. 1278) state that this creates a challenge for luxury brands as they desire to communicate being sustainable without losing their reputation as luxurious and exclusive. Also, Achabou and Dekhili (2013, p. 1899) note that con- sumers don’t see using environmentally friendly materials fitting to luxury sector. Ac- cordingly, Kapferer et al. (2014, p. 1) and Beckham and Voyer (2014, p. 246) state that luxury consumers have mixed views on sustainable luxury and see the concepts of sus- tainability and luxury as conflicting. Moreover, luxury consumers feel that sustainability takes away the feeling of uniqueness and exclusivity (Beckham & Voyer, 2014, p. 248). According to Achabou and Dekhili (2013, p. 1896), despite of growing consumer con- cerns about sustainability, sustainable features of luxury products are seen negatively. 23 In addition to, according to Chang et al. (2022, p. 13), luxury consumers generally show little interest in sustainability when making purchasing decisions. Additionally, Davies et al. (2012, p. 44) emphasize that consumers are significantly less likely to consider ethical factors, such as ethical condition of production, when purchasing luxury goods com- pared to non-luxury products. Chang et al. (2022, p. 4) and Deklihi et al. (2019, pp. 490- 491) note that many luxury consumers rarely prioritize sustainability when purchasing high-end products, as they consider other features more important. Accordingly, Achabou and Dekhili (2013, p. 1896) state that sustainable practices of luxury brands are viewed less important compared to other attributes such as luxury brand reputation and high quality. According to Davies et al. (2012, pp. 43-44), ethical condition of production as a brand attribute ranks the lowest in importance to purchase goods in luxury sector. Also, according to Beckham and Voyer (2014, p. 248), while consumers view the idea of sustainable luxury positively, they don’t place great importance on it in decision-making. Additionally, Davies et al. (2012, p. 42) state that although consumers express ethical concerns in their general purchasing habits, they don’t always follow the same standards when purchasing luxury goods. According to Deklihi et al. (2019, pp. 490-491), because luxury is linked to indulgence, status, and exclusivity, sustainability is not typically a prior- ity for luxury consumers. Studies show that purchase intentions decrease, especially when luxury attributes are seen as lacking, even if the product’s sustainability is highly rated (Chang et al., 2022, p. 4; Deklihi et al., 2019, pp. 490). According to Kapferer et al. (2014, p. 10) only about 35% of luxury consumers consider sustainability when purchas- ing luxury products indicating that it isn’t main attribute in decision-making. Deklihi et al. (2019, pp. 490-491) highlight that luxury consumers prioritize brand attributes such as high-quality craftsmanship, brand heritage, and rarity over sustainability. Also, according to Cuomo et al (2019), consumers criticize luxury brands that harm the environment while exhibiting comparatively less interest in those that actively promote sustainable practices. Accordingly, although many luxury consumers are aware of ethical concerns, many research reveals that they are unlikely to take them into account during key mo- ments of purchasing a luxury product (Chang et al., 2022, p. 11). Thereby, even if sustain- 24 ability is considered positively, it doesn’t necessarily mean that a luxury consumers would choose a sustainable luxury product over a traditional luxury product. On the other hand, many studies reveal that consumers highly value the sustainable as- pects of luxury products (Chang et al., 2022, p. 4; Aggarwal et al., 2024, p. 180; Jain, 2019, p. 132; Cuomo et al., 2019, p. 67). In contrast to studies suggesting that sustainability makes luxury products less appealing, Rolling and Sadachar (2018, p. 810) argue that sustainable practices don’t decrease the appeal of luxury goods. While sustainability and luxury has been historically seen as opposites, according to Cervellon and Shammas (2013, p. 91), they are today viewed more like complementary. According to Rolling and Sadachar (2018, p. 810), the concepts of sustainability and luxury aren’t thereby con- flicting. Many consumers don’t see sustainable luxury as a paradox, but rather they be- lieve that luxury brands can be both exclusive and conscious. Accordingly, Di Leo et al. (2023, o. 1275) state that today luxury consumers value highly sustainable and ethical products, like products that are cruelty-free, made with sustainable materials, and pro- duced under fair conditions. Also, Di Leo et al. (2023, p. 1274) highlight that luxury con- sumers are shifting from traditional luxury brands to brands that prioritize sustainability. According to Chang et al. (2022, p. 4) and Jain (2019, p. 132) there are many studies showing consumers prioritize supporting social responsibility when buying luxury goods and see sustainability-related attributes as important. According to Di Leo et al. (2023, p. 1275) consumers increasingly consider sustainability in their decision-making, like sus- tainable materials and processes. Additionally, according to Carcano (2013, p. 40), many consumers don’t want to purchase high value products that do not meet ethical stan- dards, like products made with materials that harm environment, sourced from questionable ori- gins, or produced under unethical working conditions. According to Di Leo et al. (2023, p. 1274), luxury consumers are increasingly interested in sustainable factors in luxury goods, such as social sustainability and environmental impact. Also, Kapferer et al. (2014, p. 6) highlight that modern consumers increasingly expect brands to be more transpar- 25 ent about their supply chains and production processes. According to Di Leo et al. (2023, p. 1277), many consumers with a high purchasing power are increasingly interested in environment and environmental issues. Aggarwal (2024, p. 181) also notes that latest research has shown shift in luxury consumer attitudes, moving from being conspicuous to be a more conscientious. Modern sustainable luxury consumers favor brands and products that do no harm and rather do good (Jain, 2019, p. 132). Thereby luxury and sustainability cannot be seen as clearly opposite concepts but rather connected con- cepts that aligns with changing consumer expectations and market trends (Jain, 2019, p. 132). Furthermore, Aggarwal (2024, p. 181) highlights that in addition to sustainability, mod- ern luxury consumers value conscious consumption, personal fulfillment, and meaning- ful experiences (Aggarwal, 2024, p. 181). Jain (2019, pp. 130-132) also notes that today’s consumers prefer to consume ethical and environmentally friendly products that reflect their values and beliefs. In addition to, Chevalier and Mazzalovo (2021) state the same. Modern luxury consumers demand both personalization and ecological responsibility (Chevalier and Mazzalovo, 2021, p. 169). They prefer products that reflect their individu- ality while aligning with global sustainability efforts (Chevalier and Mazzalovo, 2021, p. 169). Accordingly, Aggarwal et al. (2024, p. 180) and Jain (2019, p. 130) note that nowa- days luxury consumers want to consume high-quality products that have a positive im- pact on the planet and societies. Cuomo et al. (2019, pp. 1-2) also state that sustainability is no longer perceived merely as an additional aspect of luxury products, instead it is a key feature of luxury. According to Cuomo et al. (2019, pp. 1-2) consumers expect luxury brands to authentically prioritize environmental and social responsibility as fundamental aspects of their mission and values. Moreover, numerous studies also show metrics indicating that luxury consumers per- ceive sustainable luxury positively. According to a study within luxury jewelry industry, more than half of the consumers strongly preferred eco-conscious option (Chang et al., 2022, p. 13). Also, Jain (2019, pp. 130-131) highlights that many studies have identified 26 significant shifts in how consumers prioritize sustainability. Additionally, according to Aggarwal et al. (2024, p. 180) most of the Gen Z and Millennial luxury consumers, who make up 60% of the luxury consumers, are interested in brands’ sustainability, such as where materials come from, how companies treat their employees, and how sustainable their stores are. Also, according to Chang et al. (2022, p. 4), 30% to 40% of luxury con- sumers can be classified as sustainable luxury consumers. Accordingly, Aggarwal (2024, p. 181) evaluates that approximately up to 60% of the luxury consumers are sustainable luxury consumers. However, according to Deklihi et al. (2019, pp. 494, 500-501) consumers’ backgrounds with consuming luxury have an impact on how they perceive sustainable luxury. Con- sumers who buy luxury products more often tend to view sustainability-related at- tributes more negatively, while consumers who invest in luxury products rarely are more open to sustainable luxury and have more positive perception of sustainability in luxury consumption. Also, Achabou and Deklihi (2014, p. 1901) state the same, evaluating that occasional luxury consumers are more open to environmentally friendly products crafted with recycled materials, than those consumers who buy luxury frequently. Additionally, Deklihi et al. (2019, pp. 489-490, 495-496) highlight that there are large differences on consumers’ awareness of sustainability, affecting luxury consumers perceptions of sus- tainable luxury. According to Chang et al. (2022) and Davies et al. (2012, p. 45), a lack of sustainable luxury consumption is often due to limited information. Chang et al. (2022) and Davies et al. (2012, p. 46) note that many luxury consumers believe that luxury brands are inherently sustainable. Additionally, there are some luxury consumers think- ing luxury does not harm the planet, meaning that some luxury buyers don’t have the enough understanding to pay attention to sustainability (Chang et al., 2022, p. 4). Ac- cording to Kapferer et al. (2014, pp. 4-5) consumers pay less attention to the luxury sec- tor compared to the industries with larger environmental impact. In addition to, since luxury products are purchased less often, consumers feel less pressure to consider sus- tainability when buying them (Kapferer et al., 2014, pp. 4-5). Davies et al. (2012, p. 45) and Kapferer and Michaut-Denizeau (2020, p. 42) highlight the same, noting that con- 27 sumers focus sustainable factors for frequent everyday purchases, rather than occasional luxury purchases. Moreover, although some consumers value sustainable practices, some consumers also perceive sustainable luxury products as more expensive, affecting negatively to their motivation to purchase (Chang et al., 2022, p. 4). While consumers take ethical concerns into account when making purchases, they are unwilling to pay a higher price for them in order to embrace sustainable consumption (Chang et al., 2022, p. 4). Also, Davies et al. (2012, p. 42) state that many consumers believe ethical products are always more expen- sive, affecting negatively on decision-making. In reality, sustainable luxury products aren’t necessarily more expensive, showing that the lack of information reinforces this consumer perception. In addition to, Cervellon and Shammas (2013) and Jain (2019, p. 132) highlight that sustainable luxury is perceived differently across cultures, with some cultures focusing more on ego-centred values and some eco-centred. Ego-centred values feature for example guilt-free consumption and hedonism, while eco-centred values include ethical production and environmentally responsibility (Cervellon & Shammas, 2013; Jain, 2019, p. 132). Table 1. The attributes of sustainable luxury and traditional luxury Sustainable luxury Ethical production Environmental responsibility Transparency Longevity and durability Altruism and purpose-driven Functional value More accessible High-quality craftsmanship 28 Traditional luxury Rarity Exclusivity Heritage High price Status Hedonism and emotional value Prestige Craftsmanship and artistry 29 3 Research methodology 3.1 Research approach, data collection, and data analysis This research adopts a qualitative approach, utilizing semi-structured interviews as the primary data collection method. According to Aspers and Corte (2019, pp. 139-140), the qualitative research is a process where deeper understanding is gained by identifying important new insights through close examination. Qualitative research is an approach that seeks to understand people’s experiences, perspectives, and interactions (Flick, 2018, pp. 2-3). It focuses on how people perceive the world, aiming to understand peo- ple’s perspectives and meanings (Flick, 2018, pp. 2-3). Qualitative research explores the relationships between different concepts which can change during the research process, while quantitative research focus on pre-defined variables without introducing new ideas (Aspers and Corte, 2019, pp. 146-147; Flick, 2018, pp. 30-31). Flick (2018, pp. 30- 31) highlight that qualitative research is evolving and reflective throughout the process, emphasizing that researches can adapt their approach as new insights arise. Thereby, there is often no fixed research design or variables at the beginning of the research, and rather they develop during the research (Flick, 2018, pp. 30-31). According to Lincoln (2021, pp. 3-5), qualitative research is an excellent choice for understanding the nuances of human experience, allowing for a comprehensive exploration of the personal percep- tions, which quantitative methods may fail to capture. Thereby, a qualitative approach is particularly well-suited for this study as it allows for an in-depth exploration of Karaat Jewelry’s customers’ perceptions and motivations, particularly concerning complex top- ics such as sustainable luxury. According to Chali et al. (2022, p. 2956) and Flick (2018, pp. 2-3), in qualitative research, data can be collected through observation, documentation, audiovisual data, and inter- views. Despite the new methods of qualitative data collection, the interview remains as the most applied approach (Dowling et al., 2016). Also, Flick (2018, p. 96) state the same, highlighting that interview is one of the most used methods in qualitative research. Ac- 30 cording to Dowling et al. (2016), interviews are still widely used because they are an ef- fective way to understand how people experience and perceive things. According to Lin- coln (2021, p. 148), interviews represent one of the most powerful techniques for data collection. Interviews function as purposeful conversations (Lincoln, 2021, p. 109), that produce a deeper understanding of participants’ experiences and motivations. Interviewing is utilized in this thesis for its flexibility and effectiveness in providing rich, qualitative data. Through a combination of planned questions and the opportunity for clarifying follow-up questions (Lincoln, 2021, p. 111), interviews allow researchers to explore complex themes and clarify responses, thereby generating rich qualitative data. Also, Flick (2018, p. 98) highlight that interview is a great method as it is flexible, iterative, and continuous. With this method, study can evolve based on findings, allowing re- searches to dynamically present new questions (Flick, 2018, p. 98). This dynamic interac- tion fosters a dialogue, enabling researchers to discover nuanced insights (Lincoln, 2021, p. 111), that may not emerge through more structured data collection methods. Ulti- mately, interviews serve as a powerful tool for gathering in-depth information, support- ing the exploration of the topics being studied. Engaging directly with Karaat Jewelry’s customers allows for a detailed examination behind their perceptions. Interviewing cus- tomers can explain the critical factors influencing their perceptions and purchase deci- sions and how these are affected by the brand’s sustainability. There are many distinct interview methods, such as traditional single interviews, group interviews, and narrative interviews (Flick, 2018, p. 97). Among various interview meth- ods, this thesis will utilize semi-structured single interviews as they allow for a guided conversation while still enabling participants to express their thoughts and feelings freely. This is crucial when exploring consumer perceptions and purchase decisions, as it encourages respondents to explain their personal viewpoints, which can lead to richer data. In this study, the semi-structured format will allow the interviewer to follow up on interesting points raised by participants, fostering a more interactive dialogue. This flexi- 31 bility is particularly beneficial in understanding how sustainability impacts on consumer perceptions and purchase decisions. Sampling is a key feature of research design, influencing what data is collected and how comparisons are made (Flick, 2018, p. 33). Sampling in qualitative research means choos- ing the right cases, groups, and materials to study from a large number of possible op- tions (Flick, 2018, p. 47). According to Flick (2018, p. 58-59), sampling can be based on formal or purposive selection, and it can take place at different levels, such as people, sites, and materials. In this case study, the sample is Karaat Jewelry’s customers and in- terviewees are selected using criterion-based sampling. The participants are chosen from Karaat’s customer base and consist of Finnish women aged 25–35 who purchase luxury products, such as diamond jewelry, more than once a year. Since different age groups, cultures, and genders may perceive the topic in varying ways, the study focuses only on this fixed demographic group. By using purposeful criterion-based sampling, the research aims to collect the most relevant and insightful data possible, giving deeper understanding of perceptions of frequent female luxury consumers in a specific age group. Also, keeping age and gender constant helps identify patterns and themes that are not influenced by demographic variation. According to Boddy (2016, p. 426), in quali- tative research the sample size depends on the context and the research approach. Some studies require larger samples, whereas in-depth qualitative research can work with smaller samples (Bobby, 2016, p. 426). This research features interviews with ten cus- tomers who have purchased from Karaat Jewelry. According to Flick (2018, p. 126-128), coding and categorizing are the most used analysis techniques among qualitative interviews. Coding and categorizing are used for analyzing qualitative data by identifying relevant data categories and comparing them (Flick, 2018, p. 126-128). To analyze the data collected from the interviews, thematic analysis and categorizing technique will be utilized. The analysis will include coding process, where emerging themes, observations, and meanings will be identified from the interviews. 32 Based on these, codes will be grouped into broader categories, which will be then orga- nized under main themes. Thematic analysis is recognized for its ability to identify patterns within qualitative data (Braun & Clarke, p. 295), making it a suitable choice for this research. Using thematic analysis will help analyzing consumer responses and identify arising themes (Braun & Clarke, p. 77), showing how Karaat Jewelry’s customers view sustainability in the luxury jewelry market. According to Flick (2018, p. 127), comparisons with categorizing can be done within category, within a case, or between the cases. In this research, the level of ‘between the cases’ will be utilized, comparing responses from different interviewees. The comparison will be provided across the entire interview, not just at the level of one specific topic. In conclusion, the qualitative approach and semi-structured interviews are well-justified choices for this research, allowing for a comprehensive exploration of the relationships between sustainability and luxury. By studying the connection between these themes, this study aims to generate rich insights that provide to the understanding of sustainabil- ity in luxury consumption. Table 2. Profiles of interview respondents Respondents Age Annual luxury purchase frequency Length of interview Respondent 1 25 1-3 60 min Respondent 2 30 1-2 60 min Respondent 3 28 1-2 75 min Respondent 4 31 5-8 60 min Respondent 5 28 1-3 60 min Respondent 6 25 4-6 75 min Respondent 7 28 5-10 60 min 33 Respondent 8 31 5-8 75 min Respondent 9 30 1-3 60 min Respondent 10 27 4-6 75 min 3.2 The case company The focus of this study will be on the luxury market, especially on the luxury jewelry mar- ket. The interviews address the themes of the thesis both in the general context of luxury and more specifically within the context of luxury jewelry, particularly regarding dia- mond jewelry. Diamond jewelry market is a great example of a luxury market that has undergone substantial changes because of the increasing consumer demand for ethically sourced products. In recent years, traditional diamond jewelry industry has been facing significant criticism and concerns regarding ethical practices and environmental impact (Baker, 2023) such as labor exploitation, environmental degradation, and the carbon footprint associated with diamond mining. According to Conti (2023, p. 1), the diamond industry has experienced a significant increase in consumer demand for ethically sourced options, like lab-grown diamonds. This context has created an opportunity for more sustainable luxury firms to emerge and expand as consumers are seeking alterna- tives that align with their modern values. As consumers have become more aware of sustainability and the importance of ethical and eco-friendly consumption (Keech et al., 2018, p. 581), lab-grown diamonds have gained popularity as the ideal alternative to mined diamonds as lab-grown diamonds don’t require mining. Keech et al. (2018) report that demand for sustainable, ethical, and environmentally friendly products has in- creased distinctly in recent years which has significantly transformed the traditional dia- mond jewelry industry. The case company of this thesis is Karaat Jewelry. Karaat Jewelry is a Finnish lab-grown diamond jewelry brand that operates in the luxury market, particularly in the diamond jewelry market. Karaat Jewelry aims to appeal the modern luxury consumer base by of- 34 fering them sustainable option, lab-grown diamonds. Karaat Jewelry has positioned itself as a brand committed to both sustainability, high quality, and luxury craftsmanship. Karaat Jewelry’s commitment to sustainability extends beyond its use of lab-grown dia- monds: it encompasses a comprehensive approach that includes eco-friendly practices, ethical sourcing, and transparent communication with consumers. By implementing a comprehensive branding strategy that integrates sustainability and aligns with modern consumer values, Karaat Jewelry aims to attract environmentally conscious luxury con- sumers. As noted in the theoretical framework, there is conflicting information regarding how much consumers value a luxury brand’s sustainability, how much it influences their pur- chase decisions, and whether the impact is positive or negative. Therefore, Karaat Jew- elry seeks to understand how its existing customers have ranked sustainability in com- parison to other factors in luxury consumption, and how they generally view the concept of sustainable luxury. Thereby, the focus of this thesis arises from the need to better un- derstand how sustainability influences luxury consumer perceptions. Specifically, the motivation for this research lies in the need for comprehensive data regarding the impact of Karaat Jewelry’s sustainability on consumer perceptions and purchase decisions. Addi- tionally, this thesis also addresses a critical gap in the diamond jewelry market, where limited research has been conducted on the connection of sustainability, luxury, and branding. By examining these dynamics, the study will provide Karaat Jewelry valuable insights to enhance its branding strategies and better align its branding efforts with con- sumer values. 3.3 The quality of data In qualitative research, it is important to show that the data is trustworthy and of high quality. To do this, four key criteria are commonly used: credibility, transferability, de- pendability, and confirmability (Lim, 2024, p. 24-26). These concepts help researchers show that their study is done carefully and that the findings are believable. According to 35 Lim (2024), these four concepts are the qualitative equivalent of validity and reliability in quantitative research. Credibility means how believable and trustworthy the findings are. It’s about making sure that the results truly reflect what the participants said and meant (Lim, 2024, p. 24). Researchers improve credibility by using methods like member checking and triangula- tion (Lim, 2024, p. 24). In this thesis, credibility was improved by selecting participants who were well-suited to the topic and context, as well as through the researcher’s in- depth understanding of the subject. Also, the researcher stayed aware of their influence and tried to understand and describe the participants’ experiences in an honest and fair way. Also, triangulation was used by collecting data from multiple participants and com- paring it with existing theories. Transferability means how well the results can fit to other situations. It’s not about gen- eralizing like in quantitative research, but about giving detailed descriptions so that read- ers can decide if the results might be relevant elsewhere (Lim, 2024, p. 24). The study offers detailed descriptions of the context, participants, and the brand being studied: Finnish women aged 25–35 who are customers of Karaat Jewelry. The luxury jewelry market is also explained in a detailed way. This information help readers understand the setting and context, so they can decide whether the findings might apply to other luxury consumers or brands, or not. Dependability means how consistent and reliable the research process is. It involves keeping a clear record of how the study was done (Lim, 2024, p. 24). It means that the research is done in a logical and well-documented way, so that others can understand how the study was conducted. This study carefully explains the research design, sam- pling method, interview process, and data analysis. By documenting the interviews and showing how themes and categories of the findings were developed from the data, this thesis provides a clear picture of the study and thereby supports the stability and reliabil- ity. 36 Confirmability means that the results of the research are based on what the participants truly said, not on the researcher’s personal opinions or assumptions (Lim, 2024, p. 24). This is done by being reflexive and keeping an audit trail (Lim, 2024, p. 24). In this thesis, confirmability was supported by using direct quotes from the interviews to show the participants’ real voices and opinions. The researcher also stayed reflexive and made sure not to let them influence how the data was understood. This helped ensure that the findings were fair, honest, and truly reflected what the participants shared. 37 4 Findings This research was conducted through open, semi-structured individual interviews. The aim of the study was to deepen the understanding of sustainable luxury consumption from the perspective of Karaat Jewelry customers. The interviews addressed luxury con- sumption both in general and in the context of Karaat. Among the participants, luxury consumption was most commonly associated with fashion and accessories. In the find- ings, it is specified when a finding relates only to Karaat context. Ten customers of Karaat Jewelry participated in the interviews, all of them Finnish female luxury consumers. While the interviews were guided by a pre-formulated set of questions, the interview format remained open, and participants were given the freedom to shape the conversa- tion based on their own thoughts and experiences. As a result, conversations brought out many personal insights and meaningful observations. Findings from the interviews are grouped into broader categories, which are organized under three main themes. The following sections present the key findings based on the analysis, by theme and category. 4.1 Theme 1: Luxury and luxury consumption 4.1.1 Category 1: Definition and meaning of luxury Key finding: Luxury is not defined solely by high price or exclusivity, but by a combina- tion of high-quality craftsmanship, emotional and aesthetic value, and alignment with personal identity and lifestyle. Participants shared a strong, common view that luxury, in general, is not just an ordinary product, it is deeply connected to high-quality craftsmanship, emotional experience, and aesthetic appreciation. They consistently described luxury as something that goes be- yond the physical object, it is carefully chosen, beautifully made, long-lasting, and emo- 38 tionally meaningful. Most participants emphasized luxury as a mix of high quality, beauti- ful aesthetics, and exclusivity. Talking generally about luxury purchases, they were not seen as impulsive, but rather as well-considered choices, often involving a sense of specialness and personal meaning. Eight out of ten participants described luxury as something built around lasting and well- considered choices. They felt it’s important that luxury purchases aren’t impulsive deci- sions but done with careful consideration. That makes it feel even more like luxury, espe- cially when you need to save money to purchase it. “If we’re talking about something that costs over a thousand euros, then I really compare and think it through before buying, I actually do my own research and comparisons.” (Respondent 10) “I have considered a luxury jewelry purchase for several months because I wanted to make sure it fit my style, would last over time, and was high-quality.” (Respon- dent 4) “To me, luxury means that you’ve carefully thought it through and then buy some- thing you’ve been dreaming of.” (Respondent 9) “A luxury product for me is something made of high-quality, durable material that looks beautiful, and it’s finished perfectly.” (Respondent 4) The role of quality, durability, and longevity were highlighted in every interview, both in luxury consumption generally and in luxury jewelry purchases. Luxury was often seen as something that lasts for years, even decades, and doesn’t lose its value over time. Partici- pants felt that a true luxury product is different because it doesn’t need to be replaced all the time. Several also mentioned that a high-quality luxury item can last for generations and remain as a meaningful heirloom. This was especially apparent in the context of lux- ury jewelry. The words durability, quality, and long-lasting came up repeatedly in defining luxury. In the context of Karaat Jewelry, luxury was particularly associated with functional value, particularly quality and durability. All participants emphasized that they purchase luxury jewelry primarily for its quality, in the context of Karaat for high-quality diamonds and 18k gold. They noted that a piece doesn’t feel truly luxurious if, for example, it's from 39 a well-known luxury brand but isn’t made of solid gold. More broadly, when discussing luxury in general, many participants expressed concern about major luxury brands like Chanel shifting their traditional handmade production to automated manufacturing in China. This change was perceived as diminishing the sense of luxury and quality. “My designer bag has been in use for 10 years and is still in good condition.” (Re- spondent 7) “If I buy something luxurious, I want it to stay good for a long time.” (Respondent 8) “I buy more rarely, but when I do, I want it to last and keep its value.” (Respondent 6) “High-quality craftsmanship is luxury for me.” (Respondent 9) “If I buy a luxury product, I expect and want it to be high-quality too.” (Respondent 5) “The first thing that comes to mind when I think of luxury is quality.” (Respondent 10) “I was with my friend when she bought a very expensive piece of jewelry from a well-known luxury brand, but the quality was terrible, it wasn’t real gold or real diamonds. I remember thinking there’s no way I could ever buy jewelry of such poor quality. When I buy luxury jewelry, I prefer to buy from places like Karaat, because I know the quality will last practically forever.” (Respondent 8) “For me, luxury means... well, quality. For example, if we’re talking about clothing or a bag, the material should be durable and high-quality, and the product should be well-finished.” (Respondent 4) Many participants pointed out that buying or using a luxury, such as fashion or acces- sories, isn’t just about having something expensive, it’s about how it makes you feel. They described luxury as a feeling that enhances your sense of self-worth and personal value. Treating yourself, enjoying aesthetics, and feeling emotionally connected to the product were all part of what made something feel luxurious. In the context of Karaat Jewelry, the feeling of luxury was primarily associated with the use and ownership of real diamonds. Participants felt they were treating themselves when purchasing diamonds. Moreover, they shared wearing real diamonds made them feel more valuable, enhancing 40 the recognition of self-worth. Based on this study, the luxury item can function as a sym- bol of self-recognition and a way to value yourself. “Using luxury items gives me a confidence boost and makes me feel good.” (Re- spondent 8) “Luxury for me is that valuable feeling of wearing luxurious materials, like real dia- monds, not fake ones.” (Respondent 6) The idea of exclusivity also appeared in many answers, when discussing about luxury in general. Exclusivity and high price were mentioned in nearly every response regarding defining luxury. They were seen as part of luxury, but not perceived as primary definition of luxury. Instead, these features were explained more symbolically: they show individu- ality and uniqueness, not just wealth. Luxury was linked to the idea that not everyone has the same product. A high price wasn’t seen as valuable on its own, but acceptable if the product met expectations in terms of quality, uniqueness, and luxury experience. Some participants said they don’t aim for the most expensive option, but look for some- thing that matches their own values, taste, and expectations of quality. Many also em- phasized that they don’t look for luxury just for the high price tag, but for something that suits their own values and style. “Not everyone can afford it, and maybe that increase the appeal, it’s not available to everyone, so it feels more unique.” (Respondent 10) “There’s definitely a certain exclusivity to it, it’s not something that’s available to everyone. You can’t just go out and buy it, you have to save up and really think it through.” (Respondent 4) “When it becomes available to everyone, it might start to feel too ordinary, be- cause exclusivity is an essential part of what defines luxury.” (Respondent 2) “Exclusivity is also part of it, like not everyone has that same item.” (Respondent 9) Visuality and aesthetics came up in almost every answer when discussing generally about definition of luxury. Many participants stressed that a luxury product should be visually pleasing and reflect personal taste. Several noted that a luxury item should be 41 beautiful, but not necessarily “flashy”, it should match the user’s style and bring aes- thetic pleasure. Along with visual appeal of a product, participants also highlighted how the product is packaged or presented, these little details enhance the luxury experience. “I don’t think luxury always has to be flashy, it can be very subtle too, but still stylish and valuable.” (Respondent 3) “It’s not just the product’s visual appeal but also how it’s packaged or displayed, those things make it special.” (Respondent 4) “Luxury product definitely has to be visually appealing. Appearance matters a lot, because if I don’t like the design, then I have no reason to buy it.” (Respondent 6) In addition to, all participants mentioned in one way or another that luxury, in general, can be understood in many different ways, and that its meaning has changed over time. According to respondents, there is a clear difference between traditional and modern luxury. The respondents recognized a distinction between well-known traditional luxury brands and newer modern ones. A key difference was in sustainability and modern val- ues of the brands like transparency and ethical production. According to the interviews, it was evident that Karaat Jewelry was seen as representing modern luxury. Many partici- pants noted that today, luxury isn’t just Hermès or Chanel, luxury can also be found in new, smaller brands, like Karaat Jewelry, that focus on beautiful design as well as high quality and sustainability. Traditional luxury was often linked to status symbols, strong brands, and expensive items. This image of luxury represents exclusivity through limita- tion and difficulty of access. In contrast, modern luxury was seen as more accessible, sus- tainable, and personal. It could mean quiet luxury, subtle aesthetics, beautiful and durable everyday luxury products. Many participants felt that modern luxury is more about personal experience than showing the status. According to this view, luxury can be for example simple, well-designed piece of jewelry with emotional value or meaning. “These days, I value those new modern luxury brands more, the ones that have responsibility at their core from the start.” (Respondent 6) “I think that nowadays, when new luxury brands emerge, they often take sustain- ability into account, whereas older luxury brands tend not to.” (Respondent 10) 42 “Luxury is nowadays also quiet, not so visible, no big logos.” (Respondent 7) “For example, Hermès is a brand that everyone knows, and then there’s Karaat, which is a small Finnish brand, but I still see them as two different types of luxury. They’re both luxury, just in different ways.” (Respondent 6) “To me, modern luxury is more like the beautiful things in everyday life that com- bine style, aesthetics, quality, and ethics.” (Respondent 1) “Luxury is no longer about showing things, like status, to others, it’s about how it makes me feel.” (Respondent 8) “Status might have mattered when I was younger, but now that’s totally gone.” (Respondent 10) So, while high price, status, and exclusivity are still connected to luxury, the focus has shifted more toward meaningfulness, longevity, and how a product makes someone feel. This shows that the traditional view of luxury still exists, but alongside it, a new way of seeing and experiencing luxury has emerged: quieter, more meaningful, and value- driven. 4.1.2 Category 2: Motivation for luxury consumption Key finding: Luxury consumption is driven by functional value, emotional self-indul- gence, meaningfulness, and identity expression, status playing a minor role. In the interviews, two main types of motivation for luxury consumption, in general, emerged: functional and experiential motivations. While these two were particularly dominant, symbolic needs also had an influence, just a smaller one. For respondents, luxury consumption was mainly related to buying fashion and accessories. For the func- tional side, participants especially mentioned product durability, the quality of materials, and longevity, both in the context of luxury jewelry and in luxury consumption generally. All interviewees stated that they choose luxury products for their ability to endure every- 43 day use and maintain their quality over time. These purchases weren’t seen as unneces- sary or superficial, but rather as smart investments. “I want to find those go-to items in my life that are durable and that I can use even decades from now.” (Respondent 9) “If I’m putting money into a product, then it has to be something ‘forever’ kind of thing.” (Respondent 5) “Luxury products are ones that truly last in use. I’d be willing to spend quite a lot of money to get something that’s really durable.” (Respondent 3) Experiential motivations also played a strong role, with multiple participants noting that they buy luxury when they want to indulge in with the luxury buying experience and the feelings when wearing luxury. Treating yourself, enjoying aesthetics, and having an emo- tional connection to the product were key reasons for buying luxury. The feeling the product gave was especially important, the purchase had to feel personal and meaning- ful. Experiential motivations were also closely connected to different milestones of life. Many interviewees shared that a luxury purchase was a way to celebrate a personal achievement or mark a special moment. In the context of Karaat Jewelry, it was clear that everyone shared a meaningful connection with their jewelry. Karaat pieces often served as symbols of love or self-appreciation, each carrying its own unique story and meaning. In this study’s context, the luxury item served as a symbol of life’s special moments, like engagements and career achievements for instance. “When I go into a luxury store and they offer me a drink and some chocolate, that’s luxury.” (Respondent 4) “Yeah, the feeling is more valuable and better when you’re wearing luxury prod- ucts.” (Respondent 10) “I can buy a diamond ring for myself if I’ve achieved something big at work or grad- uated from university.” (Respondent 8) Interestingly, very few participants connected luxury consumption to showcasing status, when discussing luxury purchases in general. Seven out of ten interviewees clearly re- 44 jected the idea that luxury is about signaling wealth or gaining social recognition. In- stead, participants emphasized the personal significance of luxury items. It was much more important that the product felt personally meaningful and fit their own style and identity. In this way, luxury consumption was seen more as an internal experience, not something external. Symbolic aspects, like expressing identity, still mattered, but show- ing status was not a key motivation. Again, seven out of ten said they don’t want their luxury purchases to display social rank, but rather reflect their personal values and style. While status signaling continues to play a role in luxury consumption, the traditional idea of luxury as a status symbol appears to be evolving. The expression of self and identity emerged as an important aspect. The participants noted that a luxury product can func- tion as a tool for self-expression, reflecting user’s identity. A thoughtfully chosen ring or high-quality handbag can reflect the buyer’s values, lifestyle, or aesthetic taste, rather than attempts to gain social approval. In the context of Karaat Jewelry, many chose to buy jewelry from the brand as they wanted to be seen as conscious consumers and also to showcase their timeless and elegant style. “I buy it because it makes me feel special and valuable.” (Respondent 10) “Status isn’t important to me, personally, it’s just not what luxury is about for me.” (Respondent 3) “Status isn’t important, in fact, it’s more about quiet luxury for me, than showing off.” (Respondent 2) “I want the luxury products I buy to match my style and express my values, show what kind of consumer I am.” (Respondent 7) 4.2 Theme 2: Perceptions of sustainable luxury 4.2.1 Category 1: Compatibility of luxury and sustainability Key finding: Luxury and sustainability are compatible, but not automatically connected – consumer trust is fragile, authenticity and transparency are key to building trust. 45 All participants considered luxury and sustainability to be compatible concepts, both in the context of luxury jewelry and in luxury market more broadly. Rather than seeing con- flicting, the combination was viewed as a natural direction for modern consumption. Luxury no longer has to be based on overconsumption or ethically questionable prac- tices, it can also include values such as environmental and social responsibility. At the same time, many participants acknowledged that sustainability is not automatically as- sociated with luxury. Several pointed out that although sustainable luxury is both possi- ble and desirable, it is not currently the norm in the luxury sector. There was a clear un- derstanding that many traditional luxury brands have not historically been transparent about their production practices and are not known for particularly sustainable opera- tions, shaping participants’ trust. While they viewed sustainable luxury positively, their confidence was fragile. Skepticism towards sustainability claims was particularly evident in discussions about greenwashing. Participants expressed doubts about brands that claim to be sustainable without providing clear evidence. They stressed the importance of authenticity and concrete actions over rhetoric marketing communication. To build trust, sustainability must be genuinely embedded in the brand’s business model, not just used for branding. “In my opinion, luxury also means that ethical and environmental issues have been taken into account.” (Respondent 4) “Nowadays, sustainability and transparency are also part of what makes some- thing luxury.” (Respondent 2) “For me, sustainability and luxury go hand in hand, especially with modern luxury brands.” (Respondent 3) “I don’t directly associate luxury with sustainability in any way. But at the same time, it’s a big plus if a luxury brand can also be sustainable.” (Respondent 10) “Yeah, I don’t directly associate luxury brands with being sustainable. I don’t get an immediate impression that they are responsible in that way.” (Respondent 7) “I don’t really associate them directly with sustainability, and honestly, I’m not sure if they’re actually sustainable.” (Respondent 9) 46 “Sustainability is not a given in a luxury brand, I used to think it was, but now I know it’s not.” (Respondent 1) “Just because a luxury brand says it’s sustainable doesn’t mean anything to me, when you look more closely, there’s no sign of actual sustainability, it’s just green- washing.” (Respondent 1) An interesting observation was that the perceived gap between traditional and modern luxury also emerged in this context. Several participants felt that newer and smaller brands are better in integrating sustainability into their core values. In contrast, tradi- tional luxury brands were more often seen as distant and slower to change, which made their claims about sustainability seem less credible. “I think many new modern luxury brands start off with sustainability as a founda- tion, it’s not an add-on but the base.” (Respondent 3) “I kind of feel like some big luxury brands are just doing surface-level greenwash- ing, not anything truly sustainable.” (Respondent 1) “I don’t associate luxury with sustainability. Especially with the big, well-known luxury brands, there’s a bit of uncertainty, like, are they actually sustainable or not.” (Respondent 5) To summarize, participants saw luxury and sustainability as fully compatible, but combin- ing them in practice requires authenticity, transparency, and long-term commitment from brands. Moreover, sustainability was more easily associated with modern luxury brands than with traditional well-known luxury brands. Consumers are open to trusting a luxury brand’s sustainability, but not blindly. They expect real proof, not just claims. Over- all, participants hoped that all luxury would become sustainable in the future, even if that is not yet the current reality. 47 4.2.2 Category 2: How sustainability shapes the luxury perception Key finding: Sustainability is seen to enhance the value of luxury products – but only when it doesn’t compromise the quality. The influence of sustainability on the perception of luxury was perceived mostly posi- tively, when thinking about luxury brands in general. All participants felt that sustainabil- ity increased the value and appeal of luxury products and made them feel even more luxurious. When asked whether sustainability could reduce the luxurious sense of luxury products and brands, all participants disagreed and instead emphasized the opposite. Moreover, all participants stressed out that sustainability should be an essential part of luxury. In addition to, sustainability and sustainable luxury was often connected to the idea of a “clear conscience”, the ability to enjoy luxury without guilt, making the product feel more valuable, enhancing the luxury experience. In the context of luxury jewelry, especially diamond jewelry, it was evident that participants felt a sense of shame wear- ing pieces made with mined diamonds, as there is now growing awareness of the ethical and environmental issues associated with them. The impact of guilt was also seen in the cases where luxury brands face reputational damage due unsustainable practices. A lux- ury product was not just something beautiful or high-quality, it also reflected the con- sumer’s values and choices. It was clear that respondents didn’t want to risk their own reputation by using products from unsustainable luxury brands. “It gives the feeling that I can use this without feeling bad, and that makes the product even more valuable in my eyes.” (Respondent 3) “When the Balenciaga case happened, where they were caught of unsustainability, I quickly sold all the products I had from that brand. I would’ve been embarrassed to wear their logo after their reputation took such a hit.” (Respondent 7) “It says something about me as a consumer, that I’ve chosen a product that com- bines my style and my values.” (Respondent 7) Sustainability was also perceived to increase or at least maintain the perceived quality of a luxury product. Many participants mentioned that hearing a product or brand is sus- 48 tainable makes them perceive it as higher in quality. Thereby, many associated sustain- ability with higher quality. Also, sustainability was seen as a potential differentiation, especially when many products are similar in design, quality, and price. However, several participants noted that this was true only when sustainability did not involve any com- promises in quality or functionality. For example, some raised concerns about recycled or alternative materials not always meeting luxury expectations. An example that came up frequently was vegan leather. Several participants said that even if it’s ethically better than real leather, they still associate it with lower quality, especially because it is plastic. Moreover, in the context of luxury jewelry, many noted that the word “recycled gold” doesn’t sound particularly luxurious. However, participants also stated that the use of recycled gold in luxury products does not diminish the sense of luxury, because they know it is equal in quality to regular gold. “Recycled material might give the impression of being lower quality, even if it’s not actually worse.” (Respondent 10) “Vegan leather is ethical in a way compared to real leather, but then again, it’s not as high quality and not as durable.” (Respondent 10) “In my opinion, using recycled gold demands more from the sourcing process, which, for me, increases the sense of luxury.” (Respondent 3) “Maybe the word recycled doesn’t sound very appealing, it’s kind of an unattrac- tive term, but gold is gold, so it doesn’t affect the perception of quality.” (Respon- dent 8) “My first thought of recycled gold was that it might lower the quality a bit. But once you know that it doesn’t, then it no longer has a negative impact on how you view the quality.” (Respondent 2) “It’s also a fact that sometimes the most high-quality materials are not the most eco-friendly.” (Respondent 9) In conclusion, sustainability can significantly enhance the perceived value of luxury, but only when it feels real and doesn’t decrease quality. While consumers increasingly see sustainability as part of modern luxury, it must not compromise the essential characteris- tic of luxury: high-quality craftsmanship. 49 4.3 Theme 3: Sustainability in luxury consumption 4.3.1 Category 1: The weight of sustainability in luxury purchases Key finding: Sustainability can positively influence luxury purchase decisions, but only when it’s authentic. When discussing of luxury consumption in general, participants stated that sustainability can influence their decision to purchase luxury products, but only under certain condi- tions. It was not seen as the main reason to buy luxury, but as something that adds value and can influence the decision when other f