Institute for the Advancement of Developing Economies


Date of this Version


Document Type



Journal for the Advancement of Developing Economies, Volume 5, Issue 1 (2016), pp. 67-83.



Copyright 2016 JADE.


Luxury consumption and the desire for luxury are well-accepted phenomena. Myriad studies have documented the pervasiveness of the luxury market in the West and the high growth and strong potential of Asian luxury markets. It is also evident that as resources have grown in a region, luxury consumption and the desire for luxury products have followed. Nevertheless, the need for more far-reaching studies that explore emerging markets are important to understand the differences in how luxury may penetrate these markets, given variations in resources and culture. This paper investigates a number of factors that may contribute to the emergence of new luxury markets. Specifically, the authors focus on the psychology of luxury consumption in the post-revolution Tunisian market. In particular, this research attempts to understand the psychology behind the consumption of luxury items in Tunisia and provide managerial insights into strategies for entry into such emerging markets. The empirical data was collected using online surveys of participants from French-speaking Tunisia. Overall, this analysis of the Tunisian market for branded products and services informs international luxury managers in developing their strategies to penetrate emerging markets. Besides the managerial insights that the results provide, the hypotheses tested in this paper relating luxury consumption to the variables of age, income, and education within the framework of national culture are important contributions from the theoretical standpoint.