Cultural Perceptions and Country Brands in the Global Art Market

This study bridges a gap in the literature concerning brand image, country of origin, and consumer perceptions of luxury products, specifically exploring the relatively unknown roles of geographic distance and sales transaction location. Utilizing the luxury art market, data encompassing 1726 transactions over thirty years was collected. The study examined the relationship between sale price and cultural indulgence, as well as the relationship between sale price and the distance between the sale location and the artist's home nation. The methodology employed three separate multiple linear regressions: a base model incorporating artist nationality, gender, and art history textbook representation; the base model plus cultural indulgence; and the base model plus geographical distance. Results indicated that auction houses located in more culturally indulgent areas command a premium, as do those located farther from the artist's home nation. The data is limited to two-dimensional artworks post-1750, included in prominent art history texts, and only includes auction sale price information. It is suggested that future researchers explore different art transactions or other industries like collectible luxury sports cars. The findings offer practical implications for practitioners in choosing sales office locations for premium goods and for brokers seeking higher prices by considering the cultural context of buyers and sellers. As globalization spreads, this study sheds light on cultural preferences using the luxury art market as a representative example, suggesting potential shifts in artwork preferences as cultural values evolve. This study contributes to the growing body of work in this field through our unique data set and results.