Research on High-End Watch Consumption Behavior from the Perspective of Mental Accounting Theory

As an important part of the luxury market, the psychological mechanism behind the consumption behavior of high-end watches has become a hot topic in the academia and the industry. This study investigates the fundamental concepts, characteristics, and developmental trajectory of mental accounting theory, the current status, trends, and consumer profiles of the luxury watch market, and the specific applications of mental accounting theory in luxury watch consumption behavior. The findings of this paper indicate that the source of funds, intended use, and emotional value within mental accounts significantly influence consumers' purchasing decisions, with notable differences in the structure of mental accounts across various income groups. At the same time, it is found that brand loyalty is positively correlated with consumer satisfaction, in which brand culture plays a key role. This study will help to deeply understand the psychological mechanism of consumers when buying high-end watches, and provide theoretical support for the formulation of market strategies and consumer behavior prediction of luxury brands.