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Comparing the Luxury Attitudes of Young Brazilian and Emirati Females




Luciana de A. Gil (1)
Ian Michael
(2)
Lester W. Johnson
(3)


(1) Associate Professor- Marketing
Universidad Diego Portales, Business School
Av. Santa Clara 797 (5th floor) Huechuraba
Santiago-Chile
(2) Associate Professor of Marketing
Zayed University, Dubai, United Arab Emirates
P.O. Box 19282 Dubai, U.A.E
(3) Dr. Lester W. Johnson
Full Professor of Marketing
Faculty of Business & Enterprise
Swinburne University of Technology
Hawthorn VIC 3122, Australia




Correspondence:
Dr. Luciana de A. Gil
Associate Professor- Marketing
Universidad Diego Portales
Business School
Av. Santa Clara 797 (5th floor) Huechuraba
Santiago-Chile
Tel +56-9-68490099

Email:
luciana.dearaujogil@gmail.com



Abstract

Luxury brands are affecting women all around the world and have become a discernible trend. There is substantial growth in research focusing on luxury, which is a reflection of what is seen in the actual market. However it is rare to find a study where there is a comparison between two countries as different as Brazil and the United Arab Emirates. Both countries are becoming well-known for their consumption of luxury. Brazil is still the leader in Latin America, and the United Arab Emirates is attracting an increasing amount of international investment related to luxury brands. The aim of this paper is to investigate and compare young Emirati females and Brazilian young females in relation to their attitudes toward luxury. We used a questionnaire with measures already tested in multiple countries. We find that young Emirati women are in general more disposed toward luxury than Brazilian women.

Key words: Young Consumers, Luxury, Branding, United Arab Emirates, Brazil




Introduction
Luxury brands are affecting women all around the world and have become a discernible trend among women and men. Moreover, luxury products like bags, jewelry, shoes, cars, and clothes are playing a huge role in a woman's life (Dittmar, Beattie, & Friese, 1995). Market research has predicted that the younger generation represents the most important segment that will influence the global luxury market over the next decade (Unity Marketing Inc., 2007). For some people the ownership of luxury brands is important as a means of facilitating friendships with others and achieving popularity (Ruffin, 2007; Wooten, 2006).

Consumption of luxury brands exists not only in affluent countries but also in less developed countries such as Brazil (Moses, 2000; Troiano, 1997). The country has the sixth largest GDP in the world and a population of around 200 million (L.E.K. Consulting, 2014). From 2000 to 2008 Brazil's luxury market growth was 35% (Strehlau, 2008). Analysts from Goldman Sachs even believe that Brazil will become part of the largest world economies before 2050 (Keston, 2007). Ever since the Brazilian economy emerged as a profitable market for international companies looking to expand their businesses, several luxury brands have taken the opportunity to open retail outlets and flagship stores in big cities such as São Paulo and Rio de Janeiro (Euromonitor, 2014). Recent studies predicted that by 2030, the richest Brazilians will increase from 1% to 5% of the population, and the middle and upper-middle classes will increase from 36% to 56% of the population. Both demographic changes will drive consumption changes, in particular an increased interest in luxury and aspirational goods (L.E.K. Consulting, 2014). Despite the economic slowdown in 2013, luxury goods demand in Brazil remains resilient, with the area performing above expectations. The good performance and potential of the Brazilian market continues to attract further investment in high-end products (Euromonitor, 2014). Finally, the rise of female consumers is changing the demographic mix of Brazil's shoppers. More women in the workforce means households have more discretionary income. Women have gained increased financial independence and as a result have developed unique purchasing tastes. The health and beauty category, for instance, is expected to grow by about 12% annually from 2012 to 2017 (L.E.K. Consulting, 2014).

Consumers in the UAE have become more fashion oriented and more aware of luxury brands. The UAE has now been classified as an emerging economy and this and a host of other reasons have consequently increased the attention and awareness of the locals and non- locals to the shopping world and shopping experience (Faisal, Zuhdi, & Turkeya, 2014). The country has several regional and international luxury brands, which are keen to attract and sell their products to the citizens of the UAE, giving them a well-diversified portfolio, specifically targeted towards high-end customers. Although there has been such a rapid development of the luxury market, there is scant research on the marketing of luxury goods and/or the behaviour of luxury consumers (Ayoub et al., 2010; Belk, 1995; Dubois, Laurent, & Czellar, 2001; Gil, Kwon, Good, & Johnson, 2012; Kapferer, 1998; Phau & Prendergast, 2000; Prendergast & Wong, 2003; Vigneron & Johnson, 2004; Wiedmann, Hennigs, & Siebels, 2007) with particular reference to the UAE. The UAE has been listed among the best places worldwide for organizations to conduct business, and there are over 400 multinational brands present in Dubai alone (Balakrishnan, 2008). The country has become famous for being an exquisite destination for anyone who aspires to live in the luxury circuit. Statistics by UAE's Ministry of Economy showed that within the last decade, the country has more than doubled its GDP (IMF, 2009) and the economy has continued to see a positive trend in its economic growth rate, even with the recent global recession (Vel, Captain, Al-Abbas, & Hashemi, 2011).

The purpose of this research paper is to examine the various factors that influence UAE and Brazilian young female citizens in relation to their attitudes towards luxury brands. This research looks into the unique social influences affecting their perceptions of luxury products, as well as focuses on consumer behavior and the underlying motives that encourage UAE and Brazilian young female citizens to purchase luxury products.

Background about luxury
Luxury brands are those whose price and quality ratios are the highest in the market (Wiedmann, Hennigs, & Siebels, 2009), and those that range in luxurious services like elite hotels and first class airline tickets, and luxurious products like jewelry, cars, furniture, clothes, shoes, bags and much more. "Luxury is the domain of culture and taste" (Kapferer & Bastien, 2009, p. 318).

Luxury is very interesting; it is both simple and complicated at the same time. To simplify the complications of luxury, a timeline of its history will be previewed. "Luxury was the visible result of hereditary social stratification (kings, priests and the nobility, versus the gentry and commoners)" (Kapferer & Bastien, 2009, p.313). The rich, then and now, tend to communicate their social advantage by buying and displaying their luxury goods. This was classified as "old luxury", which was also defined by "snobbish, class oriented exclusivity-goods and services that only a small segment of the population can afford or is willing to purchase" (Granot & Brashear, 2008, p. 991). However, in the eighteenth century, globalization has turned the table around; it created a materialistic and fluid society in which hierarchy and transcendent social stratification are destroyed. In other words, a democratic world or a classless society was created in which each one can have an even chance of succeeding through work. This is also called "new luxury" and "Populence-popular opulence", which "includes products for mass-market appeal to consumers across various income and social classes" (Granot & Brashear, 2008, p. 991). On the other hand, social stratification has not completely disappeared; human nature urges us to know where in society a person stands. Therefore, here comes the role of luxury in creating a democratic social hierarchy where a luxury brand is placed in a position of superiority with respect to its client (Kapferer & Bastien, 2009).

Luxury in definition varies a lot, and there is some confusion nowadays on what really makes a luxury product, brand, and company. As stated earlier, "Luxury brands are those whose price and quality ratios are the highest in the market" (Wiedmann et al., 2009, p. 2). It is further explained by Kapferer and Bastien (2009) that luxury is the expression of a taste, of a creative identity, of the intrinsic passion of a creator; luxury makes a bold statement, 'this is what I am', not 'that it depends'. The authors further reiterate that a luxury brand should tell a story of its own, whether is it real and historic, or invented from scratch. Moreover, "luxury is a key factor in differentiating a brand in a product category, as well as a central driver of consumer preference and usage" (Wiedmann et al., 2009, p. 1).

According to Husic and Cicic (2009), luxury goods are goods for which the simple use or display of a particular branded product gives prestige to the owner, apart from any other functional utility and (Phau & Prendergast, 2000, p. 123) luxury brands are those that "evoke exclusivity, they have a well-known brand identity, enjoy high brand awareness and perceived quality, and retain sales levels and customer loyalty". Phau, Teah, and Lee (2009) have identified luxury brands as those where ratio of functionality to price are low, while the ratio of intangible and situational utility to price is high. Based on these definitions, luxury items are high priced products with good quality that allow people to acknowledge their status and wealth to others. Other characteristics that classify luxury items with higher prices and exclusivity include the packaging, store locations, advertising methods and most importantly, the elite brand name (Husic & Cicic, 2009).

"Luxury goods buyers are typically looking for outstanding quality and image in the brands they favor, and are willing to pay the high price which signals the good's exclusivity" (Türk, Scholz, & Berresheim, 2012, p. 88). A dilemma exists as some believe that if a luxury brand gets over-diffused, it could lose its image and 'luxury' characteristics (Giacalone, 2006). One of the allures of luxury brands is exclusivity.

Research question
We used the four dimensional tool developed by Hofstede (1984) to compare these two nations. According to this author the differences among cultures can be understood by accounting for: individualism, power distance, uncertainty avoidance and masculinity. Considering the first of these four dimensions, both Brazil and the United Arab Emirates have a high level of acceptance of Power Distance, however the score is much higher for the Arab country. Power distance reflects the fact that both societies respect hierarchy and find it acceptable that more important people have benefits. Nonetheless, in the South American nation its score is marked by a respect for elders and the powerful bosses of industry and the fact that people there are seen as equals. In the Emirates there is an inherent difference between the powerful and the rest, a natural hierarchy not to be second-guessed. Also, neither country is individualistic, but Brazil, with a score of 38 for individualism, is much less collective than the United Arab Emirates, with a score of 25. The countries' scores in Masculinity are almost the same, 49 for Brazil and 50 for UAE, so both countries have an equal consideration for values such as competition, success, caring for others and quality of life. Finally, both countries show high scores for uncertainty avoidance, which means people from these nations prefer strong institutions and rules that cast away most of the ambiguity of the present and the future (The Hofstede Centre, 2014). Scores can be viewed in Chart 1.

Chart 1: Scores for Brazil and Emirates Cultural Values - The Hofstede Centre


There has been substantial growth in designer clothing in the UAE as of the year 2013 due to the increase in tourists who come to Dubai on luxury shopping trips (Sophia, 2013). Emirati students are influenced by the globalization of the country and the many changes that have occurred in the UAE economy and culture. The UAE is attracting numerous luxury companies to establish their offices in the country. The country is fast becoming one of the major global hubs for luxury goods and services. People in the UAE are more aware of luxury brands and more interested and keen on obtaining them. The UAE's economy has emerged strongly in the last three to four years, which consequently increased the attention and the awareness of Emirati locals to the shopping world and shopping experience (The Hofstede Centre, 2014).

Salama (2008) states that UAE consumers rank as some of the world's biggest consumers of luxury brands. Moreover, Emirati local shoppers are the world's second biggest buyers of brands such as Gucci, which is at 31 percent, Chanel at 21 percent, while Giorgio Armani ranks the third at 19 percent. According to The Nielsen Company (2008), three in five UAE consumers said people wear designer brands to project social status. The survey also revealed untapped potential for luxury fashion brands in the UAE to expand their apparel businesses into other products such as mobile phones, laptops, flat-screen televisions, MP3 players and kitchen appliances. Besides, the survey found that 57 percent of shoppers would buy luxury branded mobile phones, compared with a global average of 34 percent, and 46 percent would buy fashion branded laptops, compared with a global average of 29 percent.

Our research question is: Do Emirati women have a more positive attitude toward luxury than Brazilian women?

Methodology
In Brazil our study used a self-report, paper and pencil survey instrument to collect data from university students in São Paulo state, Brazil, with approval from the university and students. The total sample consisted of 165 students; the majority between the ages of 18 and 24. For the purpose of this study we deleted the males from the sample given that our purpose here is to compare female university students in Brazil with female university students in United Arab Emirates. For that reason we used 76 Brazilian female respondents from our sample.
To be able to examine the attitudes of Emirati female students toward luxury items, we used the same survey instrument, but with an online approach using Surveymonkey. The survey was distributed to 175 female students from various universities in the UAE, their age ranging, from 18 to 25 years old (or more).

Measures
For the purpose of this investigation we use two different settings of attitude toward luxury scale. Both of them were tested in multiple countries and we believe that by using two different author's scales we improved our chances of embracing differences in cultures and improving our conclusions as a result of this study

Attitude toward luxury concept: Attitudes represent a consumer's overall evaluations of an object such as a product/brand or store; it is a response involving general feelings of liking or favorability (American Marketing Association, 2007). We use a short version of the attitude toward luxury scale created by Dubois and Laurent (1994) that fits the scope of our research.

The Dubois and Laurent (1994) scale is the most well known scale for attitudes toward luxury and has been used in several studies such as Tidwell and Dubois (1996), Dubois, Czellar and Laurent (2005), Dubois, Laurent and Czellar (2001) and, Kim, Baik and Kwon (2002). According to Czellar (2007) who used this scale on her study in 2005, no Cronbach's alpha was reported because her particular study did not use a conventional domain sampling paradigm (Churchill, 1979), but focused more on content validity as advocated by Rossiter (2005). From this perspective, she justified that alpha coefficients are less informative than from the perspective of domain sampling. Sample of the items are "In general, luxury products are better quality products", "Luxury products make life more beautiful" anchored by "disagree- agree".

Attitude toward luxury brands: This scale is an adaptation of the scale created by Mitchell and Olson (1981) and it was used by Rios, Martínez, Moreno, and Soriano (2006). It is measured by the mean of four seven-point evaluative scales (good-bad, dislike very much-like very much, pleasant-unpleasant, poor quality-high quality). The original reported Cronbach's alpha was 0.88. Sample of the items are "What degrees do you like or dislike luxury brands?" anchored by "dislike very much - like very much" and "In my opinion luxury brands are" anchored by "good - bad."

Findings
A first analysis reveals that young Emirati women are better disposed toward luxury than Brazilian young women; this comparison can be viewed in Table 1. We divided 15 questions into six categories to compare more comprehensibly these groups. These categories were made by the co-authors based only on semantic similarities.

Interest in Luxury: Two items evaluate this aspect: 'I'm not interested in luxury' and 'I have less desire towards luxury brand products when mass quantities of people consume the same products as me'. The Emirati women show more interest in luxury by this measure. Their responses are statistically different from those of Brazilian women on both items; they express more interest in luxury and more interest in it being exclusive. To the first question Emirati achieved the lowest average, 2.4 against Brazil's 3.8, that is to say they do not agree to 'I'm not interested in luxury', while Brazilian women express indifference.

Disposition toward Luxury: This category considers three items: 'Luxury is really useless', 'To what degree do you like or dislike luxury brands? (dislike - like) and 'In my opinion luxury brands are…' (bad - good). Again Emirati hold the stronger disposition toward luxury, with better results for all the items. While Brazilians are indifferent to the expression that luxury could be useless (3.8), Emirati respondents showed disagreement with the phrase (2.2). Furthermore, Emirati women like luxury (5.6) and think luxury brands to be good (5.0), while Brazilians are indifferent to both considerations (4.0 and 3.8 respectively).

Luxury Knowledge:
Luxury knowledge contains two items: 'I don't know much about luxury brands or products' and 'A fine replica (duplication) of a luxury brand is just as good'. The conclusion from this category is straightforward. Emirati female university students think they know more about luxury than do Brazilian female university students. For both items the means are statistically different, and while Emirati respondents disagreed in both cases, Brazilian disagreed only in the first item. Emirati's average was (2.1) for the first item and (2.5) in the second, showing strong disagreement, while Brazilians answered the first item with a mean of (3.2), that shows a lesser disagreement, and were indifferent as to the second statement, with a mean of (4.0).

Feelings toward Luxury: This group is comprised of three items: 'Luxury makes me dream', 'Luxury products make life more beautiful' and 'One buys luxury goods primarily for one's pleasure'. This class is not as clear as the three before it; still it seems as if Emirati women think more of luxury than Brazilians do. Emirati's think luxury products make life more beautiful (5.1) and are bought for personal pleasure (5.6), but do not agree with the allegation that it makes them dream (3.2). Meanwhile, Brazilians think life is more beautiful with luxury as well (4.8), but are indifferent to the other two remarks.

Luxury as Positive Expression: This groups contains three items: 'Those who buy luxury products are refined people', 'The luxury products we buy reveal a little bit of who we are' and 'People who buy luxury products try to differentiate themselves from others'. Answers for these items, regardless of the origin of the respondents, show neither agreement nor disagreement with the postulate. Only for the last of them, intent of differentiation, do Emirati women agree (5.1), while Brazilians remain indifferent (3.8). The answers also diverge mildly from the midpoint in the case of the first item and, while Brazilians moderately disagree (3.6), Emirati respondents are rather indifferent but tending to the opposite opinion (4.3).

Luxury as Negative Expression:
The last two items make this last category: 'When I wear a luxury item, I feel like I'm disguising myself with another personality' and 'People who buy luxury products seek to imitate the rich'. This is a group of apparent contradiction. Emirati respondents completely disagree with the first item (2.7) while maintaining a very mild agreement with the latter (4.5). Brazilians however think nothing of the feeling of disguising (3.8) and at the same time consider luxury a way to imitate the rich (3.5), though conservatively. Nevertheless, means are statistically different in both cases, suggesting the mean is lower for Emirati for the first item, and higher for the second one.

This analysis shows unmistakably that Emirati female university students hold a better opinion and relationship with luxury than those of Brazil origin, as noted on Table 1. Nonetheless, this data is comprised almost exclusively by women between the ages of 18 and 25, and it is also interesting to test if age has something to do with their relationship with luxury. While younger women could be more easily pushed into craving for luxury products, older ones could be resetting their preferences to favor more expensive and exclusive products as well. Therefore, we divided our data into four groups, Brazilian and Emirati women of 21 or fewer years of age, and Brazilian and Emirati women of 22 or more years of age. The comparison between these age groups can be found on Tables 2, for Brazilian females, and 3, for Emiratis.

Table 1. Means for each item - Emirati versus Brazilian females


We believed we could make some deeper analysis by separating females older and younger than 21 years old. Below there are our findings for Emirati and Brazilian women.

Interest in Luxury - Emirati:
younger women, as expected, show higher interest in luxury (2.1 against 3.0) and also greater concern on exclusiveness (4.9 against 4.5). Brazilian: incredibly, younger women's mean for no interest in luxury is higher than that of the older Brazilians (4.0 against 3.6), however, this difference is not statistically significant. Neither is the difference between younger and older women for the exclusiveness item (4.1 and 3.9 respectively), so luxury interest does not seem to change in Brazil with age.

Disposition toward Luxury-
Emirati:
again, younger women like luxury brands the most (5.9 against 5.0) and express a greater disagreement with it being useless (1.8 against 2.9).

Surprisingly, there is no statistically significant difference in how they see luxury brands, good or bad; both age groups consider them to be good. Summing up, younger female university students from the Emirates show a better disposition toward luxury brands and products than the elder.
Brazilian: in this country no mean is statistically different when separated by age group.

Nevertheless, older women have a worse image of luxury's usability and whether or not they are good, but somehow they dislike them less than the younger women.

Luxury Knowledge-
Emirati:
both means reflect that young women are more knowledgeable than the elder ones, yet only one of them is statistically different across age groups. Younger women say they know more about luxury than elder women do (1.8 versus 2.6).
Brazilian: for the third time Brazilian respondents confirm they do not change with age, both answers cannot be said to be statistically different. Furthermore, the means change little, for knowledge they are 3.1 for younger and 3.3 for elder and for exclusiveness 4.0 and 3.8 respectively.

Feelings toward Luxury-
Emirati:
this categorization shows an important difference in the beauty luxury contributes to life, younger women obtaining a mean of 5.6 against the rather indifferent 4.3 obtained by older respondents. The difference is not statistically significant on both other items, even though for the item of buying luxury for one's own pleasure it is not a small difference, the higher mean obtained by the younger women again (5.8 versus 5.3). All in all it appears younger girls have the edge in this category too.
Brazilian: there is no statistically significant difference in this tier either. Regardless, the scores are higher for younger Brazilian women in all three cases. Younger women's mean of 5.1 compares positively against the 4.6 of their older peers in beauty added to their life; the results are 4.5 against 3.9 in considering luxury as being primarily for private pleasure and finally 3.8 versus 3.6 in luxury being dream inducing.

Luxury as a Positive Expression-
Emirati:
younger and older women believe luxury is differentiating, but there is no statistically valid difference between them at 5% confidence. Both age groups are in mild agreement with the idea that the luxury consumed reveals something about the buyer, with means of 4.5 for the younger and 4.3 for the older women; but no statistical difference between them. Finally, an expected result, younger women think luxury is more for refined people than older women do (4.5 and 4.0 respectively), still, none of them believes this too strongly. Overall this category does not show strong change with age, maybe even no change at all in general feelings.
Brazilian: Brazilians show no statistically significant difference once again. What is more interesting is that the scores are actually higher for the older group for this category. Furthermore, at the 10% level we could say that younger respondents disagree with the statement that luxury serves as a way of differentiating oneself more than older Brazilians do. Even though slightly, it looks as if older women see luxury as a way to express themselves a little more.

Luxury as a Negative Expression-
Emirati:
younger respondents see luxury as a way to imitate the rich (4.7), while older ones do not agree, nor disagree, with that statement (4.1). Neither feels like in disguise when using luxury products, yet at the 10% level younger women disagree a little more with the statement (2.5 versus 3.1). Emirati female university students do not see luxury as a negative expression, but age seems to make their responses a little more moderate.
Brazilian: no statistically significant difference in this category, even at the 10% level. Means for feeling of disguising are almost the same; 3.8 the younger group and 3.7 the older one, and what is more, both showing indifference to the question. Younger respondents do seem to show a little more disagreement with the idea that luxury serves as a way to imitate the rich (3.3 against 3.8) but again, there is no statistically significant difference.

Table 2: Means for each item - Emirati females, younger (<21) versus older (>21)



Table 3: Means for each item - Brazilian females, younger (<21) versus older (>21)


Conclusions and further research
Overall, it appears as if age does not influence attitudes toward luxury the same way for Emirati and Brazilian young females. While Emirati female university students present a tendency toward more conservative answers when growing older, Brazilians do not change their view with age. Although, when comparing both countries; Emirati respondents are better predisposed toward luxury products and brands at any age. This may be because they see more of them (luxury products) than the Brazilians or maybe because their culture welcomes luxury more. Regardless, this does not explain the difference in the evolution of this disposition. Possibly Brazilians have relatively low exposure to luxury when compared with Emirati, which could be the reason they change so little with age, or maybe there is something cultural that makes their opinions mature earlier than those of Emirati women; either way it has important marketing implications. The above hypothetical statements can be used for future research projects.

The perceptions that luxury may serve as a negative expression should not be incentivized by luxury companies, which should emphasize luxury as positive expression of one's personality. Consequently, negative perceptions should not be encouraged, while those for positive expression need to be spurred. It is a bad signal that young women consider those who consume luxury products to be disguising themselves, or trying to pass as something they are not. Indifference is not good either if one is trying to promote luxury, consumers should see luxury as a positive way of expression. These findings from our research should therefore be very helpful to luxury brand manufacturers.

The luxury mark
et used to be all about cars, watches, and home furnishings. Nowadays, luxury is about the experience. Consumers will buy the product if the experience exceeds their expectations. It used to be all about materials; but the new luxury is all about the experience. There is even a new phenomenon called "Luxflation", and according to an article by Goff (2007) published in the Washington Times, the concept of "Luxflation" is what the majority of consumers are looking for when it comes to the purchase of luxury products and services. When it comes to products shoppers prefer products that are unique and better in quality, it is human nature to seek the best. For example, Goff (2007) mentioned that products used to be very standard like a cup of coffee, an ice cream or a chocolate but now when one purchases these type of products one can customize it by adding sugar, flavors or cream, in fact some establishments offers a great variety of different ingredients to choose from and change enabling the consumer to customize it. That's what drives consumers to purchase products, products that are different. Our research did not look into the phenomena of customization and mass-customization in luxury purchase. This angle would be a very interesting topic for future studies.

Furthermore, Emirates is a 'World bank designated high income country' and Brazil 'World bank designated Upper Middle Income' with pockets of extreme poverty and in a continent with extreme poverty. Disposable income and 'national prejudice' (e.g. the stigma of being seen to wear luxury items among the poor and underprivileged who cannot afford basic items), surely plays a part (World Bank, 2015). There is also a trend against those who purchase 'luxury items' as being easily deceived and victims of mass marketing. It really depends on what social demographic you speak with and the level of education of the individual; both issues should be more investigated in the future.

Future research could also include other demographic groups e.g. including the male gender and doing a cross comparison for example between Emirati male consumer and Brazilian male consumer, and further comparing all four demographic groups. Further in later research other age groups can be investigated for example between consumers of the two nations. More measures should be included in order to have a more complete view of what is happening in each country. Finally the study could become global and encompass more than 6-8 nations.

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