The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price.

The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price. Literature review example
Masters
Literature review
Marketing
Pages 19 (4769 words)
Download 0
The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price Table of Contents 2. Literature Review 3 Reference List 19 2. Literature Review 2.1 Introduction The luxury goods market has experienced growth on a huge scale during the period from 1995 to 2007…

Introduction

Again during 2004-2007, when the luxury industry was expanding and emerging into other markets, the CAGR was 8 percent (Amatulli and Guido, 2011). The growth of luxury goods market was caused by two important factors. Firstly the economic growth all throughout the world has lead to the creation of new class of rich people (Vigneron and Johnson, 2004) and secondly, the increase in the demand and range of products of luxury goods (Silverstein and Fiske, 2003). However, the sales of luxury goods were predicted to ease in 2013 due to the lower growth rate in China and subdued spending in Europe (Reuters, 2013; Wendlandt and Binnie, 2013). The sales are expected to hover around 4 to 5 percent as compared to the 5 percent sales in the year 2012 (Bain & Company, 2013). It is also expected that the revenue generated from the luxury market will rise 50 percent faster than the global GDP and the annual average growth rate will be around 5 to 6 percent in the year 2015 (Bain & Company, 2013). The four main categories that come under luxury goods are Jewellery and watches Spirits and wines Cosmetics and perfume Fashion that includes accessories, ready-to-wear and couture (Jackson, 2004). Recently some other categories were also added like airlines, home furnishing, private banking, tourism, hotels and luxury automobiles (Chevalier and Mazzalovo, 2008). ...
Download paper
Not exactly what you need?

Related papers

Research of China's Luxury Goods Market- How Chinese Enterprises Get out From "Made in China" to Create Domestic Luxury brands
Recently, however, with an increased spending power among Chinese consumers along with reduced government restrictions, luxury brands from foreign countries have experienced the pressure of strengthening their commitment to Chinese mainland to maintain competitive advantage and avoid losing to rivals. Luxury is a subjective concept that is constantly developing, hence its varied definitions.…
Consumers' Perceptions of Global and Local Brands in Developing Countries within Consumers' Goods Industry
Global brands reach in developing countries 23 2.10. Consumer goods global brands familiarity with local consumers 25 2.11. Leading global FMCGS in the developing countries 27 2.12. Consumers’ Perception of global brands in developing countries against local brands 27 2.13. Factors influence the purchasing behaviour of consumers 29 2.14. Summary 32 Chapter 3 33 3.0. METHODOLOGIES 33 3.1.…
An investigation into Chinese consumers' reasons for purchasing luxury brands in the UK
The Journal of International Management Studies, Volume 5, Number 1, April, 2010. P 189 27 LeCompte, MD and  Schensul, JJ. 2010. Designing & Conducting Ethnographic Research: An Introduction: Volume 1 of Ethnographer's Toolkit, Second Edition Series. Rowman Altamira, Edition 2 27 Lu, PX. 2011. Confucianism and Conspicuousness. Elite China: Luxury Consumer Behavior in China. John Wiley & Sons.…
An analysis of the consumers consumption motives of luxury fashion branding in China
But, there is an exogenous variable known as economic recession which has decreased the demand of luxury goods across different nations of the globe and majority of the countries of the world are still struggling with sluggish economic growth. Now the fact is that during the time of economic prosperity, people may indulge themselves in luxury purchase but during the time of economic uncertainties,…
The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price
For instance small production volume leads to rarity, along with high level of effort and quality to make it extraordinary, aesthetics and create a good story behind the product, which automatically increases the price. The products that are more than ordinary and necessary are required to be scarce and not possessed by everyone. This paves the pathway for making the product too expensive so that…
Compartive study " The effect of online word of mouth versus tradtional word of mouth on saudi consumers purchase decsion : a
The methodology involves the use of a case study that applies the use of both positivist epistemology and inductive reasoning approach to fully answerer the research questions. At the end of the study, the researcher found no significant difference between traditional word of mouth and the online word of mouth in regard to purchases in Saudi Arabia. However, the online word of mouth was found to…
Strategic Management and Marketing for the Luxury Goods Vivienne Westwood
In such context, Luxury Goods Company Vivienne Westwood has been selected sample organization in the paper and study will conduct marketing audit in order to help the sample organization to decide marketing strategy. McDonald and Wilson (2011) suggested that organizations should use both strategic and tactical marketing plan in order design marketing strategy. According to these scholars,…