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 only few can access. The recent recession in the year 2008 has made crafty luxury the new buzz word. It is all about consumption of good that has extraordinary features and are expensive but at the same time it is very in-the-know and discreet. A dramatic shift has been observed in the market of luxury products. The recession has adversely affected the rich people. Now the consumption of luxury products is more due to the increased practicality and higher perceived value. The branded name are still the strong sellers, which shows that increase in price is not a big factor that affects the purchasing decision of the consumers. The rising demand of luxury goods in the emerging countries like China, Thailand has aroused the interest among the researchers to indentify the motivating factor behind such an increasing interest. It is also seen that the price of the luxury products are increasing over the time but this is not creating any adverse impact on the demand of the luxury product by decreasing the demand for it. This factor has initiated this study that focuses on the study of motivation in consumers of Thailand towards purchase of luxury goods despite of increase in price. The research was aimed to finds the value that the consumers attaches with the luxury goods, the perception that they have relating to increase in price and the consumers behaviour that they display due to the price change. The study found that consumers of Thailand are more inclined to attach social status with the purchase of luxury product. The consumers are seen to use price as an indicator of product quality, rarity, extraordinariness etc., and the study suggests that the Thai consumers are willing to pay higher price for the products that are dissimilar and not possessed by everyone. The increase in price is seen to enhance this social status and thus, the demand is seen to increase when the price increases. The study reflected that if the price of the luxury product decreases then the Thai consumers are more eager to switch to the brands that are offering same products at a higher price. Table of Contents Abstract 2 1. Introduction 7 3. Methodology 9 4. Findings and analysis 18 5. Discussion 31 6. Conclusion and Recommendation 34 Reference List 37 Appendix 41 1. Introduction 1.1 Overview The world market in luxury goods in recent years has experienced enormous growth. The appeal of the luxury goods in the global market is as a result of the recognizable style, perceived superior quality, reputation and limited accessibility. As per the perception of the consumers who possess luxury goods the characteristics signify the symbolic, experimental and emotional value. These characteristics of the luxury help the owner in bridging the gap between the external world and inner satisfaction. For instance for a wealthy customer the possession of a luxury handbag is a mark of economic power and social status symbol to the less wealthy ones. On the other hand for the
A study of motivation in consumers of Thailand towards purchase of luxury goods despite of increase in price Abstract The luxury product encompasses a broad category of more than necessary products and extraordinary when compared to other products falling under similar category…
The paper studies the careful analysis of the global turndown, its effect on the market and the industry of luxury goods in particular. Various analyses of the companies have been done and comparative analysis has been carried out to understand the difference created. The reviews from the employees and the customers have also been combined to know the popularity of the implemented system.
The proliferation of marketing activities in the first half of last decade had ensured a rapid growth in the luxury goods market. This had further fueled the formation of product categories within the luxury segment itself. The Luxury brand goods the world over were being made more accessible to larger percentage of the population (Portfolio 2009).
Consumers derive both functional value and hedonic pleasure through such possessions. Thus, consumption is not just related to satisfaction of needs, but a means through consumers want to be known. While all societies have been developing and growing, affluence in China has increased phenomenally.
Hence, international stores, retailers, and supermarket chains have paved the way for luxury brand retailers. These companies, such as Louis Vuitton and Ferragamo, have made investments as the first batch of luxury retailers to conduct business operations in China during the 1990s (A Plus 2007).
Zou,D. Jin, L. (2010),"Exploiting the goldmine: a lifestyle analysis of affluent Chinese consumers", Journal of Consumer Marketing, Vol. 27 Iss: 7 pp. 615 – 628. Journal Article 26 Jap, W. 2010. Confucius Face Culture on Chinese Consumer Consumption Values toward Global Brands.
What Drives Chinese Into Buying Luxury Goods in the 21st Century?
The economy of China has grown by almost ten times since 1978. This huge economic growth has brought higher discretionary income at the consumers’ disposal. China has acquired the top position in demand for a variety of consumer goods, among which luxury goods occupy a major percentage of the total demand.
Although there are sufficient amount of research works exist which have tried to investigate consumption motivation among customers for luxury items but most of these studies were conducted in context to developed nations from North America and Europe. Interesting fact is that most of the researchers skipped luxury consumption of Chinese customers but economic evidences and sales of luxury goods in China is suggesting that ignoring the red dragon might not fill the gap in literature regarding luxury consumption in convincing manner.
The findings show that many young males are interested in strong brands and prefer to shop online. The main factors that motivate them to shop online include the need for convenience, lower prices, and comprehensiveness of the online shopping experience.
It is sports. According to the theoretical findings of Bush, et al (2004), sports is a form of physical activity which is competitive in nature, which requires organised participation of a number of individuals, or even the synchronized coordination of mind and action of an individual, that uses the physical as well as mental strength and improvises them while resulting in the recreation of the ones who are playing and even for those who forms the spectators of the game.