Motivation in Consumers of Thailand to Purchase of Luxury Goods despite Increase in Price - Dissertation Example

The world market in luxury goods in recent years has experienced enormous growth. The appeal of luxury goods in the global market is 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 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 aspiring and young customers, the possession of luxury goods signifies aspiration, affirmation of identity, and a sense of belonging. Furthermore, luxury goods have every potential not only to penetrate the domestic but also the international market by increasing the attractiveness to the suppliers and the consumers (Hung and Chen, 2011). 1.2 Luxury market OverviewIn the year 1990, it was valued at $60 billion but now it is expected that it will reach $240 billion by the end of the year 2015.

North America and Europe were considered to be the home of numerous leading luxury brands and a significant amount of consumption came from these two regions. Many research scholars have undertaken research for studying the consumption of luxury goods in these two markets but now some of the researchers have shown interest in studying the luxury goods market of some emerging economies (Park, Rabolt and Jeon 2008; Commuri, 2009; Eng and Bogaert, 2010). Many countries of Asia are now having growing numbers of affluent customers who have a strong appetite for the consumption of luxury goods and have depicted the fastest growth in global consumption. 1.3 Significance of StudyThe overall good economic performance and the rising income level of the Thai consumers have lead to the growth in the demand for luxury goods in the year 2012 (Euromonitor, 2013).

Thailand serves as the largest area of luxury accessories and designer apparel along with which the demand for time pieces, fine wine, and luxury jewelry is also seen to increase. Apart from this, the continuous increase of the luxury brand outlets and expansion of a large number of malls especially in Bangkok makes Thailand a hot spot for luxury brands. However, a continuous rise in the price of luxury goods is seen to become prevalent in the market, which is not affecting the demand for these goods. 1.4 Research ObjectiveThis research focuses on studying the motive of Thai consumers behind increasing consumption even when the price is rising.

By this research, the real consumption motives of the consumer will be unearthed.1.5 Research Questions • What is the customer’s perception regarding the symbolic value of luxury goods?• What is the perception of the customers towards the price of luxury goods?• Will their consumption behavior change if the price increases or decreases?3. MethodologyResearch is defined as the process that involves an intensive search of knowledge by gaining a clear understanding of the physical and social phenomenon.

In simple terms research is defined as a systematic and scientific search for some concrete information on a specific topic (Kumar, 2008).