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Demand Utility Marginality - Essay Example
There are several factors that these articles cite as contributing to the overall demand for luxury goods. One of the most primary is that in regards to psychology. Another point which is made strong in these articles is that of the issue of vanity, and how important a role it plays in today's world…
For instance in the beauty franchise, such as in a beauty salon, many customers are extremely loyal once they find a location that they truly enjoy. "No way would I give up my hair stylist. You develop these relationships," says Liza Burnett, a 26-year-old in New York, who spends $150 for a hair cut and scalp treatment every two months.
The factors that appear to affect the marginal utility of such luxury goods among those with large net worth are many. One of the most primary would be that obviously only those with the monetary resources available would be able to afford an item with such a high price. Another factor, which relevantly ties into the first, is that the salesperson of an item such as this would want to have excellent marketing skills as well as proper customer service skills, in order to sell as best as they possibly can. Although there is a significantly higher number of people in the world today with a bank account full enough to easily purchase items with such a high cost as compared to even fifty years ago, it still takes a good customer service representative to sell efficiently.
The marginal utility of a Rolls Royce Silver Cloud to me is the fact that it is "considered to be the most aesthetically pleasing vehicle ever to be produced by the vehicle manufacturer." ("Wikipedia", ...