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Why do people buy luxury items?

16.12.2010, 9:43
The marketers around the world impatiently want to find the answer to this question. However, this hadn’t been achieved even nowadays. More precisely, there are a huge number of assumptions and theories, but they can’t explain detailed all these factors. For example, everyone understands why Hennessey is a luxury. In the past, this cognac has been a favorite guest at aristocratic feasts. But what can we say about the modern luxury? Why does it deserve such a privilege?

Famous brands: names’ price

It seems that everything is clear about the prices: a rich history of a brand is important and quite necessary to ensure its products a place in the category of "luxury", but this rule has some interesting controversial aspects. Otherwise, how can one explain the phenomenal popularity of Vertu phones from the company Nokia? After all, they immediately won the hearts of users, becoming the most luxurious and expensive brand on the mobile market. Vertu has no elite and rich history, the company has not been tested by time; it was not supported by big promotions. Just happened so, that this company provides mobile phones for people with thick wallets. And people buy them, paying a tidy sum, even though far unconvincing functional component.

Are people stupid? Maybe they are out of their minds being so rich? - No, of course not. There are a couple of objective reasons that determine wealthy people to adore luxury and prove their willing to pay more money for famous brands.

Luxury items: “reasons of love"

The first reason
from many other is the rivalry. Frankly, this quality is characteristic in a greater or lesser degree for all people. Although the business literature often considers the rivalry as a characteristic trait of the men, the beautiful half of humanity, also possess this quality. Otherwise, from where does appear this desire to be better than all your friends and women around? From this emerges the sincere mania to purchase expensive and not very practical things. After all, luxury items are able to emphasize the fact that its owner is positioned on a higher level of the human society’s hierarchy.

Next on the list is included another reason: the status. The status "is able to manage" people. It is not necessary to search an example. Increasing our prosperity, we also improve our quality of life. We can’t feel happy living in a comfortable, but little apartment on the fifth floor of the panel building. We strive to move, if not into an elite mansions, then in more spacious house. We carefully select a decent school with a good reputation; we buy things in the shops where people of our status go shopping; we aspire to spend our time in that companies, which is consisted from people of our social status. And, of course, we buy the goods that meet our opportunities and the aforementioned positions.

It's clear that, coming to a business meeting wearing a cheap sweater and a pair of jeans, you will certain astonish the people around, so it is desirable for a person to behave according the social situation. By the way, it is much easier to communicate in these circumstances. From all facts mentioned above we can affirm that wealthy people pay attention to luxury items and buy them because of their status.

The third reason is based on psychology. We are talking about the quality. Perhaps the modern luxuries do not differ from the cheaper models, but its quality is positioned by the consumer on a higher level. El Rice once said that is more important the perceived quality rather than the actual quality (within reasonable limits, of course). So there are no problems regarding the "perceived" quality when talking about the luxury objects.

And the last factor that shall be mentioned: of course, is the satisfaction of buying something for divertissement. All people have the tendency to indulge themselves with an expensive toy. The boys from childhood wish to have and play with expensive machines. For some of them, the dreams can become reality: personal aircraft such as Sigma Classic, helicopters and boats, which are bought exclusively not for working purposes.

These are all well-known moments.

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Why do people buy luxury items?
Why do people buy luxury items?
The marketers around the world impatiently want to find the answer to this question. However, this hadn’t been achieved even nowadays. More precisely, there are a huge...

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