Posted on March 09 2017
Why Do We Buy Luxury Brands? And How Do They Make Us Feel.
Global demand for luxury goods is strong and rapidly growing. Consumers purchase these goods for a variety of reasons, among them because they convey a sense of status, wealth, and exclusivity. These purchases lead others to make rapid inferences about the character of the purchaser (e.g. successful, arrogant, among many others). Further, using and displaying luxury products can elicit various feelings on the part of the user.
Preferences and consumer expectations kept the price of luxury brand goods high because people believe that the products of luxury brands are what create trend and it is expected that they are of high quality. The fact that costs of production have been reduced due to cheap overseas manufacturing is not relevant to some consumers who buy luxury goods. The demand for these goods are still high because some consumers do not know that the quality has changed and some do not care that the quality is changed as long as it is still a product of that luxury brand. The marginal utility will decrease because of the lower quality of the good but the total utility still increases because the luxury good continues to serve its purpose – it has a high reputation among the society and can be used to show off in front of other people. Therefore, its price stays high and consumers have an incentive to buy these luxury goods.
Let’s look at it from this angle: usually when buying luxury brands consumers evaluate the brand of the product rather than the actual features of the products, but nowadays the status of owning luxury brands become more easily accessible to everyone thanks to the counterfeit products. This kind of products had ruined the exclusivity and uniqueness that is associated with luxury brands which decreased the value of luxury brand since one of the main criteria for classifying a brand as a luxury is it’s exclusivity .
Is High Price An Indication Of Good Quality ?
Ideally, what should sway someone to invest on an item over the cheaper alternative is its superior quality. You should really only be spending hundreds of dollars on that single item because you know it will last more than 10 washes, or 10 years. The fabrics and materials used are also crucial—cashmere always trumps the polyester that will maybe/definitely give you a rash; RiRi zippers and mother-of-pearl buttons don't come cheap; certain construction processes will result in higher quality, but they require more time and money to employ. And the only way to truly judge quality is by touching and handling the item, examining the cut and construction of the piece in person. Logos don't and can't always justify the big price tags.
Up to some extent high price is the indication of good quality. But mostly people are status conscious, that's why they consume branded products at high price. And the marketers are taking advantage by launching new brands at higher prices.
So instead of basing your purchasing decision on the name of the brand, it’s better to go for quality because quality is what matters the most, this what our policy is about , because we care about you, we want to offer you the best deal: a high quality products with a fair price, an authentic product that will make you feel special without spending a lot of money and without compromising on quality. We also want to highlight that high quality products should not be equated with a huge price tag. You can always buy a high quality product that will last for a long period in a reasonable and affordable price.
So from your point of view is high price an indication of good quality? Tell us in the comments below.