People Buying Luxury Goods: A Facade of Opulence
The flashy logo, the undeniable expensive appeal, and the high-quality material are the elements of a luxury good. For many individuals, getting their hands on a luxury good is a therapeutic feeling. For some, it’s a rush of impulse activity followed by guilty pleasure right after. Whatever the case may be, we can only question what people buying luxury goods feel. The good thing is, we have the answer now.
If you wonder what pushes people to buy luxury goods or the psychology behind it, read on to discover.
Higher Prices Equal to Higher Quality
It is hay-wired on the minds of people that higher prices mean more excellent quality. Probably because of the unpleasant experiences of cheap disposable alternatives but, this has been exploited. Luxury brands exploit this mindset that people forget wherein prices only emphasize the product’s good qualities and not their defects and possible concerns.
Take a look, for example, at Apple Inc. (AAPL). People are always on the lookout for the latest releases, to go far by waiting overnight on Apple centers and setting up camps. When, in fact, its technology is mediocre and, unlike before, not unique.
When you look at Apple’s counterparts like Samsung, Microsoft, and Xiaomi, their recent innovations and features are more remarkable to IPhones, even at a lower and affordable price. Despite this reality, Apple enjoys a significant amount of sales and a high degree of brand loyalty.
People buying luxury goods perceive their purchases as of superior quality. Non-luxury items, on the other hand, are viewed as inferior based on not being luxurious enough for their taste. This conclusion is impractical because cheaper alternatives, especially with the integration of technology, offer excellent quality.
People are Blinded With the Flash and Appeal of Luxury
Simply put, some people buying luxury goods are not acting rationally. A rational person would logically consider every decision concerning his needs and financial interest before succumbing to the temptation.
But, modern behavioural psychology studies have shown that humans don’t always act rationally. Plus, a look at the rising amount of debt each year indicates that most individuals are not in the right financial state to indulge in a luxury good. Lifestyle news has also proved that people are spending more money on luxury goods that aren’t considered essential.
Low Self-Esteem Affects a Person’s Likelihood to Purchase Luxury Goods
As we mentioned earlier, some people buy luxury goods to gratify themselves or make themselves feel the value of belongingness. Despite their inability to buy a luxury good, some individuals will go out of their way to have it on their hands.
With the advent of online shopping, luxury brands are now an easy click away. People are now basking themselves in the ultimate retail therapy. What’s more, people buy luxury goods as a form of accomplishment for their hard work.
Authenticity Plays a Significant Role
Despite looking the same, people will never treat a copy the same way as the original item. If we apply a rationale for this one, it’s the same as asking, “if we purchase luxury goods only to show off and feel like we belong with others, why can’t a duplicate do the trick?”
Researchers at Yale University have unravelled the answer to this question. Unfortunately, this mindset is rooted in childhood. The conclusion of the studies indicated that people’s quest for authenticity stemmed from sentimentality. The memory or the feeling of having a luxury or genuine item is unparalleled.
There are a lot of reasons why people buy luxury goods. The majority of these reasons are linked to strong emotions that individuals attach or connote with the actual act of purchasing a luxury good.
In spite of a person’s financial capacity, he will buy a luxury good to achieve a feeling of belongingness, achievement, and even acceptance from other people. Sure, it could be detrimental to one’s well-being in the long-run, but who are we to judge these people? We could only give them advice and offer our concern, especially if they’re our family or friends. In any case, it’s their money and they’re free to spend it however they please.
At the end of the day, the real winners here are the luxury brand companies who have somehow managed to create an image of opulence and made it a societal trend. This is also fueled by the fact that we live in a capitalist system. But that’s a topic for another day.