FACTORS INFLUENCING CUSTOMER PURCHASE INTENTION FOR LUXURIOUS PRODUCTS

Author Details:Author I:Name: - Arnab Roy Chowdhury Affiliation: - Student, United World School of Business, Ahmadabad Campus E-Mail Address: - arnabroychowdhury2010@gmail.com Phone No.:- +91-9433274767 Author II:Name: - Bivangshu Sil Affiliation: - Student, United World School of Business, Ahmadabad Campus E-Mail Address: - bivangshu99@gmail.com Phone No.:- +91 8128921993/ 9830669076 Author III:Name: - Soubhik Das Affiliation: - Student, United World School of Business, Ahmadabad Campus E-Mail Address: - soubhik.das0@gmail.com Phone No.:- +91 9558553933

FACTORS INFLUENCING CUSTOMER PURCHASE INTENTION FOR LUXURIOUS PRODUCTS

A luxury product comprises of those goods whose consumption is limited to the people of elite classes. Generally these kinds of products are essential and their concept has been present in various aspects of human civilization. Nowadays, the role of luxurious products is still as important as it was in the ancient times. So, luxury goods are often treated or referred as superior goods due to the similarity in their characteristics. In terms of economics, a luxury product is one whose demand increases more than proportionally as income rises and is contrast to the necessity goods for which demand is not related to the income of the consumers. Sometimes, luxury products behave like Giffen goods for which demand increases with the increase in price of the product and craze in the people. However, there are certain types of products that are termed as luxurious by the public simply because they play a vital role in the status symbol. In such cases, goods tend to indicate the purchasing power of the people who acquire them. This study aims at analyzing luxurious brand products. A luxurious or prestigious brand is a brand with which majority of goods related are luxury products. Furthermore, it may also include some typical brands whose names are associated with luxury life, high price, high quality and maximum user satisfaction as compared to other categories of products. FRAMEWORK: FACTORS Brand Image

Every brand has its specified image in front of the consumer which is known as brand image. It is the overall impression in the consumers mind about a product after gathering information about it from various sources. Generally, brand image means a set of beliefs which is held about a specific brand. It represents the present position of the brand in the market. Here, the image of the branded products is clearly reflected in the minds of the consumers who prefer to purchase those particular products. The brand image needs to be showcased to the customers, but how? It is basically received through the loyalty, perceived quality and awareness regarding the products to be purchased. Thus, the impact of the brand image remains in the customers mind for a long period of time and it helps them while purchasing any branded products.

Country of Origin

This is another psychological aspect of the consumer which plays a significant role influencing customers toward luxurious and branded products. For some products, majority of consumers do not pay attention to the origin of the product while shopping. For example toilet paper, light bulb etc. While in other products, the origin of the brand is definitely noted by consumers. Particularly a high level of interest on a product origin is shown while purchasing products like cars, alcoholic beverages laptops, gadgets, garments, etc. Consumers identify their products well while having a glance on the product label where it is written Made In ... For example, customers are quite aware that the cars made in Germany are the best in quality and product. It clearly shows that different consumers have higher preferences for such products.

Role of price

The customers, who are loyal towards their respective brands, do not intend to buy diverse branded products. Price along with the consumer income plays a significant role towards the sale and purchase of a product. These lead to the segmentation of the consumers into two parts: high income group people who tend to purchase expensive products and other is the average or lower income group of people who try to maintain their budget while opting for their products as per their preferences.

Peer Influence

It is one of the important factors influencing consumer behavior towards branded and luxurious products because it is a psychological phenomenon of human beings. Through exposure to social models, consumers acquire knowledge, skills and dispositions needed to make purchase decisions. The degree of a persons exposure to other sources of information, such as television, influences the consumer behavior. Teenagers tend to be picky and are likely to switch brand preference quicker than any other age group as they have high desire to be accepted by their social circle. Celebrity endorser, typical youth themes of rebellion, individuality, freedom, confidence and boldness, persuades consumers to get influenced for luxurious and branded products.

Style Statement

Style statement is again an important role influencing consumer behavior towards luxurious and branded products. It is also a psychological domain of human beings. The fashions of the time influence the design of the products; usually people want to buy updated items and not based on the last released look. Here, style statement can be seen in two perspectives: firstly, low priced items are purchased for few days and then they are disposed. Secondly, there are high-end customers who buy expensive and quality products purposefully for show off too, but with the brand, which will take them to higher level of the social circle.

Objectives

The objective of this study is to investigate the effect of brand image, pricing and country-oforigin on the purchase intention of customers for luxurious products, specifically in the watch industry. The study also extends this framework by identifying the customer focus factors like peer influence and individuals style statement effect on their purchase activity. The analysis will focus on the youth, ranging from 18-24 years, belonging to Ahmedabad, Gujarat.

Methodology

This quantitative study investigates the coefficient effect of independent variable upon proposed dependent variables. The study targets youth from Ahmedabad city as its target sample population. Data will be collected from 300 respondents, including both male and female, with the help of a structured questionnaire developed on the basis of previous research studies. The measurement scale will be analyzed for its usability with the help of reliability and validity analysis (Malhotra and Dash, 2008). Relationship effect among the dependent and independent variables will be examined using correlation and regression analysis.

Limitations

All the economic strata of the society are not included. The responses are dependent on the verbal behavioral pattern. Depends on the festivals and economic efforts of the marketing. Influence of celebrities and branding nomenclature. Lacunae in post marketing strategies. Parameters governing the influence depend on - Performance, Pedigree, Paucity, Persona, Public Figures, Public Relations (PR), Placement and Pricing.

Implications

The economic influence has created a distinct class and has an impact on the society. The growth of economy has lead to the stratification of social recognition among the civilized world and this has fueled the increase in consumption rates of luxury fashion brands. Status is symbolized by the brand purchases and resembles the quality of life. The customer behavior is definitely influenced by the commercialization and globalization of the world trading system. This can be seen in the changes in social value, economy, and culture. Western and developed countries have a direct influence and people adapt more in foreign cultures rather than orthodox systems. Shopping and Fashion play major roles in lifestyle. Nowadays, people have become more fashion conscious and they are influenced by the media. Media plays a crucial role and helps the society become more stylish by updating them regularly. Fashionable and luxurious goods have a branded face value and are purchased more for face reasons. The reasoning is that branded goods have more shelf life, are regarded as social image creators and trend setters. Today, use of branded and luxurious goods in daily life tags the individual and outclasses him from the ordinary. Realizing this trend, luxury brand marketers are developing strategies to attract customers. One strategy is hiring celebrities to give their face value and utilize their public image as a medium to uplift their brand.

Keywords: Customer Purchase behavior, Customer purchase Intention, Brand Image, Price, Peer Influence, and Country-of-origin.

FRAMEWORK: -

BRAND IMAGE BRAND COUNTRY IMAGE

OF ORIGIN
FACTORS INFLUENCING CUSTOMER INTENTION FOR LUXURIOUS PRODUCTS

ROLE OF
PRICE

PEER INFLUENCE

STYLE STATEMENT