Delving into the fascinating realm of luxury goods, we explore the psychological triggers that drive people towards these high-end purchases. Unravel the allure of opulence and the complex motivations that fuel the desire for these coveted items.
Luxury goods are expensive
Unless you’ve got a good job with a high salary, or have developed fantastic personal savings habits, buying luxury consumer goods can be cost-prohibitive
- Many consumers who buy luxury goods are not in a financial position to be able to afford luxury goods
- They also come to the conclusion that higher priced goods are of better quality
Self-Esteem May Impact a Person’s Purchases
In some cases, low self-esteem can be a factor that influences whether or not a consumer purchases luxury goods, especially if they can not easily afford the cost of luxury items.
- With the rise of online shopping, a $500 scarf is just a click away.
Authenticity Matters
People may decide to pass up a fake Rolex in order to pay full-price for an authentic one
- This doesn’t appear like a rational choice: If we buy luxury goods to show off to others and to feel like we belong, why wouldn’t a facsimile do the trick?
- Researchers at Yale have determined that this quest for authenticity develops early in childhood
- The sentimentality of the item-the memory or feeling that comes from having purchased a genuine luxury good-is part of the reason we seek authenticity
Some Consumers Do Not Act Rationally
Numerous modern behavioral psychology studies have revealed that humans don’t always act rationally.
- While a high-quality, durable handbag can be purchased for around $100, some people opt instead to spend thousands of dollars on a luxury-brand handbag that is of the same relative quality
Bottom Line
People buy luxury goods for a variety of reasons
Are Higher-Priced Goods Really of Higher Quality?
One possible explanation for this is the human tendency to overemphasize the positive elements of a product and ignore its disadvantages.
- Because some people perceive non-luxury goods as inferior, they may come to the irrational conclusion that higher priced goods are of better quality, regardless of the evidence.
