The study of motivation in consumers which stimulates them to purchase Dissertation

The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price - Dissertation Example For instance small production volume leads to rarity, along with high level of effort and quality to make it extraordinary, aesthetics and create a good story behind the product, which automatically increases the price. The products that are more than ordinary and necessary are required to be scarce and not possessed by everyone. This paves the pathway for making the product too expensive so that only few can access. The recent recession in the year 2008 has made crafty luxury the new buzz word. It is all about consumption of good that has extraordinary features and are expensive but at the same time it is very in-the-know and discreet. A dramatic shift has been observed in the market of luxury products. The recession has adversely affected the rich people. Now the consumption of luxury products is more due to the increased practicality and higher perceived value. The branded name are still the strong sellers, which shows that increase in price is not a big factor that affects the pu rchasing decision of the consumers. The rising demand of luxury goods in the emerging countries like China, Thailand has aroused the interest among the researchers to indentify the motivating factor behind such an increasing interest. It is also seen that the price of the luxury products are increasing over the time but this is not creating any adverse impact on the demand of the luxury product by decreasing the demand for it. This factor has initiated this study that focuses on the study of motivation in consumers of Thailand towards purchase of luxury goods despite of increase in price. The research was aimed to finds the value that the consumers attaches with the luxury goods, the perception that they have relating to increase in price and the consumers behaviour that they display due to the price change. The study found that consumers of Thailand are more inclined to attach social status with the purchase of luxury product. The consumers are seen to use price as an indicator of product quality, rarity, extraordinariness etc., and the study suggests that the Thai consumers are willing to pay higher price for the products that are dissimilar and not possessed by everyone. The increase in price is seen to enhance this social status and thus, the demand is seen to increase when the price increases. The study reflected that if the price of the luxury product decreases then the Thai consumers are more eager to switch to the brands that are offering same products at a higher price. Table of Contents Abstract 2 1. Introduction 7 3. Methodology 9 4. Findings and analysis 18 5. Discussion 31 6. Conclusion and Recommendation 34 Reference List 37 Appendix 41 1. Introduction 1.1 Overview The world market in luxury goods in recent years has experienced enormous growth. The appeal of the luxury goods in the global market is as a result of the recognizable style, perceived superior quality, reputation and limited accessibility. As per the perception of the consumers who p ossess luxury goods the characteristics signify the symbolic, experimental and emotional value. These characteristics of the luxury help the owner in bridging the gap between the external world and inner satisfaction. For instance for a wealthy customer the possession of a luxury handbag is a mark of economic power and social status symbol to the less wealthy ones. On the other hand for the