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.

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