The Psychology Behind Why People Buy Luxury Goods

For many people, it is not uncommon to buy a luxury handbag. It is as popular as buying blouses from targeted businesses. (DGD). The appeal of high-end products is undeniable. The leather is soft, the logo is great, and it's affordable. Luxury purchases can be very high if you have a paying job, or if you personally develop good savings habits (or get a credit card that you can easily repay). There shouldn't be. )

Some users aren't sensible.

Consumers aren't necessarily rational. A perfectly rational person always acts according to reason and logic. That is, a perfectly reasonable person always acts in his own interests (including his own finances).

However, most of the modern research in the field of behavioral psychology shows that people do not always act rationally. Many consumers who buy luxury goods do not have the financial means to purchase them. Proof of this is the high level of consumer debt that many Americans have. Depending on your view, these trends may indicate that many Americans are not always acting in their best economic interests.

A high-quality, durable bag can be had for around $100, but few people wouldn't mind spending thousands of dollars on a bag from a luxury brand that has the same features and quality.

Are expensive products really good?

One possible explanation for this is the human tendency to exaggerate a product's good points and ignore its downsides. For example, Apple Inc. (AAPL), buyers wait overnight for the new version for iPhone, iPad, Mac. This is when Apple products are not unique and technologically advanced.

In fact, Samsung produces phones with better specs (than most iPhone models), and Microsoft Corp. (MSFT) and Xiaomi generally manufacture cheap mobile phones. However, Apple is very loyal to its brand and continues to update its sales records every year.

Since some people see non-luxury items as a compromise, they irrationally conclude that expensive items are high quality, not luxury items (because they are not based on function or specifications). Contrary to guides, whether or not the product is better than the cheaper one, they are sure to get what they pay for.

Self-esteem can influence a person's purchases.

In some cases, low self-esteem can be a determinant of whether a consumer will buy a luxury item. This is especially true if you simply cannot afford to pay the price for a luxury item. For some consumers, luxury products can greatly increase their self-esteem and sense of belonging.

With the start of online shopping, you can find scarves for $500 with just one click. For some people, luxury goods are the pinnacle of retail therapy. Luckily for luxury brands, the internet has made access and shopping easier.

Another reason why some people buy luxury products is the sense of accomplishment. They can't get it any other way and they want to be rewarded for their efforts.

trust is important

There's a reason people replace fake Rolex watches (even if they're identical) and buy genuine watches at genuine prices. Despite this feature, owners will find that they have no luxury whatsoever.

I don't think it's a logical choice. If you buy things to show off your belongings, why not imitate them?

Researchers at Yale University found that this quest for validation begins in childhood. In a study that attempted to convince children that their favorite toys were created by cloning machines, most children refused to believe that the copies were identical.

This suggests that the product experience, the memory or sensation of buying a genuine luxury product, is part of our quest to be authentic.

That said, for some people, getting their hands on fake Christian Louboutin shoes means not getting their hands on them at all.

conclusion

People buy luxury products for many reasons. Most of these reasons have to do with the strong emotions that arise from buying expensive goods. Regardless of whether consumers are in an economic situation that allows them to purchase financial products, they may decide to purchase to gain a certain sense of accomplishment, such as a sense of achievement through effort and evaluation by others.