In this section, the way for value based segmentation of luxury consumption is described in detail. The behavior of the consumer is categorized on the basis of consumption values of each customer. This study is conducting to understand the reason for purchasing the branded products and the perspectives of the different consumers for luxury (Chon & Whang, 2014).
1.1 Background of Study:
This study is conducting to know about the consumer’s behavior for the luxury consumption. Some consumers use only the branded products and the rest use the local brand products. The meaning of the luxury consumption is different for every consumer. The researcher is not able to understand the real meaning of the luxury and the behavior of the consumer for using the luxury products. Luxury products mean the branded product. This research is conducting for analyzing the facts for the luxury consumption. This research is conducting for segmenting the value based luxury consumption.
1.2 Problem Statement:
To find out the real form of the luxury consumption is the main issue in this research study. There is problem to segment the luxury consumption on the basis of value. The luxury consumption is different for the different users according to their needs and the experiences. To know about the real meaning of the luxury consumption is the main issue.
1.3 Objectives of Study:
- To identify the real meaning of the luxury consumption.
- To evaluate the significance of the luxury consumption according to the consumer’s behavior.
- To analyze the suggestion so that the luxury consumption can be improved.
1.4 Aim of the Study:
The aim of the study is to segment the behavior of each luxury consumer on the basis of value.
1.5 Research Questions:
- What is the need to identify the real meaning of the luxury consumption?
- Why to evaluate the significance the luxury consumption and the behavior of the consumer for the luxury consumption?
- Why luxury consumption improvement is required?
- H0: The luxury consumption does not affect the marketing of the local products as the local consumers will buy these products positively in a continuous way.
- H1: The luxury consumption does affect the marketing of the local products as the local consumers will buy these products positively in a continuous way
2. Literature Review:
2.1 Consumer Behavior
The behavior of the consumers depends on the mood and experiences of the customer. According to Henings, the causes and consequences of the luxury consumption are described. The demand of the consumers depends on the experiences and the quality of the products. Only those consumers are involved in the analysis of luxury consumers who have the high income source and who are known to the branded items. Some main factors are considered that differentiate between the luxury and non-luxury products. According to the conducted research, luxury brands are those whose prices are high and were of superior quality (Hennigs et al., 2016).
The ratio of the price to functionality may be low of some certain luxury brands but the utility of these products was high. Luxury products compete with other products due to their brand, high quality and the brand identity from the perspectives of the customers. Luxury brands include the psychological and physical values (Taylor et al., 2015).
2.2 Theoretical Framework Model:
In this theoretical framework section, the concept of the luxury consumption is shown in the figure. The workflow of the luxury consumption according to the consumer behavior is shown in the form of the figure that is shown below.
Figure 1: Model of Luxury Consumption
(Source: Taylor et al., 2015)
2.3 Importance of Segmentation of Luxury Consumption Behavior:
As we have seen in the previous section, luxury consumption is important for the luxury consumers. Luxury goods are made of the best quality material and the luxury goods are long lasting (Wiedmann & Hennigs, 2013). The people who are aware of the luxury goods always prefer to use the luxury goods due to the tangible features of the goods such as price, principles of the goods and the high quality.
2.4 Features of the Luxury products:
The quality of the products is high and the price of the products is also high. The products are manufactured using high quality material. Luxury products provide a long term, access on those products to the consumer. The quality is too good of the luxury products and those products are available at very pocket-friendly prices to the consumers.
2.5 Classifications of the Luxury Products:
The luxury products are divided into three parts and they have been discussed below.
New Luxury Products:
The consumer prefers the new products more than the old products due to the updated features.
Old Luxury Products:
The old products are consumed by less number of people due to high prices.
Common Luxury Products:
Sensual features are less in these kinds of products but the functional features are more like prices and the high quality (Zhan & He, 2012).
2.6 Consumer Attitude towards Luxury Products:
The concept of luxury is followed by the consumers to purchase the goods. The customer’s satisfaction and the loyalty to brands depend on the way of thinking of the consumers for luxury consumption. The views of the consumers matter a lot to find out the loyalty to brands. It is important to identify and assess the consumer behavior and perceptions.
3. Research Methodology:
3.1 Measurement of variables:
Tested and existing measures are used in this study to measure the variable of methodology. There are two types of variables such as dependent and independent variables. The luxury consumption is the dependent variable that is dependent on the mood of the consumer. The luxury consumer is the independent variable; it is not dependent on any variable (Zhan & He, 2013).
3.2 Research Design:
A theoretical approach and the conceptual model are described in this paper that explains the workflow of luxury consumption. The research design consists of the purpose of the study and the time horizon and the study analysis. The purpose of the study is to segment the consumption of the luxury goods while the primary data collected method is used for the data collection. The quantitative and qualitative approaches are used in this study for the analysis. The planning time is also given in the methodology of this study (Ghosh & Varshney, 2013).
According to the previous survey, it is observed that the luxury consumption can be divided according to the experience and behavior of the customer for the product. The descriptive design is done by using the primary approaches of the data collection.
This design is based on the online survey and the previous research. The luxury consumption can be segmented on the basis of the consumer behavior. At the duration of this design, it is observed that the valued based segmentation of the luxury consumption can be done according to the consumer behavior.
In sampling technique, the luxury consumers who are the part of a population have the same chance to be selected for conducting the survey of luxury consumption. There are two types of sampling techniques such as Random Sampling Technique and Convenience Sample Technique. In this particular study, the researcher has considered convenience sample technique to choose the sample size (Wang & Griskevicius, 2014).
The selection of the sample in this critic is corresponding to the objectives of the research and the issues that may come in measurement of the luxury consumption according to the human behavior. The main focus of this study is to find out the competition of the luxury brands and the growing markets of the luxury products on the basis of the consumer behavior for the luxury products. Those consumers who have the high-income source are targeted for this research. Income is variable for the study and it is a very important variable for defining the methodology of the luxury consumption. This sample paper is designed initially from the data collected online and from the data base of the various researches conducted.
3.4 Data Collection
In this section, the primary data methodology is used for the research and data collection of luxury consumption. The primary data collection process is used for the data collection. In the market research, to collect the online data is the questionnaire. The various techniques are used for conducting a survey such as the telephonic survey, face to face survey or the electronic mail survey (Featherstone, 2013). To conduct the primary data collection, online data collection process is used because it reduces the cost of survey and provides the ability to the researcher to collect the data rapidly.
The statistical approaches are used for describing the research objectives and the characteristics of the data. The individual officials have given their views and opinions on the concerned issue, which has provided much help to the researcher.
The data collection process is done by using the survey program for primary data approach. Online data collection is valid for this study. This part is all about that this study is valid for the research. This part is described to define the validation of the research topic.
3.6 Ethical Consideration:
At the time of the research work, the researcher paid a lot of attention to all the norms and values of luxury consumption. The study of the consumer behavior is necessary for value based segmentation of the luxury consumption. The researcher cannot force any other person to participate in the research work. On basis of the past conducted research, the researcher used various methods and followed various rules and regulations to conduct the research for this critic. According to the data protection act 1998 of U.K, the researcher maintained all the legislations for keeping and isolating the information retrieved from the service (McFerran et al., 2014).
4. Data Analysis and Findings:
4.1 Qualitative Approaches:
The qualitative data analysis process encompasses the written definition task of the luxury consumption concept and value of the consumer behavior for the luxury consumption to segment the luxury demands. The value of the luxury products consumptions is divided using the qualitative data analysis (Kastanakis & Balabanis, 2015).
4.2 Quantitative Approaches:
Quantitative method is used for the finding the best results for the large body of the qualitative data. The consumer behavior is described using the quantitative approaches and the demands of the branded products are measured by using this approach. The primary data is gathered with the help of the online survey.
Four different behavioral segments are used to analyze the luxury consumption in this study. If the consumers do not use the luxury products, there will not the positive views for the branded products so they are not targeted consumers. The customers who were aware of the branded products and had high income, they will be considered as the targeted consumers for the value based segmentation of the luxury consumption (Kastanakis & Balabanis, 2014). The researcher finds that the people are getting aware of the luxury consumption and the area of the luxury consumption is very wide. The value based segmentation of the luxury consumption can be done according to the consumer behavior.
According to this critic, the demand for the luxury goods depends on the attitude and the experience of the consumer. The main aim of this critic is to understand the various value perceptions of the luxury among the consumers. The study of the past research and the survey conducted of the current trends are helpful to forecast the luxury consumption-related issues.
Some strategies such as to control the luxury consumption can be used for the segmentation of the luxury consumption. The people are getting aware of luxury consumption day by day, the luxury consumption can be controlled easily by understanding the interest of the consumer. The luxury consumption depends on the interest of the consumers. The luxury products should be provided with utmost quality at standard price and the taxes should be low.
5.2 Application to the field of business and management:
The application area of the luxury consumption is very wide in the field of business and management. The luxury consumption is necessary for those companies which produced the branded products. The total sell of those companies never decreases which provides the high quality luxury products (Kastanakis & Balabanis, 2012). We can take an example of jockey, it is one only brand that provides the best men's products. Increased luxury consumption in the market is helpful for the business and management companies to improve their total turnover. The competition for the luxury consumption in the market will increase then the quality of the goods also will be increased.
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