Consumer Decision Making of Luxury Goods

Consumer behavior is a processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.  There are five steps processes used by consumers when buying goods or services:

The consumption of luxury goods can be considered as a high involvement buying behavior as the products are highly priced. Further the involvement deepens because the consumption of luxury products has a prestige value attached to it and the consumers use this to display their status in the society. Since luxury goods are products that are considered as symbolic goods, they are subjected to social risk which makes the consumer involvement stronger. Moving ahead with the buying behavior, it’s important to understand the purchase decision process which eventually a consumer goes through to make the final purchase. The motivation to purchase a luxury product is the individual need for sociability and self expression.Therefore reference groups are the key for individuals’ to make purchase decision for luxury products.