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Who Cares?

Who Cares?. Ryan Burvill Sean Martin Wu, (Janet) Xiao chen Thu Pham (Melissa) Greg Schadt Sanjeet Parmar. Who?. Buying Motives. The Drive for Self-Actualization Prestige Pleasure Enjoyment Improving the quality of life. More Information:.

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Who Cares?

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  1. Who Cares? Ryan Burvill Sean Martin Wu, (Janet) Xiao chen Thu Pham (Melissa) Greg Schadt Sanjeet Parmar

  2. Who?

  3. Buying Motives • The Drive for Self-Actualization • Prestige • Pleasure • Enjoyment • Improving the quality of life More Information: • http://www.researchandmarkets.com/reportinfo.asp?report_id=297178&t=d&cat_id=

  4. Market Segment: Japanese market for luxury goods: • Luxury goods manufacturers are focusing on the Japanese market: • Louis Vuitton • Gucci, • Hermes, • Burberry, • Versace, • Prada, and Chanel • In Japan alone Prada earned $3.3 billion while worldwide profits fell 45%. • Louis Vuitton, earned approximately $1.4 billion in sales for 2002. More Information: • http://www.uwlax.edu/URC/JUR-online/PDF/2004/nguyen.pdf

  5. Market Segment Cont. China has a massive increase in the purchase of luxury goods: • 2001 – 1% of worldwide luxury market • 2006 – 12% of worldwide luxury market • 2015 – 29% of worldwide luxury market (projected) • 13% of China's population buys the highest quality brands • 48 million American households control 66 percent of total consumer expenditures More Information: http://www.cnn.com/2006/US/10/18/bin.luxury.overview/index.html http://www.boston.com/business/articles/2006/03/21/chinas_hunger_for_luxury_goods_grows/

  6. How?

  7. How do retailers sell Luxury: • Retailers use: • Customer service • Store environment • Attention to detail • And emotional triggers: • Limited quantity of goods • Pricing • Appealing to consumers’ value system More Information: http://www.businessweek.com/bwdaily/dnflash/nov2005/nf20051129_4460_db016.htm

  8. Why?

  9. Reasons people buy: • Form of life changing & exhilarating experiences • To give/get unusual gifts • Sense of satisfaction • Once in a lifetime experience • Societal need to escape from reality • Like to walk out of a shop knowing they've overpaid More Information: http://www.boston.com/business/articles/2006/03/21/chinas_hunger_for_luxury_goods_grows/

  10. Why buy Luxury products: Luxury Products: • Can help consumers manage stress • Customers a feeling of happiness and accomplishment • Consumers are essentially buying the story • Luxury satisfies an emotional need More Information: http://www.cnn.com/2006/US/10/18/bin.luxury.overview/index.html

  11. New Luxury: New Luxury Items are: • perceived as high quality • stylish • without being prohibitively expensive. New luxury customers are • willing to spend an amount of money disproportionate to their income for a product they consider highly important • For some people, luxury is a daily $4.50 vanilla latte More Information: http://opalroom.com/DP/OPAL/Buy-luxury-gifts-and-presents.htm

  12. Types of Money: New money: • More likely to spend frivolously • Tend to show off • Impulsive Old Money: • More conservative • Spend less on everyday goods • Make logical choices More Information: Solomon R. Michael, Zaichkowsky Lynne Judith, Polegato Rosemary (2005) Consumer Behaviour, Toronto Canada, Pearson Prentice Hall, pp. 383-397.

  13. Luxury Market Groups: Luxury groups: • Functionality • Enduring Value • Reward • Demonstrate Success • Indulgence • Extremely Lavish More Information: Solomon R. Michael, Zaichkowsky Lynne Judith, Polegato Rosemary (2005) Consumer Behaviour, Toronto Canada, Pearson Prentice Hall, pp. 383-397.

  14. What?

  15. What are Luxury products: Classifying Luxury: • Luxury products depend on income • BMW V.S. Rolls Royce • Higher Incomes • can afford more Luxury • higher level Luxury • Lower incomes • Still buy luxury but at lower levels • Buy luxury less often More Information: http://www.researchandmarkets.com/reportinfo.asp?report_id=297178&t=d&cat_id=

  16. Thank you!

  17. Sources: • http://www.researchandmarkets.com/reportinfo.asp?report_id=297178&t=d&cat_id= • http://www.uwlax.edu/URC/JUR-online/PDF/2004/nguyen.pdf • http://www.cnn.com/2006/US/10/18/bin.luxury.overview/index.html • http://www.boston.com/business/articles/2006/03/21/chinas_hunger_for_luxury_goods_grows/ • http://www.businessweek.com/bwdaily/dnflash/nov2005/nf20051129_4460_db016.html • http://www.boston.com/business/articles/2006/03/21/chinas_hunger_for_luxury_goods_grows/ • http://www.cnn.com/2006/US/10/18/bin.luxury.overview/index.html • Solomon R. Michael, Zaichkowsky Lynne Judith, Polegato Rosemary (2005) Consumer Behaviour, Toronto Canada, Pearson Prentice Hall, pp. 383-397.

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