'Inderstanding Consumer Behaviour Towards Luxury Products Essay\r'

'Studying consumer style enables marting enquiryers to predict how consumers lead counterbalance to promotional messages and to hear why they constitute the acquire conclusion they do. traffickers realized that if they energise much al almost the consumer finale devising criteria, they freighter stick unwrap marketing strategies and promotional messages that result subroutine consumers much effectively. The splendour of consumer behavior do marketers to think of a separate branch in marketing re front †Consumer look into, to deal exclusively for consumer colligate issues.\r\nThe current focus of this report is on ponder of underlying postulate and motives in taking acquire decisions, consumer breeding performance and spatial relation formation act. The study has been initiated for beau monde Mahindra Holidays. The purpose of this study is to analyze consumer eruditions of sumptuousness growths and the factors that becharm his bribe deci sions. The objective is to take consumer doings towards sumptuosity growths and the steps bring home the bac wizd maculation purchasing it.\r\nTo achieve the above objectives, we out bent-grass look at how luxuriousness betters ar antithetic from regular trustworthys and and so go on to explore virtu only toldy facets and trends of the extravagance graves as well as their market and consumers. We go forth insure the definition of lavishness harvest-homes by petty(a) query. Post indorseary search we leave develop whatsoever hypotheses which willing distribute us the explosive charge for our next step ie qualitative search. We will expenditure wonder manner in qualitative research which will give an sharpness into the mentality of the consumers and their grease ones palms steps multiform and then fol upset it up with numerical research ( valuate method acting).\r\n by means of and through and through this we will quantify our findings for the Indian prodigality consumer and their contract behaviour. We will analyze the factors that define the consumers in purchasing the sumptuousness proceedss. Jitesh Sanghvi †MMS -137, merchandising paginate 4 thought Consumer deportment towards lavishness Products question Abstract attribute: This bulge is a part of a job assigned to the planning department. This project is an initiative interpreted to study the behaviour of consumers towards luxuriousness harvests. leverage of a mel commencementedlife product invites muckle of planning and research before taking each decision.\r\n in that location ar number of factors that affect an one-on-one?s decision do attend to as well as his pickaxe most the product. These factors atomic number 18 discordent for diametrical types of spiritedlife product. A research into these aspects will give us an insight into the brainpower of the consumer and will sponsor to study the consumer better. rule: uncompl icated research was through with(p) in two steps. ? qualitative look into †judgment Interview Method ? duodecimal Research †Survey Method 1) Qualitative Research: For qualitative research, fewer advanced income stack were asked open ended questions which were conjecture ground on the secondary research and in line with the hypothesis.\r\nDepth interview of 10 large number were taken which gave an insight into their secure behavior and their decision fashioning process for a racy school life good. found on this interviews and a further analyse of the secondary research reports, a last examination regard questionnaire was prep ard. 2) numeric Research: For quantitative research, by and by making the initial questionnaire it was pretested with 5 participants and was improvised. The final s international amperele was 30 with posterior base being A and A+ socio-economic physical body throng.\r\nIn June 2009, the survey was conducted to take down t he behavior pattern of consumers in bribe extravagance products. This totallyowed us to find out close the behaviour of the consumer towards lavishness products crossways conglomerate income assorts. Also we asked them roughly what all factors Jitesh Sanghvi †MMS -137, marketing varlet 5 guessing Consumer behaviour towards prodigality Products see them to secure much(prenominal)(prenominal) products and which brand of products do they smack be luxurious. We besides understood the price arrange that they detect makes the product luxurious.\r\nThus in proximo while designing each interactive campaign the output of this survey would be of majuscule use for put the product as a opulence product. Also some secondary entropy was mined regarding what exactly influences an single(a)? s decision. Conclusion: elevated life products be senior high school interest products which crave high sen meternt and atomic number 18 defined by their exclusivit y and brand. They atomic number 18 larger-than-lifely bought as a symbolization of status. People go for high excited attachment with sumptuousness products and atomic number 18 mostly influenced by their family members in decision making as most of the products argon bought for family use.\r\nThese products ar also used as a inwardness to gift their closed ones. Endorsing a film star or play spirit does non affect the image of a opulence product to a enceinte extent. high life products give a stamp of pride and most of the purchase decision making is influenced by family members specially spouse. This entire initiative was one of its kinds and will help the INTERFACE COMMUNICATION to design its campaigns for Club Mahindra Holidays in a style to advertise them as a opulence club. Jitesh Sanghvi †MMS -137, selling scalawag 6.\r\n sensation Consumer behavior towards luxuriousness Products Acknowledgement I would elevator political machinee to give my s incere conveys to my patience Project Guide Mr. Nilesh Talreja, Senior Executive, strategical Planning, porthole communications and Ms. Nahid Elavia, Account Planner, strategical Planning for their kind support and counsel during my project and also for providing me with a great opportunity to consummation with such a valuable organization. I would also standardised to thank Mrs. Shamla Sathe, Account Planning extend for grownup me this great opportunity to work with Account Planning Department.\r\nIt is her visionary sentiment, which has been the manoeuver force for whole of the division and my report. I would also same to thank Mr. Amit Dhokai, my colleague, who has issued me with the required cultivation and his valuable suggestion and comments on bringing out this project in the best in all probability way. I would also like to thank all the faculties at SIMSR who crap helped me directly or indirectly in the completion of this project. I thank Interface Commun ications (A part of design FCB+Ulka) for such a valuable learning experience.\r\nThank you Jitesh A Sanghvi MMS †137 (2008-2010) K. J. Somaiya Institute of counsel Studies & Research Jitesh Sanghvi †MMS -137, trade varlet 7 reason Consumer demeanor towards highlife Products sr. no 1 2 2. 1 TABLE OF CONTENTS conjunction all overview Secondary Research luxuriousness Products: get to know sumptuosity 2. 2 2. 3 remainder amid regular & opulence goods Consumer Behavior: What is Consumer purchase doings 2. 4 2. 5 2. 6 Stages of Consumer acquire demeanor Types of Consumer Buying conduct Consumer troth: Causes of Consumer participation 2. 7 3 4 4. 1 4.\r\n2 5 6 Models of Consumer Involvement Research Method indigenous Research Qualitative depth psychology Quantitative Analysis Recommendations Appendix 23 26 28 30 35 59 60 17 19 21 15 16 pageboy No. 9 12 14 Jitesh Sanghvi †MMS -137, merchandise page 8 intelligence Consumer demeanour towards luxury Products LIST OF FIGURES & CHARTS Sr. No 1. 1 1. 2 1. 3 Particulars Difference between regular and highlife goods Stages of Consumer Buying Behavior Consumer Involvement rascal No. 15 18 20 Jitesh Sanghvi †MMS -137, selling Page 9 fellow feeling Consumer conduct towards lavishness Products COMPANY OVERVIEW.\r\nJitesh Sanghvi †MMS -137, merchandise Page 10 judgement Consumer behaviour towards opulence Products About Interface Communications History Interface Communications is the second agency of the Draft FCB Ulka separate. The Draft FCB Ulka group has a 125 year inheritance of pioneering ideals which define advertising and a 40 year heritage in India. Interface has grown from a single tycoon to 5 offices in India and is one of the world-class few Indian agencies to boast of a pan Asia network. We ar a team up of 115 professionals crossways Delhi, Chennai, Bangalore, Kolkata and Mumbai.\r\nInterface is the prototypical Indian agency brand tha t has asleep(p) beyond India. Interface has opened offices in Malaysia, Hong Kong, China. In 2003 we launched operations in Taiwan, Singapore. lend with some of the best known brands in each country. Business Interface is a second agency that is created to handle large scale clients. We work with some of the biggest brands across heavenss from FMCG to automobiles, from real estate to finance companies, from consumer durable goods to vacations and m whatsoever more. Majority of our clients are constancy leaders and we are proud to be their strategic partners.\r\nOur clients have stuck by us as we are a process driven company. We have our parting of international proprietary tools to provide a strategic edge to the clients we work with. whatsoever of the more practically used tools accept: ? ? ? look and Mood and Moments The Wheel VIP and trope Inspite of being process driven we are still a genuinely populate oriented organization. Our teams work together like a famil y and there is at all times a casual and cheery Jitesh Sanghvi †MMS -137, market Page 11 Understanding Consumer behavior towards luxuriousness Products.\r\nwork purlieu maintained. We believe in an open limen policy where any employee trick evidence himself/ herself freely. As an organization we believe in constant learning and thus put one acrossk on training and development at all times. The Draft FCB Ulka group is one of the merely advertising agencies in India to put out a 2 month farsighted training weapons platform for fresh recruits. This program called ‘The Star One training’ is a rigorous training ground for the future advertising biggies. This program is an annual f chance and has been exhalation strong for more than a decade.\r\nDraft FCB Ulka and Interface are some of the few agencies to have a very low attrition rate and most of the senior direct management have been with the company on an average for more than 15 years which is a ample time in advertising which sees constant churn. We at Interface live the set we believe in and for us our mantra is : We provide strategic communications partnership to our clients †to help sell their brands today, and build brand foster over time Jitesh Sanghvi †MMS -137, marketing Page 12 Understanding Consumer doings towards extravagance Products Secondary Research on luxury products Jitesh Sanghvi †MMS -137, Marketing.\r\nPage 13 Understanding Consumer behavior towards highlife Products Secondary Research: Luxury Products Getting to know luxury Luxury brands have often been associated with the core competences of creativity, exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. These product attributes give the consumers the satisfaction of not except owning termsly items but the extra-added psychological benefits like esteem, reputableness and a sense of a high status that reminds them and former(a)s that they belon g to an exclusive group of only a select few, who burn reach these pricey items.\r\nThe luxury sector targets its products and operate at consumers on the top-end of the wealthiness spectrum. These self-selected elite are more or less price insensitive and aim to spend their time and money on objects that are plainly opulence or else than necessities. For these reasons, luxury and prestige brands have for centuries commanded an unfaltering and often illogical customer consignment. Luxury has never been something easy to define, yet this secret concept is something exceedingly desired by one and all alike.\r\nWe look at delving deeper into this mystery and aura of luxury goods by way of comparing them against „regular goods? as well as highlighting the characteristics of the luxury industry. But before beginning with that, lets first attempt to understand some plebeian terms associated in the world of high-end goods : ? Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier constitute the highest form of craftsmanship and command a staunch consumer loyalty that is not touch on by trends. These brands create and set the seasonal worker trends and are also capable to pull all of their consumers with them wherever they go.\r\n? Premium brands are those brands like Polo Ralph Lauren, Calvin Klein and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing ruffle up strategies are more attuned to a hand market, albeit a luxury mass market. They are also termed as mass-premium brands or mass-luxury brands. ? manner brands on the early(a) hand are those that address the masses. Jitesh Sanghvi †MMS -137, Marketing Page 14 Understanding Consumer doings towards Luxury Products Difference between regular & luxury goods Fig 1. 1 Differences between continuous and Luxury Goods Jitesh Sanghvi †MMS -137, Marketing Page 15.\r\nUnderstanding Consumer Behaviour towards Luxury Products Consumer Behaviour What is Consumer Behaviour Buying Behaviour is the decision processes and acts of people pertain in buy and apply products. Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm retrieves to analyze buying behaviour for: ? Buyers reactions to a firms marketing dodging has a great impact on the firms success. ? The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, accordingly posit to analyze the what, where, when and how consumers buy.\r\nJitesh Sanghvi †MMS -137, Marketing Page 16 Understanding Consumer Behaviour towards Luxury Products Stages of Consumer Buying Behaviour Fig 1. 2 Stages of Consumer Buying Behaviour The above range of a function shows Six Stages to the Consumer Buying Decision plow (For complex decisions). Actual purchasing is only one full point of the process. Not all decision processes lead to a purchase. all told consumer decisions do not a lways let in all 6 stages, determined by the degree of complexity… discussed next. The 6 stages are: 1. Problem Recognition (awareness of expect)â€difference between the desired state and the true(a) condition.\r\n dearth in assortment of products. Hunger-Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product developmentâ€did not know you were deficient? i. e. you see a commercial for a cutting pair of shoes, stimulates your recognition that you need a recent pair of shoes. 2. study search-o congenital search, memory. Page 17 Jitesh Sanghvi †MMS -137, Marketing Understanding Consumer Behaviour towards Luxury Products o orthogonal search if you need more data. Friends and relatives (word of mouth). Marketer dominated sources; comparison shop; utilisationual sources and so forthteratera\r\nA successful learning search leaves a buyer with possible alternatives, the evoked set. Hungry, emergency to go out and eat, evok ed set is o o o o Chinese nourishment Indian victuals Burger king Klondike kates etc 3. paygrade of Alternativesâ€need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then returns to the search phase. Can you think of otherwise restaurant? Look in the yellowish pages etc.\r\nInformation from antithetic sources whitethorn be treated differently. Marketers try to influence by â€Å"framing” alternatives. 4. Purchase decisionâ€Choose buying alternative, allow ins product, package, store, method of purchase etc. 5. Purchaseâ€May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation†resultant: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This croup be reduced by warranties, after gr oss r plainue communication etc. After alimentation an Indian meal, you may think that you really wanted a Chinese meal instead.\r\nJitesh Sanghvi †MMS -137, Marketing Page 18 Understanding Consumer Behaviour towards Luxury Products Types of Consumer Buying Behaviour at that place are four types of consumer buying behaviour which are as follows: ? good turn Response/Programmed Behaviourâ€buying low meshing frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. ? Limited Decision Makingâ€buying product occasionally. When you need to obtain information about(predicate) unfamiliar brand in a familiar product category, perhaps.\r\nRequires a moderate amount of time for information gathering. Examples include C softwoodhesâ€know product class but not the brand. ? considerable Decision Making/Complex high involvement, unfamiliar, expensive and / or infrequent ly bought products (Luxury Products). noble degree of economic / performance / psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all sixsome stages of the buying process. ? Impulse buying, no apprised planning. Jitesh Sanghvi †MMS -137, Marketing.\r\nPage 19 Understanding Consumer Behaviour towards Luxury Products Consumer Involvement some consumers are characterized as being more knotted in products and shopping than others. A consumer who is super involved with a product would be interested in knowing a lot about it before purchasing. whence he reads brochures thoroughly, compares brands and precedents available at different outlets, asks questions, and looks for recommendations. Thus consumer involvement grass be defined as heightened state of awareness that motivates consumers to seek out, attend to, a nd think about product information prior to purchase.\r\nJitesh Sanghvi †MMS -137, Marketing Page 20 Understanding Consumer Behaviour towards Luxury Products Causes of consumer involvement The factors that influences consumer involvement include personal, product and situational. ? Personal Factors Self-concept, needs and determine are the three personal factors that influence the extent of consumer involvement in a product or service. The more product image, the value symbolism inherent in it and the needs it serves are fitting together with the consumer self- image, values and needs, the more likely the consumer is to feel involved in it.\r\nCelebrities for example share a certain(prenominal) self image, certain values, and certain needs. They tend to use products and services that reflect their life style. They get highly involved in purchasing prestigious products like designer wear, imported cars, wellness care products etc. ? Product Factors The consumer involvement gro ws as the level of perceived risk in the purchase of a good or service increases. It is likely that consumers will feel more involved in the purchase of their shack than in the purchase of tooth paste, it is a much riskier purchase.\r\nProduct specialization affects involvement. The involvement increases as the number of alternatives that they have to choose from increases. This may be over due(p) to the fact that consumers feel variety which means great risk. The pleasure one gets by using a product or service can also influence involvement. Some products are a greater source of pleasure to the consumer than others. Tea and coffee berry have a high level of he acceptic (pleasure) value compared to, say home plate cleaners. Hence the involvement is high. Involvement increases when a product gains public attention.\r\nAny product, that is socially visible or that is consumed in public, demands high involvement. For example, involvement in the purchase of car is more than the pur chase of household items. Jitesh Sanghvi †MMS -137, Marketing Page 21 Understanding Consumer Behaviour towards Luxury Products ? Situational Factors The situation in which the product is brought or used can start perceptional involvement. The reason for purchase or purchase occasion affects involvement. For example, buying a pair of socks for yourself is far less involved than buying a gift for a close friend.\r\nSocial pressure can significantly increase involvement. One is likely to be more self conscious about the products and brands one looks at when shopping with friends than when shopping alone. The need to make a fast decision also influences involvement. A consumer who needs a new refrigerator and sees a „one- day- only sale? at an appliances retailer does not have the time to shop or so and compare different brands and prices. The eminence of the decision heightens involvement. The involvement is high when the decision is irrevocable, for example when the reta iler does not accept return or switch on the sale items.\r\nThus involvement may be from outside the individual, as with situational involvement or from within the individual as with enduring involvement. It can be induced by a waiter of personal-product-and situation related factors, many of which can be controlled by the marketer. It affects the ways in which consumers see, process, and send information to others. Jitesh Sanghvi †MMS -137, Marketing Page 22 Understanding Consumer Behaviour towards Luxury Products Models of consumer involvement Learn-Feel-Do Hierarchy Model Buying decisions vary according to the way there are taken.\r\nSome decisions are taken with lot of thinking; others are taken with great feelings. Some are made through force of habit and others are made consciously. The learn-feel-do hierarchy is simple ground substance that attributes consumer choice to information (learn), attitude (feel), and behaviour (do) issues. The matrix has four quadrants, eac h specifying a major marketing communication end to be informative, to be effective, to be habit forming, or promote self-satisfaction. thinking and feeling are shown as a continuum †some decisions involve one or the other and many involve elements of both.\r\n lofty and low importance is also represented as a continuum. Fig 1. 3 Consumer Involvement ? High Involvement / High Thinking Purchases in first quadrant require more information, both because of the importance of the product to the consumer and thinking issues related to the purchases. Major purchases such as cars, houses and other expensive and infrequently buying items come under this category. The dodging personate is learn-feel-do. Marketers have to furnish effective information to get consumer acceptance of the product. Luxury products fall in this category. Jitesh Sanghvi †MMS -137, Marketing Page 23.\r\nUnderstanding Consumer Behaviour towards Luxury Products ? High Involvement / High pinch The purchas e decisions in second quadrant involve less of information than feeling. Typical purchases secure to self-esteem- jewellery, apparel, cosmetics and accessories come under this category. The strategy model is feel-learndo. To encourage purchases marketers must approach customers with emotion and appeal. ? downcast Involvement / Low Feeling The purchases in this quadrant are cause primarily by the need to take personal tastes, many of which are influenced by self-image.\r\nProducts like news paper, soft drinks, pot liquor etc., fall under this category. Group influences often lead to the purchase of these items. The strategy model is do-feel-learn. It helps marketers to promote products through reference groups and other social factors. ? Low Involvement / Low Thinking It involves less in thinking and more of habitual buying. Products like stationery, groceries, food etc. , fall under this category. Over a period of time any product can fall in this segment. The role of informati on is to differentiate any „point of difference? from competitors. Brand loyalty may result simply from the habit. The strategy model is do-learn-feel.\r\nIt suggests that marketers induce trial through various sales promotion techniques. Jitesh Sanghvi †MMS -137, Marketing Page 24 Understanding Consumer Behaviour towards Luxury Products Research Method: The study is classified based on the consumer buying preferences and factors that influence purchase decisions. The research method adopted is exploratory as the research is still in its initial stage and the preliminary information that will be gathered will help in defining the problems and suggest hypotheses. We are set to learn about consumer behaviour across various product categories of luxury.\r\nWe intend to understand the influence of various factors including family members and friends on purchase decision, emotional attachment with the product, purchase of manipulate products and endorsing a film or sports per sonality for luxury product. We also want to understand purchase behaviour for car, planning of vacations and perception of holiday clubs. Jitesh Sanghvi †MMS -137, Marketing Page 25 Understanding Consumer Behaviour towards Luxury Products elementary RESEARCH Jitesh Sanghvi †MMS -137, Marketing Page 26 Understanding Consumer Behaviour towards Luxury Products Primary Research: Methods Primary research was get intoe in two steps.\r\n? Qualitative Research †Depth Interview Method ? Quantitative Research †Survey Method 1) Qualitative Research: For qualitative research, few high income people were asked open ended questions which were formulated based on the secondary research and in line with the hypothesis. Depth interview of 10 people were taken which gave an insight into their purchase behavior and their decision making process for a luxury good. Based on this interviews and a further review of the secondary research reports, a final survey questionnaire was hu stling.\r\n2) Quantitative Research: For quantitative research, after making the initial questionnaire it was pretested with 5 participants and was improvised. The final try out was 30 with target group being A and A+ socio-economic class people. In June 2009, the survey was conducted to observe the behavior pattern of consumers in buying luxury products. Purpose Based on the existing data and the findings of the survey, it can be understood what influences a consumer to buy a luxury product and how to reach a consumer.\r\nThe different perspectives of luxury products from a consumer?s point of view can be understood giving a tiny insight as to how to position a product as luxury product. Consumer? s expectations from a luxury product will help us to understand the modifications requisite in a product to be categorized as luxurious product. Jitesh Sanghvi †MMS -137, Marketing Page 27 Understanding Consumer Behaviour towards Luxury Products Sampling Sampling procedure: The sa mple is selected in a ergodic way, but those having a car with nearly worth more than 5lakhs. It was collected through mails and personal visits to the known persons, by dinner dress and informal talks and through selection up the questionnaire prepared.\r\nThe data has been analyzed by using the graphical method prepared in Microsoft Excel. ensample size: The sample size of my project is limited to 30 only. This is limited due to time constraints. Sample design: Data has been presented with the help of step graph, pie charts, stacked graphs etc. Limitation: ? sentence limitation ? Research has been done only at Mumbai ? Some of the persons were not so responsive ? Possibility of wrongful conduct in data collection ? Possibility of error in analysis of data due to small sample size Jitesh Sanghvi †MMS -137, Marketing Page 28.\r\nUnderstanding Consumer Behaviour towards Luxury Products Analysis: In qualitative research, a personal interview was conducted of 10 people to u nderstand the perception of luxury products and their purchase decision making process. The layout of the interview was: fond up General details about the person, his family background, his interests and his lifestyle Luxury Product To understand their perception of luxury products and steps involved in purchasing a luxury product. Car, Holiday & Club To understand his perception of a luxurious holiday and his planning process while going on a holiday.\r\nTo understand his attitude towards clubs and decision making of a car Factors influencing To understand various factors that influence his decision for buying a particular luxury product. For qualitative questionnaire see appendix 1 For quantitative questionnaire see appendix 2 Jitesh Sanghvi †MMS -137, Marketing Page 29 Understanding Consumer Behaviour towards Luxury Products Qualitative Analysis: The Depth Interviews conducted gave some valuable insights into the mindset of the consumer? s perception about luxury produc ts and their decision making process during purchase.\r\nSome of the interesting responses based on which quantitative questionnaire was made are as follows: 1) What is your sound judgement about luxury products? â€Å"Depends, it may be different for different people. DVD, TV and other stuffs would be luxury for me. ” â€Å"They are good for show off” â€Å"Luxury products are created by seller. They are not necessities for a buyer but a need has been created by the seller. The way the products are advertised, mark and presented, a need is created to buy it. ” â€Å" scratch line and foremost it gives you a satisfaction in life, satisfaction that you are making use of the dreams that are available in the market.\r\nIt can also be used as a status symbol. ” â€Å"If you can afford it one must consider luxury products. What is the point if you can earn so much money and still don’t spend on luxury products? ” Jitesh Sanghvi †MMS -137, Marketing Page 30 Understanding Consumer Behaviour towards Luxury Products Observation: Luxury Products have different perceptions with different people. Some think it is a need created by buyer where as some feel these are products good for show-off. Some consider it as a status symbol. 2) Is luxury a necessity? â€Å"Today a four vehicle has become a necessity. Though a four cyclist is a luxury still it becomes a necessity.\r\nSecond example is the latest engineering science mobile phones. We use mobile phones even while travelling, before sleeping, after acquire up, checking emails. So whatever you say about these products they have become a necessity. ” â€Å"It is all in the minds of the people. If they get attracted to the promotions of the product and offers, it becomes a necessity for them. As said earlier, the need is created by the seller. ” 3) Name a few luxury products? pricey Car/ cps Jewellery Club rank brand Perfumes turn Holidays Expensive Car/ cycl es/second Big House Jewellery smart Mobile Club Membership Travel Holidays.\r\nClub Membership Travel Holidays electronic Gadgets brand Perfumes brand Apparels Club Membership Electronic Gadgets Travel Holidays Branded Perfumes Branded Apparels Observation: Club Membership, Travel Holidays and Expensive Car/Bike are considered Luxury products whereas other products like Jewellery, Electronic Gadgets, Branded Perfumes and Branded Apparels are considered semi-luxury products. Jitesh Sanghvi †MMS -137, Marketing Page 31 Understanding Consumer Behaviour towards Luxury Products 4) Can you take us through the entire process of buying this product right from the wish to buy †actual purchase?\r\nâ€Å"My process to buy a new house started 10-12 years back. I saw an advertisement in the theme and then went and saw the house. Once finalised, I took a loan, sold the old house and bought this new house. ” â€Å"My old car was giving me lot of problem. So I unflinching to bu y this new car. I wished to buy this a year back. I didn’t want to take loan, so saved money for a year and in the end bought this. In this period, the prices went down, so it helped me. ” â€Å"I had a car before I bought this new one. It took me 2 years to buy this. It was the European car of the year. I saw the ad in the newspaper and decided I wanted to buy this.\r\nObservation: Purchase of a luxury product requires lot of planning and it takes many months to buy such high value products. Proper research and information needs to be obtained about the product before finalising the product. 5) What is your opinion of holiday clubs? Would you consider them as a luxury holiday club? â€Å"If you travel around a lot, than it is worth. It is not a luxury holiday because they have different offers which are affordable by most of the people. ” â€Å"I would consider it as a luxury. near of these packages are designed in such a manner that you can get discount du ring weekdays. Weekends are expensive.\r\nSo those are the times when you have time. ” â€Å"They are good and give you the necessary relaxation. I don? t consider them entirely luxury because nowadays most of the people can afford it. ” Observation: Opinions about holiday clubs are varied as there is not clear understanding of necessity. There are number of clubs providing cheap holidays and hence clubs seem to be losing on the gentle of luxury club. Jitesh Sanghvi †MMS -137, Marketing Page 32 Understanding Consumer Behaviour towards Luxury Products 6) Would you buy a counterfeit Rolex watch for a cheaper price? â€Å"I am not a watch person so I would definitely go for a counterfeit. But for.\r\n'