Top shelf indicating luxury products and the more money is referred to in comparison with the relatively size of their revenue.
This generally accepted hypothesis is questioned and partially rejected in this article, however the experiments are performed with not all variables of real life taken in order the study is still interesting and relevant. The researchers experienced that we don’t only consume to show off our social status, but also to repair our dented self-worth which is frequently influenced by our psychological status. So it seems that retail therapy is a new thriving force behind the luxury market demand, not implying that status behavior, conspicuous consumption, was pushed aside as this will still contribute more to the luxury sector.
As I already was aware of the fact that relatively poor people spend a higher volume of their revenue on products. However I wasn’t quite sure how this would portrait itself at the luxury market. I agree that people do buy products to repair their dented self worth, but I am not quite sure if everybody will immediately grasp at luxury products.
I presume that this is an American study, because in countries like Belgium, the Netherlands,...I don't think that this hypothesis is fully aplicable. Sure there is the fact that poorer people want to elevate their social status by buying luxury goods, but I think that the presure to actually do this is a lot bigger in the USA.
BeantwoordenVerwijderenOn the contrary I wholly agree with you on the fact that people shop bacause they want to boost their self-worth.
I don't think people are going to buy expensive products in times of economical crisis to boost their ego and self-threat. When people lose their jobs, can't pay their debts anymore, it's not obvious to start consuming luxury products. A better solution to these problems is e.g. looking for work and that would also be more rational to boost your ego...
BeantwoordenVerwijderenI just want to emphasize the importance regarding the fact that this is a study performed with not all real life variables taken in order, therefore it might be hard to indicate that this happens more in USA than in Belgium. Also I want to point out that we are talking about relatively poor people and thereby not only people who are going through a rough period in their life. The people do have to be able to buy these luxury products and it sounds to me that the people you are talking about Maikel will not have sufficient money or be credit worthy enough to receive a loan to buy these luxury products.
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