In order to sell products to customers, a company needs to focus on a specific market segment. Segmentation can be based on income or psychosocial criteria such as culture. Both culture and economic factors have a strong impact on the purchase of luxury goods.
Liebenstein introduced "snob" versus "bandwagon" effects. The theory is simple: "Snobs purchase exclusive goods to defferentiate themselves from others, followers purchase them to identify themselves with a group." I don’t agree completely with this theory. In my opinion, snobs try to seperate themselves from the mass. But at the same time they try to fit into a high society, otherwise it would have a contrary effect by becoming an outcast. And that certainly ain’t the goal. But it makes snobs part followers.
I even see the opposite effect with shops. Of course every shop has there own strategy of selling products. But I would describe luxury boutiques more followers than regular shops. They also try to stand out in order to sell there products and be exclusive, but they have to keep them to certain standards of high societies. All these luxury shops strive for it and that makes them more followers than normal shops. Regular shops don't have to and can focus them completely on defferentiating from the pack. We can conclude that whether you are a snob or a follower, with each strategy, you're always trying to enhance your self-concept.
The Market for Luxury Goods : Income versus Culture
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I find this an intersting subject. Although I think it is not really true what you say about the more exclusive shops/brands who are followers. I think those shops or brands are trying to distinguish themselfs from normal shops by creating new 'luxury' goods. And maybe you're right, but I think that there are two kinds of snobs. You have those who are already very rich and a part of the high society, and there are those who want to become a 'member' of the high society. This second group actually can be described as followers.
BeantwoordenVerwijderenI think it's very difficult to make a distinction between "snobs" and "followers". Like Dieter says, snobs are part followers, but followers are also part snobs. For high class people being a snob is necessary to underline their status, but maybe they don't really want to be a snob. In that case they aren't a snob neither a follower, because they are nearly obliged to follow, while they maybe would like being more middle-class...
BeantwoordenVerwijderenLien is right about the the two different types of snobs. I couldn't agree more with you.
BeantwoordenVerwijderenAfter thinking about it for a while I would like to distinguish two kind of views about snobs:
First of all, we have 2 groups of snobs when we take the theory of Liebenstein into account.
There are "snobs" who are already very rich and want to seperate themselves even more.(GROUP A) And there are "snobs" who want to be part of the exclusive society and are part followers.(GROUP B)
In the other view about snobs we have to take the demand theory in consideration.
On the one hand there are snobs who adapt their demand to a price increase. Their demand of luxury goods will increase when the price of the goods goes up. This is the Veblen Effect. The luxury goods are called Giffin Goods. These snobs will fit in best with GROUP B.
And on the other hand there are snobs whose desire to buy a luxury good rises, when other consumers buy it less. This is called the Snob Effect. They will fit in best with GROUP A.
Note :
BeantwoordenVerwijderenYou can say the demand of GROUP A is influeced twice by the Snob Effect: To separate them from the followers and to separate them from GROUP B.