From driving a Rolls Royce, carrying an Hermes purse, whilst wearing a Rolex watch, luxury brands have very much dominated the market recently. More and more people are now turning to luxury brands. One major problem is that even those who are not really well-within the bounds of being able to afford luxury brands are still joining the bandwagon. Hence, many of us often ask the question “Why is this so?”.
As we all know, for every consumer behavior, there are always psychological reasons behind it. Thus, in order to understand more about people’s behavior towards purchasing luxury branded items, let us check out the different reasons which different psychological studies discovered.
Studies have shown that purchasing luxury brands, which also means using or even flaunting it, may increase a person’s self-esteem. In one way or another, using luxury branded clothing, accessories, vehicles, etc. increases a person’s evaluation of his/her self-worth. For some people, the more expensive their watch is, the higher their perceived sense of worth as well.
Furthermore, purchasing luxury brands also gives people a sense of accomplishment. In other words, people feel as if their luxury things tell a story of their success in business or life, in general. In another view, more accomplishments, meaning more promotions or success in your job, projects, business, etc., may also make people feel like they deserve a prize and usually those prize come in hefty and luxurious price tags.
Since not many can afford luxury brands, owning luxury brand materials may represent authenticity. That means, nobody can copy you; or even if there are others who may copy you, it is more or less a rare occurrence. You stand out from the crowd and all eyes are on you because you’re driving a BMW. Needless to say, this feels quite good as it feeds your ego.
Most, if not all, people believe that quality and price are directly proportionate. Thus, luxury brands which come in heavy price tags are automatically equated with the best quality. Of course, there is some truth to this since usually, higher price means that stronger and better materials are used.
Hence, when purchasing a car, many would go for luxury brands, if they can afford it, over common brands since the price indicates better driving quality. Our suggestion, however, is that you should do a taste-test. For instance, some prospective luxury car buyers rent luxury cars (like those from Lou La Vie cars) in order to have a feel of what it’s like to drive a Benz or a Royce before actually purchasing one. This may be one way to confirm the issue on whether or not the quality is, indeed, better.
Another big reason why people turn to luxury brands is the fact that these things have become symbols of higher social status. Today, people do not just consider your mansion or your house as the indicator of your social status, in fact, just by looking at someone’s watch or bag, people are immediately able to tell which social class that person belongs to.