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Consumer Behavior of Young People
towards Luxury Goods
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Table of Contents
Introduction ..................................................................................................................................... 3
Concept of Consumer Behavior ...................................................................................................... 3
Self Concept Theory.................................................................................................................... 5
Culture and Values ...................................................................................................................... 6
Environment Oriented Values .......................................................................................... 7
Additional Oriented Values .............................................................................................. 7
Reference Groups ........................................................................................................................ 7
Attitudes ...................................................................................................................................... 8
Social Status ................................................................................................................................ 8
Perception .................................................................................................................................... 9
Conclusion .................................................................................................................................... 10
Reference ...................................................................................................................................... 11

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Introduction
Luxury goods have become very important concept for the people in modern world. For
marketers, it has become significant to read the behaviors and attitudes of individuals especially
young people towards luxury products. In the modern world, companies achieve profits and
goals with the help of detailed information of consumer behaviors. The companies gain the
ability to earn higher customer loyalty only with the help of consumer behaviors and therefore it
is considered as the most important concept by the organizations (Godey, 2013).
Consumer behavior is defined as the study of consumers and the procedures adopted by them for
selecting, using, and disposing of the products or services. Although, researching consumer
behavior is a complex task but understand the behaviors of consumers is critical for the success
of companies and form marketers. In this paper, different theories are used for explaining and
analyzing the concept of consumer behavior towards luxury products in young people.

Concept of Consumer Behavior

The consumer behavior is the investigation of the process that is especially included when an
individual or gatherings select to purchase, use diverse commodities to satisfy their needs and
yearnings in a more fitting way. An understanding of buyer behavior is a significant component
of the effective administration of any current undertaking. Today's business surroundings is more
buyer driven than at any time in the past and a disappointment of associations to perceive the
force of the current customer implies that they hazard falling into an unremitting cycle of client
procurement and attrition. They are additionally unrealistic to be not able to produce the benefits
important to fulfill the requests of their shareholders and different stakeholders (Godey, 2012).

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By studying the customer behavior, empowers economic specialists to comprehend the way in
which purchasers take a gander at commodities. Individuals in the field of marketing understand
that the more they think about the consumers choice making and significant points of view, the
more able they are to plan better advertising methodologies and limited time messages that will
upgrade the accomplishment of their brand and business as well. Youngsters are viewed not
exactly as a lucrative current business sector for luxury products however are likewise seen as an
important future business sector. This is because of the way that youth is the life stage when it
will be seen from this exposition that people have a tendency to create their personality and draw
on and form state of mind to luxury marks (Nwankwo et al., 2014).
Youngsters get such a large number of marketing messages about the imperativeness of brands
and image when picking items that it has affected their buying behavior as well as the path in
which they standardize with grown-ups and their companions. Luxury products are by and large
connected with premium prices evaluating and costs are keeping on rise even in the current
difficult economic times all things continue to rely on inspirational behavior of consumer. It is
accepted by a few scholastics that publicizing makes the desire, from young purchaser, to buy
and own luxury products. Youngsters acquiring luxury products these days have experienced
childhood in the 'advanced age' and exploration has demonstrated that they largely respect
customary media, for example, daily papers and radio, to be superfluous in their decision. Thus,
most of the consumers depend on internet to get complete information regarding the luxury
products and consult various online sources before they purchase any luxury product (Mullen &
Craig, 2013).

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Self Concept Theory

Self-concept theory is one of the most important theories in order to get the appropriate reaction
of an individual regarding their decision towards luxury products particularly for young people.
It might be utilized for critical peculiarity of youngsters elevation or conduct towards
extravagance items. Youngsters are more pulled in towards the luxury products. They have
inspirational disposition towards the luxury brands in light of the fact that costly brands engage
their self- image that may be, the way do other individuals see them, how they observer
themselves, how do society recognize about them, how their companion ring witness about them.
The young generations need to join distinctive social gatherings and they need to be a piece of
variety of inspiration from various settings (Godey, 2012).
There are three main concepts of self-concepts theory that are as follows;

Actual Self Concept

Ideal Self Concept

Social Self Concept

Most of the consumers are showing themselves by doing diverse exercises and enthusiasm with
assembling their values and culture. For example, age gatherings of between sixteen to eighteen
years are continuing attempting on new product like cigarettes, vehicles, and liquor and battling
for their fractional self-definition acquiring and exhibiting a few qualities and behavior, it is
known as self-competition theory. It was found that, youngsters have demonstrating
inspirational disposition towards luxury. As indicated by past research, youngsters have diverse
identity. Some advertiser use celebrity endorsement for pushing its products. In the connection to
personality, broad communications is doing great in light of the fact that some youthful age

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customers like to just those items which are embraced by popular Hollywood stars (Vigneron et
al., 2004).
Culture and Values
In the event that an individual consider the society it incorporate distinctive attributes for
example mindfulness, society, regulation, morals, conduct and custom and so forth which shows
that society has divergent distinction and nature. In setting to consumer behavior, society could
be clarified that incidental of convictions, conventions and qualities which control singular
conduct in a restricted society. For the most part culture is delivered by learning; it might be
formal and casual learning or investigative learning. With the assistance of culture consumer can
hunt down the diverse items, in the wake of utilizing them he/she can judge the quality and worth
of the product. By utilizing more ideas, society could be clarified that broad communications is
assuming unmistakable part in marketing of the item. Values are additionally not quite the same
as culture-to-culture and have an impact on the buying behavior of buyers (Mullen & Craig,
2013).
The culture might affect consumer behavior in a variety of ways. It recognizes with traditions
and convictions that are gained from the public in which an individual grows up. Society is a
massive zone of study that regularly has misty restrictions and hesitates in level of affecting
consumers. The parts of socio-culture, for instance, sub-society, and social class and reference
groups assume distinctive parts in affecting consumer behavior. A typical example of behavior
could be seen inside the groups. The cultural change takes place at a moderate pace and might be
seen to advertisers as threats or good fortunes (Chu et al., 2013).

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It was found that young generation has some favorable values towards luxury products some of
them are as follows:

Environment Oriented Values

Environment oriented values of buyer has distinctive society to society or birthplace to source
because of diverse in economy, specialized apparatuses and the social environment. Distinctive
society demonstrates a spending behavior of customers (Mullen & Craig, 2013).

Additional Oriented Values

Some social societies are not in favor of luxury products that are unique in relation to individual
society. It was perceived, that in most part of the world there is full of mixed society, so that the
majority of the individuals have diverse observation towards luxury brands in the correlation
with the Western part of the world. Nevertheless, according to experts, the majority of the
youngsters are additionally eager to purchase luxury brand and they have an ideal state of mind
towards extravagance mark in the correlation with different parts of the world (Nwankwo et al.,
2014).
Reference Groups
It is examined that most of the young buyer crave to relate themselves with the reference group.
At the one purpose of time, buyers associates with the several groups, yet wish to partners
alongside others reference groups additionally. Why he/she desire to relate themselves with
additional reference groups, sort of contact, bid , allure and so forth as a part of reference
gatherings, it give them power or certainty as a component of part of reference groups (Chu et
al., 2013).

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There are various different sorts of reference groups, which may have a prompt or a roundabout
effect on attitude, conduct, and mental self-image. The essential reference group is considered as
a person that has perpetual contact with family, companions, partners and so forth and they hold
the strongest effect over the people. Then again, the secondary group involves the person that has
less contact, as contrast with primary reference group for instance unions and relationship inside
the association. Regardless concerning whether an individual appears to be, or looks to transform
into a part of a particular gatherings, the gathering can without much of a stress affects the
individual qualities, demeanor, and behavioral pattern. The effect a reference groups clings an
individual may be seen as positive, negative or both especially while making the marketing
strategies.
Attitudes
As indicated by specialists attitude is a long haul, universally handy advancement of individuals,
reason, ads or issues. State of mind assumes a fundamental part when purchaser purchases
something from the business. Purchaser has a positive and negative disposition towards luxury
products. Individuals associate extravagance alongside taste, quality, and exclusive class with
great and terrible taste. Lower white-collar class individuals have changed disposition towards
the extravagances items, constantly rich individuals have a positive attitude towards the luxury
products. Before offering any item in the business sector, a few advertisers they need to test
buyer's attitude towards their products (Nwankwo et al., 2014).
Social Status
It is observed that in the modern era people especially young people has become very conscious
about their social status and this has deeply impacted the buying behavior of consumers. Young
people are found worried about their social status and to maintain their high-class status, they
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show their interest towards luxury products. This means that social status deeply influences the
behaviors of consumers and hence is highly important concept for the marketers and
organizations. According to this theory, the need of maintenance of social status has forced the
young people to purchase luxury products and therefore, the companies providing luxury
products for these people has faced great boom in recent years (Chu et al., 2013).
Young people choose to purchase products according to their social status. They have no concern
with the products or the enjoyment associated with it but they are only concerned about their
social status and the influence it would have on other people. Young people opt to purchase
luxury goods to show others they can afford such products and this in turns help the
organizations in achieving their goals and increased profits. Therefore, social status influences
the buying behaviors of consumers extensively and change in their social class, changes the
behavior of consumers rapidly (Mullen & Craig, 2013).
Perception
Perception is also the most important concept in terms of consumer buying behavior because
awareness or knowledge about any particular brand or products increases its worth in the market.
Young people are found more aware about luxury products, which include clothes, perfumes,
accessories, leather goods, and fashion. It is observed that manipulating buying decision of
consumers becomes possible if accurate perception of consumers about the product is obtained.
This means that perception of a product by the consumers affects a lot on their buying behaviors
and definitely on the profits and goals of the organization (Vigneron et al., 1999).
Perception of young people is important because their perception helps them in deciding about
the company and the values offered by it. The best way to reach young people is to give them

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exposure that is knowledge about the luxury products in which they are interest to buy. The more
information consumers have about a product, the more they are found comfortable in buying
those products. Hence, this means that theory of perception is of significance importance for the
organizations because it highly affects the buying behavior of young people and influence them
towards luxury products of particular brand or company (Vigneron et al., 2004).

Conclusion
Hence, it is concluded that consumer behaviors in terms of young people towards luxury
products is the most important concept in the modern world because of the increase of demand of
these products. It is noticed that young adults demand highly these products and therefore their
buying behaviors affects the company or brand. In this paper, consumer behaviors of young
people towards luxury products are discussed in the context of some theories. These theories are
self-concept theory, culture and values, luxury groups, attitudes, social status and perception.
These theories provide the concept of consumer behaviors and give the information about the
reaction of consumer behaviors towards luxury products particularly of young people. It is
analyzed with the help of these theories that young people opt greatly towards luxury products
and the concept of social class, attitude, culture and values influence the buying behavior of
youngsters.

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Reference
Chu, S.-C., Sara, K. & Yoojung, K., 2013. Understanding consumers' responses toward social
media advertising and purchase intention toward luxury products. Journal of Global Fashion
Marketing , 4(3), pp.158-74.
Godey, B., 2012. Brand and country-of-origin effect on consumers' decision to purchase luxury
products. Journal of Business Research, 65(10), pp.1461-70.
Godey, B., 2013. An Intercultural Comparison of the Perception of Luxury by Young
Consumers. Luxury Marketing, pp.57-76.
Mullen, B. & Craig, J., 2013. The psychology of consumer behavior. Psychology Press.
Mullen, B. & Craig, J., 2013. The psychology of consumer behavior. Psychology Press.
Nwankwo, Sonny, Nicolas, H. & Meryem, K., 2014. Consumer values, motivation and purchase
intention for luxury goods. Journal of Retailing and Consumer Services, 21(5), pp.735-44.
Vigneron, Franck & Lester W., J., 1999. A review and a conceptual framework of prestigeseeking consumer behavior. Academy of Marketing Science Review , 1(1), pp.1-15.
Vigneron, Franck & Lester W., J., 2004. Measuring perceptions of brand luxury. The Journal of
Brand Management, 11(6), pp.484-506.

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