What Is Luxury Pricing

A study on Luxury markets and the Premium Pricing said that prices are rising of luxury products rather than falling down. The income of people has also been rising and their standard of living is increasing daily. At the same time people are showing interest in trying new things. Now a day’s people are more educated, experienced as compared to the previous generation. If there is an increase in the income of the consumers, their aspirations, their wants also increase. There has also been a boost in the increase of the middle class who are now looking forward for experiencing luxury (Ian Yeoman and Una McMahon-Beattie, 2005). Despite that, in the recent years there has been a lot of variation in the luxury industry to attract different segments

Consumption of luxury brand is based on self-expression and self-presentation. Luxury brands are scarce because of their high price which gives uniqueness to the person. There are various factors which have an impact of individual characteristics towards luxury brands, reason for the purchase intention of luxury brands (Qin Bian and Sandra Forsythe, 2011). Despite that, it is said that the luxury markets needs to be advertised to often communicate regarding their value. It would help them to differentiate themselves from other companies who are looking forward to enter the industry. It is said that it also helps them from companies who uses terms like premium, ultra-premium, hyper luxury, true luxury to gain attention of the consumers. For example: 2 luxury companies have been taken up to see their advertisements i.e. Louis Vuitton and Hermes and they are the greatest two luxury brands in the world. In this it is highlighted communication tools by these big brands and shows how they become universal. What messages the advertisements give so that consumers are emotionally influenced. The identity of these luxury brands (creation, products and advertisements) are able to attract large number of consumers and to strengthen their brand image. Consumers understand the message that has been given by the brand because they have learned to

As young consumers are the fastest growing segment in terms for the purchases of the luxury brands they create positive attitude towards the luxury consumption. The attitude for the consumption of the luxury brand differs amongst all age groups. It shows that age not only tells the motive for the purchase of luxury products but also the perception of what the luxury product means as a whole (Micheal Schade, Sabrina Hegner, Florian Horstmann and Nora Brinkmann, 2014). In addition to that, the person deviates from the path of getting influenced by religion as the affordability of the luxury goods increases. The women are much more inclined towards the consumption of the luxury goods as compared to men. People who are more educated tend on having a proper buying process rather than having impulse decision. Purchasing of luxury products is not related to status but the need for experiencing the product and satisfying one’s self. People also purchase luxury goods so that they stand out from the crowd and differentiate themselves from the group class to which they are in. Disposable income of the people are on rise, the confidence of the consumers have boosted up which has made the demand for the luxury products up. Consumers generally buy the products because of their quality, uniqueness and exclusivity (Sonny Nwankwo, Nicolas Hamelin, Meryem Khaled,