Luxury goods are somewhat affordable, but not nearly enough for the average person. While they may be tempting with their appealing features and flashy logos, their high prices can turn many shoppers away. However, with some savings and a higher income, purchasing luxury goods can be reasonable.
Key Points to Consider
It can be difficult to afford what you want, unless one has a good job or they are careful. Copymatic uses machine learning to create content with the same quality as human-written articles.
Many people buy luxury goods, that they can’t afford, because they aren’t acting rationally.
Some people think that any goods that are not luxury items are of an inferior quality. They also think that any goods that are more expensive are a better quality, even when there is no evidence to show it.
Spending money on a luxury good can help someone’s self-esteem or sense of belonging.
Luxury Goods: Why do Poor People Buy More Of Them Than Rich People?
“Some Consumers Do Not Act Rational”
Consumer behavior is often irrational. If a person acted completely rationally, they would always be logical, which would mean they would always act as if it was in their own best interest.
However, many recent studies have revealed that people don’t always make decisions based on rationality, and many people who buy luxury goods are not financially secure. Americans are in high levels of consumer debt due to the phenomenon of purchasing products they can’t afford.
Rather than buying high quality, durable handpurse for $100 per bag, some people spend thousands of dollars on custom-brand handbags that perform the same function and are of the same relative quality. They opt for these luxury-brand bags because they can, or because others might see them carrying one in a certain part of town.
Is it true that the poor are more likely to buy luxury goods than the rich?
One explanation for this phenomenon is that consumers tend to overemphasize the positive aspects of a product and ignore the disadvantages. For example, Apple Inc.’s customers wait overnight for new releases of iPhones, iPads, and Mac computers. But despite the advances in technology from other brands, Apple products are not unique or superior.
Most iPhone models can’t compete with Samsung’s new phones in durability. Most Xiaomi phones are cheaper than iPhones and Microsoft’s Lumias, but they’re still better quality than most other models. Apple has a strong reputation and a loyal customer base, but the company is facing tough competition from Samsung, Xiaomi and Microsoft.
Some people associate non-luxury goods with being of lower quality and believe that higher priced items represent a better quality. Despite the fact that this is not true, some people will still falsely assume you get what you pay for.
Why a person’s self-esteem may impact what they buy
Some consumers purchase luxury goods like sunglasses to increase their self-esteem.
For some people, luxury goods are the ultimate retail therapy. The Internet has made luxury goods easily accessible for impulse shopping.
It feels good to reward yourself with luxuries after a long week of work. Making these purchases makes you feel productive and builds self-worth.
People will often choose the authentic Rolex even if it costs more in order to avoid the discomfort of owning a fake. The fake watch doesn’t have the same quality and feel as an authentic luxury good.
In our rush to buy luxury goods, people often question whether or not we really need it. We purchase them for the same reasons we would use a fake object–to show off and feel like we belong.
People equates that originality, uniqueness, and the sense of a high-quality kind of authenticity with products they like. A study found that even when the child had a toy of their favorite, most refused to accept a clone as an identical replacement. Researchers at Yale found that sentiments in a product is another reason we seek authenticity.
For many people, acquiring a pair of Christian Louboutin boots is on par with not acquiring them.
Why the cost of luxury goods is irrelevant
Many factors can cause someone to buy a luxury good. They may want to feel accomplished and wealthy, or they may want to associate with others who purchase expensive goods.
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