Determinants of Demand for Luxury Goods: A Comparative Study Among Three European Countries
Year: 2021
Type: preprint
Study design: Observational Study
Abstract: Identifying the determinants of luxury consumption may produce positive results for marketing. This the study is based on an online survey including the participants from Romania, Spain and Turkey, and it aims to reach possible factors that may affect the demand for luxury goods. It investigates the factors affecting the demand within the framework of purchasing luxury goods by using logistic regression. The analyses reveal a likelihood of a positive relationship between the demand for luxury goods and financial future expectations and show that those who do not consider themselves financially secure in the future have a higher likelihood of demand for luxury goods than those who feel secure about their financial future. The result also demonstrates that being in low-income classes has a likelihood of a positive impact on purchasing conspicuous status goods. It can be concluded that compensating for feelings of powerlessness might increase demand for luxury goods. Luxury good demand of individuals spending according to their budget is likely to be higher than those who don’t spend according to the planned budget. Individuals having positive economic behavior might spend for luxury within their budget limits. The results of this study may provide a new approach to shape the luxury demand of individuals. Considering the consumers’ psychology for future expectation may be useful for marketing managers who intend to increase the demand for luxury goods.
Source: SSRN Electronic Journal
Author: Kutlu Ergün
Institution: Balıkesir University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3197981582