The study of motivation in consumers which stimulates them to purchase Literature review

The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price - Literature review Example Again during 2004-2007, when the luxury industry was expanding and emerging into other markets, the CAGR was 8 percent (Amatulli and Guido, 2011). The growth of luxury goods market was caused by two important factors. Firstly the economic growth all throughout the world has lead to the creation of new class of rich people (Vigneron and Johnson, 2004) and secondly, the increase in the demand and range of products of luxury goods (Silverstein and Fiske, 2003). However, the sales of luxury goods were predicted to ease in 2013 due to the lower growth rate in China and subdued spending in Europe (Reuters, 2013; Wendlandt and Binnie, 2013). The sales are expected to hover around 4 to 5 percent as compared to the 5 percent sales in the year 2012 (Bain & Company, 2013). It is also expected that the revenue generated from the luxury market will rise 50 percent faster than the global GDP and the annual average growth rate will be around 5 to 6 percent in the year 2015 (Bain & Company, 2013). T he four main categories that come under luxury goods are Jewellery and watches Spirits and wines Cosmetics and perfume Fashion that includes accessories, ready-to-wear and couture (Jackson, 2004). Recently some other categories were also added like airlines, home furnishing, private banking, tourism, hotels and luxury automobiles (Chevalier and Mazzalovo, 2008). Fashion luxury goods include perfume, jewellery, watches, shoes, handbags, accessories and apparels, the display or use of which only brings prestige for the owner and functional utility takes a back seat (Vigneron and Johnson, 2004). Some of the research scholars have previously tried to highlight on the profile of the buyer and understand the reason behind the consumption of luxury goods (Dubois, Czellar and Laurent, 2005; Husic and Cicic, 2009; Summers, Belleau and Xu 2006; Wiedmann, Hennigs and Siebels, 2007). Some others have focused on the role of brand in the consumption of luxury products (Fionda and Moore, 2009; Kap ferer and Bastien, 2009; O’Cass and Frost, 2002; Phau and Prendergast, 2000; Tsai, 2005). More specifically Vigneron and Johnson (1999, cited by Amatulli and Guido, 2011) has focused on the presence of interpersonal and personal motives behind the consumption of luxury goods. In this section the focus is on luxury branding, pricing and issues that influences buying behaviour. 2.2 Meaning of luxury The word luxury has been derived from the Latin word â€Å"luxus†, which signifies the pleasure of senses irrespective of cost. Vigneron and Johnson (2004) have created a framework that consists of five components, which provides the meaning of luxury. High quality is associated with luxury goods, which is perceived as a fundamental attribute. Quality signifies craftsmanship, utility, sophistication, technology, design and material etc. Origin and tradition of the product along with the perceived superiority and excellence of the products acts as the reassuring factors which is a motivating factor for the customers who are buying any luxury goods. Semiotics of luxury has identified hedonistic value, which signifies the emotional responses linked to the consumption of luxury goods like excitement, sensory gratification and aesthetic beauty. Consumption is about the experience and feeling of pleasure that the consumer gets from the ownership of the goods like self-indulgence, fulfilment and personal reward. Conspicuous is another value attached with the consumption o