Inderstanding Consumer Behaviour Towards Luxury Products Essay

Custom Student Mr. Teacher ENG 1001-04 17 February 2017

Inderstanding Consumer Behaviour Towards Luxury Products

Studying consumer behaviour enables marketing researchers to predict how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making criteria, they can design marketing strategies and promotional messages that will influence consumers more effectively. The importance of consumer behaviour made marketers to think of a separate branch in marketing research – Consumer research, to deal exclusively for consumer related issues.

The current focus of this report is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process. The study has been initiated for Club Mahindra Holidays. The purpose of this study is to analyze consumer perceptions of luxury products and the factors that influence his purchase decisions. The objective is to understand consumer behaviour towards luxury products and the steps followed while purchasing it.

To achieve the above objectives, we first look at how luxury goods are different from regular goods and then go on to explore some facets and trends of the luxury goods as well as their market and consumers. We will understand the definition of luxury products through secondary research. Post secondary research we will develop few hypotheses which will give us the direction for our next step ie Qualitative Research. We will use interview method in qualitative research which will give an insight into the mindset of the consumers and their purchase steps involved and then follow it up with quantitative research (survey method).

Through this we will quantify our findings for the Indian luxury consumer and their buying behaviour. We will analyze the factors that influence the consumers in buying the luxury products. Jitesh Sanghvi – MMS -137, Marketing Page 4 Understanding Consumer Behaviour towards Luxury Products Research Abstract Scope: This project is a part of a job assigned to the planning department. This project is an initiative taken to understand the behaviour of consumers towards luxury products. Purchase of a luxury product involves lot of planning and research before taking any decision.

There are number of factors that affect an individual?s decision making process as well as his choice about the product. These factors are different for different types of luxury product. A research into these aspects will give us an insight into the mindset of the consumer and will help to study the consumer better. Method: Primary research was done in two steps. ? Qualitative Research – Depth Interview Method ? Quantitative Research – Survey Method 1) Qualitative Research: For qualitative research, few high income people were asked open ended questions which were formulated based on the secondary research and in line with the hypothesis.

Depth interview of 10 people were taken which gave an insight into their purchase behavior and their decision making process for a luxury good. Based on this interviews and a further review of the secondary research reports, a final survey questionnaire was prepared. 2) Quantitative Research: For quantitative research, after making the initial questionnaire it was pretested with 5 participants and was improvised. The final sample was 30 with target group being A and A+ socio-economic class people.

In June 2009, the survey was conducted to observe the behavior pattern of consumers in buying luxury products. This allowed us to find out about the behaviour of the consumer towards luxury products across various income groups. Also we asked them about what all factors Jitesh Sanghvi – MMS -137, Marketing Page 5 Understanding Consumer Behaviour towards Luxury Products influence them to buy such products and which brand of products do they feel are luxurious. We also understood the price range that they feel makes the product luxurious.

Thus in future while designing any interactive campaign the output of this survey would be of great use for positioning the product as a luxury product. Also some secondary data was mined regarding what exactly influences an individual? s decision. Conclusion: Luxury products are high involvement products which require high thinking and are defined by their exclusivity and brand. They are mostly bought as a symbol of status. People have high emotional attachment with luxury products and are mostly influenced by their family members in decision making as most of the products are bought for family use.

These products are also used as a means to gift their closed ones. Endorsing a film star or sport personality does not affect the image of a luxury product to a great extent. Luxury products give a feeling of pride and most of the purchase decision making is influenced by family members especially spouse. This entire initiative was one of its kinds and will help the INTERFACE COMMUNICATION to design its campaigns for Club Mahindra Holidays in a way to advertise them as a luxury club. Jitesh Sanghvi – MMS -137, Marketing Page 6.

Understanding Consumer Behaviour towards Luxury Products Acknowledgement I would like to give my sincere thanks to my Industry Project Guide Mr. Nilesh Talreja, Senior Executive, Strategic Planning, Interface Communications and Ms. Nahid Elavia, Account Planner, Strategic Planning for their kind support and guidance during my project and also for providing me with a great opportunity to work with such a valuable organization. I would also like to thank Mrs. Shamla Sathe, Account Planning Head for giving me this great opportunity to work with Account Planning Department.

It is her visionary thinking, which has been the guiding force for whole of the division and my report. I would also like to thank Mr. Amit Dhokai, my colleague, who has provided me with the necessary information and his valuable suggestion and comments on bringing out this project in the best possible way. I would also like to thank all the faculties at SIMSR who have helped me directly or indirectly in the completion of this project. I thank Interface Communications (A part of Draft FCB+Ulka) for such a valuable learning experience.

Thank you Jitesh A Sanghvi MMS – 137 (2008-2010) K. J. Somaiya Institute of Management Studies & Research Jitesh Sanghvi – MMS -137, Marketing Page 7 Understanding Consumer Behaviour towards Luxury Products Sr. No. 1 2 2. 1 TABLE OF CONTENTS Company Overview Secondary Research Luxury Products: Getting to know luxury 2. 2 2. 3 Difference between regular & luxury goods Consumer Behavior: What is Consumer Buying Behaviour 2. 4 2. 5 2. 6 Stages of Consumer Buying Behaviour Types of Consumer Buying Behaviour Consumer Involvement: Causes of Consumer Involvement 2. 7 3 4 4. 1 4.

2 5 6 Models of Consumer Involvement Research Method Primary Research Qualitative Analysis Quantitative Analysis Recommendations Appendix 23 26 28 30 35 59 60 17 19 21 15 16 Page No. 9 12 14 Jitesh Sanghvi – MMS -137, Marketing Page 8 Understanding Consumer Behaviour towards Luxury Products LIST OF FIGURES & CHARTS Sr. No 1. 1 1. 2 1. 3 Particulars Difference between regular and Luxury goods Stages of Consumer Buying Behavior Consumer Involvement Page No. 15 18 20 Jitesh Sanghvi – MMS -137, Marketing Page 9 Understanding Consumer Behaviour towards Luxury Products COMPANY OVERVIEW.

Jitesh Sanghvi – MMS -137, Marketing Page 10 Understanding Consumer Behaviour towards Luxury Products About Interface Communications History Interface Communications is the second agency of the Draft FCB Ulka group. The Draft FCB Ulka group has a 125 year heritage of pioneering concepts which define advertising and a 40 year heritage in India. Interface has grown from a single office to 5 offices in India and is one of the 1st few Indian agencies to boast of a pan Asia network. We are a team of 115 professionals across Delhi, Chennai, Bangalore, Kolkata and Mumbai.

Interface is the first Indian agency brand that has gone beyond India. Interface has opened offices in Malaysia, Hong Kong, China. In 2003 we launched operations in Taiwan, Singapore. Work with some of the best known brands in each country. Business Interface is a second agency that is created to handle large scale clients. We work with some of the biggest brands across sectors from FMCG to automobiles, from real estate to finance companies, from consumer durables to holidays and many more. Majority of our clients are industry leaders and we are proud to be their strategic partners.

Our clients have stuck by us as we are a process driven company. We have our share of global proprietary tools to provide a strategic edge to the clients we work with. Some of the more often used tools include: ? ? ? Mind and Mood and Moments The Wheel VIP and ICON Inspite of being process driven we are still a very people oriented organization. Our teams work together like a family and there is at all times a casual and jovial Jitesh Sanghvi – MMS -137, Marketing Page 11 Understanding Consumer Behaviour towards Luxury Products.

work environment maintained. We believe in an open door policy where any employee can express himself/ herself freely. As an organization we believe in constant learning and thus stress on training and development at all times. The Draft FCB Ulka group is one of the only advertising agencies in India to run a 2 month long training program for fresh recruits. This program called ‘The Star One training’ is a rigorous training ground for the future advertising biggies. This program is an annual feature and has been going strong for more than a decade.

Draft FCB Ulka and Interface are some of the few agencies to have a very low attrition rate and most of the senior level management have been with the company on an average for more than 15 years which is a long time in advertising which sees constant churn. We at Interface live the values we believe in and for us our mantra is : We provide strategic communications partnership to our clients – to help sell their brands today, and build brand value over time Jitesh Sanghvi – MMS -137, Marketing Page 12 Understanding Consumer Behaviour towards Luxury Products Secondary Research on luxury products Jitesh Sanghvi – MMS -137, Marketing.

Page 13 Understanding Consumer Behaviour towards Luxury Products Secondary Research: Luxury Products Getting to know luxury Luxury brands have often been associated with the core competences of creativity, exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. These product attributes give the consumers the satisfaction of not only owning expensive items but the extra-added psychological benefits like esteem, prestige and a sense of a high status that reminds them and others that they belong to an exclusive group of only a select few, who can afford these pricey items.

The luxury sector targets its products and services at consumers on the top-end of the wealth spectrum. These self-selected elite are more or less price insensitive and choose to spend their time and money on objects that are plainly opulence rather than necessities. For these reasons, luxury and prestige brands have for centuries commanded an unwavering and often illogical customer loyalty. Luxury has never been something easy to define, yet this mystery concept is something highly desired by one and all alike.

We look at delving deeper into this mystery and aura of luxury goods by way of comparing them against „regular goods? as well as highlighting the characteristics of the luxury industry. But before beginning with that, lets first attempt to understand some common terms associated in the world of high-end goods : ? Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by trends. These brands create and set the seasonal trends and are also capable to pulling all of their consumers with them wherever they go.

? Premium brands are those brands like Polo Ralph Lauren, Calvin Klein and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing mix strategies are more attuned to a mass market, albeit a luxury mass market. They are also termed as mass-premium brands or mass-luxury brands. ? Fashion brands on the other hand are those that address the masses. Jitesh Sanghvi – MMS -137, Marketing Page 14 Understanding Consumer Behaviour towards Luxury Products Difference between regular & luxury goods Fig 1. 1 Differences between Regular and Luxury Goods Jitesh Sanghvi – MMS -137, Marketing Page 15.

Understanding Consumer Behaviour towards Luxury Products Consumer Behaviour What is Consumer Behaviour Buying Behaviour is the decision processes and acts of people involved in buying and using products. Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm needs to analyze buying behaviour for: ? Buyers reactions to a firms marketing strategy has a great impact on the firms success. ? The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Jitesh Sanghvi – MMS -137, Marketing Page 16 Understanding Consumer Behaviour towards Luxury Products Stages of Consumer Buying Behaviour Fig 1. 2 Stages of Consumer Buying Behaviour The above figure shows Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity… discussed next. The 6 stages are: 1. Problem Recognition (awareness of need)–difference between the desired state and the actual condition.

Deficit in assortment of products. Hunger-Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information–did not know you were deficient? i. e. you see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search-o Internal search, memory. Page 17 Jitesh Sanghvi – MMS -137, Marketing Understanding Consumer Behaviour towards Luxury Products o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is o o o o Chinese food Indian food Burger king Klondike kates etc 3. Evaluation of Alternatives–need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then returns to the search phase. Can you think of another restaurant? Look in the yellow pages etc.

Information from different sources may be treated differently. Marketers try to influence by “framing” alternatives. 4. Purchase decision–Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase–May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation–outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, you may think that you really wanted a Chinese meal instead.

Jitesh Sanghvi – MMS -137, Marketing Page 18 Understanding Consumer Behaviour towards Luxury Products Types of Consumer Buying Behaviour There are four types of consumer buying behaviour which are as follows: ? Routine Response/Programmed Behaviour–buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. ? Limited Decision Making–buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps.

Requires a moderate amount of time for information gathering. Examples include Clothes–know product class but not the brand. ? Extensive Decision Making/Complex high involvement, unfamiliar, expensive and / or infrequently bought products (Luxury Products). High degree of economic / performance / psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. ? Impulse buying, no conscious planning. Jitesh Sanghvi – MMS -137, Marketing.

Page 19 Understanding Consumer Behaviour towards Luxury Products Consumer Involvement Some consumers are characterized as being more involved in products and shopping than others. A consumer who is highly involved with a product would be interested in knowing a lot about it before purchasing. Hence he reads brochures thoroughly, compares brands and models available at different outlets, asks questions, and looks for recommendations. Thus consumer involvement can be defined as heightened state of awareness that motivates consumers to seek out, attend to, and think about product information prior to purchase.

Jitesh Sanghvi – MMS -137, Marketing Page 20 Understanding Consumer Behaviour towards Luxury Products Causes of consumer involvement The factors that influences consumer involvement include personal, product and situational. ? Personal Factors Self-concept, needs and values are the three personal factors that influence the extent of consumer involvement in a product or service. The more product image, the value symbolism inherent in it and the needs it serves are fitting together with the consumer self- image, values and needs, the more likely the consumer is to feel involved in it.

Celebrities for example share a certain self image, certain values, and certain needs. They tend to use products and services that reflect their life style. They get highly involved in purchasing prestigious products like designer wear, imported cars, health care products etc. ? Product Factors The consumer involvement grows as the level of perceived risk in the purchase of a good or service increases. It is likely that consumers will feel more involved in the purchase of their house than in the purchase of tooth paste, it is a much riskier purchase.

Product differentiation affects involvement. The involvement increases as the number of alternatives that they have to choose from increases. This may be due to the fact that consumers feel variety which means greater risk. The pleasure one gets by using a product or service can also influence involvement. Some products are a greater source of pleasure to the consumer than others. Tea and coffee have a high level of hedonic (pleasure) value compared to, say household cleaners. Hence the involvement is high. Involvement increases when a product gains public attention.

Any product, that is socially visible or that is consumed in public, demands high involvement. For example, involvement in the purchase of car is more than the purchase of household items. Jitesh Sanghvi – MMS -137, Marketing Page 21 Understanding Consumer Behaviour towards Luxury Products ? Situational Factors The situation in which the product is brought or used can generate emotional involvement. The reason for purchase or purchase occasion affects involvement. For example, buying a pair of socks for yourself is far less involved than buying a gift for a close friend.

Social pressure can significantly increase involvement. One is likely to be more self conscious about the products and brands one looks at when shopping with friends than when shopping alone. The need to make a fast decision also influences involvement. A consumer who needs a new refrigerator and sees a „one- day- only sale? at an appliances retailer does not have the time to shop around and compare different brands and prices. The eminence of the decision heightens involvement. The involvement is high when the decision is irrevocable, for example when the retailer does not accept return or exchange on the sale items.

Thus involvement may be from outside the individual, as with situational involvement or from within the individual as with enduring involvement. It can be induced by a host of personal-product-and situation related factors, many of which can be controlled by the marketer. It affects the ways in which consumers see, process, and send information to others. Jitesh Sanghvi – MMS -137, Marketing Page 22 Understanding Consumer Behaviour towards Luxury Products Models of consumer involvement Learn-Feel-Do Hierarchy Model Buying decisions vary according to the way there are taken.

Some decisions are taken with lot of thinking; others are taken with great feelings. Some are made through force of habit and others are made consciously. The learn-feel-do hierarchy is simple matrix that attributes consumer choice to information (learn), attitude (feel), and behaviour (do) issues. The matrix has four quadrants, each specifying a major marketing communication goal to be informative, to be effective, to be habit forming, or promote self-satisfaction. Thinking and feeling are shown as a continuum – some decisions involve one or the other and many involve elements of both.

High and low importance is also represented as a continuum. Fig 1. 3 Consumer Involvement ? High Involvement / High Thinking Purchases in first quadrant require more information, both because of the importance of the product to the consumer and thinking issues related to the purchases. Major purchases such as cars, houses and other expensive and infrequently buying items come under this category. The strategy model is learn-feel-do. Marketers have to furnish full information to get consumer acceptance of the product. Luxury products fall in this category. Jitesh Sanghvi – MMS -137, Marketing Page 23.

Understanding Consumer Behaviour towards Luxury Products ? High Involvement / High Feeling The purchase decisions in second quadrant involve less of information than feeling. Typical purchases tied to self-esteem- jewellery, apparel, cosmetics and accessories come under this category. The strategy model is feel-learndo. To encourage purchases marketers must approach customers with emotion and appeal. ? Low Involvement / Low Feeling The purchases in this quadrant are motivated primarily by the need to satisfy personal tastes, many of which are influenced by self-image.

Products like news paper, soft drinks, Liquor etc., fall under this category. Group influences often lead to the purchase of these items. The strategy model is do-feel-learn. It helps marketers to promote products through reference groups and other social factors. ? Low Involvement / Low Thinking It involves less in thinking and more of habitual buying. Products like stationery, groceries, food etc. , fall under this category. Over a period of time any product can fall in this segment. The role of information is to differentiate any „point of difference? from competitors. Brand loyalty may result simply from the habit. The strategy model is do-learn-feel.

It suggests that marketers induce trial through various sales promotion techniques. Jitesh Sanghvi – MMS -137, Marketing Page 24 Understanding Consumer Behaviour towards Luxury Products Research Method: The study is classified based on the consumer buying preferences and factors that influence purchase decisions. The research method adopted is exploratory as the research is still in its initial stage and the preliminary information that will be gathered will help in defining the problems and suggest hypotheses. We are set to learn about consumer behaviour across various product categories of luxury.

We intend to understand the influence of various factors including family members and friends on purchase decision, emotional attachment with the product, purchase of counterfeit products and endorsing a film or sports personality for luxury product. We also want to understand purchase behaviour for car, planning of holidays and perception of holiday clubs. Jitesh Sanghvi – MMS -137, Marketing Page 25 Understanding Consumer Behaviour towards Luxury Products PRIMARY RESEARCH Jitesh Sanghvi – MMS -137, Marketing Page 26 Understanding Consumer Behaviour towards Luxury Products Primary Research: Methods Primary research was done in two steps.

? Qualitative Research – Depth Interview Method ? Quantitative Research – Survey Method 1) Qualitative Research: For qualitative research, few high income people were asked open ended questions which were formulated based on the secondary research and in line with the hypothesis. Depth interview of 10 people were taken which gave an insight into their purchase behavior and their decision making process for a luxury good. Based on this interviews and a further review of the secondary research reports, a final survey questionnaire was prepared.

2) Quantitative Research: For quantitative research, after making the initial questionnaire it was pretested with 5 participants and was improvised. The final sample was 30 with target group being A and A+ socio-economic class people. In June 2009, the survey was conducted to observe the behavior pattern of consumers in buying luxury products. Purpose Based on the existing data and the findings of the survey, it can be understood what influences a consumer to buy a luxury product and how to reach a consumer.

The different perspectives of luxury products from a consumer?s point of view can be understood giving a detailed insight as to how to position a product as luxury product. Consumer? s expectations from a luxury product will help us to understand the modifications needed in a product to be categorized as luxurious product. Jitesh Sanghvi – MMS -137, Marketing Page 27 Understanding Consumer Behaviour towards Luxury Products Sampling Sampling procedure: The sample is selected in a random way, but those having a car with nearly worth more than 5lakhs. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared.

The data has been analyzed by using the graphical method prepared in Microsoft Excel. Sample size: The sample size of my project is limited to 30 only. This is limited due to time constraints. Sample design: Data has been presented with the help of bar graph, pie charts, stacked graphs etc. Limitation: ? Time limitation ? Research has been done only at Mumbai ? Some of the persons were not so responsive ? Possibility of error in data collection ? Possibility of error in analysis of data due to small sample size Jitesh Sanghvi – MMS -137, Marketing Page 28.

Understanding Consumer Behaviour towards Luxury Products Analysis: In qualitative research, a personal interview was conducted of 10 people to understand the perception of luxury products and their purchase decision making process. The layout of the interview was: Warm up General details about the person, his family background, his interests and his lifestyle Luxury Product To understand their perception of luxury products and steps involved in purchasing a luxury product. Car, Holiday & Club To understand his perception of a luxurious holiday and his planning process while going on a holiday.

To understand his attitude towards clubs and decision making of a car Factors influencing To understand various factors that influence his decision for buying a particular luxury product. For qualitative questionnaire see appendix 1 For quantitative questionnaire see appendix 2 Jitesh Sanghvi – MMS -137, Marketing Page 29 Understanding Consumer Behaviour towards Luxury Products Qualitative Analysis: The Depth Interviews conducted gave some valuable insights into the mindset of the consumer? s perception about luxury products and their decision making process during purchase.

Some of the interesting responses based on which quantitative questionnaire was made are as follows: 1) What is your opinion about luxury products? “Depends, it may be different for different people. DVD, TV and other stuffs would be luxury for me. ” “They are good for show off” “Luxury products are created by seller. They are not necessities for a buyer but a need has been created by the seller. The way the products are advertised, branded and presented, a need is created to buy it. ” “First and foremost it gives you a satisfaction in life, satisfaction that you are making use of the dreams that are available in the market.

It can also be used as a status symbol. ” “If you can afford it one must consider luxury products. What is the point if you can earn so much money and still don’t spend on luxury products? ” Jitesh Sanghvi – MMS -137, Marketing Page 30 Understanding Consumer Behaviour towards Luxury Products Observation: Luxury Products have different perceptions with different people. Some think it is a need created by buyer where as some feel these are products good for show-off. Some consider it as a status symbol. 2) Is luxury a necessity? “Today a four vehicle has become a necessity. Though a four wheeler is a luxury still it becomes a necessity.

Second example is the latest technology mobile phones. We use mobile phones even while travelling, before sleeping, after getting up, checking emails. So whatever you say about these products they have become a necessity. ” “It is all in the minds of the people. If they get attracted to the promotions of the product and offers, it becomes a necessity for them. As said earlier, the need is created by the seller. ” 3) Name a few luxury products? Expensive Car/Bike Jewellery Club Membership Branded Perfumes Travel Holidays Expensive Car/Bike Big House Jewellery Trendy Mobile Club Membership Travel Holidays.

Club Membership Travel Holidays Electronic Gadgets Branded Perfumes Branded Apparels Club Membership Electronic Gadgets Travel Holidays Branded Perfumes Branded Apparels Observation: Club Membership, Travel Holidays and Expensive Car/Bike are considered Luxury products whereas other products like Jewellery, Electronic Gadgets, Branded Perfumes and Branded Apparels are considered semi-luxury products. Jitesh Sanghvi – MMS -137, Marketing Page 31 Understanding Consumer Behaviour towards Luxury Products 4) Can you take us through the entire process of buying this product right from the wish to buy – actual purchase?

“My process to buy a new house started 10-12 years back. I saw an advertisement in the newspaper and then went and saw the house. Once finalised, I took a loan, sold the old house and bought this new house. ” “My old car was giving me lot of problem. So I decided to buy this new car. I wished to buy this a year back. I didn’t want to take loan, so saved money for a year and finally bought this. In this period, the prices went down, so it helped me. ” “I had a car before I bought this new one. It took me 2 years to buy this. It was the European car of the year. I saw the ad in the newspaper and decided I wanted to buy this.

Observation: Purchase of a luxury product requires lot of planning and it takes many months to buy such high value products. Proper research and information needs to be obtained about the product before finalising the product. 5) What is your opinion of holiday clubs? Would you consider them as a luxury holiday club? “If you travel around a lot, than it is worth. It is not a luxury holiday because they have different offers which are affordable by most of the people. ” “I would consider it as a luxury. Most of these packages are designed in such a manner that you can get discount during weekdays. Weekends are expensive.

So those are the times when you have time. ” “They are good and give you the necessary relaxation. I don? t consider them entirely luxury because nowadays most of the people can afford it. ” Observation: Opinions about holiday clubs are varied as there is not clear understanding of necessity. There are number of clubs providing cheap holidays and hence clubs seem to be losing on the title of luxury club. Jitesh Sanghvi – MMS -137, Marketing Page 32 Understanding Consumer Behaviour towards Luxury Products 6) Would you buy a counterfeit Rolex watch for a cheaper price? “I am not a watch person so I would definitely go for a counterfeit. But for.

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