Why we wear brands

WHY WE WEAR BRANDS:

THE SCIENCE BEHIND THE BUYING BEHAVIOR OF MILLENIALS

Ravneet Sachdeva

FASH 782

Prof. Aeran Park

ABSTRACT OBJECTIVE: To explore the various factors influencing consumer behavior and their decision to buy luxury goods and brand names, with a focus on the millennial generation.

METHOD: Analyzing reports, surveys and scholarly research conducted on university students and young, working professionals, as well as tests carried out in the field of psychology CONCLUSION: Summarize some of the prominent factors which influence consumer buying patterns and the “why” behind the “theory of conspicuous consumption”.

WHAT IS LUXURY

?

Products and activities, both tangible and intangible that are of high economic worth, or to describe anything that is not a “necessity�.

OR Products whose price/quality relationship is the highest on the market.

Social classes are differentiated, articulated and reproduced by consumption tastes - our social standings are demarcated not only by what we consume, but also how and when we consume it.

L

PREFACE Despite the fact that the functional value of luxury brands is usually not significantly higher than that of non-luxury brands, luxury brands can achieve significant price premiums in the market over those which are non-luxury.

Millennials are currently one of the most powerful consumer groups on the market and will take over as the largest generational segment in the luxury consumer market around 2018-2020.

To them, brands represent a lifestyle and luxury goods provide a strong visual representation that convey - “I've made it.”

PERCEIVED SOCIAL VALUE & INTELLECT What one wears to a job interview could play a role in determining whether or not one gets the job.

Researchers call this effect an example of “signaling theory�, which says that people show off to signal to others that they can afford to buy expensive products/services, thereby increasing their social value in the eyes of others.

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GENDERED DIFFERENCES IN CONSPICUOUS CONSUMPTION

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Different life orientations of men and women influence their consumer behavior and why they both engage in “conspicuous consumption” of luxury goods.

To men, flaunting material goods like are like the peacock's colorful plumage, which conveys their fitness to peahens.

Unlike their male counterparts, women don’t necessarily use luxuries to communicate their worth to a potential mate but to outdo rival attractive women.

SOCIAL EXCLUSION

Luxury goods represent social segregation and exclusion, thereby signifying superiority, exclusivity and the purchasing power of those who acquire them.

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These goods, while not necessarily better in quality or appearance than their less expensive substitutes, are purchased with the main purpose of isolating the buyer from others who do not have the means to gain access to the same goods.

COUNTERFEIT PRODUCTS AND THE THEORY OF PLANNED BEHAVIOR

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Counterfeit goods stimulate consumer demand for brand-name items since they tend to have some symbolic value for the customers who buy them.

Carrying designer goods is like having a permit into high society for those who can’t afford genuine goods The theory of planned behavior defines intent as the decision to act in a particular way & subjective norm refers to social influence on a particular behavior.

TO CONCLUDE...

People buy luxury goods for a variety of reasons, most of which are related to the emotional quotient associated with expensive material goods.

Why consumers purchase luxury brands is often a paradox, since these purchases are sought out of heightened values of accomplishment for oneself, but they instead signal arrogance to others.

Consumer behavior is a complex process that is a blend of physiological as well as sociological aspects, which varies as we encounter different cultures, geographical regions as well as demographics.

Some of the main inuences/behavioral patterns can be summarized as:

(a)

RATIONAL The economic and practical aspects of purchasing

PRODUCT The quality and physical appearance of a product

(c)

COGNITIVE Social goals and mental factors

PEERS The opinion of friends/partner on a purchase

(e)

(b) (d)

CULTURAL Symbolic or heritage values attached to brands

THANK YOU!