Thursday, May 1, 2008

A Guide to The Luxury Shopping Experience

(2008 Guide to Luxury Purchasing Locations (C) Tiner)

(2008 Guide to the Luxury Consumer Experience (C) Tiner)

(2008 Guide to Luxury Purchasing Locations (C) Tiner)

As I am completing a consumer behavior class today at USC's Marshall School of Business, I thought it is an appropriate time to reflect upon the luxury shopping experience. My group project this semester focuses on consumer's preference towards luxury accessories and how these lessons can be applied to different consumer markets.

Ultimately the luxury market is summarized by two words: experience & exclusivity. From boutique stores to warehouses, the charts above illustrate the different purchasing options for consumers. Each shopping locations provides a different consumer experience and offers different "exclusive" products.

It's noteworthy that a majority of the luxury brands have a range of "starter" products that satiate the consumer's appetite and encourage them to try other "superior" luxury products (see third chart). Although my group's research focused on the accessory market, our findings can be applied to other luxury industries, including the luxury car market (see third chart).

Conclusion for today:
From a marketing perspective, it's important to focus on encouraging new target market to try your "sample" products to increase awareness, knowledge and ultimately the bottom line for your brand.

From a consumer perspective, it's crucial to understand the nuisances in our shopping experiences and that subtle differences in the store environment contribute to to price differences and perceived value of the product.

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