Consumer Behavior

[Name of the Institute]

Consumer Behavior

Introduction

The consumer behavior regarding the luxury goods is drastically different form the normal FMCGs (fast moving consumer goods) products. The primary reason for this behavior is the difference in the usage and the perception of the consumers. Unlike the low cost products which are used in the common everyday usage, the luxury goods are a considerably longer term investment and the consumers intend to use them in a long term perspective. Hence the consumer behavior regarding the luxury goods is considerably different from the other common purchases.

Research Objective

The primary objective of the research would be to understand the difference in the purchase behavior of the consumers regarding the luxury goods and FMCGs. The secondary objective will be to analyze the impact of price on the consumer purchase behavior for the luxury items and the last objective will be to assess whether the consumers consider the luxury items a long term or short term investment.

Research Questions

In reference to the various objectives given, the three research questions are given as:

Do the consumers pay more attention and time while purchasing luxury items?

Since the consumers are buying a luxury item, are they more likely to purchase expensive items? And does high price positively impact the buying behavior?

How long do the consumers plan to use the luxury items? Is it a long term or short term investment?

Discussion

Literature Review

The consumers have a completely different mindset and objectives, while they are purchasing luxury items. The major difference between the luxury items and the common disposable items is that the former is dependent on the want of the customer and the latter is dependent on the basic necessity (Dubois & Duquesne, 1993). The FMCG products are the items which are used in the common daily lives of the consumers, and this is why ...