...Impact of Culture on Consumer Behavior in Luxury Consumption South Korea vs Netherlands By: Cindy Yoel Tanesia, Joline Boersma I. South Korea South Korea is a country located in the southern part of Korean peninsula. The population is 48,955,203 people (July 2013 est.) which make South Korea to be the 25th largest country in terms of population despite the relatively small area of the land. This paper will compare two cities in South Korea, Seoul and Busan, in terms of different in culture and how it affects the consumer behavior of the people living in the related cities. But, first of all, let’s see the general culture of people in South Korea: 1. Homogeneous There is a term of ‘hanminjok’ (한민족) in South Korea which literally means South Korean race. This term is used to describe that South Korean actually prefer to not mix their race with other races through international marriage because they afraid that they eventually will not have the pure Korean race anymore. However, the diplomatic relationship between USA and South Korea where USA helps South Korea for the military made USA military base established in some parts of South Korea actually opened the opportunity for more people from USA to come and stay in South Korea and eventually have their own family in South Korea which contributes to the increase in the international marriage in South Korea, especially in Seoul. 2. Importance of education Education plays important part for South Korean in almost every...
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...of Customer Relationship Marketing (CRM) on the consumer behavior in the luxury retail market of UK. Abstract Customer relation marketing (CRM) is a strategic process of business in which the relationship of client, the loyalty of customers and brand value are built through the marketing activities and strategies. Customer relation marketing has allowed luxury retail market in the United Kingdom to develop long-term relationships with new and established customers while helping in the streamline corporate performance. Customer relationship marketing is a new completive weapon for the luxury market products in the United Kingdom. The battle is among corporates and business in the luxury market products a consequence mainly attributed to internet and rise globalization. Organizations that are offering the luxury products to their customers is focusing on conquering the minds of their customers. In this, they make them be loyal brand followers and satisfy their customer needs with the help of customer relation marketing systems. Luxury products and brand have become the new modern cults. Each brand is seeking to attract the largest customer base. The main purpose of writing the dissertation is to carry out a qualitative thematic research and analyses on the impact customer relation marketing in the luxury retail sector in the United Kingdom. The research and analysis will be based on the consumer buying behavior and the luxury retail market success. The paper also evaluates on...
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...Japan, and identify the current phenomena in the market. Luxury is a business model of LV in accelerating Japanese consumers. It is followed by great execution of marketing principles in term of Product, Distribution, Promotion, and Price. However, the modern life of consumers has created change in their behavior. It has become a serious issue that challenges LV’s success in the future. In constructing this paper, a review of relevant journal, newspaper, academic publications, and online resources were used. Consumer behavior change is identified as a significant influence that challenges future performance of LV in the market. LV must seriously think on how to strategically maintain its competitive advantages in the market. This paper recommends LV to enhance its luxury existence in the heart of potential customers. It can be done through extensively enhancing customer relationship, and the main concept that should be implement is strategic alignment between its current marketing programs and Research & Design functions to support high quality production, which accommodate consumers’ expectations. Table of Contents EXECUTIVE SUMMARY………………………………………………………………………....i 1.Introduction ..................................................................................................................... 1 2.Business model strategy: Luxury as a business model ..................
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...Luxury items Expenditure Expenditure Running Head: Luxury items Expenditure Factors affecting Luxury Items Expenditure among University Students of The American University in Cairo Yousef Abu Gharieb RHET 201 1 Luxury items Expenditure Expenditure To My Parents whom without, I wouldn’t be the man I am today. 2 Luxury items Expenditure Acknowledgment Expenditure I would like to greatly thank Sara Azlw for her full support in writing this paper. I would also like to show my gratitude to Dr. Fikry Boutros who has been a constantly motivating me while writing this paper and wouldn’t have gotten far if it wasn’t for his support. 3 Luxury items Expenditure Table of Contents Expenditure ACKNOWLEDGMENT ....................................................................................................................3 ABSTRACT ...................................................................................................................................5 INTRODUCTION ...........................................................................................................................6 THEORETICAL FRAMEWORK: ...................................................................................................................... 6 RESEARCH QUESTION: .............................................................................................................................. 7 HYPOTHESIS: ..................................
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...factors influencing consumer purchase of luxury goods and, more specifically, to consider the combined effect of brand and country of origin (CoO) on the purchasing decision. This article extends an exploratory phase constructed from qualitative data previously gathered on this topic. The study includes administering a questionnaire online in seven countries (China, France, India, Italy, Japan, Russia, and the USA) to a total sample of 1102 respondents. The richness of this research relates to the possibility of an intercultural analysis of the results from seven countries. These results concern the differences in the relative importance of components of the consumer decision-making process in respect of the purchase of luxury and non-luxury goods; the relative importance of CoO for consumers making purchasing decisions relating to luxury goods; and the variation in consumers' decision-making criteria depending on the maturity of the luxury market. This research allows the authors to confirm, develop, and generalize results previously obtained in the exploratory phase of their work. They are interesting in terms of management recommendations for a company that wishes to expand internationally in a geographic area covered by the study, since the research found significant differences. The results of the research contribute also to the theoretical controversy concerning the importance of CoO in the consumer decision-making process. Keywords Country of origin; Luxury; International;...
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...Bibliographic List for: FASHION MARKETING, CONSUMER BEHAVIOR, FASHION VISUALS and other Fashion Courses. Material found in MasterFile Database (some fulltext), the Fashion Library and other OhioLink Libraries. ARTICLES Record: 1 Title: Wealth: Not At All What It Used To Be. Authors: Gellers, Stan Source: DNR: Daily News Record; 11/1/2004, Vol. 34 Issue 44, p14, 1/3p Document Type: Article Subject Terms: CLOTHING trade CONSUMER behavior CONSUMERS CONSUMERS' preferences LEISURE Abstract: Reports that Visa Signature Cards created the moniker New Affluent, a representation of the growing consumers for clothing trade. Characteristics of New Affluent customers; Financial status of New Affluent customers; Fascination of New Affluent customers with leisure and related activities. Full Text Word Count: 465 Accession Number: 15071351 Database: MasterFILE Premier Record: 2 Title: Having it all. Authors: Brooks, Amanda Source: Vogue; Nov2004, Vol. 194 Issue 11, p378, 4p Document Type: Article Subject Terms: CLOTHING trade CONSUMER behavior FASHION SHOPPING BROOKS, Amanda Abstract: Discusses the shopping behavior of Amanda Brooks, the creative director of Tuleh and Manhattan fashion muse on fashion items. Favorite inexpensive...
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...Customer Buyer Behavior Regarding Luxury Goods in Peter Jones By [Author’s Name] [Faculty Name] [Department or School Name] [Month Year] ACKNOWLEDGEMENT My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate. DECLARATION I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with the university. Signature: Date: ABSTRACT TABLE OF CONTENTS LIST OF FIGURES CHAPTER 01: INTRODUCTION 1.1. Outline of the Study Purchasing products and services is common around the world, and almost everyone indulges in shopping. The value of a brand is seen in its brand equity and the brand loyalty that the brand possesses. The way consumers perceive a product or service, and the importance it has in their life is what makes all the difference, watching dogs on the way...
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...The New World of Luxury Caught Between Growing Momentum and Lasting Change Jean-Marc Bellaiche, Antonella Mei-Pochtler, and Dorit Hanisch December 2010 The New World of Luxury Caught Between Growing Momentum and Lasting Change T he luxury goods industry seems to have shrugged off the damage done by the Great Recession faster than many people expected. Companies remain cautious about the outlook for growth, but major brands recently reported strong gains in revenue and profit, defying all the signs of a difficult market, including weak consumer confidence, increased savings rates, and lingering doubts about the stamina of the recovery. But these signs of a revival do not augur a return to business as usual. The Great Recession was more than a drag on demand. It was the tipping point for several trends—including profound changes in consumer behavior and the competitive landscape—that threaten to erode the mystique of luxury. In this new world of luxury, being iconic and exclusive is not enough to make a brand grow, and fewer consumers are willing to blithely accept high prices as the mark of luxury. They need better reasons to buy. To respond to these changes, luxury goods companies will need to resolve conflicting priorities in every major aspect of their business: target markets, consumer segments, product portfolios, and distribution channels. Companies that skillfully manage these tensions will find opportunities for growth in both mature and rising...
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...MKT 2240- BUYER BEHAVIOUR THE BEHAVIOUR OF THE YOUNG TOWARDS LUXURY PRODUCTS WORD COUNT 1709 Submitted on: 2nd Sept 2013 Module Coordinator: John Sutton Content Introduction 3 *Luxury Background 3 *Today’s Youth 4 Consumer Behaviour 4 Self Concept Theory 4 The ‘A B C’ Attitude model 6 Conclusion 8 References List 9 Introduction "Luxury is a necessity where necessity ends." Coco Chanel The main purpose of this research is to find out what creates a spark in the youth of today when it comes to buying luxury products. For some it may be status and recognition for the others it may be comfort and quality, it may vary from people to people due to their personality. Today’s...
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...Prepared by Batch Ref. No. Prepared on Manohar M. M. Iyer XMBA – 19 VAS2010XMBA15P005 December 20, 2012 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 2 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Contents 1. Disclaimer note: ........................................................................................................................................4 2. Introduction ..............................................................................................................................................5 3. Brief understanding of the case study .......................................................................................................6 4. Analysis of Indian Consumer Behaviour & Premium watch purchase decision ...........................................7 5. Building the XYLYS brand in India...............................................................................................................8 6. End note: ..................................................................................................................................................9 Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 3 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand 1. Disclaimer note: This document is prepared purely...
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...Chinese consumers, and from one another. Yuval Atsmon and Vinay Dixit 2 Talking about wealthy consumers in China may seem odd during the middle of a global economic crisis. Yet for many companies around the world, wealthy Chinese represent a rare opportunity in an otherwise dismal picture. Despite the global downturn, the number of wealthy households in China continues to grow. By 2015, the country will hold the world’s fourth-largest concentration of wealthy people. Companies that better understand the factors behind their purchases could steal a march on the competition. Our research shows that their behavior is very different from that of their counterparts in other countries and of consumers in other income classes inside China.1 Indeed, the pool of luxury consumers has become large enough to form distinct segments, each with its own behavior and needs. Our work included face-to-face interviews in 16 cities with 1,750 wealthy Chinese consumers—people in households earning more than $36,500 annually, which gives them the spending power of a US household making roughly $100,000 a year. These wealthy Chinese households, with an average annual income of about $80,000, represented the top 1 percent of earners in China’s cities. We supplemented the interviews with home visits by our researchers, who also accompanied many respondents on shopping trips. In addition, we talked with brand managers and marketing specialists in China who serve this sector, visited luxury brand stores...
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...some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis 10 Consumer behavior analysis 12 Recommendation 16 Conclusion 19 References 20 Appendixes 22 Appendix 1: For example...
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...Vuitton in India Retail Marketing Strategy 1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities 1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands Threats 1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than...
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...Vuitton in India Retail Marketing Strategy 1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities 1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands Threats 1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than...
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...Introduction This report discusses the impact of pricing, relationship management, prestige seeking consumer behavior on customer satisfaction. Specifically as it relates to formulating a marketing strategy focused on long-term customer relationship management. This thesis discusses the existing consumer knowledge dealing with aspects of pricing. The purpose of this thesis is to combine the concepts of existing research on impacts of pricing on customer satisfaction and studies, which examined entirely different aspects of customer satisfaction, and synthesize valuable new information. Objectives The objectives of the study can be summarized as follows: * Contribute to the emerging literature on pricing and consumption in examining and defining the key perceived values. * Interpret and expand existing consumer behavior models. * Generate a framework to help marketers to build and monitor the pricing of products. * Stimulate further research on pricing and customer satisfaction. Problem Statement How can mangers use various pricing strategies to build stable, long-term relationships with their customers? Pricing has a significant and broad impact on how consumers view and use products, However, it is more difficult to judge the effects that pricing has on product consumption. The relationship between pricing and consumption lies at the core of customer strategy. The extent to which a customer uses a product during a certain time period often determines...
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