The Psychology behind Luxury Consumption

Abstract

This paper will talk about the psychology of consumption of luxury products and experiences and how individuals get emotionally connected to them. This paper discussed new drivers, forms, and consequences of luxury spending. Also, the belief that the psychology of luxury consumption is driven by a series of conflicts between what luxury is to oneself and the external factors that drive luxury consumption. These tensions influence consumer behavior and the post-purchase feelings of consumption of luxurious products or experiences. Since some individuals regard non-luxury items as inferior merely because they are non-luxury, they also conclude that more expensive goods are of more outstanding quality, without any evidence about their absolute level of quality or longevity. Another angle that we discuss in detail is how self-esteem plays a role in impacting a person's choice of purchases and instilling a sense of belonging. This paper is going to be based on an amalgamation of primary and secondary research and will contribute to self-awareness of people who do and do not indulge in luxury buying and what goes behind the mindset of both categories. This will also help brands decide on their unique selling propositions to appeal to their respective target groups.