Attitude of Young People of India Towards Luxury Brands Essay Example
Attitude of Young People of India Towards Luxury Brands Essay Example

Attitude of Young People of India Towards Luxury Brands Essay Example

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  • Pages: 5 (1151 words)
  • Published: September 18, 2017
  • Type: Essay
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India has undergone a remarkable transformation in the past two decades, with limited consumer choices evolving into a wide range of options. The country's rapid economic growth and expanding young workforce have led to increased income levels and optimistic consumers. As a result, Indian consumers now have access to luxury brands such as Prada, Gucci, Merc, and Lamborghini. Despite currently representing only 1-2% of the global market size, the Indian luxury market is growing at an unprecedented rate of over 20% annually. This presents significant opportunities for luxury brand owners aiming to enter this potential market. Projections suggest that by 2015, the Indian luxury market will reach USD 14.72 billion. Brands like Giorgio Armani, Ferrari, and Sofitel Hotel have already entered India to capitalize on these opportunities while others closely monitor the situation for future prospects. Understanding the attitudes of young cons


umers is crucial for sellers in this market to effectively target their audience. Our study focuses on segmenting young consumers based on attitude variables such as confidence, trust, and optimism - beliefs that significantly shape consumer attitudes towards luxury products in India.
In a literature review titled "The Role of Confidence in Understanding and Predicting Buyers' Attitudes and Purchase Intentions," Peter D. Bennett and Gilbert D. Harrell discuss the impact of buyers' confidence on attitudes and purchase intentions. The study, published in the Journal of Consumer Research (Vol.2, No.2, Sep.1975), pages 110-117, supports theories suggesting a positive correlation between overall brand confidence and intention to purchase that brand.

The research also focuses on Indian youth's desire for uniqueness (NFU) and their attitudes towards luxury brands as a form of individualism. The researchers conducted primary research among

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Indian university students to gauge their NFU levels and perception of luxury brands.

Despite not having high NFU levels, Indian youth still view luxury brands as symbols of status and individualism. These brands fulfill the purpose of expressing personal values during the shift from traditional family-driven values to more westernized and individual-centric values.

When marketing global luxury brands in India, advertisements should strive to present consumers with a new identity while also striking a balance with traditional norms and values.This empirical study seeks to examine the changing paradigms of Indian consumers as luxury brands become a new destination, emphasizing the significance of uniqueness and individualistic consumption behavior. The researcher investigates how Indian consumers transition from value center tier brands to luxury brands. The findings indicate notable differences in gender, social status, price, and quality when purchasing luxury goods. Additionally, there is a strong correlation between annual family income and the purchase of luxury items. Affordability, quality, convenience, brand image, and social status are key drivers for consumers' shift to luxury brands. These results support the notion that consumer decision-making is influenced by brand perception, purchase value, societal factors, and individual motivations. The dimensions discussed in this paper play an important role in segmenting the market for branded products.

The article titled "Attitudes towards the concept of luxury: An exploratory analysis" by Bernard Dubois and Gilles Laurent was published in Asia Pacific Advances in Consumer Research Volume 1. Interested readers can find the complete text online at [hyperlink]. This paper conducts an exploratory analysis on perceptions and attitudes towards luxury with the aim to inspire further research and contribute to the theory on luxury acquisition and consumption behavior. There

exists a research gap concerning the relationship between uniqueness needs and consumption behavior of luxury brands among Indian youth.The objective of this study is to investigate the changing perspectives of Indian consumers towards luxury brands through an empirical survey. This presents a unique opportunity for marketers, as there is currently a lack of research on young people's attitudes towards luxury in India, particularly their beliefs regarding assurance, trust, and optimism. It is important to understand how consumers perceive and value products, especially considering the significant growth in the luxury market and efforts to engage young consumers through various marketing approaches. This research aims to identify the key belief parameters that influence the attitudes of young individuals in India towards luxury brands. The study will analyze a sample size of 100 participants using judgmental sampling techniques from NIFT students as well as young professionals at companies like TCS, Infosys, and Wipro to gain valuable insights into this demographic. The research design includes gathering primary information through a structured questionnaire to collect raw data without interpretation, as well as acquiring secondary information from sources such as journals, books, and the internet with a focus on attitudes towards luxury brands.Young consumers will be segmented based on three important belief parameters: confidence, trust, and optimism—a vital factor in shaping consumer attitude. The proposed segmentation tool for this study is Cluster analysis using hierarchical clustering with between groups linkage method based on squared Euclidean distance. Specifically, Ward's Hierarchical Clustering Method will be used in this research design.

Ward's method aims to minimize information loss when merging two groups together. This method is typically implemented by considering the increase in the error

sum of squares standard as the measure of loss of information. For each given cluster k, ESSk represents the sum of squared deviations of each point in the cluster from the cluster mean (centroid). If there are currently K bunches, specify ESS as the amount of the ESSk or ESS = ESS1 + ESS2 + … + ESS K.

At each step in the analysis, the similarity between every possible pair of bunches is considered, and the two bunches whose combination results in the smallest increase in ESS (minimal loss of information) are joined. Initially, each bunch consists of a single point, and if there are N points, ESSk = 0 where K = 1, 2,... , N. So, ESS = 0.When combining all bunches into one group of N points, the NESS value can be calculated as ?_{j=1}^{n}(xj-x?)?, where Xj represents the jth point and X? is the mean value across all points. The results obtained from Ward's method are visually displayed as a dendrogram that shows ESS values at which mergers occur along its vertical axis. Ward's method serves as a hierarchical precursor to nonhierarchical cluster methods that optimize data division into elliptical groups. In the following section, nonhierarchical cluster procedures will be discussed.

Proposed Questionnaire: 1=strongly agree 2=agree 3=neither agree or disagree 4=disagree 5=completely disagree Please select the option that best aligns with your opinion for each statement:

Statement no 1: "I buy luxury products because of their good quality."

Statement no 2: .4 .1 .1 "Luxury entails having certain extravagant items that provide more value than regular brand names."

Statement no 3: 3..2...'I purchase luxury merchandise whenever I am able to afford it and

whenever I desire it'.

Statement no 4: 3..."'I prefer luxury merchandise that aligns with my personal tastes and if I find it to be worth my money'.

Statement no 5: ...'I prefer luxury brand names because they enhance my aspirations in life'.

Statement no 6: "...".'I aspire to own a BMW or Ferrari in the future'.

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