The study of motivation in consumers which stimulates them to purchase Literature review

The study of motivation in consumers which stimulates them to purchase luxury goods despite the steep and increasing price - Literature review Example Again during 2004-2007, when the luxury industry was expanding and emerging into other markets, the CAGR was 8 percent (Amatulli and Guido, 2011). The growth of luxury goods market was caused by two important factors. Firstly the economic growth all throughout the world has lead to the creation of new class of rich people (Vigneron and Johnson, 2004) and secondly, the increase in the demand and range of products of luxury goods (Silverstein and Fiske, 2003). However, the sales of luxury goods were predicted to ease in 2013 due to the lower growth rate in China and subdued spending in Europe (Reuters, 2013; Wendlandt and Binnie, 2013). The sales are expected to hover around 4 to 5 percent as compared to the 5 percent sales in the year 2012 (Bain & Company, 2013). It is also expected that the revenue generated from the luxury market will rise 50 percent faster than the global GDP and the annual average growth rate will be around 5 to 6 percent in the year 2015 (Bain & Company, 2013). T he four main categories that come under luxury goods are Jewellery and watches Spirits and wines Cosmetics and perfume Fashion that includes accessories, ready-to-wear and couture (Jackson, 2004). Recently some other categories were also added like airlines, home furnishing, private banking, tourism, hotels and luxury automobiles (Chevalier and Mazzalovo, 2008). Fashion luxury goods include perfume, jewellery, watches, shoes, handbags, accessories and apparels, the display or use of which only brings prestige for the owner and functional utility takes a back seat (Vigneron and Johnson, 2004). Some of the research scholars have previously tried to highlight on the profile of the buyer and understand the reason behind the consumption of luxury goods (Dubois, Czellar and Laurent, 2005; Husic and Cicic, 2009; Summers, Belleau and Xu 2006; Wiedmann, Hennigs and Siebels, 2007). Some others have focused on the role of brand in the consumption of luxury products (Fionda and Moore, 2009; Kap ferer and Bastien, 2009; O’Cass and Frost, 2002; Phau and Prendergast, 2000; Tsai, 2005). More specifically Vigneron and Johnson (1999, cited by Amatulli and Guido, 2011) has focused on the presence of interpersonal and personal motives behind the consumption of luxury goods. In this section the focus is on luxury branding, pricing and issues that influences buying behaviour. 2.2 Meaning of luxury The word luxury has been derived from the Latin word â€Å"luxus†, which signifies the pleasure of senses irrespective of cost. Vigneron and Johnson (2004) have created a framework that consists of five components, which provides the meaning of luxury. High quality is associated with luxury goods, which is perceived as a fundamental attribute. Quality signifies craftsmanship, utility, sophistication, technology, design and material etc. Origin and tradition of the product along with the perceived superiority and excellence of the products acts as the reassuring factors which is a motivating factor for the customers who are buying any luxury goods. Semiotics of luxury has identified hedonistic value, which signifies the emotional responses linked to the consumption of luxury goods like excitement, sensory gratification and aesthetic beauty. Consumption is about the experience and feeling of pleasure that the consumer gets from the ownership of the goods like self-indulgence, fulfilment and personal reward. Conspicuous is another value attached with the consumption o

Explain some of the reasons for the increase in family diversity over Essay

Explain some of the reasons for the increase in family diversity over the last 30 years - Essay Example However, family is considered to be the most important because it is the most significant institution for primary socialization of the young and to provide support and security to the members of the family. With time it has been claimed by many sociologists that the institution of the family is in decline due to the changes which are occurring in our surroundings. (Giddens,2005) There have been many changes in the family over the years. There has been a decline in marriage followed by an increase in cohabitation and lone parent families. The loss of functions supported by the weakening of extended kinship links have resulted in declining family sizes. It is these changes that have caused increasing diversity in the family structures and these changes will be discussed in detail. Family is said to have lost most of its functions. Functionalist as a perspective, specialize in explaining the functions of all social institutions. Parsons and other functionalists argue that with the comin g of industrialization the functions of the family have reduced and have been taken over by other institutions through the coming of the welfare state. This has resulted in structural differentiation of the functions (Browne, 2006, pg 43). According to Parsons Family now have two basic functions: primary socialization of the young and the stabilization of the adult personalities. Initially family was a unit of production as well as a place which was not only responsible for the primary socialization of the young but also involved in their health and education aspects. However, with the coming of the welfare state health and education are no longer the primary functions of the family. Now family is more a unit of consumption rather than a unit of production. (Giddens, 2005) The next visible change in the family is the weakening of the link with the extended kin. As time has progressed after industrialization there has arrived a need of a more geographically mobile workforce. This has resulted in different members of the extended family to go for work to different places. People have become richer now and the standard of living has improved due to the existence of the welfare state. The society has now transformed into a meritocratic one where the name and background is no longer important and this result in the weakening of the ties of the extended family. (Browne, 2006) There is an argument put forward by sociologists that the extended family does exist in the modern society. It has just evolved into a different shape. A very good example will be the Asian community in Britain (Browne, 2006, pg 50). The Asians are usually found living close to each other where there might be separate nuclear families living in the same street or neighborhood, and in regular contact with each other. Such examples have been visible in many areas and giving rise to the concept of modified extended families. This means that even though the children are living away from their paren ts they are in contact with their kin. It can be said the kin are a means of support and this type of family is common in many parts of the world. Julia Brannen (2003) argues that now we are living in the age of the beanpole family. As the expected lives of people are increasing and they are living longer this is giving rise to a family where there are four