Title: The Psychology Behind Why People Buy Luxury Goods
Headings: The Psychology Behind Why People Buy Luxury Goods
The Psychology Behind Why People Buy Luxury Goods
Key Takeaways
Some Consumers Do Not Act Rationally
Are Higher-Priced Goods Really of Higher Quality?
Self-Esteem May Impact a Person's Purchases
Authenticity Matters
The Bottom Line

Content: This despite the fact that Apple products are not technologically unique or superior. In fact, Samsung makes phones with better features (compared to most models of the iPhone), and Microsoft Corporation (MSFT) and Xiaomi make phones that typically have a cheaper price point. Nevertheless, Apple experiences a high degree of brand loyalty and seems to break sales records year after year. Because some people perceive non-luxury goods as inferior simply by virtue of them being non-luxury (and not on the basis of their characteristics or qualities), they also come to the irrational conclusion that higher priced goods are of better quality. Contrary to the evidence, they may believe that you get what you pay for, regardless of whether the goods are actually better than their more affordable counterparts. Self-Esteem May Impact a Person's Purchases
In some cases, low self-esteem can be a factor that influences whether or not a consumer purchases luxury goods, especially if they can not easily afford the cost of luxury items. For some consumers, a luxury good can go a long way in increasing self-esteem or providing a sense of belonging. With the rise of online shopping, a $500 scarf is just a click away. For some people, luxury goods are the ultimate retail therapy. Fortunately for luxury brands, the Internet has made them easily accessible for impulse shopping.