Prada for Proletariats: How Socioeconomic Status Affects the Purchase of Luxury Products

Abstract

The luxury goods industry draws in billions of dollars each year and is expanding into new customer segments and markets, especially younger and less affluent consumers. These changes make it increasingly important that luxury brands understand their consumers. In this research, we ask the question: How does a consumer’s socioeconomic status (SES) affect their motivations for purchasing luxury products, and how do these motivations affect preferences for luxury products that are loud (large logos) versus quiet (small or no logos)? Prior research has studied the individual effects of SES, consumer luxury preferences, and motivations for purchasing luxury products. However, there is no one study that incorporates all of these factors and fully explains their connection with one another. This study uses a survey to investigate the relationship between SES, motivations for purchasing luxury products, and preferences for loud versus quiet luxury products. I find that individuals who experience an increase in socioeconomic status over their lifetime are more motivated by social acceptance as a reason to purchase luxury products, and in turn, this motivation results in a preference for louder and more conspicuous luxury products.