Segmenting Markets Along Multiple Dimensions of Luxury Value: The Case of India

abstract

This is one of the first investigations of consumer motivations for purchasing luxury brands in India, a country with an emerging middle class. It identifies four dimensions of luxury benefits for segmenting markets. These include the financial, functional, personal, and social benefits of luxury value. Using data collected from 329 respondents in Mumbai the study identifies nine luxury factors for purchase behavior. These are used for classifying respondents into three behavioral segments using cluster analysis. The first segment appears to buy luxury goods primarily for their snob appeal, the second segment for their prestige appeal, and the third for their value appeal. The results show that while many consumers may buy the same luxury goods, their motivations for doing so differ. The findings should help marketers tailor their messages to specific luxury-seeking segments. There are many papers on luxury brands but very few are from emerging markets. The results may be of great use to global brands that are looking for expansion due to slowdown condition across globe.