The aim of this research proposal is to better understand the impact that a financial recession period has on the buying power of the customers. In order to narrow the study that could involve many different areas, the emphasis here will be on understanding how the consumer behaviour for the luxury market is affected by a recession. When understanding the consumers’ behaviour a company and organizations can improve their sales figures by focusing on the marketing strategies. It is important to understand how the environment influences these consumers, like their culture and spending capacity.
Table of Contents
- Title of the research investigation
- Introduction
- Background
- Literature review
- Consumer Behaviour
- Positioning
- Research objectives
- Specific research objectives
- Specific research questions to be answered
- Research design
- Primary Data
- Why interviews will be conducted and to whom?
- Ethics
- Secondary Data
- Analysing data
- Time scale
- References
Objectives and Key Themes
The objective of this research proposal is to understand how consumer behavior in the luxury market is affected by economic recession. The study will investigate the impact of a financial recession on the buying propensity for luxury goods and how top luxury brand clients react during such periods. The research will utilize various research methods and review current literature on this topic.
- Impact of economic recession on luxury goods consumption
- Consumer behavior in the luxury market
- Marketing strategies for luxury brands during economic downturns
- The definition and characteristics of luxury brands
- Influence of consumer needs and motivations on luxury purchases
Chapter Summaries
Introduction: This chapter introduces the research proposal, aiming to understand the impact of economic recessions on consumer behavior specifically within the luxury market. It highlights the importance of understanding consumer behavior to improve sales figures through effective marketing strategies. The research will explore how buying luxury goods is affected during economic hardship and how high-net-worth individuals respond. The conclusion will be drawn from the applied research methods and a review of relevant published articles.
Background: This section defines luxury brands, providing examples such as jewelry, watches, cosmetics, and automobiles. It differentiates luxury companies from others based on company size (smaller but well-respected), financial characteristics (sales figures are difficult to compare directly due to varying components), and time factor (luxury product launches are more time-consuming and investment-heavy). The chapter notes that luxury goods are not simply consumed but represent special articles with emotional and social significance for their owners. The different consumer profiles who constitute the luxury market are defined, from high-net-worth individuals to the upper-middle class, their spending habits being influenced by their perceived economic security.
Literature review: This chapter emphasizes the importance of a thorough literature review to understand existing research and identify key issues. It focuses on consumer behavior theories, particularly Packard's 8 Hidden Needs and how they relate to luxury purchases, highlighting "Ego Gratification" and "Sense of Power" as particularly relevant to the purchase of luxury goods. The chapter incorporates Perner's definition of consumer behavior, emphasizing the importance of understanding consumer reactions to different alternatives and environmental influences on buying decisions.
Keywords
Luxury brands, economic recession, consumer behavior, marketing strategies, luxury goods consumption, high-net-worth individuals, Packard's 8 Hidden Needs, Perner's consumer behavior model.
Frequently Asked Questions: Research Proposal on Consumer Behavior in the Luxury Market During Economic Recessions
What is the main objective of this research proposal?
The main objective is to understand how consumer behavior in the luxury market is affected by economic recessions. The study will investigate the impact of a financial recession on the buying propensity for luxury goods and how top luxury brand clients react during such periods.
What are the key themes explored in this research?
Key themes include the impact of economic recessions on luxury goods consumption, consumer behavior in the luxury market, marketing strategies for luxury brands during economic downturns, the definition and characteristics of luxury brands, and the influence of consumer needs and motivations on luxury purchases.
What is covered in the introduction chapter?
The introduction sets the stage for the research, outlining the aim to understand the impact of economic recessions on consumer behavior in the luxury market. It emphasizes the importance of understanding consumer behavior for effective marketing strategies and explores how buying luxury goods is affected during economic hardship and how high-net-worth individuals respond. The chapter concludes with a summary of the research methods and relevant literature.
What does the background chapter cover?
The background chapter defines luxury brands and differentiates them from other companies based on size, financial characteristics, and time factors involved in product launches. It highlights that luxury goods possess emotional and social significance and defines different consumer profiles within the luxury market (high-net-worth individuals and upper-middle class), noting the influence of perceived economic security on their spending habits.
What is the focus of the literature review chapter?
This chapter emphasizes the importance of understanding existing research. It focuses on consumer behavior theories, specifically Packard's 8 Hidden Needs (particularly "Ego Gratification" and "Sense of Power" in relation to luxury purchases) and Perner's definition of consumer behavior, highlighting the importance of understanding consumer reactions to alternatives and environmental influences on buying decisions.
What research methods are used?
The proposal mentions the use of both primary (interviews) and secondary data to analyze the impact of economic recessions on luxury goods consumption. The specific interview targets and ethical considerations are also discussed. Further details on the data analysis methods are likely provided in the full research paper.
What is the overall structure of the research proposal?
The proposal follows a typical academic structure: A title, a table of contents, objectives and key themes, chapter summaries, and keywords. The content includes an introduction, background information, a literature review, research design (including data collection and ethical considerations), data analysis, timescale, and references.
What are the keywords associated with this research?
Keywords include: Luxury brands, economic recession, consumer behavior, marketing strategies, luxury goods consumption, high-net-worth individuals, Packard's 8 Hidden Needs, and Perner's consumer behavior model.
What types of data are collected?
Both primary data (through interviews) and secondary data are collected and analyzed to gain a comprehensive understanding of the research topic.
Who are the target interviewees for this study?
The proposal mentions that interviews will be conducted, but doesn't specify the exact target group. This information is likely detailed in the full research paper.
- Quote paper
- Bettina Carollo (Author), 2010, Luxury Brands and the Economic Recession, Munich, GRIN Verlag, https://www.grin.com/document/191737
