Factors Affecting Consumer Behaviour for Luxury Brands in India: An Empirical Study

Abstract

With globalization, expanding economy and prospering middle class, the luxury goods sector has gained prominent role in business, making it a significant area of focus for Indian industry practitioners. The rapid urbanization and transforming lifestyle result in various changes in the buying behaviour of consumers in India, depicting shift in the ways they shop especially in terms of choice of brands. Several factors such as age, education, income, media, technology, culture, peer influence etc. play huge role in shaping the buying behaviour of consumers for luxury brands in India. An analysis of these factors indicates the interplay of cultural, socio-economic as well as psychological aspects in influencing consumer’s buying behaviour for luxury brands, further determining the economic value of Indian markets. These factors necessarily have huge role in ensuring the growth of Indian retail industry as well as in deciding the position of Indian industries and markets among the world. By extensive research on diverse motivational and aspirational factors that affect or shape consumer’s willingness to invest or buy luxury items, help comprehend diverse marketing strategies, branding inventiveness and consumer engagement practices within the luxury goods sector. These researches further aid in extending ways for Indian business to implement better and effective methods to maximize profits from ever-expanding and diverse Indian markets. A sample of 283 respondents was collected from consumers who use luxury items of different brands. The factors that determine the Factors affecting consumer behaviour for luxury brands in India are Social & Cultural Influence, Income & Economic Factors, Brand Image & Perception, and social media & Online Presence.