Consumer Behavior of Luxury Goods in China Free Essay Example, 2000 words

China is a country with sales of luxury goods that have increased to 14 billion Euros in the year 2014. China has a long tradition of heritage and cultural values that give products in China s markets high price value. Also, China is undergoing great change due to globalization, which has affected people choices on the types of goods they have strong attachments to. For example, China s consumers have developed taste and preference for goods from Europe and American markets which give them a sense of esteem and prestige such as spa treatments, expensive cars, and jewelry. The trend is changing where the Chinese luxury consumer market is expanding in which there both local and foreign luxury goods are being sold in the Chinese markets. Most Chinese luxury consumers prefer to buy expensive goods that are not available to many in the markets to show their successes, display their wealth, and as a gift offering during celebrations. Factors influencing the purchasing decisions of Chinese luxury consumers include the need to remove stress, self-satisfaction, showing off, achievement of status identity, and others. Most Chinese luxury consumers may decide to buy luxury goods regardless of their level of income, however, there is a research gap concerning how income disparities influence the purchasing decisions of the consumers in China planning to buy the luxury goods. We will write a custom essay sample on Consumer Behavior of Luxury Goods in China or any topic specifically for you Only $17.96 $11.86/pageorder now Therefore, this study will focus on examining the relationship between income and the choices of luxury goods Chinese consumers make. One of the assumptions the researcher will make during the study is that the sample selected will be representative of all responses that will be expected from the study population. The second assumption is that the participants included in the study will be aware of the challenges affecting consumers who buy luxury goods. A review of the literature on the consumer behavior of luxury goods in China produces different results. Different sources indicate that Chinese luxury consumers are divided into two categories.