This research aims to investigate differences between cohorts and perceptions of luxury goods and services.
A survey asked participants to rate goods to determine their perceptions of luxury. Participants also provided information concerning elasticity and motivations for purchasing goods and services. A total of 347 participants in three age groups completed the questionnaire.
The study shows that there are significant differences between cohort groups in their perceptions of luxury goods and services, especially between the oldest and youngest cohorts. The elasticity measures showed that for all three cohorts, certain goods and services were inelastic and, therefore, were considered not to be luxury goods. The reasons why people buy goods they do not need varied between cohorts.
The results of the study may not be generalizable to other groups of consumers because it was a convenience sample.
The results of this study show that marketers need to tailor messages to individual cohort groups. Consumers' experiences at their “coming of age” do influence perceptions of luxury. There are different motivations for buying among the cohort groups. Identifying and leveraging these motivators in marketing communication will help to target these groups with appropriate messages. Marketers need to understand those motivations and develop communication campaigns that target those groups.
Little research has focused on the cohort perception of luxury. Although there is evidence to suggest there will be differences between age groups, this study seeks to investigate those differences to help marketers to tailor their messages more effectively.
