An investigation into Chinese consumers' reasons for purchasing luxury Literature review

An investigation into Chinese consumers' reasons for purchasing luxury brands in the UK - Literature review Example In spite of having such a strong presence and considerable purchasing power, this ethnic minority has not been studied as much as it deserves. Through this research we should be able to establish: Impact of Western Values on Chinese Traditions. The reasons and perception behind making such purchasing decisions. Chinese perception of brands and role a brand name plays Brand Image Journey towards brand management starts with the development of brand identity and concept and determining the way the public should perceive the brand by communicating a distinct brand image and personality (Okonkwo, 2007). According to Scholz (2012), luxury brands focus on the top two tiers of the Maslow’s hierarchy of needs pyramid: Self-esteem and self-actualization. A luxury brand as opposed to a mass brand has fewer versions and products so that the brand can retain its superiority and uniqueness (Fich, 2011). Furthermore, in most cases the luxury brands are manufactured by hand or have a certain element of customization, making it one-of-a-kind product. However, on key feature of luxury brand is the fact that they are always very high-priced and are not affordable by the masses (Schloz, 2012). This fact alone retains the exclusiveness of a luxury brand as it is unreachable by masses and can be afforded by the very few with the purchasing power. In spite of what may be perceived, luxury brands are seldom bought spontaneously. Thus the majority of consumers of luxury brands put significant effort in the buying decision. In other words, the spontaneous buyers of luxury brands represents a small percentage as opposed to 70% of luxury consumers that plan in advance for buying a luxury product (Scholz, 2012). Thus luxury goods cannot be exclusively restricted to price, where the consumer is seeking bargains for convenience goods but is willing to pay a significant sum for luxury product. This is where the concept of Brand Image comes in; brand image involves the marketer to brea the life into an inanimate product, thus creating a perception of human characteristics and distinct personality in the eyes of the consumers (McLoughlin, Aaker & McLoughlin, 2012). Brand image is on the receiver’s side. Image research focuses on the way in which certain groups perceive a product, a brand, a politician, a company or a country. The image refers to the way in which these groups decode all of the signals emanating from the products, services and communication covered by the brand (Kapfere, 2004). Brand image plays a positive role in boosting the product choice when the consumer forms a congruency between their self-image and the brand personality. The marketer’s aim is to create a clear positioning of their brand in the minds of the consumer by means of brand image, thus the brand image is the most powerful tool that can be used by the luxury brand. Luxury Brand Consumers Nicole Fich (2011) in her book Brand Management for luxury goods distinguishes clear ly between a â€Å"product† and a â€Å"brand†, the product can be a car but a brand would be BMW. It is the brand name that makes a huge difference in terms of price that the consumer is willing to pay and the key feature that distinguishes the brand from competition. China and the Europe have a very rich and old civilization, and so is their long relationship. Presently this relationship is strengthened by the