Question

After the new luxury watch is launched and targeted toward the reward segment of the luxury market, the director asks to speak with you again.

He says, "Sales have been really good, and we are excited about the rollout of the luxury watch. We think that a better understanding of social stratification would help us be even more successful. Considering our plans to roll out the product worldwide, what would be the best way to understand the status hierarchy of our consumers?"

Which of the following parameters would be the best way to understand the status hierarchy of consumers that would also be the most consistent across cultures?

O Look at worldview
O Look at occupational prestige
O Look at age and income

Answer 1

Marketing a luxury watch to the reward segment should consider the worldview, age, and income of potential customers. Understanding the luxury market context and consumers' association of extravagance with identity and status is crucial. The target demographic often views luxury goods as a reflection of economic success tied to social identity.

Step-by-step explanation:

The marketing of a new luxury watch targeting the reward segment should consider the worldview and age and income demographics of potential customers. For those at the upper end of wealth distribution, luxury can symbolize a progression of continual upgrades. They have the financial freedom to indulge in luxurious goods without the burden of economic constraints, and this luxury consumption often ties back to their identity and self-perception.

Throughout history, luxury goods were once the domain of nobility and the upper bourgeoisie, highlighting a deep-rooted societal association between wealth and luxury. To effectively market to this exclusive segment, it's important to understand the intricacies of their lifestyle and consumption behaviors driven by their high income.

Moreover, societal shifts have expanded access to luxury goods beyond traditional echelons, implicating a more nuanced understanding of luxury consumption. However, corresponding with the rise in income is a heightened demand for normal goods, including luxury items like watches. This relationship suggests that for affluent consumers, purchases can serve as a public testament to their economic success and, by extension, their social identity.