Every business thinks they have a good product, and the challenge of marketing and advertising is getting consumers to see that value. Using the right words at the right time can convey a sense of value that can help a product stand out amongst its peers. A recent study by LG examined what factors led consumers to believe that a certain product was a "luxury" good.
LG Electronics recently conducted a survey of more than 1,000 households with incomes greater than $100,000 to find out what drove them to buy luxury items as well as the things they look for in determining what is luxury. Using this information can help marketers create more compelling marketing copy for regular and high-end products alike.
The LG SIGNATURE Modern Luxury Survey revealed that a two out of three (66 percent) luxury consumers in the U.S. responded that their spending on the home (including kitchen appliances, 4K Ultra HD TVs, furniture, home upgrades and more), has increased in the last five to 10 years.
A key take away from the study is identifying the reasons why people buy luxury products. While people may often assume it's because luxury products are higher-quality, but that's not the only factor. For example, 46 percent of luxury Millennial consumers reported that they felt "superior" when purchasing luxury products.
The feeling that come with buying luxury goods can be a very powerful motivator for customers. In the LG study, consumers expressed the value of this feeling in some rather unique ways. According to the survey results, 41 percent of luxury consumers say the feeling they get when buying luxury products is better than sex and 47 percent say it's better than a great first date. Similarly, 47 percent say it is better than going on a vacation or trip and 59 percent say it's a better feeling than drinking a 10+ year glass of scotch.
Another key takeaway from the study is the fact that the defining characteristics of luxury have changed significantly over the past decade. To illustrate, two-thirds (67 percent) of luxury consumers said that they associate the word "innovative" with luxury more than they did 5-10 years ago.
"We've seen the definition of 'luxury' shifting over the past decade, and we commissioned the Modern Luxury Survey to tap into the minds of consumers to better understand that shift," said David VanderWaal, vice president of marketing for LG Electronics USA. "We discovered the way wealthier Americans think and speak about luxury has evolved drastically within the last five to 10 years. Now, more than ever before, luxury-identifying Americans value home kitchen appliances as a top category for creating a luxurious and sophisticated home environment."
According to the LG SIGNATURE Modern Luxury Survey, tens of millions of affluent Americans most closely associate luxury with terms like "high quality" (47 percent), "expensive" (47 percent) and "exclusive" (42 percent). This shift has evolved even more among Millennial consumers who are using terms like "innovative" (67 percent) as opposed to a more traditional view of luxury that once used terms like "rare" (34 percent) or "iconic" (45 percent).
While this study was based on the responses of consumers with high household incomes, the information can easily be applied to other products. Knowing the terms that consumers associate with high-quality goods can be used to create advertising campaigns that resonate with customers.
For more recent research that can help business owners connect with their customers, read this article on what consumers want from loyalty programs and rewards.