'Market Research on Luxury Watches Essay\r'

'Market issue There was a slow-down in the harvest-home in gross revenue of premium and proudlife inhabites in India in 2008-’09. It prompted the market leader Titan industries to enter the parsimony market. Following the footsteps, uplifted life sojourn marks gaze well track Heuer and Rolex introduced low- wrong models. But in modern years, mobile ph stars whitethorn alike cast off d antiophthalmic elementereened growth in the acuteness of check offes in India, as they provide a quantify read-out as well as alarm and tell on-new(prenominal) sequence-related functions.\r\nWatch industry experts believe that their mathematical product’s original function is increasingly losing importance, and that wrist respectes be straightaway organism bought as fashion accessories. Owning much than one watch is like owning disparate pieces of jewellery. Competitive embellish The economy watch bide is being met for the intimately part by the unorg anised sector and by direct imports. The premium segment is increasingly being peppered by fashion scrapes such as Esprit, Swatch, fogy and Tommy Hilfiger. There has to a fault been ardent repute growth for these brands, with growing subscribe from middle- and upper-income assemblages in urban India.\r\nTitan, HMT and Maxima atomic number 18 the leading Indian players and Timex, Casio and Swatch be now the vehement multinational players in the market. More multinationals atomic number 18 submission the retail market, advance no new municipal companies have assumee so, and the multinationals’ sh be of valuate sales has increased over the review period. Premium sign & vitamin A; Product Perception With the watches market in India now becoming fashion and style devolve onn, speci bothy at the premium confound the axe, companies now launch models and designs both six months. International brands such as fogy launch spring/summer and winter ranges.\r\nTitan, o n the opposite come about, clock its launches to match in with the Indian festive season †Deepavali and weddings. Companies like Casio and Swatch and luxuriousness brands like Rolex ar exploring a niche market for chronographs, but this is currently negligible. Companies also need to respond to product innovations. The Citizen eco-friendly watch has been well received in India and is reportedly selling well in its price bracket, eliminating the vexation of replacing batteries and encouraging the use of multiple watches.\r\n outfit brands such as Esprit, Tommy Hilfiger, Benetton and Levi’s have all gained familiarity among India’s urban youth, who may become much willing to try these brands’ premium watches. Affluent, urban Indians may notice more comfortable about get premium watches, while continuing to regard luxuriousness watches as causas of overindulgent or insensitive spending. ‘ advanced’ naughty India : The ‘Newâ₠¬â„¢ rich India is now indulging into the make of owning Luxury trademarks. India’s rapidly growing mellow-end retail market is expected to increase from the around $3.\r\n5 billion in 2008 to $30 billion by 2015. Luxury clothing, fragrances, premium wine, high-end watches have achieved good perceptiveness among phallic Indian consumers. Among women, jewellery and cosmetics digest already boast high levels of awareness, followed by categories such as handbags and mobile phones. These items, while non necessarily being mend (in quality, performance, or appearance) than their less pricy substitutes, are barter ford with the main(prenominal) purpose of displaying wealth or income or status symbol of their owners. There is a limpid shift from ‘Old high life’ to ‘New lavishness’.\r\nOld highlife is defined by the attributes, qualities and features of the product, whilst ‘New lavishness’ is defined by the consumer’s fo cus of focus on the experience that their bribe stimulates and non in ownership or possession of the product itself. ” The customers Redefined lavishness as they believe it to be a sign of self outlay †â€Å"They are worth it;” it authenticates the spoiler’s success and status; it is a signal to others that the owner is a member of an sole(prenominal) pigeonholing; They require flawless performance in this application, the cost of product malfunction is too high to bribe anything but the best.\r\nMotivation of Study: The outcome of wearing and enjoying fine timepieces is a passion that these days must be justified. We like nice expensive watches even though cheap watches exist to do the same thing. Hence like any other sumptuosity good , today modern shoppers buy sumptuosity goods to reward themselves, to satisfy psychological unavoidably or to make themselves feel good to doom off their ainity or to boost their self-esteem.\r\n region of the research: This take aims to understand the above give tongue to consumer buying behaviour which will help the read up marketing Managers to better reposition their branding and announce strategy to capture the correct stone pit market for sumptuousness products to boost the sales in times where economy are at a challenge. lit Review: search Objective: This nurture in be givens to rein out if consumer buying behaviour of young purchasers are influenced by component parts such as premium price of luxuriousness watches, perceived quality of sumptuosity watches, social status and brand loyalty associated with the\r\n ingestion of sumptuousness brand. This convey also intends to evaluate whether perceived qualities of the luxury branded watch have influence on the buying decision of consumer. It is also intended to nail down whether the high quality standards of luxury watches are the logical thinking consumers opt for the luxury watches. Affiliations of social status of getting sealed luxury branded goods will also be studied to understand whether consumer buying luxury branded goods just for the matter of being run with certain quarters of the great unwashed having the same luxury brand of goods.\r\nThis study also will also evaluate whether brand loyalty of luxury brand will influence the buying decision of consumer. This study also aims to uncover whether a person who has been foreign is a reason for the consumer acquire a luxury watch search query: The purpose of this study is to evaluate what subscribeal factors encourage consumers into purchasing luxury brand watches . In evaluating this report , this study aims to state the following questions : • • • • • • Is it the price or the type of users of the brand that drives the buying behaviour of the consumer for luxury branded goods?\r\nIs it the strong emotion of slap-up themselves with the lower distinguish consumers that drives high class cons umers to turn to luxury brands? Is it the tag reveal of a mega brand that drives the long boundary demand for that luxury brand? Is gender a settled factor in deciding the purchase of a luxury brand? If yes then what factors are grievous gender wise ? Is it the product utility or the brand intelligence that is key for luxury watch brands? Will a person’s inspect abroad influence his decision to purchase a luxury watch?\r\nPrevious Research constituent : Findings of overall previous research indicate that private’s preferences plays a key case in purchasing luxury goods. Individual’s preferences may be base on desire and non-desires, which are establish on experience in purchasing luxury items from their satisfaction, or nondesire such as preconception towards brand products. Leibenstein (1950, p. 188) classified demand of goods and services consumption in relevant to motivation into two main aspects: functional and non-functional. Functional demand is â€Å"demand for a trade good which is due to the qualities inherent in the commodity itself”.\r\nOn the contrary, demand of goods consumption that comes from other factors, which is not the product quality, is defined non-functional demand. The outcome from Leibenstein’s (1950) study specially stresses the role of inter private piths towards luxury brands consumption, and derived three main nitty-grittys; Veblen, nozzle, and Bandwagon INTERPERSONAL set up Perceived Conspicuous honour Perceived unparalleled Value Perceived Social Value photoflash Non-Conformity Conformity VEBLENIAN SNOB BANDWAGON Inter ad hominem performances (Vigenron & vitamin A; Johnson) (1999 p.\r\n7) Veblen progeny: The Veblen rig can be explicateed through and through conspicuous consumption in which concourse feel that it is necessary to purchase luxury products because they have a high price tag (Leibenstein, 1950). Conspicuous consumption is use by people to show wealth, busine ss office and status (Veblen, 1899). Prices of product have a noteworthy aspect in consumers’ opinion of quality (Vigneron & vitamin A; Johnson, 1999). Studies by Erickson & angstrom; Johansson (1995) have shown that price is use to judge quality of luxury products between a range of brands.\r\nUsually people would associate high prices with better quality. Additionally, those who do associate high prices with better quality would also suggest that high prices show a considerable amount of prestige (Lichtenstein et al. , 1993). Snob Effect: The snot sum takes into account personal and frantic desires (personal cause), and the influence of other people’s behaviour ( social effects) towards the purchasing of luxury brand products (see predict 1). The nozzle effect can be further explained through two circumstances.\r\nFirstly, the launch on new products which creates exclusivity in which the snob would purchase the product at present because a minor amount of con sumers at that event time would have acquired it. Snob consumers only purchase â€Å"limited items that have a high re look on, whereas those promptly available are less desirable. Rare items demand respect and prestige” (Solomon, 1994,p. 570). Products that are viewed as unique, popular, and expensive causes a higher demand for consumers (Verhallen & ampere; Robben, 1994), especially snob consumers.\r\nSnyder and Fromkin (1977) support the statement by Verhallen and Robben (1994) suggesting that people have the desire to be unique. India:The Affluent flock: Luxury volumes have been spurred by a prodigious growth in the rich in recent past. The new rich come in wide-ranging shapes, sizes and style quotients. Exporters, multinational bankers, college kids earning plum salaries at call back centers or BPO operations, well-heeled corporate wives, and successful entrepreneurs.\r\nWhat they have in common is that they have very high purchasing power Bandwagon Effect : The ba ndwagon effect represents consumers who purchase luxury products because they wish to fit in with a particular group. For example, people would consume products that are cool and stylish to associate themselves to similar people (Berry, 1994). Dubois & Duquesne (1993) explains that the snob and bandwagon effect are not alike. Although the law of similarity between the bandwagon and the snob effect is that people wish to enhance their self-concepts, the differentiation is that they purchase luxury items for different reasons.\r\nBandwagon consumers purchase items to be fit in with others, whereas snob consumers purchase items to be unique and stand out. Individuals who fit in with groups that purchase luxury brand products and/ or wish to differentiate themselves from people who do not purchase luxury brands are influenced by the bandwagon effect (Vigneron & Johnson,1999) Luxury is reward :First time/New Purchasers :They use luxury goods as a status symbol to say â€Å"Iâ⠂¬â„¢ve do it! ”. They are motivated by their desire to be successful and demonstrate this to others.\r\nLuxury brands that have far-flung recognition are popular; however they don’t wish to appear lavish or hedonistic in their appearance. They want to purchase â€Å" invigorated” luxury that exhibit importance while not leaving them open to criticism. personal Effects : consume luxury products can also be from personal desires and taste. PERSONAL EFFECTS Perceived Emotional Value Perceived Quality Value Self-Actualization Reassurance HEDONIST PERFECTIONIST Personal effects (Vigenron & Johnson) (1999 p. 8) Hedonic Effect The luxurious effect occurs when consumers purchase luxury products and value the item.\r\n lot who purchase items for self-fulfillment (e. g.inner direct consumers, Riesman, et al. , 1950, or role relaxed consumers, Kahle, 1995), and those who are not affected by interpersonal influences (e. g. conforming to group norms,Bearden, et al. , 1989) represent the hedonic effect. Dichter (1960) explains that motivation of noncognitive and unconscious is able to persuade consumer preference of products. Products that are consumed are known to have an delirious value that is added to their character (Vigneron & Johnson, 1999). When consumers purchase luxury products they expect that the item will offer benefits such as exclusiveness.\r\nDubois & Laurent, (1994) express that if products create an emotional value for consumers, it represents that the product is beneficial and holds an important characteristic. Perfectionist Effect The perfectionist effect exists when consumers purchase luxury items and expects superior products and performance as well as quality (Vigneron & Johnson,1999). hatful who represent the perfectionist effect are those who are associated to personal values and judge a product concord to their value of a luxury band product. An example of the perfectionist effect is when consumers are pu rchasing a luxury watch they expect it to be accurate.\r\nAccording to Groth and McDaniel, (1993, p. 10) stated that â€Å"high prices may even make certain products or service more desirable”, because people view products with high prices with great quality (Rao & Monroe, 1989). Additionally, consumers may assess the level of how luxury a product is by its quality (Vigneron and Johnson, 1999). Methodology Research Method: Quantitative data consists of closed end information that includes numerical figures. The study has collected vicenary data by applying closed-end questions towards a questionnaire.\r\nFocus conference Discussion to understand attributes both physical and emotional that influence the purchase of a luxury watch. The group comprised of 7 individuals , 3 female and 4 male participants who have been users of luxury watches. Data sight: primary election Data collection: Gathering information from consumers of luxury watches through online questionnaire s urvey Secondary Data Collection: Research insights and hypothesis design with the help of previously published research work on luxury goods buying behaviour. Sampling: Non-probability sampling method is pick out.\r\nSince the target audience or respondents of interest are consumers of premium or luxury watches, the sampling method adopted here is convenience sampling and snow-ball sampling. Measurement & Scaling: Measurement Techniques used ? Perception present : ? Utility of features in the watch : Chronograph, Double dial, indicant light etc. ? Stylish Designs that make the watch a fashion statement Respondents were asked to rate the 10 different brands in order to obtain their intelligence of these brands on the above defined dimensions Based on two predefined dimensions i. e ? ? ?\r\nExploratory Factor compend : To understand the underlying factors influencing the purchase behaviour of luxury watch for men & women and overall degeneration: To understand which int erpersonal & personal effect is critical when consumers make a luxury watch purchase decision Discriminant epitome: To understand the group behaviours based on the following groovy protean ? Gender ? Trip abroad ? Work hold out:Purchasing power ? AMOS : Confirmatory Factor abstract to ascertain the Exploratory Factor analytic thinking issuance AND ANALYSIS 1.\r\nDiscriminant Analysis: Work-Ex & Fresher certainty: Wilk’s lambda (0.627) is more than 0. 4 which is not material; Box M test is also peanut However based on analysis make it 5 attributes tart work ex & fresher are Attributes Q5_7_attribute_analog Q5_2_attribute_alarm Q5_12_attribute_torch Q5_9__attribute_calculator Q4_8_attribute_celebrity_endorsement Variable fish of discriminating function -. 366 . 361 . 331 . 271 . 262 2. Discriminant Analysis: Gender Inference: Wilk’s lambda (0. 578) is more than 0. 4 which is not significant; based on analysis top 5 attributes discriminating males & females Attributes Variable weight of discriminating function.\r\nQ4_3_attrifashion_statement Q5_3_attribute_dualclock Q5_13_attribute_barometer Q5_8_attribute_motionsensor Q9_2_buy_in_store .329 -. 285 -. 269 -. 259 -. 255 3. Discriminant Analysis: Abroad Visit Inference: Wilk’s lambda (0. 573) is more than 0. 4 which is not significant; however based on analysis top 5 attributes discriminating foreign visited and not visited people Attributes Q5_9__attribute_calculator Q5_6_attribute_color Q5_16_attribute_warranty Q5_11_attribute_straptype Q4_9_attribute_brand_ two-base hit Variable weight of discriminating function . 228 . 225 .\r\n221 -. 207 -. 205 3) Exploratory Factor Analysis-(Male & Female) Research Question:- Is gender a settled factor in deciding the purchase of the luxury watch. If yes what factors are important gender wise? venture:- Women while making luxury goods purchase give more importance to emotional factors whereas Men go for Physical Utility f eatures Factor analysis for male respndents(58 males) Results:? ? ? ? ? ? ? ? Fac1(Ostentation): o o o o o o o o ? ? ? ? ? ? Sth to remmeber, hand gesture, to be unique Fac2(value added feature) Calculator,digital,compass.\r\nFac3(Generic requirements) Shape, water resistance Fac4(Economic requirements) Discounts Fac 5(Tech savvy) Compass, consummation sensor Fac 6(basic) Analog,water resistance Fac 7(Wrist suitability) Strap type Fac 8(extra feautres): period and day display, brand chassis Exploratory factor analysis female Respondents (23 females):Fac1(Economical): o o o o o o Warranty, after sales, analog, emotional satisfaction Fac2(Style) Social status, to be unique, fashion statement Fac3(Special requirements) Alarm,altimeter, digital,dual clock Fac4(value added feature)\r\nCalculator,compass,barometer, torch Fac 5(Tech savvy) Hand gesture,discount Fac 6(Exclusivity) Motion sensor,alarm,brand image Result Analysis:? Men:o seclude importance to Ostentaion, value added feaure s and style(veblenian effect and perfectionist effect are dominating) ? Women:o Style, Economic attributes an generic requirements ( Hedonist and snob effects dominate 4. Checking the Interpersonal and personal effects shown by males and female while purchase of luxury watch in Store Research Question:o Is it the price or the type of users of the brand that drives the buying behaviour of the consumer for luxury branded goods?\r\no Is it the strong emotion of discriminating themselves with the lower class consumers that drives higher class consumers to turn to luxury brands? o Is it the product utility or the brand perception that is key for luxury watch brands? Hypothesis:-Luxury watch purchase is primarily to show off and as an indicator of status symbol: veneblian effect. Users also buy luxury watches due to perceived emotional value or for hedonist reasons Veneblian Effect:- Snob Effect Bandwagon Effect Hedonistic effect Type of effect Veneblian snob Bandwagon Hedonistic Coeffici ent 0. 517 0. 499 0. 274 0. 305.\r\nInference:- As we can clearly observe from the above table that the veneblian effect is very prominent in all cases of interpersonal or personal effects. That means People tend to buy Luxury watches to show off of their cosmos and Social Status. Snob and Bandwagon effect follows Veneblian effect. 5. Regression Analysis to check whether long term demand for luxury watches is driven by brand image Research Question : Is it the brand image that drives the long term demand for that luxury brand? Hypothesis : Brand Image for lucury brands is responsible for the long term demand of these watches.\r\nInference : Regression is insignificant with respect to the variables that drive brand image. Even the R^square value is 0. 071. Hence we can infer that brand image is not a good factor to explain the long term demand for luxury watches. 6. AMOS The thoughtlessness model is created based on exploratory factor analysis and taking research literature into ac count. mannikin Fit Summary Check: Cmin/DF 2-5 OK GFI > 0. 9 not OK PGFI>0. 5 OK NFI,TLI,CFI>0. 9 Not OK RMSEA max 0. 1 Not OK Model is comparatively fit as such But Goodness of fit office is not holding well. Validity & effect Reliability S No.\r\n1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Attributes Q4_1_attribute_social_status Q4_3_attribute_fashion_statement Q4_2_attribute_to_be_unique Q4_6_attribute_emotional_satisfaction Q4_9_attribute_brand_image Q5_9__attribute_calculator Q5_10_attribute_compass Q5_12_attribute_torch Q5_13_attribute_barometer Q5_3_attribute_dualclock Q5_4_attribute_altimeter Q5_2_attribute_alarm Q5_5_attribute_digital Q5_7_attribute_analog Q5_8_attribute_motionsensor Q5_16_attribute_warranty Q4_10_attribute_secon_time_brandpurchase Q4_4_attribute_premiumwatch_collection Q4_8_attribute_celebrity_endorsements.\r\nConstructs Error e1 e2 Delta 1. 028 1. 079 0. 608 0. 635 1. 282 1. 323 1. 687 1. 473 1. 793 1. 816 1. 032 2. 133 1. 407 1. 074 2 . 078 0. 179 1. 402 1. 367 2. 019 Lambda 1 0. 67 0. 922 0. 884 0. 997 1 0. 912 0. 971 0. 774 1 1. 135 1. 005 1. 258 1 0. 876 0. 84 0. 403 1. 231 1 AVE CR Exclusivity e3 e4 e5 e6 e7 0. 81 0. 81 Tech_Savvy e8 e9 e14 0. 84 0. 68 Value_Added _Feature e15 e16 e17 e21 1. 22 0. 75 Reliability e22 e23 e26 0. 82 0. 69 Brand_Perce ption.\r\n'