Why poor peaple buy more luxuray products than the rich
There is a little known secret in marketing that most people don’t know about.
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It’s that when companies want to market a luxury item they do so in one of two ways. The first is used when they want to market to the lower or middle class. These people want to buy the appearance of wealth, so that’s what the companies sell them. You can see this in the marketing of brands like Louis Vuitton and Gucci. For example, take a look at this Louis Vuitton ad.
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Notice anything?
Maybe the fact that these two women seem to be sitting on a private jet. Nice right? Classic luxury advertising.
Wrong!
Time and time again studies have shown that rich people don’t buy into these kind of ads. The vast majority don’t feel the need to seek items that show off their wealth or status, they seek function.
The middle class in particular has a strong tendency to try to appear wealthier than they are. This leads them to respond more positively to ads that display people living luxurious lifestyles. They see that, believe that is what wealthy people do, wear, use, etc. and imitate that to appear wealthy.
On the opposite end of the spectrum you can see that when the sticker price increases, the gimmicks and lifestyle ads start to disappear. Here is an ad for Rolex watches, notoriously expensive and worn by many wealthy individuals.
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The price of these watches is out of reach for most of the middle class, leaving their target market as the extremely wealthy. You can see how they point out the features and quality rather than the status it provides. You can do your own research but this rings true across many brands and their marketing efforts.
So if you find yourself buying something expensive, before you make your final decision, ask yourself, are you buying this because of the functionality and quality? Or because you think it’ll make you look cool or wealthy?
Don’t be a sheep.