Defining the Luxury Market and the Affluent Society

Defining the luxury market is not easy, while the concept of affluent society is one of a kind in the United States or any other country. Luxury may be definite in terms of its availability to the population as a whole, where the division between social classes could be in their consumption of luxury goods. What I can not afford and you can is luxury!

That is a very subjective definition, and not one on which business can draw up strategic business plans. What are the benefits and benefits of American manufacturing and service industries?

In order to make luxury products that are desirable, they have been created for the purpose of doing so. This is nothing but to confuse the definition of 'luxury market' and is one reason why it is indefinable.

Definition of Luxury Market?

Professor Bernard Dubois has found that the term "luxury" does not apply to any type of product or service. It is probably not definite to try to define that is non-definable because it is relative to the group trying to define it.

To somebody that normally travels coach, is a business class seat is luxury. To others, a first class seat is commonplace. So luxury can not be defined other than in relation to individuals. The American Affluence Research Center (AARC) has 1% of American households. This is an attempt to place on a relative quantity, and you can use that if you wish.

Definition of Affluence?

More acceptable is the AARC definition of the affluent society as the top 10% American households in terms of income. In order for them to be accepted, they should not be able to understand it, but they should be able to associate themselves with it.

In that sense, both luxury and affluence are definable, even though may be ambiguous and the other definitive. The answer to any unacceptable definition of the 'luxury market'. So it comes down to a choice between the price-based definition of Prof. Dubois, and the earnings-related definition of the AARC.

In one sense the two are closely related, because only the highest earners should be able to purchase the highest priced products. If it relates to products within a category, and not price as an absolute figure. Thus, members of the luxury market may not afford a private car. Others have attempted to overcome this problem by relating to the individual experience, bringing us back to ambiguity.

Affluence is Easier to Define

These various attempts to define the term only indicate there is no universally agreed definition, and that the luxury market is indefinable across a broad population. In the USA as the top 10 it is difficult to make the money % of American households in terms of income.

The manufacturing and service industries then have a measurable one-to-many-and-many-to-many-and-many-to-many-and-many-to-many-and-many-to-many-and-many-to-many market value. A luxury item, on the other hand, can be defined in more concrete terms. The demand for a 'necessity' remains the same as the increase in disposable income, while demand for a luxury increases disproportionately with income.

Can Luxury be Defined by Price?

A luxury brand like Armani is only such due to price. Armani, then the firm would feel obliged to maintain the sense of exclusivity. This is where luxury becomes price-related, and not value-related. An Armani suit does not improve in quality by increasing the price to retain exclusivity.

By carrying out consumer research and analyzing the spending patterns of affluent society, suppliers want to find it easier to meet their needs. When they are made, they are considered to be in a better position to meet those demands.