How and why market your product like a luxury.
Hey there 👋 - Abhi here!
Happy Thursday to the 27,028 marketers reading today :)
Just spent an entire week out of college so I could spend time with my family, and my mind has never been this refreshed. You know I’m bringing the heat today :)
Reading Time = 3 minutes 27 seconds
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I’ve never been much of a shopper. But my sister - she’s the complete opposite. And it’s not just the volume, it’s the luxury products too. I could never understand it.
So this last week, I finally agreed to go shopping with her. Not that I would buy anything. But to finally crack the code. What is it that these brands do to make their products seem so luxurious?
And to me, it all came down to 3 layers - pricing, presentation, and design. As for the rest, you know I’m going to be backing my claims with research (and examples).
3 Science-Backed Tactics To Make Your Offer Look Luxurious
1/ Avoid Discounts
Generally, discounts go a long way in attracting demand. But in a study from 2004, where the researchers studied the effect of discount retraction (i.e. displaying a discounted price and then removing it on second appearance) on consumer choice, they found that:
Lowered prices reduce exclusivity because now a wider range of people can afford the good. And as the exclusivity reduces, luxury products lose both status and demand too.
Consumers are more likely to wait for the next discount when it comes to luxury products.
The effect is asymmetric, meaning that the drop in demand is even larger if the retracted discount was larger.
And this research might even explain this trend we’re seeing in DTC advertising:
Instead of preaching discounts, premium products are trying to embrace their price points with an emphasis on quality. Seeing it all around, makes me think it’s working well…
2/ Go Slow Motion
In a study by Jung and Dubois in 2023, the research found that:
“When a video ad depicts a product in slow motion (vs. regular speed), consumers perceive the featured product or brand as more luxurious.”
This increased desire for the featured product or brand was seen through consumers’ higher willingness to pay, purchase intentions, and ad click rates.
The effect extends across various product categories (chocolate, shampoo, mineral water, wine) and in different countries too (UK, USA, France).
The research suggests that this effect occurs because slow-motion videos increase that feeling of immersion - they draw you in, keep you engaged, and leave you in desire of the featured product.
3/ Logo Sizing
A study on brand prominence in 2010 found that the desired subtlety (i.e. logo sizing) of branded luxury goods depends on two factors:
The wealth and need for status of a consumer
The consumer’s desire to associate or dissociate with members of their own and other groups
If you’re trying to build a luxury product, categorize your consumers into one of these 3 buckets and alter your logo sizing, and brand prominence, accordingly:
Wealthy consumers with low need for status want to associate with their own kind and will pay a premium for subtle branding only they can recognize
Wealthy consumers with high need for status want to dissociate with the less affluent and will pay a premium for louder luxury goods for more obvious signaling
Less affluent customers with high need for status want to associate with the wealthy and will purchase loud counterfeits
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I look forward to reading your feedback :)
See you next Thursday,
Abhishek "Not A Shopper" Shah