LUXURY

WORKSHOP
Psychology of Luxury Shopping & Ecommerce Luxury
WHY STUDY LUXURY?

The term “luxury” is constantly

being rede ned.

As the term continuously

reinvents and rede nes itself, so
does the market in 2021 and
beyond.

What’s clear from our research

is that understanding luxury
consumers starts with the
individual and their psychology
and behavior.

Then, retailers can study the

best ways to market luxury on-
site.

Luxury Crocs (Balenciaga X Crocs)

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AGENDA

Part 1: Psychology of Luxury Consumption

How to market your products

Part 2: Psychology of Luxury Consumers

How to market to your customers

Part 3: Luxury Nudging Canvas

Apply psychology on-site

PART 4: EXTENDED RESOURCES

 PART 1

Psychology of
Luxury Shopping
How to market your products

LUXURY SHOPPING:
WHAT IS THE PSYCHOLOGY BEHIND IT
AND HOW TO UTILIZE IT.

WHAT IS LUXURY?
“LUXURY IS ABOUT THE ABSENCE OF VULGARITY”
GIORGIO ARMANI
MOTIVATIONS FOR
LUXURY SHOPPING

FORM - SYMBOLIC
MOTIVATION
SOCIAL - STATUS/POWER
CONTENTS - HEDONIC/TECHNICAL

FORM CONTENTS
(SYMBOLIC) (HEDONIC/TECHNICAL)

SOCIAL
(STATUS)

 FORM SOCIAL CONTENTS

(SYMBOLIC) (STATUS) (HEDONIC/TECHNICAL)

THREE MAIN PSYCHOLOGICAL DRIVERS IN LUXURY CONSUMPTION

LUXURY PSYCHOLOGY

1. FORM (what the product symbolizes)

• Wealth and status

2. SOCIAL (signi er of the product)

• Costly signaling

• Belonging to an ‘in-group’ of connoisseurs

3. CONTENTS (what the product is made of)

• Quality

• Premium

• Rarity

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1. FORM: SYMBOLIZING WEALTH & STATUS

2. VEBLEN GOODS &
CONSPICUOUS CONSUMPTION

NEED FOR UNIQUENESS PRICE

Luxury product
(Veblen product)
INCREASE STATUS/POWER
COSTLY SIGNALING
STANDING OUT
BELONGING TO

Normal Product

DEMAND

THORSTEIN VEBLEN

FORM: LUXURY NUDGES

SCARCITY SOCIAL PROOF

EXCLUSIVE POPULAR
HANDMADE BESTSELLER
LIMITED EDITION

AUTHORITY
MADE BY:
WORN BY:
STYLISTS FAVORITE
2. SOCIAL: BELONGING TO AN ‘IN GROUP’
3. EMPHASIS ON QUALITY &
HEDONISM

LUXURY FOR CONNOISSEURS LUXURY AS A

LUXURY FOR CONNOISSEURS
(NOT CONSPICUOUS)
PERSONAL AFFAIR
NOT CONSPICUOUS EXTRA NICHE, ONE-OFF
PRODUCTIONS, BESPOKE
“I DON’T CARE ABOUT

PRIVATELY CONSUMED WHAT OTHERS THINK” PRODUCTS, ARTIST

ARTIFACTS, COLLECTION
PIECES

INTRINSIC ENJOYMENT
PREMIUM QUALITY STANDING OUT

“I DIFFERENTIATE FROM
THE MASS” ABSOLUTE LUXURY BRANDS

BELONGING TO

ASPIRATIONAL & ACCESSIBLE

“I BELONG TO AN ELITE” BRANDS

EMPHASIS ON SOCIAL RECOGNISABLE LUXURY

ASPECTS (CONSPICUOUS)

SOCIAL: LUXURY NUDGES

BENEFITS
FINEST MATERIALS
AGED TO PERFECTION
DURABLE INVESTMENT

ORIGINS AUTHORITY
MADE IN: MADE BY:
MADE BY: WORN BY:
ICONIC HERITAGE STYLISTS FAVORITE
CONTENTS: QUALITY ITEMS AT PREMIUM
PRICE
4. PRICE-POINT MATCHES
QUALITY

CES
DES IZABLE

F
APP NAL

ORIG Y OF
MAN L
TION

ESS
UNIQ ENTS O

ITY
CRE TYLE
OF C TAGE

PER CHNICA
QUA IUM

N
T

REP AND
EAL
LITY

RAF

IGN

ATIO
IN
TIO

USIV
NTR
UEN
UTA
HERITAGE OF CRAFTSMANSHIP

OGN

S
BR

FOR
I
PRE

HER

EMO

LIFE
M

COU

EXL
TE
ELE
REC
ELEMENTS OF UNIQUENESS
PRICE
EXCLUSIVITY/SCARCITY BRANDED GUCCI BAG

EMOTIONAL APPEAL
PREMIUM QUALITY

LEOCUT DIAMOND RING

B&O MEDIA SYSTEM

IRANIAN BELUGA
CAVIAR

CONTENTS: LUXURY NUDGES

BENEFITS
FINEST MATERIALS
AGED TO PERFECTION
DURABLE INVESTMENT

ORIGINS
MADE IN:
MADE BY:
ICONIC HERITAGE
DIFFERENCES IN LUXURY
PRODUCTS HERITAGE OF CRAFTSMANSHIP
Rembrandt’s 400 year old painting

PRICE
ELEMENTS OF UNIQUENESS
$299,830
Unique Rembrandt style

SCARCITY/ EXCLUSIVITY
Only one in existence
PERSONA/PRODUCTS WANT TO ENJOY |
HEDONISTS
MODEL

WANT TO ADMIRE | WANT TO PERFORM |

STORY LOVERS QUALITY CHASERS

WANT TO BE SEEN |
BOASTERS

 PART 2

Psychology of
Luxury Shopping
How to market to your customers

LUXURY BUYING BEHAVIOR

LUXURY BUYING BEHAVIOR

FOCUSES ON THE SELF.
LUXURY BUYING BEHAVIOR

LUXURY BUYERS ARE OFTEN HIGH-END

CONSUMERS WHO GO FOR QUALITY,
AFFLUENCE, AND HERITAGE.
LUXURY BUYING BEHAVIOR

BUT TODAY, LUXURY SHOPPERS ARE GEN

Z AND MILLENNIALS. THEY BUY GOODS
IMPULSIVELY, AND LOOK FOR AUTHENTIC
BRAND STORIES OVER LEGACY.
HENRYS: HIGH-EARNERS
RICH YET…
THE PSYCHOLOGICAL MOTIVES OF LUXURY
MOTIVES
Emotional Dissonance
Overcoming con ict between real &
projected self
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EMOTIONAL DISSONANCE

Luxury marketing has stepped away from

the “unattainable self” and started helping
individuals realize their perceived ideal
selves.

However, to remain exclusive, brands do

not construct a self that is too “attainable”.
If more people have access to something,
this breaks down the barriers that luxury
needs to remain appealing to their
customers.

This is how brands like Gucci have

stayed customer-centric in a market
where cognitive dissonance often
occurs. Where transparency is becoming
more important, and “beauty” ideals are
being deconstructed, luxury brands that
cater to the aspirational self are seen as
more appealing and relevant

Hedonic Impact
Feel better

HEDONIC IMPACT

Luxury goods incite pleasure and

excitement, and luxury consumers will
often make subconscious or emotional
decisions before purchasing. Buying
luxury products triggers dopamine.

20.5% of Millennials bought a high-end

luxury item for a particular occasion
(e.g., a wedding or a party) and 18.5%
bought one when they wanted “to treat”
themselves.

Purchase behavior for Millennials is self-

directed - or for gift-giving - and often
impulsive. These individuals want to
possess products that will make them or
others feel good (hedonic motivators).

Status
Be known

 STATUS

Examples of Veblen goods include

Longchamp bags, Bentleys, or top-shelf
wines and spirits. Described by as
“a rmational goods”, for individuals to
signal their wealth and validate their
status and self-worth.

But Gen Z rejects conspicuousness. Along

with the emerging trend of quiet luxury,
consumers are drawn towards products
with low brand prominence. These are
ones that sell products that are modest,
unobtrusive, discreet, purist, and
minimalistic.  
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Belong
Be part of

BELONG

Luxury products will be bought as vehicles

for self-expression (on a personal level).
And the brands people buy these products
from can make them feel special and
unique.

However, luxury brands will also make

individuals feel like they belong to an in-
group of similar luxury consumers.

Brands that want to successfully appeal to

their shoppers' need for uniqueness have
the responsibility to provide ways their
customers can di erentiate themselves
from others and be seen as one-ofa-kind,
whilst still referring to a socially accepted
group or fashion

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Self-narrative
Convince yourself

SELF-NARRATIVE

Luxury products are the ultimate symbols

of the self. They symbolize status, wealth,
or uniqueness, which are all self-driving
factors.

When consumers purchase something

with symbolic status, they build their self
image and construct a narrative about
who they are or wish to be.

Luxury products help create this self-

image of worth. They are perceived to
only be accessible to those of a certain
status

 PART 3

Luxury Nudging
Canvas
Apply psychology on-site

APPLYING NUDGES TO MOMENTS OF INFLUENCE

PURCHASE PHASES

Moments of In uence
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LUXURY NUDGING CANVAS
 PART 4

EXTENDED
RESOURCES
Luxury nudging library

LUXURY NUDGING LIBRARY

BEHAVIORAL NUDGES

YOU DESERVE THIS ONE (EGO APPEAL)

FOR YOUR ARMS ONLY (EGO APPEAL / SCARCITY)
HIDDEN SALE (SCARCITY)
FOR THE LUCKY FEW (SCARCITY)
EXCLUSIVE COLLECTION (SCARCITY)
DESIGN BY: RACHEL MANSUR (AUTHORITY)
PERSONAL FAVOURITE OF FLORIANA GAVRIEL (AUTHORITY)
MUST-HAVE (AUTHORITY)
WORN BY: … (AUTHORITY)
FINEST ITALIAN MATERIALS (AUTHORITY/USP)
PERFECT FOR {{SITUATION X}} (JUST IMAGINE)
DARE TO BE SEEN (EGO APPEAL)
HIGHLY DESIRED (SOCIAL PROOF)
DESERVES YOUR ATTENTION (EGO APPEAL)
SIGNATURE VEGETABLE TANNED LEATHER (AUTHORITY/USP)
HANDCRAFTED (AUTHORITY/USP)
ONLY 3 (OF 5) AVAILABLE IN THE NETHERLANDS (SCARCITY)
ONLY 50 OFFERED IN THE NETHERLANDS (SCARCITY)

LUXURY NUDGING LIBRARY

BRAND-RELATED USPS FOR PRODUCT

PURE CRAFTSMANSHIP
ICONIC SIMPLICITY
CARRY YOUR EXPERIENCES
ART MEETS DESIGN
EXCEPTIONAL MATERIALS
PERFECTION MEETS UTILITY
ICONIC BAG
TIMELESS
CONNOTING SOPHISTICATION
STREAMLINED DESIGN
CLASSIC ELEGANCE
PAIRS WELL WITH ANY STYLE
WORLD’S BEST LEATHER
CHIC ELEGANCE
IMPECCABLE CONSTRUCTION
FINES MATERIALS
RADIATE EFFORTLESS ELEGANCE
ESSENTIALS COLLECTION

LUXURY NUDGING LIBRARY

PRODUCT ATTRIBUTES

AGES TOWARDS PERFECTION

ELEGANT DETAILS
EXCEPTIONAL ITALIAN LEATHER
BEAUTIFUL PATINA OVER TIME
CHANGES AND EVOLVES OVER TIME
BEAUTIFUL WEAR OVER TIME
VEGETABLE TANNED LEATHER
LAMB LEATHER INTERIOR
DETACHABLE WALLET

WANT TO KEEP LEARNING?

THE STATE OF LUXURY: TRENDS SEGMENTS AND PSYCHOLOGY

Download the Report to: 

• Learn About the State of the Luxury Market Today

◦ Emerging Trends
◦ Customer Segments

• Understand the Psychological Processes Behind Buying Luxury Goods 

◦ The Need for Uniqueness
◦ Costly Signaling and Status
◦ Building the Self

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REPORT