Akademia Leona Komiskiego w Warszawie

Pawe Lewicki
14231

The perception of luxury goods: a marketing and psychological analysis on the example of luxury cars in Poland.

MSc Dissertation Supervised by: Dr Krzysztof Przybyszewski

Warszawa 2012

STUDENT STATEMENT

I hereby certify that this dissertation titled The perception of luxury goods: a marketing and psychological analysis on the example of luxury cars in Poland. submitted to the Kominski University, is all my own work and had not been earlier used as a basis for a procedure related to conferring professional titles and higher education institution diplomas. I also certify that dissertation does not violate copyrights under the Act of 4 February 1994 on copyright and neighbouring rights (Journal of Laws No. 24, item 83, as amended) or legally protected personal interests. I acknowledge that the dissertation will be subject to verification by a plagiarism detection system.

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28.03.2012

WORD COUNT: TBA!

Author: Pawe Lewicki Title: The perception of luxury goods: a marketing and psychological analysis on the example of luxury cars in Poland.

ABSTRACT
TBA!!!

Keywords: Luxury, cars, brand, perception, marketing , psychology, Poland.

Subject area code in SOCRATES : 04.7 (marketing) or 04.0 (Management Science)

PREFACE
TBA!!! I really love writing my MA thesis I think it will soon become my hobby or it might even be a life changing experience. Poland continues to be a fairly young market for luxury goods the 7 main segments that can be indentified are: auto-motive, clothing, watches and jewellery, yachts, airplanes and helicopters

INTRODUCTION
TBA !!! I will start with providing a theoretical approach to the concept of luxury cars perception

TABEL OF CONTENTS
ABSTRACT ......................................................................................................................... 3 PREFACE ............................................................................................................................ 4 INTRODUCTION .................................................................................................................. 5
LIST OF GRAPH, TABELS AND FIGURES ................................................................................ 6

INTRODUCTION .................................................................................................................. 5 1.1 Psychological concepts and theories ....................................................................... 8 1.1.1 Defining the luxury brand .................................................................................... 9 1.1.2 The conecpt of luxury brand perception ............................................................. 9 1.1.2.a Consumer Theory .......................................................................................... 3 1.1.2.b Consumer Culture.......................................................................................... 3 1.1.2.c Culture Theory ............................................................................................... 3 1.1.2.d Co .................................................................................................................. 3 1.1.2.e Coe Theory .................................................................................................... 3 1.1.2.f Theory ........................................................................................................... 3 2. The luxury/premium goods market .......................................................................... 8 2.1.The polish premium goods market ......................................................................... 5 2.2 The global premium goods market ........................................................................ 5 Wpisz tytu rozdziau (poziom 3) .............................................................................. 6 3. The Reaserch ............................................................................................................... 8 3.1 Defining the luxury brand .......................................................................................... 9 1.1.2 The conecpt of luxury brand perception ................................................................. 9 1.1.2. Consumer Theory ................................................................................................... 3 1.1.2.b Consumer Culture ................................................................................................. 3 1.1.2.c Culture Theory ...................................................................................................... 3 APPENDIX .......................................................................................................................... 8 BIBLIGORAPHY .................................................................................................................. 9
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4. The Conclusion and areas for futher reaserach ..................................................... 50 Wpisz tytu rozdziau (poziom 3) ..................................................................................... 3 Wpisz tytu rozdziau (poziom 1) ..................................................................................... 4 .......................................................................................................................................... 3 PREFACE............................................................................................................................... 4 INTRODUCTION ...................................................................................................................... 5 1.1.2.a Consumer Culture Theory

LIST OF EXHIBITS
Exhibit A. Constituent Value dimensions of Luxury Brands ........................................ 13 Exhibit B. BBBB dgrgaaaa ............................................................................................ 30 Exhibit C. CCCC Vaaaary Brands ................................................................................. 30 Exhibit D. DDDD Vadddds ........................................................................................... 30

LIST OF FIGURES
Figure 1. Reaserch analysis - Gender ........................................................................... 30 Figure 2. Research analysis Question 9 Ferrari as a woman . ................................... 31 Figure 2. Research analysis Question 10 Volvo a woman . ...................................... 31 Figure 2. Research analysis Question 11 Mercedes as a woman . ............................. 32 Figure 2. Research analysis Question 12 BMW as a woman . .................................. 32 Figure 2. Research analysis Question Ferrari as a woman . ....................................... 4 Figure 2. Research analysis Question 9 Ferrari as a woman . ..................................... 4

1. Psychological concepts and theories

1.1 The luxury brand
1.1.1 Defining and understanding the concept of luxury brands After analyzing numerous texts concerning the definitions of the luxury brand I found in contrast to a great number of well founded definitions of a brand there is little or close to none complete definitions of a luxury brand. A proper definition of the core concept of my thesis is essential to a thorough understating of how it is perceived by the society. Fortunately enough I was not the only one sharing this view Klaus Heine and Michel Phan in a recent study of 31 German millionaires with high spending on luxury goods published in the Australasian Marketing Journal 19 (2011, p. 108114) take on this difficult task and in my opinion provide by far the most accurate and current view of what a luxury brand really is and how it should be studied, this is accomplished by providing both a theoretical and empirical background. In their article, Klaus Heine and Michel Phan touch on the subject of defining the notion of luxury in marketable products and try to develop a definition based on researching existing literature. They state that there is a lack of consensus on what defines a luxury product. Varying definitions do not discriminate between different understandings of luxury (in different areas of research) or are too broad, confusing accessory attributes as essential or simply enumerating too large a number of characteristics to be concise. Luxury is defined as anything desirable and more than necessary or ordinary. It is dependent on regional, temporal, economic, cultural and situational perspectives. It is always determined by the upper classes of society. There are three main perspectives of defining luxury: the philosophical-sociological perspective which deals with the evolution of attitudes towards luxury and its social benefits and changes in appearance of luxury and preferences towards it, the micro-economic perspective which covers the relation between price, income and demand as well as stressing the benefits of luxury

goods for the economy, and the managerial perspective, dealing with business development and marketing strategies for small groups of luxury manufacturers. The authors of the article collect all definitions and characterizations of luxury products found in international business literature building up an understanding of essential traits of luxury products. The authors distinguish several approaches to differentiate mundane and luxury goods. The level of abstraction, they postulate, allows to make the distinction between characteristics-based and consequences-based approaches, while the source of information helps discern the consumer-based and expert-based attitudes. Further on the authors proceed to explain these oppositions stating that luxury goods are identifiable by their fundamental attributes or their consequences, meaning reasons for which they are being utilized. As consequences apply not only to luxury products, a need has arisen to use a different factor distinguishing them from the rest of marketable goods. Thus, the characteristic-based definition was popularized. The second opposition of expert-based and consumer-based approaches are related to the source of information on luxury goods, such as opinions and analyses. The consumer-based approach is gaining popularity as marketing is currently more focused on the various products recipients than it was earlier. This attitude to defining luxury products allows to describe their most essential characteristics by means of studying the consumers themselves. The author mentions an example of a group of consumers evaluating the quality of a product with varied criteria, treating different characteristics as the most vital. As, similarly to quality, luxury is a very intricate notion, the defining features of luxury products should be established by means of surveying a target group of consumers. The authors postulate that limiting oneself to only one approach is not efficient the validity of the results of a consumer survey may be unreliable, as different social circumstances one is subjected to may change his outlook and opinions on luxury products. The consumer-based approach should therefore be supplemented with what the author calls a framework for the identification of luxury product characteristics (Heine, Phan, 110). This framework should apply only to luxury products and cover all possible essential features of such goods. These features cannot include secondary and non-constitutive characteristics, relevant only for some luxury products or dealing with
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their symbolic attributes. The authors state that literature concerning luxury product definition often misidentify constitutive and accessory features, e.g. characterizing symbolism and traditionalism of some luxury designs as essential, while most modern luxury products cannot be defined through references to traditional symbolism. The framework for identifying luxury product characteristics also assumes that features should be differentiated from consequences (why a luxury product is bought is not relevant for its definition), preferences, attitudes and marketing strategies (selectivity of sales and unusual ways of advertising do not place a product among luxury goods automatically). Clear identification of concrete and abstract features is also important, though the two types are somewhat intertwined (e.g. a composition of several concrete features may constitute an abstract characteristic). To further specify the most correct method of defining luxury goods, the authors describe the way a consumer-based study adhering to the above-mentioned framework should be conducted. Stating that the most relevant quality of the surveyed group should be the understanding of luxury goods, the authors give an example of a target group consisting of millionaires frequently employing luxury products. The composition of the group was non-homogenous, as it consisted of men and women with very different social and industrial backgrounds as well as ages. The participants were interviewed, asked to enumerate their favorite luxury brands and inquired about different luxury market products. Additional methods, such as the repertory grid method (which the authors describe as helping to elicit consumers criteria for the evaluation of products with an iterative process requiring them to compare different triad combinations of stimuli) , the preference differences technique (in accordance to which the respondents were to prepare a detailed characteristic of their luxury brand preferences), the critical incident technique and the projective technique were utilized. The results of the survey pointed that from a consumers point of view, luxury products can be characterized by six features divided into concrete, abstract and manufacturing characteristics (the last being added only because it proved to be important to the respondents and allowing for the creation of both former types of features). The first characteristic of luxury products according to the respondents is price. The second is quality. The third is aesthetics most often corresponding with the taste of the upper
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social classes, which, as the authors notice, points to the cultural importance of luxury. Rarity has proven to be another distinguishing characteristic for the respondents the more rare a product is, the more it is luxurious. Another factor is extraordinarity, which suggests that in order for a product to be perceived as luxurious, it has to be different from the rest by way of design or construction, either possessing innovative functions or being marked with a brand of an extraordinary image. Luxury products were also associated by the participants with their symbolic value as opposed to the stressing of functionality in mundane products, luxury goods should elicit abstract connotations, refer to lifestyles and values of the consumers. This last characteristic is strongly connected to the brands of products. What follows is the concluding paragraphs in which the authors make an attempt at a final and concise definition of luxury products. Luxury products have more than necessary and ordinary characteristics compared to other products of their category, which include their relatively high level of price, quality, aesthetics, rarity, extraordinarity and symbolic meaning (Heine, Phan, 112). These features can be understood as fully dimensional, prone to changes and fluctuations. Luxury products may vary as to the levels of these characteristics and often the higher the levels, the more luxurious the product, though this is not always true. This scale of luxuriousness proves helpful in distinguishing the different brands. What is important, luxury is perceived highly individually by consumers not always will all the above features be required to exist in a product in order for it to be identified as luxurious. This means that the ultimate factor in defining luxury goods are not the aforementioned features but rather the perception of these attributes by the consumers. Thus, the various brands can compete with each other, adjusting the specific characteristic levels to suit the perceptions of given target groups by means of marketing strategies. From my personal research and conclusion that I drew basing on it an equally important theoretical definition of a luxury brand is presented in a publication of Pierre Berthon, Leyland Pitt Michael, Parent Jean-Paul, Berthon, 2009. In their work the authors note that once luxury was perceived to be a product of great craftsmen such as Louis Vuitton the trunk-maker or Christian Dior the frock-maker however over the years the concept of luxury evolved and in the modern industrial world luxury became the brand a symbol that goes way beyond the material and evokes various emotions among consumer.
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According to Adam Smith there are four main kinds of consumption: necessary (vital to survival), basic (essential for normal growth and prosperity of an individual or community), affluence (non-essential goods) and luxury (meaning goods that are in limited supply and are difficult to produce and mostly expensive). This idea defines luxuries products as ones that are connected with rarity either by high price and/or through limited capacity of resources required to produce such goods. In contrast to this popular notion the authors argue that it is difficult to describe luxury by a single definition and state that it is more than a set of attributes. Luxury is rather seen as a concept that is depended upon the social and individual context and is considered to be a combination of material, social and individual spheres hence understanding its role in each of the three areas results in developing a more comprehensive definition of luxury. The idea although at first may seem a bit complex accurately analyses the most important aspects of luxury and captures the full scope of relations between people, products and brands. The foundations of this view are based on the Karl Popper hypothesis of the three worlds this idea is presented in the context of luxury brands: (World1) manifest goods and services: (World 2) individual thought, emotions, needs, wants and perceptions; and (World 3) collective narratives, knowledge symbols and imagesfor example Louis Vuitton roll-on luggage carrierwith the trademark motifs (World 1)becomes a brand associated with certain characteristics (World 3), but with different meanings to its potentially different individual owners (World 2). (Pierre Berthon, Leyland Pitt Michael, Parent Jean-Paul, Berthon, 2009, p.47). This proposal is further expanded by the authors with the identification of three dimensions of luxury brands that correspond with the Poppers worlds: functional, experiential and symbolic.

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Exhibit A.1 presented below depicts this dimensions and their correlations with the three worlds.

The functional component is representing the material role of luxury brands namely the quality of materials and the superior workmanship need to prepare for example the newest model of Rolls-Royce characterized by exceptional performance and almost silent functioning . Experiential value is the domain of personal subjective preference and taste here the persons subjective opinion is the judge of luxury and in this dimension the consumer finds the hedonic value of a brand. Lastly the symbolic realm is considered a representation of the social collective where the symbolic character of luxury brands is introduced. This dimension has a dual aspect the value a luxury brand transmits to other people and the value which it conveys to the owner for example a Ferrari car may indicate wealth, prestige and temperament along with reinforcing the owners self image at the same time. I find the above ideas to be extremely important to

Constituent Value Dimensions of Luxury Brands Aesthetics and Ephemerality, Diagram, California

Management Review, Fall2009, Vol. 52 Issue 1 p.49.

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the findings of my thesis additionally they will serve as a base for further theoretical and empirical evidence presented.

1.2 The conecpt of luxury brand perception

1.2.1 Consumer Culture Theory Another essential theoretical construct that I would like to highlight is also equally significant to the matters discussed by me in this paper it is a broad field of consumer research addressing among others the socio-cultural, empirical and ideological aspects of consumption. Namely Consumer Culture Theory among many modern views from various institutions and scholars this concept in my opinion seems to be the most accurate and up to date providing a useful tool for evaluating consumer behavior and perception from a rich and uniquely structured perspective. The construct has evolved significantly over the past two decades and in comparison to other more mainstream and one-dimensional concepts this model brings in fact is a rather new perspective to the topic. The framework is defined2 as Consumer Culture Theory or, in short CCT, is the denomination of a certain approach to the study of consumers and consumption. This approach basically considers consumption and its involved behavioral choices and practices as social and cultural phenomena - as opposed to psychological or purely economic phenomena. CCT, in the words of one of the summarizing articles about the field, "refers to a family of theoretical perspectives that addresses the dynamic relationship between consumer actions, the marketplace, and cultural meanings." CCT is not only referring to this family of perspectives, but also to an informal group of researchers who to some degree identifies with the cultural approach to the study of consumption and consumers. Thus, CCT also can be said to mean Consumer Culture Theorists.. I find certain areas of this concept to be particularly useful in the context of luxury cars perception that is why in the following paragraph I will demonstrate and elaborate on this association. The fields that I wish to put emphasis on are presented by Eric J. Arnould and Craig J.Thompson Consumer Culture Theory (CCT): Twenty years of research published in the Journal of consumer Research (2005) the authors provid a great overview of the current research concerning CCT. One of this key areas is
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The consumption of market-made commodities and desire-inducing marketing

According to: http://www.consumerculturetheory.org/ (25.01.2011)

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symbols is central to consumer culture and yet the perpetuation and reproduction of this system is largely dependent upon the exercise of free personal choice in the private sphere of everyday life( J. Arnould, J. Thompson p. 869). The importance of this issue varies among different social situation and groups however it can be argued that the luxury brands industry is to some extent based on this principal. Another imperative part of this framework is the fact that CCT conceptualizes culture as the very fabric of experience meaning and action (Geertz 1983). Owning to its internal, fragmented complexity, consumer culture does not determine action as a casual forceconsumer culture and the marketplace ideology it conveys frames consumers horizons of conceivable action, feeling, and though, making certain patterns of behavior and sensemaking interpretations more likely than others ( J. Arnould, J. Thompson p. 869). Therefore in the luxury goods market certain patterns trends can have a great influence on consumers. 1.2.2 The theory of possession and the extended self In order to understand better the underlying concepts of human perception of luxury I would also like to present the concept of possession and the extended self developed by Russell D. Belk (1988 p. 139-168). According to Belk our possessions are both a reflection of essential contributor to our identities. In his work he takes on a novel for its time perspective and discusses the concept of extended self by concentrating on consumer behavior rather than buyer behavior and reveals a broader perspective than previous studies made in this field. It was more than 70 years ago in 1937 when Allport identified that the process of gaining an identity and in so doing gaining self-esteem, progresses from infancy by extending self via a continuously expanding set of things regarded as ones own(Allport,1937) this shows that perception of goods and its influence on people has a very long history of research. In the mid 70s this concept was tested by Dixon and Street (1975) who carried out research among 6 to 16 year olds their study found that almost all of the item categories ranked as self among these group are quite similar all but two people and possession the perception of these two categories had changed considerably with age. The result proved that older children to a larger extent considered such objects as being part of self. Moreover the study of favorite possessions
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carried out on a three-generational group of test subjects by Rochberg-Halton (1984,1986; Csikszentmihalyi and Rochberg-Halton 1981) indicated that as people get older the possessions they consider to be special to them tend to be ones that represent other people for example gifts, photographs. According to the authors of the study such results may suggest that with a persons age attitude towards possessions and the limits of ones self perception change over time. Additionally the results may point out that possessions are regarded not only as part of personality but also as being key to the development of self. Belk continues to argue that if possession are considered as part of self than an involuntary loss of possession should be viewed as a loss or lessening of self as Georg Simmel observes material property is, to speak, an extension of the ego and any interference with our property is for this reason, felt to be a violation of the person (1950, p. 322). The above studies and concepts clearly illustrate the importance of possession and its value to people. An interesting phenomena that is essential to the further understanding of the perception of luxury cars was observed by Niederland and Sholevar (1981) many of young American males consider cars as part of their extended selves and ideals of their ego. This idea is also supported by other studies for example consumer self-concept research (Bloch 1982) The processes of creating and nurturing extended self through an automobile may be seen in customizing (personalizing) the car and in lavishing great care on its maintenance. When such a car is damaged, the owners react as if their own bodies have been injured (Belk 1988, p.143). In addition the owners of such damaged cars seek to quickly restore the car to its former perfect state or they look for the most adequate substitute. This kind of reactions can reflect the need to restore the diminished sense of (extended) self caused by the car damages. Another key aspect is understating the functions of the extended self in relation to possessions it is obvious that every object has some sort of basic function like for example cars are used for transport, tools or weapons also enable us to do activities that we would be incapable of doing without them. However this is not the only function that such objects have they can also symbolically extend ones personality for example uniforms can influence not only the way in which we perceive ourselves but also the way in which we are perceived by others. An interesting example was studied by Tanay (1976) he suggested that handguns can be considered a symbolic penis for their owners this hypothesis was later questioned by Kates and Varzos 1987 whom pointed out the
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real rather than figurative power given by weapons. Both of the above views illustrate that having possessions can contribute to ones capabilities for doing and thus extending their basic functions. Personal belongings can also play additional roles in the extension of self adding value to ones sense of identity by creating, enhancing and preserving it. As a result of this possessions can be a useful tool for people of ages and to some extent can help us to identify who we really are. The questions however remains how do we actually incorporate such objects into the extended self Sartre (1943) presents 3 primary ways through which we start to view an object as part of our personality. One is learning by doing meaning exclusive usage and control of intangible objects by overcoming, conquering and mastering them for

example learning new skills, driving your first car or climbing a mountain and gaining control of its great panorama. The remaining two ways of incorporation identified by Sartre are creating an object and knowing one. According to Sartre buying objects can be seen as another form of creating an object and that even the hidden buying power of money adds to a sense of self this view while quite controversial can be explained through the fact that money extends the possibilities of things that we might obtain and do. All of the above are active and intentional ways of self extension people purchase cloths, housing and cars as a sort of second skin it is displayed to the eyes of other people and through it they perceive us. Moreover a very important aspect connected with this issue is that people maintain multiple levels of self some objects can be more central to ones self than others. There are four main levels of self recognized by Rapoport(1981)are individual, family, community and group the most important distinction in the levels of self construct is made between the collective versus individual conception. Boorstin (1793) in his study puts forward that one of the essential ways of expressing and defining group association is by sharing common consumption symbols which help to identify group members and define the group self. A great example of group identification are clubs, fan clubs, forums and other organizations associating people with common interests for example owners of luxuries cars such as BMW, Mercedes etc. Every member of this sort of club can use their personal possession as to express belonging to a group. As a result membership in this kind of club helps people to define an individual sense of self and at the same time further affirms it by group identity and a sense of belonging to the specific group. As
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the main indicator of the level in which group members are reeling on the group for an identity is the relative variability of the consumption tastes in a group the above examples illustrate an very big group dependence. Another concept that is helpful in understanding the underlying assumptions of such incorporation is the care that people take in handling their own possessions. According a study made by (Belk 1987b,1998) there is a connection between the level of incorporation of objects into the extended self of people. The research carried out on male car owners aged between 19 and 29 describes that washing, waxing and taking care of ones car is considerably correlated with the extent to which the car is central to the extended self of the owner. The elementary ways in which possessions can become part of extended self has been presented above nonetheless there are additional areas of consumer behavior that can also be characterized with self-extension. Two of them namely money and collections are worth mentioning and can contribute to a better understating of the reasons and motives behind peoples perception of luxury goods. The primarily role of collections according to Belk (1982b) was the need for future security nowadays however most often people collect not essential goods mainly for distinction and self-definition. From the small boy to the connoisseur, the joy of standing before ones accumulated pile and being able to say this belongs to me is the culmination of that feeling that begins with ownership of the first item they become us (Belk, 1988 p.154). The importance of collections to people can be easily seen on the example of famous car collectors like Jay Leno American comedian and TV host whom are constantly striving to acquire the most unique car that it is possible in order to add to their collection. Additionally for many men at some point in their childhood it has been a dream to have a model of Ferrari in their toy car collection. Undoubtedly as Stewart (1984)shows creating ones extended self through devoted development of a collection is the ultimate in selfdefinition by means of having rather than by the less tangible means of doing or being (Belk, 1988 p.154). According to Wicklund and Gollwitzer (1982) people experiencing low self-esteem adding new objects to an collection may be seen as a form of compensation and serve as a restoration to a more complete sense of self. As my work discusses the perception of luxury cars it is understandable that money plays a significant role here especially in the process of obtaining such luxury items. It was previously noted that money can also contribute to an extension of self the function
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that money plays in this process has a dual perspective. They way it is perceived by people is essential to a better understating of this issue for some it might be the effects of using the power of money as a tool of obtaining desired material goods and performing activates that otherwise a person would be in incapable of achieving. On the other hand by others money itself is viewed as an extension of self and as a result becomes an end rather than a means of attaining other things. Money is thought to bring love, fame and respect. Money is commonly seen as a symbol of success and power (Rubenstein, 1981). Similarly to other formerly outlined elements of the extended self when consumers believe that money is part of their extended personality their happiness is directly connected to the well being of their money. One of many examples illustrating the extent to which this can have an effect on people is an interesting study made by New Yorker in 1975 it found that there is a positive

correlation between the sexual potency of businessmen and the level of the Dow Jones Industrial Average. This appears to be another case of viewing money as an unconscious symbol of masculinity and power (Lindgren 1980). Although a direct connection between money and happiness has to be questioned due to the fact that numerous research in this field brought many sometimes contradictory results. Nevertheless it has to be recognized that there is a considerable amount of evidence that depicts people with higher than average incomes as those reporting higher levels of selfesteem, subjective happiness and satisfaction (e.g. Diener 1984) yet a surplus in income that does not raise a person above a certain level in direct comparison to others has little significance (Duncan, 1975). There is additional research showing that people with higher incomes are considered to be viewed by others as being better off, happier and healthier (Luft 1956). Taking all the above facts into account it is important to note that also abuse of money and its extreme use in service of enhancing oneself can lead to pathologies i.e. substituting money for love and happiness (e.g. Bergler 1959; Jones 1948; Krueger 1986). The above theoretical concept is essential in understanding the underlying assumptions of peoples perception of luxury cars is it shows that consumer behavior is guided by one simple yet very powerful principal we are what we have.

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1.2.3 The concept of Psychological Ownership In additions to Belk research I would like to touch on the subject of psychological ownership in relation to possessions as it extends the notions mentioned by Belk and provides a more complete view on the approach of people to goods presenting the various attitudes and emotions that represent the feeling and act of owning. Pierce, Kostova and Dirks (2002, p.5) constructed a definition of psychological ownership. It is a psychological phenomenon in which we feel a possessive feelings for the target of ownership. The essence of ownership is strictly linked with the meaning of words MY or MINE, and OUR. Psychological ownership emphasis a relation between the owner and the object, in which according to Belks research the object functions as a part of extended-self. These three researches describe the state of psychological ownership as a complex of cognitive and affective elements. It is a condition, of which one is aware through intellectual perception. It reflects an individuals awareness, thoughts, and beliefs regarding the target of ownership. This cognitive state, however is coupled with an emotional or affective sensation. Feelings of ownership are said to be pleasure producing per se (cf. Beggan, 1992; Furby, 1978a; Nuttin, 1987; Porteous, 1976) and are accompanied by a sense of efficacy and competence (White, 1959). The affective component becomes apparent in the feelings that arise when others lay claim to objects for which one feels a sense of personal ownership (e.g., Those ideas are MINE!) or collective ownership shared with a group (e.g., That garden space is OURS!). (Pierce, Kostova and Dirks, 2002, p. 5). A luxury car treasured by the owner can be a perfect example of such a possession it is quite uncommon to lend such cars to another person and even when the owner decides to borrow his car he might feel uncomfortable with this decisions and in some extreme situation worry about the car being damaged. According to Pierce, Kostova and Dirks (2002, p. 14) three basic motives influence peoples relation to their possessions efficacy and effectance, self-identity, and having a place (home).

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Efficacy and effectane are in many cases the basic reason behind the need personal item which can satisfy ones need for ownership becoming an end itself.

for

possessing a product as this motives are directly linked with being in control of a

However the final importance of having is combining the ownership target with the self which in turn leads to a literal form of possessing and controlling. As the authors state the motivation for possession stems from the individuals need for effectance and ability to produce desired outcomes in the environment (cf. White, 1959) In other words, they enable one to effect desired outcomes in one's environment. In addition to producing intrinsic pleasure, control over the environment may produce extrinsic satisfaction as certain desirable objects are acquired (Pierce, Kostova and Dirks, p. 10) This concept is expanded further by also recognizing that the power to produce desired outcomes through ownership and control over items is in itself a pleasure for the owner and thus it starts to be viewed as personal efficacy and a part of the extended self. The connection between self-identity and possessions was mentioned before in the text. Researchers like Belk, Allport, Simmel, Niederland and Sholevar have examined this issue. Results of these studies proved that the possessions help people to come to define themselves and express their self-identity to others, and maintain the continuity of the self across time. (Pierce, Kostova and Dirks, 2002, p. 10) The last motive is a basic human need for owning a certain space. Heidegger and Polanyi, Dreyfus notes that when we inhabit something, that something is no longer an object for us, instead it becomes a part of us. For Heidegger and Polanyi, this is called dwelling in or inhabiting. (2002, p.14) We become psychologically attached to this place and it provides us a sense of security. I see a certain similarity between having a place motive and having a car motive in Poland. For some people nowadays cars become their own private places people often buy cars and luxury cars in particular can be considered to be a play the role of an improved, unique and attractive personal space. Such car owners seem to be a very good example of Porteous theory which states that we derive three satisfactions from ownership: (1) control over space per se; (2) personalization of space as an assertion of identity and, (3) stimulation (achieved, for example by thinking about, using, improving, or defending ones possessions/territory). (2002, p.6-7)
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1.2.4 Self-Discrepancy Theory (Edward Tory Higgins) TBA nie wiem czy zd

1.2.5 Intrinsic motivations, self-esteem and luxury goods consumption As the above concepts recognized not only the importance of the conspicuous reasons behind owing luxury cars and other goods but also the intrinsic factors associated with possession I would like to continue by showing a perspective which concerns the latter in a publication by Yann Truong, Rod McColl on Intrinsic motivations, self-esteem and luxury goods consumption from the Australasian Marketing Journal 18 (2011, p. 555561). The authors argue that despite the dramatic growth of the luxury market
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during the last twenty years the studies regarding luxury consumer research remain scarce and largely fragmentary. In order to address this knowledge gap their study deals with the motivation for purchasing luxury products, analyzing data with the use of structural equation modeling. Contemporary research on luxury goods is based on the theory of conspicuous consumption, which assumes that the higher the means of a consumer, the more he will consume and the more visible goods they will chose in order to display their wealth and gain social status (Truong, McColl, 556). In general, people tend to overpay for products which they perceive as prestigious, trying to gain status in society by willingly spending irrationally high amounts of money. The higher social classes have always been setting the trends and behavioral, economic and social patterns for the lower classes. This principle has been shaping the image of society for years individuals have been purchasing products aiming at emulating the higher social classes in order to be identified with them. In the modern world this has led to shaping both consumers preferences for goods and the marketing strategies utilized to sell them. While conspicuous consumption is an undeniably popular practice, not each and every consumer adheres to it. Seeking products of the highest quality or aspiring to selfpleasure are the other motivations for purchasing luxury goods. The desire for the best quality is, according to the authors, one of the essential attributes of luxury goods and one of the most popular motivation of buying them. In fact, quality is often identified with luxury, being its most distinguishing characteristic. The authors postulate that since a desire for quality appears to be intrinsic, it is posited that [] a direct positive relationship exists between intrinsic motivations and quality (Truong, McColl, 556). They notice that the desire for self-reward can induce consumers to purchasing this has been referred in literature as hedonic motivations. These run deeper than the need to benefit from a superior quality product and are often related to personal emotions, the seeking of other advantages for the self. Thus, the authors classify them as intrinsic, drawing another relationship between intrinsic motivations and self-directed pleasure (Truong, McColl, 556). Further on, Truong and McColl link self-directed pleasure with self-esteem, which they perceive as an essential part of the human ego which individuals strive to enhance.
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Being an essential need, self-esteem connects with pursuing ones aims and thus is relative to the notion of motivation. As consumer behavior research shows, the acquisition of products improves self-esteem and self-worth. The authors make an important observation that the abovementioned related factors, constituting intrinsic motivations are irrelevant in the case of luxury product purchasing aimed at emulating higher social groups, i.e. motivated extrinsically. Based on that assumption they derive a direct negative relationship between intrinsic motivations and conspicuous consumption. Further in the text, the authors delve deeper into these relationships, describing studies they have conducted. These studies support their theories, showing that people purchasing luxury goods with intrinsic motivations are the most interested in the quality of goods (however subjectively perceived they may be) and the wish to acquire personal pleasure. Also, the studies point that self-esteem is connected to self-directed pleasure and irrespective of the notion of conspicuous consumption and quality, thus pursuing self-esteem serves as a motivation only for the former. As the study shows that

intrinsically motivated purchasers rarely buy luxury goods conspicuously, the compatibility of the former with the latter may be only partial. The most influential internal motivation identified by the authors is personal growth. In their article, Truong and McColl postulate that the earlier studies on luxury consumption were partially erroneous, as they focused on a relatively narrow definition of luxury. Dealing only with conspicuous consumption led to focusing only on the wealthy consumers, which in the modern world tends to leave out a whole social group. Nowadays, the growth of income of the middle and lower classes has led to a situation where representatives of these social groups are also occasional luxury consumers. Another conclusion is that more people purchase luxury goods motivated by intrinsic factors. These people tend to value real quality of the purchased goods as well as their capacity for providing self-directed pleasure. Citing the authors the relationship between self-esteem and self-directed pleasure proves to be very salient, suggesting that purchasing luxury goods as a self-reward may be a powerful way to satisfy ones need for self-esteem. 1.2.6. Evolutionary psychology
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As the marketing and psychological concepts presented previously clearly indicate the importance of research on perception in general there is one additional related field of study that is key in order to truly grasp the nature of human perception namely evolutionary psychology. That is why I would like to put forth the ideas of evolutionary psychology basing on the book by Geoffrey Miller Spent, Sex, Evolution, and Consumer Behavior (2009) on a more personal note this book was essentially the starting point of my thesis. In his book the author not only recognizes and underlines the importance of marketing by stating It has become the most dominant force in human culture. It is, ideally, a systematic attempt to fulfill human desires by producing goods and services that people will buy (Miller, p. 39) He also argues that nearly everything that is available for buying has been developed by a marketing employee of a randomly existing company with the goal of selling products that supposedly or actually will make consumers more satisfied and happy. In essence Miller shows a direct link to marketing and our everyday life including the perception of luxuries items and the biological reasons behind the usage of such products. According to the author a great extent if not all of this links importance can be explained through human biology and studies on evolution of mankind. Further topics on Miller TBA: sensible model of consumerist capitalism, Consumerist Narcissism, Fitness Indicators, BMW & Mercedes etc. app. 1,5 pages nie wiem czy zd

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2 The luxury/premium goods market

2.1. The Polish premium goods market
A detailed analysis of the available source materials shows that there has been a limited amount of studies and research directly tackling the Polish premium goods business. In order to present a comprehensive analysis of the Polish premium goods market I will draw on several secondary data sources ranging from Euromonitor International, Eurostat, Polish Ministry of Finance, CEPiK and GUS data to GFK/Polonia3 and KPMG4 market research. It is until quite recently that a reliable and factual study has been made in this field in 2010 the consultancy firm KPMG published the first edition of a report titled Rynek dbr luskusowych w Polsce. The findings of the 2011 edition of this report will serve as a base for the following description. Although the general level of wealth of the Polish society is consistently increasing (see ) the average level of buying power in comparison to other EU members especially the leading economies is fairly small.
Exhibit B

3 4

GfK Polonia - Polish market research agency http://www.gfk.pl/index.en.html KPMG - in Poland is a part of global network of professional services firms providing Audit, Tax and Advisory services http://www.kpmg.com/pl/en/Pages/default.aspx

26

However it is important to note that the average levels of buying power are not always positively correlated with both the demand for luxury goods and the value of such a market. According to the findings of KPMG resulting from an analysis of tax payers income in 2009 those above the taxation bracket 32% PIT are consider rich and affluent Poles. Exhibit C shows that More than 600 k fall into this category with monthly income that exceeds PLN 7,100 among which around 50 k are characterized by monthly incomes of over 20 thousand PLN and assets above 1 mln USD. There has also been an aspiring group identified of approximately 2 mln people with monthly incomes between 3,700 and 7,100 PLN. It is estimated that the total number of rich and affluent will grown to 620 k in 2010, as the Ministry of Finance data indicates their average monthly income as of 2009 is 15,2 PLN and has grown by 4 % on a yearly scale since 2008, for year 2010 this value is anticipated to reach 15,5 PLN. As for the demographics an

interesting phenomenon can be observed more than 190 k near one third of this group are residents of mazowieckie voivodeship followed by lskie (64 k), wielkopolskie (50,5 k) and maoposkie (47k) voivodeships.
Exhibit C

27

The below data presented on Exhibits D&E indicates there is a strong concentration of wealthy Poles in the central region of Poland additionally this results correspond with the average level of wages in mazowieckie which are the highest in Poland also an important contributor to this is the fact that most of the headquarters of the biggest international companies are based in Warsaw this and many other factors contribute to the fact that this voivodeship is the richest one in Poland.

Exhibit D

Exhibit E

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The Polish luxury goods market has an estimated declared worth of 28,3 billion PLN as of 2009 and the year on year expenditures for luxury goods are increasing in comparison to 2008 they grew by 4,4 %. Poland continues to be a fairly young market for luxury goods the 7 main segments that can be indentified are: auto-motive, clothing, watches and jewellery, yachts, airplanes and helicopters.
Exhibit F

As can be see on above Exhibit F of over 200 brands taken into consideration in the KPMG report just over a half of luxury brands from the above mentioned were available for Polish consumers in the year 2009 53 %. The growth of this market and increasing demand for new goods has been recognized by many of the key players in the global luxury goods industry and as a result the availability of this type of goods in Poland is systematically increasing. The newest data for 2010 shows that the availability has increased by 8% in comparison to corresponding year ago period and amounted to 61% yet one third of the main brands are still to be introduced. From all of the currently available the largest market share goes to Italian brands which constitute for 21% followed by French 18%, Swiss 15%, US 13% and Germany 9% this countries are the top 5 players in the Polish market.

29

2.2. Luxury cars industry in Poland

I will continue with a presentation of detailed insights on the luxury segment of cars in Poland as it is one of the largest segments in terms of value and one that is most commonly considered by Polish society to bear all the necessary traits of a luxury good. Over recent years the Polish car industry has evolved the wealth of Poles increases and as a consequence the demand for luxuries cars enhances accordingly. Although more and more people can afford cars that are considered luxuries ones an important tendency does not change over the years according to CEPiK data the largest number of premium cars is being registered in the category of used cars 5 years or older. When we take this into account and compare to the situation in Western Europe majority of the luxury cars registered in our country would not even be considered luxurious abroad. Such a situation can indicate that the demand for luxury cars exceeds the current buying power of Poles. Among the 118 382 luxury car brands registered in 2010 92 872 was 5 years or older another 14 679 were the cars between 2 and 4 years of age and only 10 831 of them were new and one year old. When compared to the leading European markets such as Germany with 800 k, Great Britain 353 088 k or France 160 k luxury cars registered in 2010 in Poland with only 10 831 new luxurious cars falls short and has comparable results to Denmark 11 117 and Ireland 8 791. Nevertheless for the moment having this specific situation in mind I will continue to analyze the market focusing on the country specific definition of luxury cars. Often car sales and luxury cars sales in particular are considered to be a mirror reflection on the level of wealth and current moods of consumers in 2010 there was a significant decline of 39% vs. last year in the number of new and one year old luxury cars registered. The main reason for this drop was the financial crisis of 2008-2009. However the newest data from Samar Institute indicates a positive shift in sales for this market in the period from January to August 2011 the number of premium cars registered increased by 3 %. This years result demonstrates that although Euro zones economy is currently struggling the moods of wealthy Polish consumers are optimistic. According to CEPiK data in 2010 the most popular luxury car brands registered in Poland were Audi with over 50 k cars registered second place came to BMW with 26 726 third is Mercedes with 23 519 and not far behind the big three is Volvo with 13 479 cars registered.
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2.3 The Global premium goods market

TBA (GLOBAL market) ) nie wiem czy zd Global luxury goods accounted for $175 billion in retail sales
in 2008 (Bain and Company, 2009), and expectations are that the fast-growing markets of China and India will sustain the luxury market expansion for the next 10 years (Anestis et al., 2009). While the size and growth of this market has attracted increasing research interest to the luxury industry (see Tynan et al., 2010), in comparison to other research sectors, the literature remains scant (Truong et al., 2008). Consumer behavior is a cornerstone of marketing in which individual aspirations and motivations play an important role. Aspirations influence motivation, which in turn influences a consumers actions (Grouzet et al., 2005; Kasser and Ryan, 1996; Kim et al., 2003; Sheldon et al., 2004). Previous investiga- tions of purchase motivations broadly categorize consumer motives for luxury consumption as either intrinsic or extrinsic. Intrinsically oriented purchases reflect internal selffulfillment goals (Tsai, 2005). Extrinsically oriented purchasing reflects the importance of others perception of the consumer as the main motivating factor. Thus, extrinsic motivations fall within the theory of conspicuous consumption, which states that customers purchase luxury goods largely to signal their wealth and status (Veblen, 1899).

31

3. The Research
3.1 Research description

3.1.1. Research subject and its goal

The main focus of prior chapters was to highlight the complexity and explain what a broad concept human perception is even taking the specific context of luxury car brand, it is important to remember that it is a part of an extremely complex and to this day not holistically studied process. Taking the above into consideration I have concentrated my research on this specific part of the human psyche with the goal of presenting valuable insights on how luxury brands are perceived in Poland. The goal of this research was to adequately measure and define the perception and attitudes of Polish people and to draw conclusions on basis of the research findings. Additionally the goal of this thesis and the research which followed was to construct and develop adequate measures for attitudes and perception of luxuries car brands and to combine contemporary theories and put them into practice with empirical research. I hope that my research and other similar studies can be used and applied to construct improved future marketing strategies, implications can be broad and the area for further research in this field is substantial.

TBA + sampling method + methodology declarative Questionnaire + hypothesis thesis?!

3.2. Analysis of research results

3.2.1 Questions 1-6 sampled group demographics, ownership and car usage The participants of the research were a group of 50 part-time Kominski University students. As figure 1. indicates the within this group gender was distributed evenly near

32

half of the respondents were woman 54% the remaining 46% were men.
Figure 1. Q1. Gender

46% 54%

Woman Men

The average age of respondents was 25,1 years with a SD of 10,29. As it is seen on Figure 2. almost 2/3 of the study participants owns a car to be exact 68% of the sample group of respondents and only 32% did not have a car. number for those owning a car.

Figure 2. Q3. Do you have a car?

32% Yes No 68%

Moreover as the next Figure 3. shows nearly all of the 32 % of respondents who did not currently own a car plan to buy a car in the future to be exact 94% plans to do this.

33

Figure 3. Q4. If you do not own a car currently do you plan to buy one?
6%

Yes No 94%

Even more interestingly as can be seen on Figure 4. more than half of the respondents (31 out of 50) can be classified as heavy car users with only one third (15) participants stated to be light car users. Figure 4. Q5. How often do you use a car as your main means of transport?
30 26 25 20 15 15 10 5 5 0 Almost everyday At least 5x a week Not more than 3-4x a week Less than 3x a week A number of times in one month or less 2 1

34

Figure 5. Q6. What is your most common use of a car?

35 30 30 25 20 15 10 5 0 Business/as means of transport to work/school Leisure (trips, shopping etc.) 19

As can be seen above on Figure 5. the most common uses of cars are the widely understood usage related to work and/or studies this means either as a way of transport or an essential part of the occupation. The second most common car usage is classified as a Leisure activity this include i.e. trips, shopping or any other action that includes using a car during the free time. The research participants answered that mostly they use cars during work related activities 30 however not far behind with 19 answers was the leisure car usage. The above data can lead to a conclusion that the sample group for this study was correctly chosen thus the results of this research are to reasonable extent reliable, taking into account the following hypothesis: people who own cars are more aware of the luxuries car brands even if they do not own such brands personally.

35

3.2.2 Questions 7-8 top of mind luxury brands and purchase declaration The next series of questions was constructed in order to check whether or not or not the top of mind 5 luxury brands mentioned by respondents are correspondent with the ones they would consider buying in the future. The results were: Figure 6. Q7.Please name 3-5 luxury car brands that you can think of:
30 25 20 15 10 5 1 0 BMW Ferrari Lotus Porsche Bentley Audi Mercedes Aston Martin Mini Cooper Bugatti Acura 9 10 6 4 1 Honda 1 4 1 JEEP Lamborghini Infinity Jaguar 2 Lexus Land/Range Rover 2 Maybach Maserati 7 5 4 1 Rolls Royce 2 Saab 2 4 1 Toyota Volvo 1 Zonda Paganii 24 27 24

17 12

17 14

The above Figure 6 indicates that the participants chosen the following brands as their top of mind luxury car choices (next to brands in brackets please find the number of answers given) the brand which had the largest number of declarations was Ferrari with (27), at join 2nd place came BMW and Mercedes (24), 3rd also on par came to Lexus and Bentley (17). Not far behind the top five were respectively Porsche on 6th (14) and 7th Lamborghini (12).

Hummer

Subaru

36

Figure 7 Q8. Which car brands would you consider to buy in the future given no price limit?(choose up to 3) :
25 20 20 15 10 5 1 0 8 6 3 1 1 1 1 1 2 1 2 2 3 1 1 13 11 7 2 3 1 1 2 1 7 2 3 3

As Figure 7 shows the results for purchase intent of the research participants are significantly different from the top brand awareness and it can be easily seen that the results clearly do not correspond with the previous. Only BMW maintained a strong position being the most desirable car one considers buying with (20) declarations. This results may indicate that the brand is very strong in Poland both in terms of brand awareness and possible purchase intent successfully overcoming the gangster stereotype it had not more than a decade ago. 2nd place here came to Audi (13) which interestingly enough in the previous question was the 10th most popular brand. On 3rd place we have Mercedes (11) than in that order there is Aston Martin in 4th and at joint 5th Porsche and Lexus (7) lastly we have Ferrari with only (6) declarations. This is undoubtedly an interesting phenomena occurred although Ferrari was the top-of mind choice most popular brand for more than half of respondents when compared with purchase declarations only a marginal number of people are willing to buy it. Additionally as can be seen in both of the above figures Volvo by many people in Poland considered to be a luxury car brand which has had great sales results in Q4 of 2011 the company achieved the largest growth rate of in the segment. Surprisingly had minor declarative results in both situations in brand awareness and purchase intent.

Alfa Romeo Aston Martin Audi Bentley BMW Bughatii Chrysler Citroen Dodge Ferrari Fiat Ford Honda Jaguar JEEP Lamborghini Land/Range Lexus Lotus Maserati Maybach Mazda Mercedes Mini Ford Mustang Nissan Porsche Saab Toyota Volvo

37

3.1.3 Questions 9-12 Analysis of luxury car traits and their perception by TG Additionally to the preceding questions 7&8 in order to further gauge brand perception a double check was made with the use of projection techniques based on an abstract comparison in order to correctly assess the attitude and perception towards the most popular luxury car brands in Poland. The below questions used a projection method in order to more adequately analyze and measure the respondents perception of 4 luxury car brands:, Ferrari, Volvo BMW and Mercedes To achieve this respondents were asked to imagine that the newest model of these cars is a woman and name what kind of traits would she posses. The results were as follows: Figure 12. Q9. Try to imagine the newest model of Ferrari is a woman what kind of traits would she have ?
20 15 10 6 5 0 sexy beautiful elegant fast impulsive moody malicious predatory reliable 5 5 5 13 13 19

12

11

As can be seen in figure 12. for Ferrari top 5 traits reported by the sample group were(in brackets number of answers given): Elegant (12)4thPredatory (11) 1st Fast (19), 2nd Sexy & Beautiful (13), 3rd

38

Figure 13. Q10. Try to imagine the newest model of Volvo is a woman what kind of traits would she have ?
14 12 10 8 6 4 2 0 safe calm comfortable elegant family oriented reliable settled 9 6 7 4 7 3 13

Figure 13. shows the following results for Volvo top 5 traits reported by the sample group were(in brackets number of answers given): Elegant & Reliable (7)4thComfortable(6 Figure 14. Q11. Try to imagine the newest model of BMw is a woman what kind of traits would she have ?
12 10 8 6 4 4 2 0 agressive crazy elegant fast luxuries reliable sexy sporty 4 4 7 6 5 11 9

1st Safe (13), 2nd Calm (9), 3rd

As can be seen in figure 14. indicates BMW top 5 traits reported by the sample group were(in brackets number of answers given): aggressive (7)4thSexy (6) and 5thSporty (5) 1st fast (11), 2nd luxuries (9), 3rd

39

Figure 15. Q12. Try to imagine the newest model of Mercedes is a woman what kind of traits would she have ?
12 10 8 6 6 4 2 0 calm distinguished elegant luxuries old settled 5 11 9 7 6

As can be seen on the above figure Mercedes top 5 traits reported by the sample group were(in brackets number of answers given): (7)4thsettled (6)&distinguished (6) Due to the fact that BMW is a brand with a well established position on the market and a high level of recognition among polish consumers I decided to extend this analysis and compare other luxury car brands in relation to BMW. The strong position of BMW was additionally confirmed in my research as it was the 2nd most commonly indicated brand in question 7(concerning the luxury car brands top of mind familiarity) and the 1st in question 8(car brands respondents would wish to purchase)this indicates a very significant brand awareness for BMW among the SG. 3.1.3.a In-depth analysis of questions 9-12 A closer analysis of the results indicates that 11 respondents stated BMW to be fast making it the most popularly represented trait for this brand analogically a similar situation is with Ferrari were this trait is also the top one with 19 indications making it even more strongly represented than in case of BMW . Surprisingly the trait fast did not even appear in the results for Volvo and Mercedes although most of their models have comparable performance to BMW and Ferrari. The second BMW trait most commonly pointed out is being luxuries this answers appeared 9 times the exact same number of times this trait was indicated in case of Mercedes, also quiet surprisingly this trait was not given in case of Volvo and Ferrari. Also for the second time a common trait Sexy
40

1st elegant (11), 2nd luxuries (9), 3rd old

appeared in case of BMW - 6 indications and for Ferrari - 13 indications, to some extent not surprisingly this trait did not appear in case of Volvo and Mercedes and as a result Ferrari appears to be perceived as the most erotic from all studied brands. The two unique traits of BMW that did not appear among the description of other brands were Aggressive - 7 indications and Sporty 5 indications. This might show that the current marketing strategy of BMW is successfully differentiating itself from the competition by embedding strong emotions and sport in the brand image. In case of the other brands traits I will only focus on the distinctive and unique characteristics for Ferrari such characteristics are beautiful 13 indications and Predatory with 11 answers this also shows strong a strong emotional message in the brand yet its general perception tends to mainly focus on the esthetics. For Volvo such traits are first and foremost being safe with 13 responses it is the top trait for Volvo showing that the current brand positioning and focus on safety is noticeable in the minds of consumers second distinct trait is being comfortable. Lastly we have Mercedes among its unique characteristics are old with 7 indications followed by settled and distinguished with 6 responses these traits clearly indicate a slight perception problem with which the company is currently struggling Mercedes is viewed by many as old and the company is working to change this perception. (this can lead to being viewed as out of date or not trendy only indicated did not appear, was not) Declarative

41

3.1.4 Question 13. Most valued traits of cars in general Respondents were asked the following question What do you value the most about cars in general? and to assign values to the listed car traits on a scale from 1 where 1 meant very important, 2 important, 3 - moderately important, 4 - not important, 5 - not important at all. Next the gathered data was analyzed by taking an average out of each value. As the below Figure 16. demonstrates the participants of the research pointed out that the most desirable traits for them were accordingly(Average values in brackets): 1st Reliability (1,49), 2nd Safety (1,53), 3rd Comfort (1,55) these three traits are in the first cluster and scored the highest average scores such results clearly indicate which car characteristics are preferred in the studied target group. In the second cluster we have respectively 4th Practicality (1,83), followed by 5th Exterior design (1,88) 6th Economy/Efficiency (1,94) and 6th Interior Design (2,07)all of the mentioned traits scored considerable above the mean value of 2.5.
Figure 16. Q13.Average value for traits
005 005 004 004 003 003 002 002 001 001 000 002 002 002 002 002 002 002 002 001 003 003

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3.1.5 Questions 14-17 What makes a car personal The goal of this questions was to describe ones personal relations with the car he or she owns. Respondents were asked what car brands they currently own, what do they dislike and if given the chance what would they change in their cars. As the personal perception of ones car differs significantly between genders the results outlined below were differentiated accordingly with regard to this.
Figure 17. Q.14 What is the car brand you are currently using? or If you currently do not own a car what brand would you consider buying in the near future?
10 9 9 8 7 6 6 5 5 4 4 3 3 2 1 0 Audi BMW Ford Mercedes Opel Toyota 5

As the above Figure 17 shows the most common car brands used by the study participants were in accordance: 1st Ford (9) making it the most popular brand among respondents , 2nd Audi (6) and on joint third BMW and Toyota (5). The results are another confirmation that the sampled group was well chosen due to the fact that show that nearly half to be exact 14 of the total 32 declared owned brands are considered to be luxuries.

43

Figure 18 Q15. What is most disliked by you in your current car? (woman)
6 5 5 4 4 3 3 2 2 1 0 unreliable nothing too small old color too slow bad preformance 4 4 5

As the above Figure 18 Figure 19 shows:

Figure 19 Q16. If you were given the chance what would you change in yourcurrent car? (woman)
6 5 5 4 4 3 3 2 1 0 better preformance color less fuel consumption

For men the result were as follows:

Q15 Dislike Men bad preformance 8 Men Q16 Change better engine 7

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The below graphs Figure 20 & 21 indicate what do respondents need cars for and what kind of activates are most often connected with car usage.

Figure 20 Q17. Name 3 to 5 most important things that having a car enables you to do?(woman)
comfort 22% 20% being independent mobility shopping 11% 17% 22% transport/transport to work travelling

8%

Fiugre 21 Q17. Name 3 to 5 most important things that having a car enables you to do?(men)
travelling 29% 12% transport/transport to work shopping 17% 29% practicality mobility

13%

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3.1.6 Questions 19-20 Cars dedicated for Woman and man Perfect manly car:

Figure 22 Q19. If you were to quickly describe the main attributes of a truly manly car what would they be?
5% 5% 6% 33% 6% 8% 15% 17% 5% Fast Big Black Sporty Pretty Powerful Elegant Massive Great preformance

Ideal Womanly car:

Figure 23 Q 20. If you were to quickly describe the main attributes of a truly womens car what would they be?
5% 8% 8% 9% 9% 15% 28% Small Pretty Safe Comfortable Easy 2 use 18% Fast Economical Manoeuvrable

46

3.1.7 Question 21 Importance of technology

005 005 004 004 003 003 002 002 001 001 000 001 002 003

Average Value

003 003 003 003 003 003 002 002

003 003 002

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3.1.7 Question 21 Consumer Preference 23. Imagine yourself having a budget of 30 k PLN would you for example rather buy a brand new Chevrolet Aveo or Audi A3 from 2004?
8% 25% 1 Aveo 2 Audi DNA

67%

24. Do you think that having a luxury car in Poland can influence the way in which the owner is regard by other people, is such a person more respectable?
6% Yes 29% No

65%

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4. The Conclusion & areas for further research

As the result of the study carried out show Poland still remains an emerging market for luxury cars given the fact that Important implications for marketing: In addition to building brand image through various form of advertising as the research showed it is vital to underline the importance of 3 key traits reliability, safety and comfort. A case of Volov is a very good example of this strategy although almost non existing in the minds of respondents as a luxury car sales results beg to differ. Hypothesis one: People how are rich and affluent in Poland are mostly between their 30-50s and are more mature therefore they might seek different values in luxuries cars meaning that either real or projected/perceived safety is by far above all other characteristic one of the most important factors and has a great influence upon consumers buying decisions.

Areas for further research

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11. Popper, K.R. (1979) Objective Knowledge: An Evolutionary Approach Oxford, UK: Oxford University Press 12. Geertz, C. (1973) The Interpretation of Cultures, New York: Basic Books 13. Allport, G. W. ( 1937) Personality: A Psychological Interpretation, New York: Henry Holt 14. Dixon, S.C., Street, J.W. (1975) The Distinction Between Self and Non-Self in Children and Adolescents, Journal of Genetic Psychology, 127, pages 157-162 15. Rochberg-Halton, E. (1984) Object Relations, Role Models, and Cultivation of the Self, Environment and Behavior, 16 (3), 1984, p. 335368 16. Rochberg-Halton, E. (1986) Meaning and Modernity, Chicago, IL: University of Chicago Press 17. Rochberg-Halton, E. Csiksyentmihalyi, M. (1981) The Meaning of Things: Domestic Symbols and the Self, Cambridge, MA: Cambridge University Press 18. Simmel, G. (1950) The Sociology of Georg Simmel, trans. Kurt H. Wolff, Glencoe. IL: Free Press 19. Niederland, W. G., Sholevar, B. (1981) The Creative Process A Psychoanalytic Discussion, The Arts in Psychotherapy, 8 (1), pages 71-101 20. Bloch, P. (1982) Involvement Beyond the Purchase Process: Conceptual Issues and Empirical Investigation, Advances in Consumer Research, vol. 9, ed. Mitchell, A., Arbor, A., MI: Association for Consumer Research, pages 413-417 21. Tanay, E., Freeman, L. (1976) The murderers, Indianapolis, IN: Bobbs-Merill, pages 25-43 22. Kates, D. B. Jr., Varzos, N. (1987) Aspects of the Priapic Theory of Gun Ownership, paper presented at the 1987 Popular Culture Association Meetings, Montreal, Quebec, Canada 23. Sartre, J. P. (1943) Being and Nothingness: A Phenomenological Essay on Ontology, New York: Philosophical Library
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24. Rapoport, A. (1981) Identity and The Environment: A Cross-cultural Perspective in Housing and Identity: Cross Cultural Perspectives, ed. Duncan J., London: Croom Helm, pages 6-35 25. Boorstin, D. (1973) The Americans: The Democratic Experience, New York: Random House 26. Stewart, S. (1984) On Longing: Narratives of the Miniature, the Gigantic, the Collection, Baltimore, MD: John Hopkins 27. Wicklund, R. A., Gollwitzer, P. M. (1982) Symbolic Self Completion, Hillsdale, NJ: Lawrence Erlbaum Associates 28. Rubinstein, C. (1981) Money & Self-esteem, Relationships, Secrecy, Envy, Satisfaction, Psychology today, 15, May, pages 29- 32 29. Lindgren, H. C. (1980) Great Expectations: The Psychology of Money, Los Altos, CA: William Kaufmann 30. Pierce, J. L., Kostova, T., Dirks, K. T. (2002) The State of Psychological Ownership: Integrating and Extending a Century of Research, Review of General Psychology

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APPENDIX: APPENDIX 3: Questionnaire (PL + czy doda wersj ENG te?)

Dobra lukusowe kwestionariusz
1. Jestem: Kobiet Mczyzn

2. Mam ___ lat. 3. Czy masz samochd? Tak Nie

4. Jeli teraz nie posiadasz samochodu czy w przyszoci planujesz go kupid? Tak Nie

5. Jak czsto uywasz samochodu jako gwnego rda transportu? Prawie codziennie Przynajmniej 5 razy na tydzieo Nie wicej ni 3-4 razy na tydzieo Mniej ni 3 razy na tydzieo Kilka razy w cigu jednego miesica lub rzadziej

6. W jakim celu najczciej korzystasz z samochodu? Biznesowo/jako rodek transportu do pracy lub szkoy Czas wolny(wycieczki, zakupy etc.) Inne: _________

7. Prosz podaj od 3 do 5 luksusowych marek samochodw: ___________________________________________________________________ ____________

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8. Jakie marki samochodw chciaby posiadad w przyszoci gdyby nie musia sugerowad si cen?(wymieo 3) ___________________________________________________________________ ____________ 9. Sprbuj sobie wyobrazid, e najnowszy model Ferrai jest kobiet jakie cechy charakteru by posiada? ____________ , ____________ , ____________ , ____________, ____________ 10. Sprbuj sobie wyobrazid, e najnowszy model Volvo jest kobiet jakie cechy charakteru by posiada? ____________ , ____________ , ____________ , ____________, ____________

11. Sprbuj sobie wyobrazid, e najnowszy model BMW jest kobiet jakie cechy charakteru by posiada? ____________ , ____________ , ____________ , ____________, ____________ 12. Sprbuj sobie wyobrazid, e najnowszy model Mercedesa jest kobiet jakie cechy charakteru by posiada? ____________ , ____________ , ____________ , ____________, ____________

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13. Co najbardziej cenisz w samochodach? Obok wybranych cech zaznacz ktre z nich s dla Ciebie najwaniejsze. Gdzie:(1 bardzo wana, 2 wana, 3 dosyd wana, 4 niezbyt wana , 5 w ogle nie wana) (moesz zaznaczyd kilka odpowiedzi) Marka
bardzo wana wana

dosyd wana

niezbyt wana

w ogle nie wana

Komfort (atwod uytkowania)

bardzo wany wany

dosyd wany

niezbyt wany

w ogle nie wany

Zewnetrzny Design

bardzo wany wany

dosyd wany niezbyt wany

w ogle nie wany

Wewntrzny design

bardzo wany wany

dosyd wany niezbyt wany

w ogle nie wany

Funkcja praktyczna (przewozi z miejsca A do B)

bardzo wany wany dosyd wany niezbyt wany

w ogle nie wany

Ekonomicznod (zuycie paliwa, koszty utrzymania/serwisowania)

bardzo wana

wana dosyd wana niezbyt wana

w ogle nie wana

Osigi
bardzo wane wane dosyd wane niezbyt wane w

ogle nie wane

Kolor samochodu

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane

Bezpieczeostwo
bardzo wane wane dosyd wane niezbyt wane

w ogle nie wane

Niezawodnod
bardzo wane wane dosyd wane niezbyt wane

w ogle nie wane

Presti
bardzo wane wane dosyd wane niezbyt wane w

ogle nie wane

Rwnie uwaam za wane: : ________

wane
bardzo wane wane dosyd wane niezbyt wane w

ogle nie

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14. Jakiej marki jest Twj samochodu? Jeli obecnie nie posiadasz samochodu napisz mark samochodu, ktr rozwaasz kupid w przyszoci: ________________________ 15. Czego najbardziej nie lubisz w swoim samochodzie? ________________________ ________________________ ________________________ 16. Gdyby dosta szans zmienid dowoln rzecz w swoim samochodzie co by to byo? ________________________ ________________________ ________________________ 17. Wymieo od 3 do 5 najwaniejszych rzeczy/czynnoci, ktre umoliwia Ci posiadanie samochodu: ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ 18. Podaj 3 gwne powody dla ktrych rozwayaby/rozwayby kupno nowego samochodu? ________________________ ________________________ ________________________ 19. Gdyby miaa/mia opisad prawdziwie mski samochd jakie wedug Ciebie posiadaby cechy? ____________ , ____________ , ____________ , ____________, ____________ 20. Gdyby miaa/mia opisad prawdziwie kobiecy samochd jakie wedug Ciebie posiadaby cechy? ____________ , ____________ , ____________ , ____________, ____________

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21. Wska, ktre kryteria technologiczne w samochodzie, ktry posiadasz lub ktry chciaby posiadad s dla Ciebie najwaniejsze Gdzie:(1 bardzo wane, 2 wane, 3 dosyd wane, 4 niezbyt wane , 5 w ogle nie wane) (moesz zaznaczyd kilka odpowiedzi) Hybrydowa technologia (silnik spalinowo-elektryczny)
w ogle nie wane

bardzo wane wane dosyd wane niezbyt wane

Kolor samochodu
bardzo wany wany dosyd wany niezbyt wany

w ogle nie wany

Systemy bezpieczeostwa n.p. ilod poduszek, ESP, ASR, ABS

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane w ogle nie wany w ogle nie wana

Napd na 4 koa Klimatyzacja

bardzo wany bardzo wana

wany dosyd wany niezbyt wany

wana dosyd wana niezbyt wana

Systemy multimedialne np. wysokiej jakoci sprzt audio, GPS etc.

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane

Bogate wntrze

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane

Manualna skrzynia biegw

bardzo wana

wana dosyd wana niezbyt wana

w ogle nie wana

Automatyczna skrzynia biegw

bardzo wana

wana dosyd wana niezbyt wana

w ogle nie wana

Ilod koni mechanicznych

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane w ogle nie wana w ogle nie wany

Pojemnod silnika Silnik Diesla Silnik Benzynowy

bardzo wana wana dosyd wana niezbyt wana

bardzo wany

wany dosyd wany niezbyt wany

bardzo wany wany dosyd wany niezbyt wany

w ogle nie wany

Ilod miejsc
bardzo wana wana dosyd wana niezbyt wana

w ogle nie wana

Rwnie uwaam za wane: : ________

bardzo wane

wane dosyd wane niezbyt wane

w ogle nie wane

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22. Wybora sobie, e masz do wydania 30 000 PLN na jeden z dwch samochodw Chevrolet Aveo lub Audi A3 z 2004, ktry z nich wybierasz? Chevrolet Aveo Audi A3 2004

23. Czy wedug Ciebie posiadanie luksusowego samochodu moe wpynd na to jak waciciel jest postrzegany przez innych ludzi czy taka osoba twoim zdaniem jest bardziej szanowana? Tak Nie

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FOR EXHIBIT LIST

Exhibith B

Exhibit C
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Exhibit D

Exhibit D

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