Analysis of the Reasons for the High Price of Luxury Goods Based on Consumer Psychology

Abstract

It is commonly known that the price of luxury brand products is usually much higher than that of ordinary similar products, and the price fluctuation of luxury brand products is small and relatively stable. Moreover, even though luxury goods have high prices, they always have stable consumer groups and market demand. Although extensive research has been carried out on the consumer psychology, and how the consumer influences the pricing of luxury brands, no sufficient study which can explain how the brand DNA affect the luxury brands pricing. Therefore, it is crucial to analyze the influence of luxury brand DNA on brand pricing. This analysis can help luxury brands better establish brand image, help them better convey brand values, create unique brand stories, and increase brand reliability. At the same time, this analysis can also help luxury brands better optimize their brand experience by understanding consumers’ expectations and help luxury brands design more attractive and competitive product.