The effect of the snob

Steady demand is one of the main components of successful trading. Knowingly items of daily demand, food products are sold best. Such goods are classified as normal, that is, the demand for them is growing with increasing incomes of consumers. But the market does not consist only of goods of daily demand. Luxury goods, expensive cars, exclusive jewelry, designer items, like all other goods in the classic sense also refer to normal. But in fact, the choice of the buyer depends on many components.

American economist Harvey Leibenstein singled out three types of behavior of people when buying goods.

• The effect of joining the majority is that a person buys the most popular and fashionable goods. Such an individual wants to always be aware of trends, stylish, "on the wave." The greater the demand for this product, the greater the likelihood of this particular purchase. And, conversely, when the demand decreases, the goods are not bought.
• The effect of the snob is directly opposite to the first case. A person seeks to buy what others do not buy. His task will stand out from the crowd, emphasize his own creativity. The greater the demand for any category of goods, the less likely that it will be acquired by such a buyer.
• The Veblen effect occurs when it comes to prestigious consumption. In this case, the person buys the goods not in order to use it for their intended purpose, but for allocation among others. If you take the previous effect - the effect of a snob, then there is also a task to stand out among all. But Veblen purchases should show the high status of the buyer, rather than his personal identity. In one product line such an individual will choose the most expensive.

These three effects are of decisive importance on the luxury goods market, where methods for marketing promotion that are customary for mass consumption do not work. If during the advertising campaign for a crazy product guided only by classical concepts, such as speculative demand, elasticity of demand, consumer expectations, you can come to deplorable results. The classic marketing model is designed to expand the target audience, which reduces the need to purchase the product as a dream subject.

Therefore, people who buy luxury goods by their nature, the desire to be the first in everything, cease to notice such a product. Even if its consumer properties, exclusivity and chic is immediately apparent. Thus, all efforts to promote are being nullified. This is because among potential buyers there are no those for whom the main thing in choosing a product is the effect of a snob or Veblen.

Consumer demand for luxury goods should be a shade of certain elusiveness and difference from others. One of the options for promoting a high-end product is the principle of evangelism. It is based on the creation of special groups of people, for whom the possession of brands of a certain company is vital. The brand creates its own history, philosophy and principles. And here we are talking about luxury goods. As a result, goods are beginning to be acquired by those who are exposed to the Veblen effect, and those who always put their own individuality on the head (the snob effect).

Also of great importance is the notion of a prestigious price, that is, the price at which a product stands out from benefits of the same category. It is important here that, according to other people, the buyer pays for the goods much more than he really costs. The question of prestige, unusualness and significance immediately grows in the eyes of those who try to excel. Therefore, when creating branded products related to luxury goods, you need to consider all the requirements. After all, the success of the organization depends entirely on loyalty to each client.