An Analysis of Key Determinants Driving Luxury Goods Consumption Among Young Adults to Understand the Implications of the Veblen Effect

Abstract

This research paper is to study the factors that influence the purchase of luxury goods amongst young individuals and how these factors contribute to a study of the Veblen effect. The study contributes in understanding customer preferences by the stratification of consumers on purchase decisions, personal satisfaction and social influence. Factor analysis and discriminant analysis on the data, make us understand what factors affect the most in purchase of luxury goods and we can stratify between buyers and non-buyers respectively. This also helps us to determine the key triggers among the youth, which can be used to study if the factors align or differ with classic Veblenian theory. The results can let marketers understand the luxury goods consumption-driven economy.