Understated luxury

Gucci2.jpgYou can tell a lot about people by the logos on their handbags, cars, and shoes, according to a study by from the USC Marshall School of Business. For instance:

Patricians: "Wealthy consumers low in need for status" who "pay a premium for quiet goods, products that only their fellow patricians can recognize";

Parvenus: "Wealthy consumers high in need for status" who "use loud luxury goods to signal to the less affluent that they are not one of them";

Poseurs, who lack the financial means to buy luxury goods, yet are highly motivated to buy counterfeit items to "emulate those who they recognize to be wealthy" (i.e., parvenus); and

Finally, those with no drive for status consumption? Proletarians.

Shrieking designer logos often reflect a lower price point than more subtle counterparts. "A significant segment of the [high-end] population does not want to be branded, preferring to be understated ... and is willing to pay a premium to have 'quiet' goods without a brand mark," Joseph Nunes, associate professor of marketing at USC Marshal.

Knockoffs have always provided a good clue on which logos are subtle and which aren't, going back to the days when a prominent Gucci or Givenchy label was considered a big deal. "Counterfeiters predominantly copy the lower-priced, louder luxury goods, which appeal to the non-patrician status-seekers and rarely copy the higher-priced, subtle items," the USC study concludes. Customers were surveyed at a number of Socal shopping malls.

Photo: Fake Gucci bag


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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