Author: Aurelian -Tudor Dumitrescu [600888]

Author: Aurelian -Tudor Dumitrescu
Student: [anonimizat]: 201305912
Course: Seminar in Marketing Management, Aarhus BSS
October 2015
Supervisor: Cita Utami
Nr. o f characters: 38200

The behavior of consumers, including its
determinants , and the actions of the marketers of
specialty products

Table of contents

1. Intro duction Page 1

1.1 Insight on specialty products/luxury Page 2

2. Consumer behavior Page 2

2.1. Culture, social group and class Page 3
2.2. Individuality Page 3
2.3 External forces Page 4

3. The five -stage model Page 4

3.1. Problem recognition Page 4
3.2. Info Search Page 5
3.3. Evaluation of alternatives Page 6
3.4. Purchase decision Page 8
3.5 Post purchase behavior Page 9

4. Conclusion Page 11

5. References Page 13

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1. Introduction
The problem statement of this paper is that of discovering what forces (psychological, social,
external) influence th e behavior of potential consumers of specialty products , by observing the ir
buying decision process. Not only will the consume rs’ behavior be analyzed, but also the efforts and
actions of the marketers offering the products.
The method of researching the problem will be mainly that of utilizing the five -stage model of the
buying decision process of a consumer , model covered by ou r mandatory literature. The mode l
comprises of five psychological steps, ideally, h owever, they are not always all fully fulfilled, taken
during the buying decision process for a product by a consumer . Thus, this tool divides the buying
decision process for specialty products and explains mainly the psychological implications of each
part, but also social and economical ones . In addition, besides the above mentioned source, the
paper will employ also personal retrieved academic theory which will provide additional insights,
examples , comparisons and explanations towards the consumers’ behavior and marketers’ action ,
ideally an swering the problem statement.
This paper will not focus on a specific geographical area or on a particular age group, race group ,
occupational group etc., rather it will concentrate on the psychological, social and economical factors
that may influence a consumer in the buyin g process of specialty products and the actions taken by
marketers. The view on the consume r will be a simplified -holistic one, with an accent on the
behavioral determina nts.
The assumption behin d the above mentioned statement is that specialty products of different forms
are consumed in most countries i n the world , and can be acquired by generally all age groups that
have the financial means to afford them . This paper does not provide exact figures regarding the
needed financial situation to purchase luxury products, on this subject, it will be assumed that such a
situation is evidently far greater than the one present in most low and middle -classes of the world,
and it is characteristic of the upper -class. Furthermo re, it will be assumed that the consumer of the
specialty products purchases th e goods or services for his personal use , the possibility of offering
them as gifts or other situations will not be discussed. In addition , some examples within the paper
will not be referenced as a result of them being hypothetical situations created by the author, them
having a high degree of probability.
The reason ing behind the choice of this type of product is based, firstly, on its psychological and
social complexity. As the report will present , there is a multitude of factors that convince people into
purchasing specialty produc ts e.g.: social groups, own personality, economy etc.
Secondly, the sophistication and rarity of the products raises curiosity abou t how the marketing
managers achieve to sell the goods and services, taking into account the inconspicuousness of thei r
advertising , compared to common products e.g. Lee Jeans, Volkswagen Golf etc .
Thirdly, the industry of specialty products has raised in 2014 850 billion Euros and i s currently
experiencing a cons tant growth, despite the world economy not fully recovering after the last
economic crisis, coupled with the fact that specialty products are pract ically not as consumed as

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convenience products or shopping products (the quantity is much lower than the latter two) , facts
that create person al curio sity about the subject (D’Arpizio et al. 2014 , p.3 ).
1.1. Insight on specialty products/ luxury
A clarification of the concept of “specialty products” is needed: formally, specialty products
represent goods and services, called also luxurious ones, which are more exclusive than both
convenience and shopping products, and sometimes less thought provok ing, overall dominating in
price , and mostly in quality and uniqueness the other two categories (Categories of Consumer
Products, 2015 ).
In terms of economics, luxury products have over -unit elasticity: the higher the income increase, the
higher the dema nd (in relative terms) .But they also may suffer heavily during negative economic
phases. Luxury products are characterized by superior quality, few items produced, and very high
prices (Wong & Ahuvia, 1998 ).
A luxury brand represents an image in the minds of consumers that generates ideas regarding its
products such as a certain high level of price, superior quality and individualism, as well as non-
functional ones like social status and social image (Heine, 2012) .
Generally, luxury brands create luxury products. Nevertheless, the product range of a luxury brand
can comprise also of non -luxury products, as in the case of Mercedes -Benz : it offers both the luxury
S-class car but also the non -luxury A -class one. Moreover, non -luxury brands are able to offer
products that are undoubtedly within the luxury criteria e.g. Lufthansa’s first -class flights. In order to
distinguish an authentic luxury -brand one must concentrate on the core product category with which
the brand is affiliated (Heine, 2012) .
The specia lty/ luxurious products global market consists of 3 generalized segments (in order of the
number of consumers): luxury cars (e.g. Rolls -Royce, Bentley), personal luxury goods (e.g. rare
jewelry, collectibles) and luxury hospitality (e.g. cruises, food, en tertainment etc.). In 2014 the global
luxury market generated over 850 billion Euros worth of sales . Basically, luxury products are enjoyed
on all five continents of the world, although exact information rega rding the markets in Africa is not
available. The five biggest luxury markets in the world (in terms of the number of consumers) are in
the US, China, France, Italy and Japan (D’Arpizio et al. 2014 , p.11 ).
The term “luxurious/luxury” needs a deeper understanding than its previous formal definition s and
observation . Thereby, “luxury” comprises more than a good or a service, it consist s also of a behavior
or state , or desired state . It generally tries to suggest economical and class superiority in front of
others . Hence, throughout history, luxury was and is associated often with arrogance , grandeur, the
wealthy society, thus with a certain personality and social status (Wong & Ahuvia , 1998) .All in all,
many people obtain a personal social value if they manage to impress other s through their
purchasing of luxurious products (Wiedmann , Hennigs & Siebels , 2007 ).
2. Consumer Behavior
First of all, it is crucial to define the term of “consumer behavior” in order to study it in connection to
specialty products. Consumer behavior refers to how an individual or groups, purchase, utilize and
dispose of products that are acquired in order to fulfill their needs. The behavior of a consumer is

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shaped by its own individuality and by its membership to a culture and a social group , class (Kotler et
al. 2012 , p. 246 ). Also, the behavior of a consumer can be influenced by external forces that cannot
be controlled by him/her e.g. an economic crisis, natural disaster, war, sickness etc.
2.1 Culture, social group and class
According to the marketing literature, culture is the basic factor that determines a consumer’s
desires and behavi or. Culture offers the standards and values that are share d and practiced by (most)
members of a social group (Kotler et al. 2012 , p.246 ).
A social group is a group of people that interact di rectly or indirectly amongst each other, who are
brought together by similarities, whether objective or subjective, and share a sense of unity .
Fundamental social groups are : reference groups (people within this type interact often, either face
to face or indirectly), aspirational groups (groups people would like to join), dissociative groups
(groups rejected by people) and disclaimant groups (groups a person belongs to, but w hich do not
actually represent him) (Kotler et al. 2012 , p.249).
Social classes ar e (social) groups of people who share common values and behavior , which follow a
certain hierarchy that is based on social -economic boundaries (e.g. blue collar workers, white collar
workers) (Kotler et al. 2012 , p.246).
Out of all the above mentioned, marketers prefer to concentrate their efforts on analyzing social
classes individually, based on the fact that the members of one class tend to be more similar in the
choice of clothing, speech and recreational activities than with me mbers from a different class
(Kotler et al. 2012 , p.246 ). As an example, Rolex watches target the wealthy high society class,
analyzes its trends, and places billboard advertisements in the glamorous neighborhoods where mo st
of the class is concentrated (Plopan, 2013) .
2.2 Individuality
On the subject of individuality , it has to be mentioned that this term is composed out of the age,
occu pation , personality , self concept and lifestyle (Kotler et al. 2012 , p.253 ). According to Kotler et al .
(2012, p.254) , personality is a col lection of differentiated psychological traits that create similar and
constant reactions to environmental incentives , in our case, buying behavior .
The traits mentioned consist of: self -confidence, autonomy, sociability, domina nce, deference,
defensiveness an d adaptability (Siddiqui, 2011) .The advantage of personality influencing the
consumer behavior is that marketers are able to identify what traits are the most popular , hence,
offer their physical/virtual counterpart s in the form of goods or services , labeled as “brand
personality ” e.g.: Jaguar Cars offers sports cars that exhibit dominance and self -confidence.
Brand personality is n ot always what it appe ars to be, owing to the fact that the pe rsonality of a
cons umer may separate into three different perspectives: actual self -concept (how a consumer views
himself), ideal self -concept (how a consumer would like to view himself ) and others’ self -concept
(how the consumer thinks that he is seen by other s) (Sirgy, 1982) . Hence, a consumer may think he is
dominant and self -confident while others have a total different opinion .

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Althou gh many times age and occupation may influence the buying behavior of consumers and
actions of mar keting specialists (e.g. elderly CEOs may shop for expensive suits marketed as “refined”
and “noble” ), these aspects mean nothing if the lifestyle of th e person is not in co ncordance.
Lifestyle is the display of a person’s way of life. It is expressed through acti vities, opinions and
interests (Kotler et al. 2012 , p.257 ). Lifestyles tend to exhibit the putting in to practice of people ’s
view towards their lives , but, clear ly, lifestyle s are subject to som e norms and values of a society
(Kotler et al. 201 2, p. 258 ).
2.3 External forces
Besides the social -psychological factors enumerated earlier, external elements can cause shifts in the
behavior of consumers as well. In spite of them being less complex then the above mentioned
concepts, their enunciation is obligatory: an economic crisis or upturn in the case of specialty
products is a decisive driver in the behavior due to their over -unit elasticity, natural -social disasters
may force the consumer to alter his preference and focus on his survival (e.g. being affected by a
flood) and safety needs (e.g. being caught within a civil war) , the same situation holding in the case
of personal sickness. Such forces are hard to forecast and to control for both the consumers and the
marketers, a more thorough exemplification will follow in section 3.4. Purchase decision.
3. The five -stage model
Marketing theoreticians generated the concept that, in theory, consumers undergo 5 psychological
processes or stages: the problem recognition (1), information search (2), evaluation of alternat ives
(3), purchase decision (4) and post purchase behavior (5).In spite of this statement, it is
understandable that certain stages can be skipped or even re -experienced (Kotler et al. 2012,
p.270). For example, a consumer, if weal thy enough, if he is driven by a strong need to experience an
extravagant holiday (1), he omits the information search stage (2) and g oes directly to purchase it
(4), and if satisfied, may decided to experience it again.
3.1. Problem recognition
Although, as mentioned in the previous paragraph, some steps of the model can be bypassed, all
buying decision process es start with a problem or with a need activated by either internal or external
stimuli that becomes a drive towards a goal (Kotler et al. 2012 , p.270 ).
Needs are of two forms: biogenic (they are generated due to physiological conditions e.g. hunger,
excitement) and psychogenic (they are generated due to psychological desires e.g. need for
affiliation, appreciation ). A n eed develops into a motive that, if sufficiently trigger ed, will drive a
pers on to take action in order to obtain a desired goal (Kotler et al. 2012, p.259).
According to the Neo -Freudian vision , personality is not anymore a result of unconscious sexual
tendencies , but more likely a consequence of the role of the person in the society or social group
(Zaharia & Zaharia 2015, p.201). Furthe rmore, Adler (cited in Zaharia & Zaharia 2015 , p.201 )
discusses how an in dividual may be irritated by the sensation of being inferio r, thus he develops
greater goals to reduce the dreaded feeling , and desires to join the superiors. Hence, a very likely
need that triggers the buying process for specialty products is that of af filiation, escaping inferi ority.

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Some products, in the conce ption of the potential consumer, have this property of alleviation, as a
result he buys them.
An example for our prod uct type: a member o f the Holmby Hills Club may see a fellow member buy a
new- generation Ferrari , this may lead to feelings of frustratio n for the individual, thus, a need to
reduce inferiority may be activated which will lead to the desire of buying a sports scar also.
Evidently, it is quite possible that the individual in question may actually be totally careless regarding
other member’ s purchase, but for the purpose of this paper, it will be assumed that the need is
provoked .
In the previous example, for the new potential consumer, marketing efforts of companies may have
little or no influence over him , since such social groups are very likely to be acquainted already to the
glamorous products an d brands offere d, sharing information and experience s through spoken word
being enough. Bu t all this information has an origin, the following section will elaborate on its
sources.
3.2. Informat ion search and offering
This section dominant ly approaches marketers ’ efforts to raise their companies’ products popularity
among the high class consid ered, which also represents their goal.
It is safe to assume that wealthy business people of the high class have a very small incentive to
devote personal time for physically researching h igh-detailed information regarding their desired
luxury purchases. Thus, it is highly unlikely that consumers of luxury products will never enter the
“active informati on search ” level of involvement (again, exceptions can exist). As a consequence, the
probability of wealthy consumers to be stimulated by public sources such as mass media, consumer –
rating organizations (unless they are famous or included in renowned publications su ch as “ The Wall
Street Journal” or “ Forbes” ) is quite low. They are much mo re influenced b y personal sources
(business partners), commercial (salespeople, displays) and experiential ones (handling and
examining the product ) (Kotler et al. 2015, p.271).
In accordance to Grigorian, Espinoza Petersen & Ricard (2014 , p.8-10), there are various ways in
which luxury companies manage to attract interest from their target gro ups, here are some
examples:
1. Ferrari S.p.A . promotes the idea of performance not through using ordinary advertising in the
form of TV commercials, or billboards, but by displaying its company skill in the cars they race in
Formula 1.
2. Luxury Clothing companies, in particular, strive to stimulate the minds of their customers not only
with their logos, but also with original product features that are recognizable for those of the high
class e.g. Bottega V eneta displays in its excl usive shop windows their famous weaved leather .
3. Le Labo Fragrances is an ideal example of a company that motivates people to purchase or at least
consider their products. Besides their talented salespeople and irreproachable custom er service, Le
Labo goes further. Buying a Le Labo product is a unique experience: perfume specialists prepare the
fragrance live in front of the client , and at the end, they perso nalize the bottle l abel with the name of

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the owner an date of the purchase. After the process, the client is requested to personally store the
recipient in a refrigerator .
4. Prada S.p.A. adopted an innovative manner in which to communicate its uniqueness. In
collaboration with an architectural firm, the fashion company opened a temple -like building in
Rotterda m, in which people who afford its prices are invited to design their desired purchases and
observe them materialize. In this way, it managed to promote both superiority (the imposing
building ) and craftsmanship.
After being exposed to information of products in different forms from different sources, the
potential consumer of luxury goods and s ervices proceeds forward to the next step, that o f choosing
between alternatives, if convinced by any of the information sources, evidently.
3.3. Evaluation of alternatives
Consumer s of specialty products exhibit a generalized mental mechanism on the subject of
evaluat ing between alternative products offered . First of all, the consumer is interested in fulfilling
his need tha t drove him initially towards purchasing a product. Secondly, the consumer compares the
benefits that result due to the possible purchase (e.g. for wealthy people time may be a very
appreciated benefit coupled with the product : fulfill the need appropriately and quick ; fame or
esteem may also be a possible popular benefits ). Thirdly, the consumer will choose the product that
has the highest probability of assuring the paired benefit /benefits (Kotler et. al 2012 , p.273 ).
In addition, there are supplementary psychological factors that determine a consumer to ultimately
select and proceed with one or several products besid es the probability of additional benefits, these
are beliefs and attitudes. Beliefs are elaborated thoughts that a person maintains towards
something. Attitudes represent negative, positive or neutral r eactions towards ei ther ideas or item s
(D. Krech, 1962) . Attitudes as beliefs are created through experience and are not easi ly modified,
neither by the owner nor by an external party (Kotler et al. 2012, p.273 ) .The most succinct manner
in which to describe the emotions attitudes generate is the following: they influe nce people either to
appreciate, ignore, or reject something.
Generally , marketers should not attempt to change the attitudes and beliefs of consumer s, defined
also as psychological repositioning , but rather focus on integrating their products within the most
common attitudes and beliefs on the market (Kotler et al. 2012 , p.273 ). A great amount of attention
has to be utilized since any error could lead to a financial catastrophe or to a serious degradation of
the company image/reputation.
Throughout history , people have held belief s and attitu des towards what is visually appealing and
what is not. Taste, what is a fashionable display, concept etc. and what is kitsch , is very important
when it comes to offering products to consumers , especially luxury ones . Trying to dictate a ne w type
of taste or customize it , as mentioned previously, carries a hi gh-risk. As an example of how -not-to
offer a luxury produ ct is the following :
In the 1980s , especially, the “wedge design” of cars was very popular .The “wedge design ” implied
cars having an approximately literal wedged shape, with a sharp hood /bonnet , raised trunk/boot and
pop-up headlamps (Wedge of Tomorrow, 20 13).In 1985, Mosler Automotive tried to slightly break
the pattern of the fashionable cars and developed the Mosler Consulier GTP. It introduced an

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unstylish sports car , for that time and now, which had a very flat “body” angle and an almost vertical
compartment for the driver . These novelties lead the Consulier GTP to be a disastrous effort, the
company losing both money and credibility (Brands that Failed, 2014 ).
In addition, another psychologi cal phenomenon that is fairly decisive in the evaluation stage of
potential alternative products is the one behind the alleged self-congruity theory. Sirgy and Danes
(1982) argue that consumers will choose the luxury products that have an image congruent with
their self -imag e, concept similar to brand per sonality.
The algorithm of th e self -congruity theory is driven by the need of self-esteem . Specifically, t he
relationship between product image and self -image is set by the need to achieve self -esteem. This
interaction generates generally four scenarios: negative self -congruity , negative self -incongruity,
positive self -congruity and positive self -incongruity (Sirgy & Danes, 1982).
Negative self -congruity takes place whe n a negative image of a product coincides with a negative
self-image. In this scenario , the consumer, already suffering from a low self -esteem, will not
purchase the product in order not to aggravate her social state (Zaharia & Zaharia 2015 , p.201 ).
Negative self -incongruity occurs in the case of a product having a negative image, which overlaps
with the positive self -image of the potential consumer. In this setting, the consumer will decline
purchasing the product due to the fact that it neither match es the level of self -esteem already
present , nor offer any improvement (Zaharia & Zaharia 2015, p.202).
Positive self -congruity is given by the convergence of a product’ s positive image with the consumer’ s
positive self -image . This scenario is an alternative to the concept of brand personality discussed
earlier. If a product exhibits a quality or an impression with which the consumer indentifies himself,
then most likely the consumer will purchase it in order to at least preserve self -esteem (Sirgy &
Danes, 1 982) .
Positive self -incongruity develops when a product holds a positive image , while th e consumer suffers
from a negative self -image. In this scenario, the consumer will be even more motivated than in the
previously mentioned case because of the possibility of improving hi s despaired self-esteem (Zaharia
& Zahari a 2015 , p.202 ).
The realistic initiative of marketers of luxury products, evidently, would be that to research the most
popular “ideal images” or values towards which consu mers of luxury aspire and seek in products,
taking into account that people are mostly unwilling to elaborate on what their self -images lack .
Investing time , which is a decisive factor, to discover the negative particularities is not quite gainful
from this paper’s point of view. In conclusion, a compa ny should attempt to employ an “appreciated
image” throughout a wider product range to attract more consumers and also fortify the identity . For
instance :
The luxury company Giorgio Armani S.p.A. solidified its propo sed minimalist and refined image by
transmitting this style to a high variety of its products (e.g. clothing, fragrances, accessories, home
furnishing etc.). More over, the company engaged in the hospitality industry and accentuated its
image by using the “Stay with Armani” philosophy, furnishing and supplyi ng its hotels with additional
minimalist design products (Grigorian, Espinoza Petersen & Ricard, 2014, p.12 ).

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If the consumers manag e to settle on one or several products, he may also deve lop an intention to
purchase the desired choice, therefore , he proce eds to the next phase of the model.

3.4. Purchase decision
After deciding upon a product or several, a few different social -psychological and external
determinants may interfere before the consumer has put into practice his decision ( to pay for the
product) .
Firstly, a consumer may or may not be challenged psychologically by the attitudes that others have
regarding his purchase. The level of influence of attitudes , belonging to external par ties which are
exert ed on a consumer , relies on: 1.the intensity utilized by the parties; and 2. the motivation of the
consumer to act in accordance with the attitudes manifested. On one hand, the greater the level of
disapproval displayed by the external party , and the closer the proximity, the higher the probability
that the consumer will alter his purchase decision . On the other hand, if the reactions of the external
parties are favorable, these could actually encourage the purchase (Kotler et al. 2012, p.276 ). A
societal example : the 19th century was dominated worldwide by two mixed general views regarding
the consumption of luxury. Due to poverty, great masses of people believed that consuming luxury
products was an abuse, a sign of disrespect towards o ther fellow citizens in need. In addition , the
same masses of people also advocated for equal rights, for individual liberalism, as a result,
contradicting them selves . In equal measure, the 20th centu ry and the present days have put forward
the concept of the m odern consuming individual, the fact that some luxury products are not
productive and lead to false psychological and physical states, while the human rights simultaneously
becoming a secular religion (Hilton, 2004) . In consequence, there is no exact -technical measurement
that can indicate when social pressure becomes a de cisive factor, but its existence carries at least a
notable presence.
A lighter form of social judgment regarding the purchase of luxury products is the one received from
companies which perform expert reviews of products, without expressing any biases or prejudices .
For example: J.D.Power and Associates perform s analyses of products belonging to different fields
such as car s, tourism and entertainme nt, health care and finance (Kotler et al. 20 12, p.276 ).
Marketers, as mentioned in the previous sections, have almost no power over trying to influence the
general attitudes towards products present in a market, as a result, i ntegration of the products
within the tendency of the market represents again the ideal solution, which , unfortunately, may
diminish product diversification.
On the subject of external determinants, these represent unanticipated situational factors upon
which the consumer has little or no control and can drastically modify the purchase decision (Kotler
et al. 2012, p. 277). The types of external determinants are: 1. financial, 2.health related , 3.time
based (Goodstein & Campbell, 2001).
A financial dete rminant for a purchase would be , for example, a financial crisis. A financial recession
might affect negatively the potential consumer by decreasing his income, and, acc ording to the
paragraph “Insight on specialty products/luxury ”, the consumption of luxury products can very likely

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decreases if the income decreases. Secondly, the consumer may ignore the monetary issue and
proceed with the purchase if he is sufficiently motivated. Thirdly, the economy may also experience
an upturn which generally leads to an increase in the consumption of luxury products.
A health related deter minant which may alter the purchase decisio n would be most probably that of
the con sumer suff ering a negative health episode , leading to the consumer’s inability to find reason
for purchasing the product for himself . As an extreme but possible example : a consumer may suffer
the loss of his lower limbs, thus, there would be no reason anymore to purchase the potential
luxurious footwear he might have been conside ring. Also, e vidently, the case of a person’s decease
will permanently eliminate any action s towards buying a product if he does not communicat e his
intention or sign any prepay document.
A time based determinant which may influence the purchase decision would be that there is a
limited time frame for the product, especially in the case of clothing, reason for why each year
products are created for different periods: spring season, summer season, autumn and winter. Also,
the product considered by the consumer may belong to a limited -edition offer, as a result , the
principle of “first -come, first -served” most likely applies. To conclude , if, for e xample, a consumer
devotes excessive time to any or to all of the previous stages of the buying process, he may lose the
ability to purchase the desired product a nd will have to consider an alternative.
Marketers, like consumers, often are not able to pred ict external factors , which may alter the
decision of offering a product, thus, these factors possess a risk. Consumers can attempt to reduce
risk by leading healthy physical and economic lives (maintain health, gather savings) and increase the
amount of information regarding the product. Marketers should strive to provide their customers or
followers with precise and detailed product information , and also develop back -up scenarios in case
of negative situation s (consider producing a lower quality product or fewer products in the event of a
economic recession , for example) (Kotler et al. 2012, p. 277).
If the consumer efficiently surpasses all the potential determinants which may impede his decision to
purchase a product, then, naturally , he will perform the paymen t and move on to the final stage of
the model.
3.5. Post -purchase behavior
Following the purchase, three scenarios are possible on the behalf of the consumers: 1.repurchase
the product from the current provider, 2.definitively discontinue the purchase of the product and
even return it , 3. purchase the product from a competitor (Kotler et al. 2012, p. 277). All the above
mentioned scenarios are subject to the post -purchase satisfaction level of the consumer.
Post -purchase s atisfac tion depends on the relationship between the expected performance of the
product and its actual unfolding. Disappointment occurs when the authentic performance is lower
than the expected one. If the actual performance achieves its expectation, then the consumer
experiences satisfaction. Delight takes place when the felt performance surpasses the original
expectations. The greater the negative difference between the expectations and the perceived
performance, the higher level of dissatisfaction. In addition, the personality of the con sumer plays an
important role regarding his satisfaction (Oliver, 2006) . One may be extremely thorough regarding
the discrepancy between what is expected and what is experienced, thus, reach es dissatisfaction

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rapidly, while another ‘s level of consideration may be lower, thu s, sensing dissatisfaction less (Day
n.d).
Again, a consumer will most likely repurchas e a product if he obtained satisfaction from it. Moreover,
the same consumer may even recommend it to other potential buyers when discussing the subject.
Oppositely, a consumer will most pr obably discontinue purchasing from , and even return the product
to the particular provider , if he suffers enough dissatisfaction , moving his preference to a competitor .
Additionally , the consum er may even decide to confront the company by submitting a comp laint or
taking legal action , besides discussing the negative episode with different groups ( e.g. his close social
circle -voice option , government agencies etc.) (Kotler et al. 2012, p. 277).
The marketers’ d uties are to monitor the consumer’s post -purchase satisfaction and post -purchase
actions. These observations are necessary in order to implement “loyalty marketing ”. Loyal ty
marketing re fers to developing marketing activities that seek to maintain the customer’s loyalty
towards the company (Kotler et al. 2012, p. 278). Examples of such marketing activities result from
the following case:
Crown & Caliber is a company that manufactures watches for luxury brands such as Rolex or
Breitling, and has a firm list of actions that must be taken in order to main tain customer loyalty. First
of all, they employ the “Grandma Standard” w hen it comes to maintaining a dialogue with a
consumer. Regardless of his possible puerile questions or issues , the customer support employees
must treat him with respect and under standing, as if he was an elderly relative. Also, they retain
customer service metrics such as the incidence of the calls of repeat customers , and measure
duration of the assistance in order research individuality of the cases. Secondly, the company sends
Net Promoter Score (NPS) surveys to their customers to fully be aware of their e xperience with
Crown & Caliber a nd offer suggestions. Thirdly, the manufacturer believes in connecting with the
consumer on all available platforms, including social media, hence, they promote offers, send
messages and offer guidance using Twitter , besides the phone line and the retailer outlet. Fourthly,
Crown & Caliber included in its company culture the idea that the need s of the customer are
paramount, motivatin g all department s to contribute (Fallon, 2015 ). Additional off case examples
would be for a company to send postcards to the customers, praising them for their choice, or to
send product -related magazines or newsletters suggesting other possible purchases and features
(Kotler et al. 2012, p.278).

Finally, marketers ought to gather information about the consumer’s post -purchase use and disposal
of the product acquire d. There are differen t scenarios (depending on the nature of the product i.e.
physical good or service) for how a consumer may use of dispose of the product purchas ed, as
Figure 1 portrays:

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Phases of products disposal by customers
Figure 1. Note . From “What about disposition?” (Jac oby, Berning & Dietvorst, 1977)

The reason for why marketers should allocate time to such purposes is that to obtain the product
consumption rate , which in turn , offers partial insight on the sales frequency (Kotler et al. 2012, p.
278).
Companies, thus marketers, are interested in inc reasing the frequency of their product or products
sales . An unwanted aid may come from the consumers themselves if they hold inaccurate predictions
regarding their usage of the product (again, depending on the form of the product). Some fail to
substitute in time the product purc hased due to overestimating its usage lifetime , thus, the
consumers most often receive a sudden impulse to replace the depleted prod uct (e.g. not enough
Krug Clos d'A mbonnay champagne bought for a certain occasion) .
Finally , a popular strategy undertaken by marketers to stimulate a more rapid replacement rate is
that of introducing particular offers which to coincid e with special calendar dates or periods , such as
holidays, events or phases of the year (Kotler et al. 2012, p .278). A very well known example is that
of companies, especially fashion clothing companies such as Couture, Versace etc. , creating and
presenting seasonal collections of cl othes and accessories such as “the autumn /spring etc.
collection ”. Also, a class ic example is the “Christmas Sale” concept valued by luxury companies.
Burberry usually provides a pre -and-after Christmas Sale which most of the times yields more than
positive figures (BBC, 2012).

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4. Conclusion
The problem statement of this academic paper was that of discovering what social, psychological and
external factors have an impact on shaping the behavior of potential consumers of specialty
products , and also of inspecting the initiatives and strategies of the marketers of such products . After
defining and specifying the objec t (luxury products ) and its social -psychological display, the research
continued with mentioning the universal factors that influence the concept of consumer behavior. As
a result, it has been discovered that generally the individuality, membership to a culture and social
group, as well as external factors , of a consumer influence his purchasing behavior . Also, marketers
should focus on studying social classes and implementing brand personality . Howev er, such an
approach would not have been enough to fully solve the problem statement, consequently, a more
in depth analysis was employed.
The five -stage model of the buying decision process of a consumer was named as the prime tool for
the analysis because of its property of describing 5 (ideally) psychological stages that co nsumers
experience in their buying decision process. The tool suggested that each process starts with a need
of different types of the consumer which eventually can become a mot ive to act. The subsequent
stage of the model des cribed the different sources from which a consumer can receive inf ormation
regarding the product. These source s of information were either within the personal or professional
circle of the consumer or in commercial or experiential form. The sources of information acted as
influencers in the behavior of the consumer, because, if convinced by them, he moved on to the third
stage: the evaluation of alternatives. This stage proposed a general framework by which a consumer
guides himself in selecting between alternatives, but also additional factors: beliefs and attitudes,
the self congruity concept. Beliefs and attitudes generate strong emotions towards products .
Marketers are encouraged not to try to change them but to shape their products according to them.
Moreover, marketers should research the most popular “images” consumers subscribe to since the
probability of them exposing their defects is low . After selecting an option, the consumer proceeded
to the purchase decision stage. Social -psychological and external factors play an important role in
this stage. The former ones were in state of external parties’ attitudes (negative or positive) towards
the purchase of the consumer and the latter were either: financial, health related, time based.
Marketers ought to provide consumers with valuable information and support backup plans in case
of negative scenarios. Finally, the mo del ended with the post -purchase behavior phase. The paper
has argued that, depending on the level of the satisfaction obtained after purchasing the product,
which in turn is influenced by personality, the consumer can encounter either of the following
scenarios: repurchase, discon tinuation, transition to competitor. Marketers should monitor the
consumer’s post purchase satisfaction and actions so as to implement loyal marketing and acquire
consumption rate and synchronize their offerings with special days of phases of the year.

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