Superior Craftsmanship, Materials and Customer Service Define Luxury
Market and Drive Premium Pricing According to New Survey
NEW YORK, NY -- (Marketwire) -- 12/10/12 -- In a new survey by
independent New York-based Luxury Institute, superior craftsmanship,
materials and customer service scored highest in terms of helping to
define the luxury market while driving premium pricing. Additionally,
survey respondents overwhelmingly favored a long-lasting, high
quality product over one that merely enhanced status.
The survey, in cooperation with the newly relaunched Lincoln Motor
Company, asked wealthy luxury automobile consumers to share their
opinions that may have altered since the recession about buying
considerations and luxury spending across a variety of product
"High standards for the tangible quality of goods are to be expected
from such refined buyers," said Luxury Institute CEO Milton Pedraza.
"Of particular interest is the growing leadership of U.S. firms as
global luxury brand icons. Jewelry from Tiffany & Co., consumer
electronics from Apple and handbags from Coach are among the world's
most prominent brands, giving consumers worldwide more reasons to
pursue luxury in the States."
Defining and Driving the Luxury Market
When it comes to what drives luxury and justifies premium pricing,
86% of affluent Americans surveyed say that superior craftsmanship is
the deciding quality. Nearly as many (84%) say they also expect the
use of superior materials in luxury products. The third most
important consideration, cited by 76% of wealthy respondents, is a
"superior customer experience both during and after the sale."
A majority of wealthy consumers report enjoying their luxury
purchases discreetly versus proudly showing their purchases to
others. In addition, more than 90% indicate that acquiring a
long-lasting, high quality product is more important than enhancing
"What we see in this insightful Luxury Institute research is that
during the recession, the U.S. luxury market changed and people
changed," said Jim Farley, Executive Vice President of Ford Motor
Company Global Marketing, Sales and Service and Lincoln. "They want
what appeals most to their desires and not what they believe will
impress others and this is a trend we believe will continue to grow
ever stronger. We also took good note that in the automotive sector
the expectation of great service is still being underserved,
something we intend to address with the new Lincoln."
Other survey results highlighted the fact that half of high-income
shoppers rely on user reviews and the recommendations of family and
close friends, enabling quick sharing of opinions and influence.
These top-two influencers of luxury consumers' purchase decisions
demonstrate how relative newcomers can quickly establish brands that
compete with established stalwarts, and how traditional brands can
reinvigorate themselves via digital media.
Added Milton, "What we hear consistently and loudly from wealthy
consumers is that the manner in which the goods are sold, as well as
the service provided after the sale, are nearly as important as the
products themselves. With American brands growing in luxury
influence, there is a clear eagerness on the part of the global
consumer to embrace American luxury brands, making service a critical
success factor for the future."
The Luxury Institute conducted an in-depth online
survey with 1,216 affluent U.S. consumers in cooperation with the
Lincoln Motor Company. Half male and half female respondents were
recruited and screened to only include those age 21 or older with a
minimum gross annual income of $150,000 and ownership/lease of at
least one luxury automobile.
About the Luxury Institute (www.LuxuryInstitute.com)
Institute is the objective and independent global voice of the high
net-worth Consumer. The Institute conducts extensive and actionable
research with wealthy consumers about their behaviors and attitudes
on customer experience best practices. In addition, we work closely
with top-tier luxury brands to successfully transform their
organizational cultures into more profitable customer-centric
enterprises. Our Luxury CRM Culture consulting process leverages our
fact-based research and enables luxury brands to dramatically
Outbehave as well as Outperform their competition. The Luxury
Institute also operates LuxuryBoard.com, a membership-based online
research portal, and the Luxury CRM Association, a membership
organization dedicated to building customer-centric luxury
For Further Information, Please Contact:
The Luxury Institute, LLC
Vice President Business Development
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