The effect of snob

Strong demand is one of the main components of successful trading. No wonder everyday objects, food sold best. Such goods belong to the category of normal, that is, the demand for them increases with the increase in consumer income. But the market does not consist only of goods of daily demand. Luxury items, expensive cars, exclusive jewelry, designer clothes, and all other goods in the classical sense also belong to normal. But in fact the choice of the buyer depends on many factors.

American economist Harvey Leibenstein identified three types of human behavior when buying goods.

• The Effect of joining the most is that people buy the most popular and fashionable product. This individual would like to always be aware of the trends, stylish to be "the wave». The more the demand for this product, the more likely this purchase. Conversely, if you reduce the demand the goods are bought.
• The snob Effect is the exact opposite of the first. People seeking to buy what do not buy others. His task is to stand out from the crowd, to emphasize their own creativity. The greater the demand for any product category, the less the likelihood that it will become such a buyer.
• The Veblen Effect occurs when it comes to prestige consumption. In this case, a person buys goods not to use it for other purposes, and for allocation among others. If we take the previous effect – the effect of snob, there is also the challenge to stand out among all. But Veblen's purchase must show the high status of the buyer, and not his personal identity. In one line of goods such an individual will choose the road.

These three effects have a decisive importance on the luxury market, where the usual does not work for mass consumption methods of marketing promotion. If, during the advertising campaign of the delusional product to be guided by classical concepts, such as the speculative demand, elasticity of demand, consumer expectations, we can come to disastrous results. The classical marketing model designed to expand the target audience, reducing the need to purchase both the subject of dreams.

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So the people buying the luxury items, by their nature, desire to be around the first, you cease to notice it. Even if its consumer properties, exclusivity and elegance can be seen immediately. Thus, all efforts to move are reduced to nothing. This is because among the potential buyers there's those for whom the principal in the selection of goods is the snob effect or Veblen.

Consumer demand for luxury goods must be a shade of a certain elusiveness and differences from others. One option for product promotion high-class is the principle of evangelism. It is based on the creation of special groups of people for whom the possession of the brands of a particular company is vital. For the brand creates its own history, philosophy and principles. And here we are talking about luxury items. As a result, the product begins to acquire those who are affected by the Veblen and those who always puts in the head of their own individuality (the snob effect).

Also, an important role played by the concept of prestigious prices, i.e. the price at which the goods are distinguished from goods of the same category. Of importance here is the fact that, in the opinion of others, the buyer pays for the goods much more than it really costs. Question of prestige, uniqueness and significance from grows in the eyes of those who are trying to stand out. Therefore, when creating branded products related to luxury items, it is necessary to consider all requirements. Because of loyalty to each client depends entirely on the success of the organization.