CB Session 22 - MKT 613 Consumer Behavior Prof Carolyn Yoon...

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MKT 613- Consumer Behavior Prof. Carolyn Yoon Session 22 (Apr. 4) Notes LV is kind of the big player of this, they own many luxury stores. It is a French company, and they are trying to acquire us right now, but who knows. Hopefully they won’t because some people argue that LV is very special, like Prada and Gucci. You may have your own take on this, but if you are interested in this I can transfer some of this knowledge to you. Basically, by 2015, which is right around the corner, they Chinese market is expected to be 20% of luxury sales , which is amazing. Right now, it is probably closer to around 15%. With this vast recession, the luxury market for sales were down everywhere except for the Chinese market. And driving this is of course, the greater wealth. You can’t see this very well, I will throw it up on Ctools, but basically, over 300,000 RMB that would be about 45,000 US dollars, which is an amazing amount of money in China, where the average household income is what today? Any idea? Well, in the urban market a middle income family makes about $7000 which is very high. I remember when I was doing a lot of research in China in the late 90s, early 2000s of salaries in Beijing, so the number for salaries have really climbed in the last couple of years. In Asian markets in particular, there has always been an interest in luxury goods, so there is a hypothesis for why this is the case. More conformist societies and also status goods, these luxury items are kind of symbols for status, they are publicly recognized. So if you go to Asia, in Korea, if I don’t carry the right handbag, not a Birkin, but something on the LV level, I won’t get any respect. Essentially, greater sophistication. There is a lot a brand name recognition among not just the wealthy class, but among the middle classes. What do you think about this? Anything that has a luxury brand associated with it, and they don’t want counterfeits, huge counterfeit market. Hopefully we will get a chance to talk about it on Wednesday. This is all part of a materialism trend, and some people get really caught up in it. This doesn’t really have anything to do with satisfying consumer needs. Is this a good trend? Slide: Consumer Diversity: Generational Cohorts I thought, I could have glossed over the fact that there are these things called generational cohorts, but then I said, “well you could just read about it in the books” but I just want to highlight one thing. It has to do with the fact that at least in the US, there is this scene for describing basically age groups , and depending on what country you are in, some people go to France, a lot of the way these cohorts are defined are based on some defining moments among a generation so you have heard of a …. In the 1920s, so we still have something like 1% of … the Great Depression. So something momentous when the defining moment happens, during an impressionable year. For some of the Japanese in their teens to early 20s, the
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This note was uploaded on 02/09/2012 for the course MKT 303 taught by Professor Rajeevbatra during the Fall '11 term at University of Michigan.

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CB Session 22 - MKT 613 Consumer Behavior Prof Carolyn Yoon...

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