SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 2, 2020
SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 2, 2020 The physiology of luxury car buyers (Pt.1) The luxury car market accounts for 6 percent of automobile sales in the United States, resulting in a small but highly lucrative segment. Companies looking to increase their luxury vehicle sales at auto shows need to understand the factors that drive luxury car buyers in this sector. This information gives live marketers the insight they need to create customized messaging capable of converting luxury buyers. Luxury brands have a higher perceived value compared to other companies. Consumers are willing to pay higher prices for a vehicle when they feel that the price reflects the value that they’re getting in return. Some luxury vehicles are functionally identical to lower-priced models, but the details and the way the car is positioned makes the difference. Effective marketing can elevate a vehicle brand’s perceived value and make it more desirable for luxury buyers looking to maximize their investment in an automobile purchase. Status SymbolA luxury car can act as a status symbol for the buyer. Companies that want to convey they are successful may have employees drive around in luxury vehicles when they visit client sites. A common story surrounding luxury vehicle purchasing is the mid-life crisis. The customer wants a new, high-class car to represent a change of pace in their life or to show that they’ve reached a personal milestone. According to a study published in The Journal of Marketing, there are two different types of motivations that drive consumers to purchase goods, including vehicles. These two motivations are hedonic and utilitarian. Whereas utilitarian motivations are more focused on positioning the consumer as smart and responsible, hedonic motivations are more focused on self-promotion, and elevating them to a higher class on the social scale. Thus, those who buy luxury cars more more likely crave social status and material wealth, as opposed to utilitarian cars which consumers buy out of necessity.
The luxury car company needs to maintain their brand reputation and quality to attract these customers. They pay close attention to how people react to the company and may stay away from vehicles that come from businesses that don’t align with their personal or professional values. Self-esteem
Some people gravitate towards luxury brands as a way to boost their self-esteem. This factor may crossover with other purchase influencers, such as wanting a status symbol to increase confidence. This phenomenon is called compensatory consumption. The action may occur due to psychological threats or negative life events that impact the person’s ego. The marketing messages for approaching this market segment should focus on the emotional impact of owning a luxury vehicle. When marketers can make this connection at an auto show, they can show the buyer that they’re capable of fulfilling the customer’s self-esteem goals. Passion Car enthusiasts love automobiles as part of their hobby, so they have a strong attachment to brands that offer unique experiences or top-level performance. They’re not looking for a vehicle to get from point A to point B. Every part of the car contributes to the way they enjoy their free time, which means this type of buyer pays close attention to every aspect of a luxury car. They are better-educated buyers, as they regularly consume automobile content in publications and online. Features that get overlooked by the typical customer end up front and center for the enthusiast. In an analysis of luxury consumption, social psychologist Hümeyra Aslım Bilge observes: “In recent years, the concept of luxury has expanded from materialism to time and passion, and become eventually more available. As consumers satisfy their feelings of pleasure and gratification through the luxury goods, the available luxury products will also continue to enhance its charm for consumers.” Auto show marketers should also be aware that this customer demographic may share detailed information about the entire purchase experience with their social circles or on enthusiast forums. Make It A Champion Day!
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