From Crobox's behavioral psychologists, learn about the behavioral motives and psychological drivers behind luxury consumption. Then, we give you a workshop on how to market your luxury products better.

1. Psychology of Luxury Shopping & Ecommerce Luxury
L U X U RY
W O R K S H O P

2. WHY STUDY LUXURY?
The term “luxury” is constantly
being rede
fi
ned.
As the term continuously
reinvents and rede
fi
nes itself, so
does the market in 2021 and
beyond.
What’s clear from our research
is that understanding luxury
consumers starts with the
individual and their psychology
and behavior.
Then, retailers can study the
best ways to market luxury on-
site.
Luxury Crocs (Balenciaga X Crocs)

3. AGENDA
Part 1: Psychology of Luxury Consumption
How to market your products
Part 2: Psychology of Luxury Consumers
How to market to your customers
Part 3: Luxury Nudging Canvas
Apply psychology on-site
PART 4: EXTENDED RESOURCES

4. PART 1
Psychology of
Luxury Shopping
How to market your products

5. LUXURY SHOPPING:
WHAT IS THE PSYCHOLOGY BEHIND IT
AND HOW TO UTILIZE IT.

6. WHAT IS LUXURY?

7. “LUXURY IS ABOUT THE ABSENCE OF VULGARITY”
GIORGIO ARMANI

8. MOTIVATIONS FOR
LUXURY SHOPPING
FORM - SYMBOLIC
SOCIAL - STATUS/POWER
CONTENTS - HEDONIC/TECHNICAL
MOTIVATION
FORM
(SYMBOLIC)
SOCIAL
(STATUS)
CONTENTS
(HEDONIC/TECHNICAL)

9. FORM
(SYMBOLIC)
SOCIAL
(STATUS)
CONTENTS
(HEDONIC/TECHNICAL)

10. THREE MAIN PSYCHOLOGICAL DRIVERS IN LUXURY CONSUMPTION

11. LUXURY PSYCHOLOGY
1. FORM (what the product symbolizes)
• Wealth and status
2. SOCIAL (signi
fi
er of the product)
• Costly signaling
• Belonging to an ‘in-group’ of connoisseurs
3. CONTENTS (what the product is made of)
• Quality
• Premium
• Rarity

12. 1. FORM: SYMBOLIZING WEALTH & STATUS

13. 2. VEBLEN GOODS &
CONSPICUOUS CONSUMPTION
PRICE
DEMAND
Luxury product
(Veblen product)
Normal Product
NEED FOR UNIQUENESS
INCREASE STATUS/POWER
COSTLY SIGNALING
STANDING OUT
BELONGING TO
THORSTEIN VEBLEN

14. FORM: LUXURY NUDGES
SCARCITY SOCIAL PROOF
EXCLUSIVE
HANDMADE
LIMITED EDITION
AUTHORITY
MADE BY:
WORN BY:
STYLISTS FAVORITE
POPULAR
BESTSELLER

15. 2. SOCIAL: BELONGING TO AN ‘IN GROUP’

16. 3. EMPHASIS ON QUALITY &
HEDONISM
LUXURY FOR CONNOISSEURS
NOT CONSPICUOUS
PRIVATELY CONSUMED
INTRINSIC ENJOYMENT
PREMIUM QUALITY
RECOGNISABLE LUXURY
(CONSPICUOUS)
EMPHASIS ON SOCIAL
ASPECTS
LUXURY FOR CONNOISSEURS
(NOT CONSPICUOUS)
ABSOLUTE LUXURY BRANDS
ASPIRATIONAL & ACCESSIBLE
BRANDS
EXTRA NICHE, ONE-OFF
PRODUCTIONS, BESPOKE
PRODUCTS, ARTIST
ARTIFACTS, COLLECTION
PIECES
LUXURY AS A
PERSONAL AFFAIR
STANDING OUT
BELONGING TO
“I DON’T CARE ABOUT
WHAT OTHERS THINK”
“I DIFFERENTIATE FROM
THE MASS”
“I BELONG TO AN ELITE”

17. SOCIAL: LUXURY NUDGES
AUTHORITY
MADE BY:
WORN BY:
STYLISTS FAVORITE
BENEFITS
FINEST MATERIALS
AGED TO PERFECTION
DURABLE INVESTMENT
ORIGINS
MADE IN:
MADE BY:
ICONIC HERITAGE

18. CONTENTS: QUALITY ITEMS AT PREMIUM
PRICE

19. 4. PRICE-POINT MATCHES
QUALITY
HERITAGE OF CRAFTSMANSHIP
ELEMENTS OF UNIQUENESS
PRICE
EXCLUSIVITY/SCARCITY
EMOTIONAL APPEAL
PREMIUM QUALITY
BRANDED GUCCI BAG
LEOCUT DIAMOND RING
B&O MEDIA SYSTEM
IRANIAN BELUGA
CAVIAR
P
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M
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20. CONTENTS: LUXURY NUDGES
BENEFITS
FINEST MATERIALS
AGED TO PERFECTION
DURABLE INVESTMENT
ORIGINS
MADE IN:
MADE BY:
ICONIC HERITAGE

21. DIFFERENCES IN LUXURY
PRODUCTS
Rembrandt’s 400 year old painting
Unique Rembrandt style
$299,830
Only one in existence
HERITAGE OF CRAFTSMANSHIP
ELEMENTS OF UNIQUENESS
PRICE
SCARCITY/ EXCLUSIVITY

22. PERSONA/PRODUCTS
MODEL
WANT TO BE SEEN |
BOASTERS
WANT TO ENJOY |
HEDONISTS
WANT TO PERFORM |
QUALITY CHASERS
WANT TO ADMIRE |
STORY LOVERS

23. PART 2
Psychology of
Luxury Shopping
How to market to your customers

24. LUXURY BUYING BEHAVIOR
LUXURY BUYING BEHAVIOR
FOCUSES ON THE SELF.

25. LUXURY BUYERS ARE OFTEN HIGH-END
CONSUMERS WHO GO FOR QUALITY,
AFFLUENCE, AND HERITAGE.
LUXURY BUYING BEHAVIOR

26. BUT TODAY, LUXURY SHOPPERS ARE GEN
Z AND MILLENNIALS. THEY BUY GOODS
IMPULSIVELY, AND LOOK FOR AUTHENTIC
BRAND STORIES OVER LEGACY.
LUXURY BUYING BEHAVIOR

27. HENRYS: HIGH-EARNERS
RICH YET…

28. THE PSYCHOLOGICAL MOTIVES OF LUXURY

29. MOTIVES

30. Emotional Dissonance
Overcoming con
fl
ict between real &
projected self

31. This is how brands like Gucci have
stayed customer-centric in a market
where cognitive dissonance often
occurs. Where transparency is becoming
more important, and “beauty” ideals are
being deconstructed, luxury brands that
cater to the aspirational self are seen as
more appealing and relevant
Luxury marketing has stepped away from
the “unattainable self” and started helping
individuals realize their perceived ideal
selves.
However, to remain exclusive, brands do
not construct a self that is too “attainable”.
If more people have access to something,
this breaks down the barriers that luxury
needs to remain appealing to their
customers.
EMOTIONAL DISSONANCE

32. Hedonic Impact
Feel better

33. 20.5% of Millennials bought a high-end
luxury item for a particular occasion
(e.g., a wedding or a party) and 18.5%
bought one when they wanted “to treat”
themselves.
Purchase behavior for Millennials is self-
directed - or for gift-giving - and often
impulsive. These individuals want to
possess products that will make them or
others feel good (hedonic motivators).
Luxury goods incite pleasure and
excitement, and luxury consumers will
often make subconscious or emotional
decisions before purchasing. Buying
luxury products triggers dopamine.
HEDONIC IMPACT

34. Status
Be known

35. Examples of Veblen goods include
Longchamp bags, Bentleys, or top-shelf
wines and spirits. Described by as
“a
ffi
rmational goods”, for individuals to
signal their wealth and validate their
status and self-worth.
But Gen Z rejects conspicuousness. Along
with the emerging trend of quiet luxury,
consumers are drawn towards products
with low brand prominence. These are
ones that sell products that are modest,
unobtrusive, discreet, purist, and
minimalistic.
STATUS

36. Belong
Be part of

37. Luxury products will be bought as vehicles
for self-expression (on a personal level).
And the brands people buy these products
from can make them feel special and
unique.
However, luxury brands will also make
individuals feel like they belong to an in-
group of similar luxury consumers.
BELONG
Brands that want to successfully appeal to
their shoppers' need for uniqueness have
the responsibility to provide ways their
customers can di
ff
erentiate themselves
from others and be seen as one-ofa-kind,
whilst still referring to a socially accepted
group or fashion

38. Self-narrative
Convince yourself

39. Luxury products are the ultimate symbols
of the self. They symbolize status, wealth,
or uniqueness, which are all self-driving
factors.
When consumers purchase something
with symbolic status, they build their self
image and construct a narrative about
who they are or wish to be.
Luxury products help create this self-
image of worth. They are perceived to
only be accessible to those of a certain
status
SELF-NARRATIVE

40. PART 3
Luxury Nudging
Canvas
Apply psychology on-site

41. APPLYING NUDGES TO MOMENTS OF INFLUENCE

42. PURCHASE PHASES
Moments of In
fl
uence

43. LUXURY NUDGING CANVAS

44. PART 4
EXTENDED
RESOURCES
Luxury nudging library

45. LUXURY NUDGING LIBRARY
BEHAVIORAL NUDGES
YOU DESERVE THIS ONE (EGO APPEAL)
FOR YOUR ARMS ONLY (EGO APPEAL / SCARCITY)
HIDDEN SALE (SCARCITY)
FOR THE LUCKY FEW (SCARCITY)
EXCLUSIVE COLLECTION (SCARCITY)
DESIGN BY: RACHEL MANSUR (AUTHORITY)
PERSONAL FAVOURITE OF FLORIANA GAVRIEL (AUTHORITY)
MUST-HAVE (AUTHORITY)
WORN BY: … (AUTHORITY)
FINEST ITALIAN MATERIALS (AUTHORITY/USP)
PERFECT FOR {{SITUATION X}} (JUST IMAGINE)
DARE TO BE SEEN (EGO APPEAL)
HIGHLY DESIRED (SOCIAL PROOF)
DESERVES YOUR ATTENTION (EGO APPEAL)
SIGNATURE VEGETABLE TANNED LEATHER (AUTHORITY/USP)
HANDCRAFTED (AUTHORITY/USP)
ONLY 3 (OF 5) AVAILABLE IN THE NETHERLANDS (SCARCITY)
ONLY 50 OFFERED IN THE NETHERLANDS (SCARCITY)

46. LUXURY NUDGING LIBRARY
BRAND-RELATED USPS FOR PRODUCT
PURE CRAFTSMANSHIP
ICONIC SIMPLICITY
CARRY YOUR EXPERIENCES
ART MEETS DESIGN
EXCEPTIONAL MATERIALS
PERFECTION MEETS UTILITY
ICONIC BAG
TIMELESS
CONNOTING SOPHISTICATION
STREAMLINED DESIGN
CLASSIC ELEGANCE
PAIRS WELL WITH ANY STYLE
WORLD’S BEST LEATHER
CHIC ELEGANCE
IMPECCABLE CONSTRUCTION
FINES MATERIALS
RADIATE EFFORTLESS ELEGANCE
ESSENTIALS COLLECTION

47. LUXURY NUDGING LIBRARY
PRODUCT ATTRIBUTES
AGES TOWARDS PERFECTION
ELEGANT DETAILS
EXCEPTIONAL ITALIAN LEATHER
BEAUTIFUL PATINA OVER TIME
CHANGES AND EVOLVES OVER TIME
BEAUTIFUL WEAR OVER TIME
VEGETABLE TANNED LEATHER
LAMB LEATHER INTERIOR
DETACHABLE WALLET

48. WANT TO KEEP LEARNING?

49. THE STATE OF LUXURY: TRENDS SEGMENTS AND PSYCHOLOGY
Download the Report to:
• Learn About the State of the Luxury Market Today
◦ Emerging Trends
◦ Customer Segments
• Understand the Psychological Processes Behind Buying Luxury Goods
◦ The Need for Uniqueness
◦ Costly Signaling and Status
◦ Building the Self
DOWNLOAD
REPORT