Traditional consumer behaviour would normally approach the purchase intent of fashion customers based on a 5-step strategy which we have discussed in other posts such as this one, but the truth is that fashion purchases have a stronger-than-average emotional bias and this makes the purchase decision process model work in a much more limited way. If we look at each, we can see that the purchase decision model does not apply very easily to luxury goods: let’s see each stage in detail.

• The recognition of a need. Based on Maslow’s hierarchy of needs, we should assume that people purchase fashion products to shelter themselves from the elements, but of course, this is not the case. The recognition of a need in luxury is usually something which is linked to one of two things: either fitting in, which means that we feel to get a sense of belonging to a social group because of our clothing choices or alternatively to stand out, which relates to the idea of using fashion to detach ourselves from the crowd, because of the uniqueness of our style. Because of the nature of these needs, we can understand that they are created most of all by social cues, which relate to interpersonal interaction and cannot be triggered as easily as other types of need.
  
  
• The research stage. The research stage is the stage where customers collect data and information to identify what type of product gets the job done. However, the research stage in luxury is quite challenging because in many cases the concept of luxury is entwined with the concept of scarcity. As a result, not a lot of information can be made available from the companies, as a lot of the luxury component comes from the unseen. If you shine a light on what makes something special you could draw away the magic, which is instead very much a focal point of the whole purchase experience.
  
  
• The evaluation of alternatives. The evaluation of alternatives is also a challenging time. First and foremost luxury brands are few, and don’t lend themselves to the easy comparison. Each luxury brand has a very clear and defined identity system which cannot be compared “apples to apples” to competitors in the same market segment. In this sense, a customer can easily identify all the points of parity (all of the features that are required to compete in the market)  but maybe in a tough spot to identify the points of difference (any element of differentiation that can help the business stand out).
  
  
• The purchase decision. Because of what we have discussed, it can be very difficult to understand what is the actual customer journey that leads to the moment of purchase. Given the many unknown variables involved it can be difficult for brands to identify what types of touchpoints should be made available to customers in order to support their purchase intent and develop the right distribution strategy and customer relationship management approach. This challenge may then lead companies to develop store experiences which fit the two essential models of purchase intent: planned purchases and impulse buying. We address these retail management strategy in further detail in this post from our blog.
  
  
• The post-purchase stage. At this point, we get to the stage where customers have bought the product and are experiencing the brand promise. In this context, we need to remind ourself that the post-purchase experience is entirely subjective, as it is connected to the social validation that the luxury product provides. Luxury is about exclusivity, so the perception of uniqueness and scarcity are really important factors in this stage of the purchase process, and firms may need to operate onto these variables to maximise the positive outcome of this purchase stage.

So let’s now move to breaking down the subject further and identifying more of the elements that contribute to the understanding of consumer purchase intent in luxury.