Slumping of Highly-Priced Luxury Market in China - Capstone Project Example

The paper "Slumping of Highly-Priced Luxury Market in China" is an outstanding example of a marketing capstone project. This paper analyzes the slumping of the highly-priced luxury market in China. The key idea of this study is to provide a wider scope of understanding the behaviour of Chinese consumers especially in relation to luxury products. In order to achieve this, the paper was divided into four chapters. In the literature review, which is found in Chapter 2, it has been shown that the meaning of luxury has changed over the years, and it is no longer considered as something unnecessary but the importance of functionality and psychological satisfaction.

In addition, the capability to catch up with the current trend was also found to be a luxurious act in this paper.This paper has been divided into four chapters. It has been shown in the literature that the meaning of luxury has changed over the years and is no longer considered as something unnecessary. Hofstede’s cultural dimension has also been referred to and Western and Chinese shoppers were found to be mainly separated by their individualistic and collectivistic characteristics. Other theories which were used in this study include the Emulative theory and the Marshallian theory.

The latter suggested that Chinese consumers were still keen on foreign products mainly due to their quality guarantee, fame and attractive packaging. Positivism methodology was used to carry out the survey and it was accompanied by a semi-structured one to one interview. The analysis of the interview and the survey was described in Chapter 4. The interview has revealed four major points including that consumer group aged over 30 believed that the higher the price, the better quality a commodity represents, making them consider it a prestige to buy a product which is generally considered to be luxurious; the choice of Chinese consumers was also found to be influenced by their peers; social media is yet to be fully exploited in marketing in China and, finally, the importance of customer services was also predicted by the interviewee for future Chinese consumers.

The Chinese consumers were found to be more sophisticated and individualistic, making the idea of promoting the products merely by making them more expensive for the Chinese not likely to succeed in the Chinese market.