The Impact of Lifestyle and Attitude Functions on Luxury Goods on Emotional Attachment Towards Luxury Brands

2. Literature And Theoretical Framework

By passing through the traditional economy and increasing the competition in modern aspects, the consumer has become the main element and pivot of all of the organized activities in the competitive perspective. The survival and continuity of organization lifetime rests on the firm identifying and attracting new consumers and keeping the existing consumers. Among these, the thinkers prescribe the management and marketing to consumers and methods of maintaining the correct relationship with them under the title of relationship management with the consumer (Bahman Heydari, 2009).

In economics, a luxury good is a good for which demand increases more than proportionally as income rises, and is a contrast to a “necessity good,” for which demand increases proportionally less than income (Varian, 1992). Luxury goods are often synonymous with superior goods and Veblen goods.

Luxury goods are said to have a high level of income elasticity of demand; as people become wealthier, they buy more and more of the luxury good. This also means, however, that should there be a decline in income the demand for the luxury good will drop. Income elasticity of demand is not constant concerning income and may change sign at different levels of income.