Knowra Luxury goods Luxury goods Luxury goods are products whose demand tends to rise more than proportionally as consumer income increases. They often carry high prices and signal prestige, craftsmanship, or exclusivity.
Income elasticity of demand : The percentage change in quantity demanded divided by the percentage change in income. Luxury goods are defined economically by income elasticity greater than one.
Luxury brand : A brand positioned through high prices, controlled availability, distinctive design, or exceptional service. Brands translate product features and reputation into a recognizable luxury offering.
Necessity good : A good whose demand rises less than proportionally as consumer income increases. Necessities have income elasticity below one, unlike luxury goods.
Economic inequality : The unequal distribution of income, wealth, or economic resources within a population. Luxury consumption makes disparities in purchasing power especially visible.
Veblen good : A good for which higher prices can increase demand because they enhance its status appeal. Its status-driven demand can reinforce luxury pricing, unlike ordinary income-driven demand.
Luxury marketing : Marketing practices that build prestige, desire, and exclusivity around high-end goods and services. Luxury firms manage scarcity and symbolic value as well as product features.
Inferior good : A good whose demand falls as consumer income rises. Rising incomes can shift consumers away from inferior goods and toward luxury goods.
Luxury tax : A tax imposed on selected high-priced goods or luxury purchases. Governments have used luxury taxes to target spending associated with wealth.
Conspicuous consumption : Spending intended to display wealth or social position. Visible luxury purchases can communicate status to others.
Luxury fashion : High-end clothing, accessories, and fashion houses associated with premium materials, design, and prestige. Fashion is a prominent market where luxury goods combine use with visible status.
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