Akademia Leona Koźmińskiego w Warszawie

Paweł Lewicki

14231

The perception of luxury goods: a marketing and psychological analysis on

the example of luxury cars in Poland.

MSc Dissertation

Supervised by:

Dr Krzysztof Przybyszewski

1

Warszawa 2012

STUDENT STATEMENT

I hereby certify that this dissertation titled “The perception of luxury goods: a marketing and psychological analysis on the example of luxury cars in Poland.”submitted to the Koźminski University, is all my own work and had not been earlier used as a basis for a procedure related to conferring professional titles and higher education institution diplomas.

I also certify that dissertation does not violate copyrights under the Act of 4 February 1994 on copyright and neighbouring rights (Journal of Laws No. 24, item 83, as amended) or legally protected personal interests.

I acknowledge that the dissertation will be subject to verification by a plagiarism detection system.

/date/ /signature/

28.03.2012

WORD COUNT: TBA!

2

Author: Paweł Lewicki

Title:

The perception of luxury goods: a marketing and psychological analysis on the example

of luxury cars in Poland.

ABSTRACT

TBA!!!

Keywords: Luxury, cars, brand, perception, marketing , psychology, Poland.

Subject area code in SOCRATES : 04.7 (marketing) or 04.0 (Management Science)

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PREFACE

TBA!!!

I really love writing my MA thesis I think it will soon become my hobby or it might

even be a life changing experience.

Poland continues to be a fairly ”young” market for luxury goods the 7 main segments

that can be indentified are: auto-motive, clothing, watches and jewellery, yachts,

airplanes and helicopters

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INTRODUCTION

TBA !!!

I will start with providing a theoretical approach to the concept of luxury cars perception

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TABEL OF CONTENTS

ABSTRACT..........................................................................................................................3

PREFACE.............................................................................................................................4

INTRODUCTION...................................................................................................................5

LIST OF GRAPH, TABELS AND FIGURES...............................................................................6

INTRODUCTION...................................................................................................................5

1.1 Psychological concepts and theories .......................................................................8

1.1.1 Defining the luxury brand.....................................................................................9

1.1.2 The conecpt of luxury brand perception ..............................................................9

1.1.2.a Consumer Theory...........................................................................................3

1.1.2.b Consumer Culture..........................................................................................3

1.1.2.c Culture Theory...............................................................................................3

1.1.2.d Co...................................................................................................................3

1.1.2.e Coe Theory.....................................................................................................3

1.1.2.f Theory............................................................................................................3

2. The luxury/premium goods market...........................................................................8

2.1.The polish premium goods market ..........................................................................5

2.2 The global premium goods market .........................................................................5

Wpisz tytuł rozdziału (poziom 3)...............................................................................6

3. The Reaserch................................................................................................................8

3.1 Defining the luxury brand..........................................................................................9

1.1.2 The conecpt of luxury brand perception ..................................................................9

1.1.2. Consumer Theory....................................................................................................3

1.1.2.b Consumer Culture..................................................................................................3

1.1.2.c Culture Theory.......................................................................................................3

APPENDIX...........................................................................................................................8

BIBLIGORAPHY...................................................................................................................9

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4. The Conclusion and areas for futher reaserach.....................................................50

Wpisz tytuł rozdziału (poziom 3)......................................................................................3

Wpisz tytuł rozdziału (poziom 1)......................................................................................4

...........................................................................................................................................3

PREFACE.............................................................................................................................4

INTRODUCTION.................................................................................................................... 5

1.1.2.a Consumer Culture Theory

LIST OF EXHIBITS

Exhibit A. Constituent Value dimensions of Luxury Brands

Exhibit B. BBBB dgrgaaaa

Exhibit C. CCCC Vaaaary Brands

Exhibit D. DDDD Vadddds

LIST OF FIGURES

Figure 1. Reaserch analysis - Gender

Figure 2. Research analysis – Question 9 Ferrari as a woman .

Figure 2. Research analysis – Question 10 Volvo a woman .

Figure 2. Research analysis – Question 11 Mercedes as a woman .

Figure 2. Research analysis – Question 12 BMW as a woman .

Figure 2. Research analysis – Question Ferrari as a woman .

Figure 2. Research analysis – Question 9 Ferrari as a woman .

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1. Psychological concepts and theories

1.1 The luxury brand

1.1.1 Defining and understanding the concept of luxury brands

After analyzing numerous texts concerning the definitions of the luxury brand I found in

contrast to a great number of well founded definitions of a brand there is little or close

to none complete definitions of a luxury brand. A proper definition of the core concept

of my thesis is essential to a thorough understating of how it is perceived by the society.

Fortunately enough I was not the only one sharing this view Klaus Heine and Michel

Phan in a recent study of 31 German millionaires with high spending on luxury goods

published in the Australasian Marketing Journal 19 (2011, p. 108–114) take on this

difficult task and in my opinion provide by far the most accurate and current view of

what a luxury brand really is and how it should be studied, this is accomplished by

providing both a theoretical and empirical background.

In their article, Klaus Heine and Michel Phan touch on the subject of defining the notion

of luxury in marketable products and try to develop a definition based on researching

existing literature. They state that there is a lack of consensus on what defines a luxury

product. Varying definitions do not discriminate between different understandings of

luxury (in different areas of research) or are too broad, confusing accessory attributes as

essential or simply enumerating too large a number of characteristics to be concise.

Luxury is defined as anything desirable and more than necessary or ordinary. It is

dependent on regional, temporal, economic, cultural and situational perspectives. It is

always determined by the upper classes of society. There are three main perspectives of

defining luxury: the philosophical-sociological perspective which deals with the

evolution of attitudes towards luxury and its social benefits and changes in appearance

of luxury and preferences towards it, the micro-economic perspective which covers the

relation between price, income and demand as well as stressing the benefits of luxury

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goods for the economy, and the managerial perspective, dealing with business

development and marketing strategies for small groups of luxury manufacturers.

The authors of the article collect all definitions and characterizations of luxury products

found in international business literature building up an understanding of essential traits

of luxury products. The authors distinguish several approaches to differentiate mundane

and luxury goods. The level of abstraction, they postulate, allows to make the

distinction between characteristics-based and consequences-based approaches, while the

source of information helps discern the consumer-based and expert-based attitudes.

Further on the authors proceed to explain these oppositions stating that luxury goods are

identifiable by their fundamental attributes or their consequences, meaning reasons for

which they are being utilized. As consequences apply not only to luxury products, a

need has arisen to use a different factor distinguishing them from the rest of marketable

goods. Thus, the characteristic-based definition was popularized.

The second opposition of expert-based and consumer-based approaches are related to

the source of information on luxury goods, such as opinions and analyses. The

consumer-based approach is gaining popularity as marketing is currently more focused

on the various products’ recipients than it was earlier. This attitude to defining luxury

products allows to describe their most essential characteristics by means of studying the

consumers themselves. The author mentions an example of a group of consumers

evaluating the quality of a product with varied criteria, treating different characteristics

as the most vital. As, similarly to quality, luxury is a very intricate notion, the defining

features of luxury products should be established by means of surveying a target group

of consumers.

The authors postulate that limiting oneself to only one approach is not efficient – the

validity of the results of a consumer survey may be unreliable, as different social

circumstances one is subjected to may change his outlook and opinions on luxury

products. The consumer-based approach should therefore be supplemented with what

the author calls a “framework for the identification of luxury product characteristics”

(Heine, Phan, 110). This framework should apply only to luxury products and cover all

possible essential features of such goods. These features cannot include secondary and

non-constitutive characteristics, relevant only for some luxury products or dealing with

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their symbolic attributes. The authors state that literature concerning luxury product

definition often misidentify constitutive and accessory features, e.g. characterizing

symbolism and traditionalism of some luxury designs as essential, while most modern

luxury products cannot be defined through references to traditional symbolism.

The framework for identifying luxury product characteristics also assumes that features

should be differentiated from consequences (why a luxury product is bought is not

relevant for its definition), preferences, attitudes and marketing strategies (selectivity of

sales and unusual ways of advertising do not place a product among luxury goods

automatically). Clear identification of concrete and abstract features is also important,

though the two types are somewhat intertwined (e.g. a composition of several concrete

features may constitute an abstract characteristic).

To further specify the most correct method of defining luxury goods, the authors

describe the way a consumer-based study adhering to the above-mentioned framework

should be conducted. Stating that the most relevant quality of the surveyed group should

be the understanding of luxury goods, the authors give an example of a target group

consisting of millionaires frequently employing luxury products. The composition of the

group was non-homogenous, as it consisted of men and women with very different

social and industrial backgrounds as well as ages. The participants were interviewed,

asked to enumerate their favorite luxury brands and inquired about different luxury

market products. Additional methods, such as the repertory grid method (which the

authors describe as “helping to elicit consumers criteria for the evaluation of products

with an iterative process requiring them to compare different triad combinations of

stimuli”) , the preference differences technique (in accordance to which the respondents

were to prepare a detailed characteristic of their luxury brand preferences), the critical

incident technique and the projective technique were utilized.

The results of the survey pointed that from a consumer’s point of view, luxury products

can be characterized by six features divided into concrete, abstract and manufacturing

characteristics (the last being added only because it proved to be important to the

respondents and allowing for the creation of both former types of features). The first

characteristic of luxury products according to the respondents is price. The second is

quality. The third is aesthetics – most often corresponding with the taste of the upper

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social classes, which, as the authors notice, points to the cultural importance of luxury.

Rarity has proven to be another distinguishing characteristic for the respondents – the

more rare a product is, the more it is luxurious. Another factor is extraordinarity, which

suggests that in order for a product to be perceived as luxurious, it has to be different

from the rest by way of design or construction, either possessing innovative functions or

being marked with a brand of an extraordinary image. Luxury products were also

associated by the participants with their symbolic value – as opposed to the stressing of

functionality in mundane products, luxury goods should elicit abstract connotations,

refer to lifestyles and values of the consumers. This last characteristic is strongly

connected to the brands of products.

What follows is the concluding paragraphs in which the authors make an attempt at a

final and concise definition of luxury products. “Luxury products have more than

necessary and ordinary characteristics compared to other products of their category,

which include their relatively high level of price, quality, aesthetics, rarity,

extraordinarity and symbolic meaning” (Heine, Phan, 112). These features can be

understood as fully dimensional, prone to changes and fluctuations. Luxury products

may vary as to the levels of these characteristics and often the higher the levels, the

more luxurious the product, though this is not always true. This scale of luxuriousness

proves helpful in distinguishing the different brands. What is important, luxury is

perceived highly individually by consumers – not always will all the above features be

required to exist in a product in order for it to be identified as luxurious. This means that

the ultimate factor in defining luxury goods are not the aforementioned features but

rather the perception of these attributes by the consumers. Thus, the various brands can

compete with each other, adjusting the specific characteristic levels to suit the

perceptions of given target groups by means of marketing strategies.

From my personal research and conclusion that I drew basing on it an equally important

theoretical definition of a luxury brand is presented in a publication of Pierre Berthon,

Leyland Pitt Michael, Parent Jean-Paul, Berthon, 2009. In their work the authors note

that once luxury was perceived to be a product of great craftsmen such as Louis Vuitton

the trunk-maker or Christian Dior the frock-maker however over the years the concept

of luxury evolved and in the modern industrial world luxury became the brand a symbol

that goes way beyond the material and evokes various emotions among consumer.

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According to Adam Smith there are four main kinds of consumption: necessary (vital

to survival), basic (essential for normal growth and prosperity of an individual or

community), affluence (non-essential goods) and luxury (meaning goods that are in

limited supply and are difficult to produce and mostly expensive). This idea defines

luxuries products as ones that are connected with rarity either by high price and/or

through limited capacity of resources required to produce such goods. In contrast to this

popular notion the authors argue that it is difficult to describe luxury by a single

definition and state that it is more than a set of attributes. Luxury is rather seen as a

concept that is depended upon the social and individual context and is considered to be

a combination of material, social and individual spheres hence understanding its role in

each of the three areas results in developing a more comprehensive definition of luxury.

The idea although at first may seem a bit complex accurately analyses the most

important aspects of luxury and captures the full scope of relations between people,

products and brands. The foundations of this view are based on the Karl Popper

hypothesis of the “three worlds” this idea is presented in the context of luxury brands:

“(World1) manifest goods and services: (World 2) individual thought, emotions, needs,

wants and perceptions; and (World 3) collective narratives, knowledge symbols and

images…for example Louis Vuitton roll-on luggage carrier…with the trademark motifs

(World 1)becomes a brand associated with certain characteristics (World 3), but with

different meanings to its potentially different individual owners (World 2). ”(Pierre

Berthon, Leyland Pitt Michael, Parent Jean-Paul, Berthon, 2009, p.47). This proposal is

further expanded by the authors with the identification of three dimensions of luxury

brands that correspond with the Popper’s worlds: functional, experiential and symbolic.

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Exhibit A.1 presented below depicts this dimensions and their correlations with the three

worlds.

The functional component is representing the material role of luxury brands namely the

quality of materials and the superior workmanship need to prepare for example the

newest model of Rolls-Royce characterized by exceptional performance and almost

silent functioning . Experiential value is the domain of personal subjective preference

and taste here the person’s subjective opinion is the judge of luxury and in this

dimension the consumer finds the hedonic value of a brand. Lastly the symbolic realm

is considered a representation of the social collective where the symbolic character of

luxury brands is introduced. This dimension has a dual aspect the value a luxury brand

transmits to other people and the value which it conveys to the owner for example a

Ferrari car may indicate wealth, prestige and temperament along with reinforcing the

owner’s self image at the same time. I find the above ideas to be extremely important to

1 Constituent Value Dimensions of Luxury Brands Aesthetics and Ephemerality, Diagram, California

Management Review, Fall2009, Vol. 52 Issue 1 p.49.

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the findings of my thesis additionally they will serve as a base for further theoretical and

empirical evidence presented.

1.2 The conecpt of luxury brand perception

1.2.1 Consumer Culture Theory

Another essential theoretical construct that I would like to highlight is also equally

significant to the matters discussed by me in this paper it is a broad field of consumer

research addressing among others the socio-cultural, empirical and ideological aspects

of consumption. Namely Consumer Culture Theory among many modern views from

various institutions and scholars this concept in my opinion seems to be the most

accurate and up to date providing a useful tool for evaluating consumer behavior and

perception from a rich and uniquely structured perspective. The construct has evolved

significantly over the past two decades and in comparison to other more mainstream and

one-dimensional concepts this model brings in fact is a rather new perspective to the

topic. The framework is defined2 as “Consumer Culture Theory or, in short CCT, is the

denomination of a certain approach to the study of consumers and consumption. This

approach basically considers consumption and its involved behavioral choices and

practices as social and cultural phenomena - as opposed to psychological or purely

economic phenomena. CCT, in the words of one of the summarizing articles about the

field, "refers to a family of theoretical perspectives that addresses the dynamic

relationship between consumer actions, the marketplace, and cultural meanings." CCT

is not only referring to this family of perspectives, but also to an informal  group of

researchers who to some degree identifies with the cultural approach to the study of

consumption and consumers. Thus, CCT also can be said to mean Consumer Culture

Theorists.”. I find certain areas of this concept to be particularly useful in the context of

luxury cars perception that is why in the following paragraph I will demonstrate and

elaborate on this association. The fields that I wish to put emphasis on are presented by

Eric J. Arnould and Craig J.Thompson “Consumer Culture Theory (CCT): Twenty

years of research” published in the Journal of consumer Research (2005) the authors

provid a great overview of the current research concerning CCT. One of this key areas

is “The consumption of market-made commodities and desire-inducing marketing

2 According to: http://www.consumerculturetheory.org/ (25.01.2011)14

symbols is central to consumer culture and yet the perpetuation and reproduction of this

system is largely dependent upon the exercise of free personal choice in the private

sphere of everyday life”( J. Arnould, J. Thompson p. 869). The importance of this issue

varies among different social situation and groups however it can be argued that the

luxury brands industry is to some extent based on this principal. Another imperative

part of this framework is the fact that “CCT conceptualizes culture as the very fabric of

experience meaning and action (Geertz 1983). Owning to its internal, fragmented

complexity, consumer culture does not determine action as a casual force…consumer

culture – and – the marketplace ideology it conveys – frames consumers’ horizons of

conceivable action, feeling, and though, making certain patterns of behavior and sense-

making interpretations more likely than others” ( J. Arnould, J. Thompson p. 869).

Therefore in the luxury goods market certain patterns trends can have a great influence

on consumers.

1.2.2 The theory of possession and the extended self

In order to understand better the underlying concepts of human perception of luxury I

would also like to present the concept of possession and the extended self developed by

Russell D. Belk (1988 p. 139-168).

According to Belk our possessions are both a reflection of essential contributor to our

identities. In his work he takes on a novel for its time perspective and discusses the

concept of extended self by concentrating on consumer behavior rather than buyer

behavior and reveals a broader perspective than previous studies made in this field.

It was more than 70 years ago in 1937 when Allport identified that “the process of

gaining an identity and in so doing gaining self-esteem, progresses from infancy by

extending self via a continuously expanding set of things regarded as one’s

own”(Allport,1937) this shows that perception of goods and its influence on people has

a very long history of research. In the mid 70s this concept was tested by Dixon and

Street (1975) who carried out research among 6 to 16 year olds their study found that

almost all of the item categories ranked as “self” among these group are quite similar

all but two people and possession the perception of these two categories had changed

considerably with age. The result proved that older children to a larger extent

considered such objects as being part of self. Moreover the study of favorite possessions

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carried out on a three-generational group of test subjects by Rochberg-Halton

(1984,1986; Csikszentmihalyi and Rochberg-Halton 1981) indicated that as people get

older the possessions they consider to be “special” to them tend to be ones that represent

other people for example gifts, photographs. According to the authors of the study such

results may suggest that with a person’s age attitude towards possessions and the limits

of one’s self perception change over time. Additionally the results may point out that

possessions are regarded not only as part of personality but also as being key to the

development of self. Belk continues to argue that if possession are considered as part of

self than an involuntary loss of possession should be viewed as a loss or lessening of

self as Georg Simmel observes “material property is, to speak, an extension of the ego

and any interference with our property is for this reason, felt to be a violation of the

person” (1950, p. 322). The above studies and concepts clearly illustrate the importance

of possession and its value to people. An interesting phenomena that is essential to the

further understanding of the perception of luxury cars was observed by Niederland and

Sholevar (1981) many of young American males consider cars as part of their extended

selves and ideals of their ego. This idea is also supported by other studies for example

consumer self-concept research (Bloch 1982) “The processes of creating and nurturing

extended self through an automobile may be seen in customizing (personalizing) the

car and in lavishing great care on its maintenance. When such a car is damaged, the

owners react as if their own bodies have been injured” (Belk 1988, p.143). In addition

the owners of such damaged cars seek to quickly restore the car to its former perfect

state or they look for the most adequate substitute. This kind of reactions can reflect the

need to restore the diminished sense of (extended) self caused by the car damages.

Another key aspect is understating the functions of the extended self in relation to

possessions it is obvious that every object has some sort of basic function like for

example cars are used for transport, tools or weapons also enable us to do activities that

we would be incapable of doing without them. However this is not the only function

that such objects have they can also symbolically extend ones personality for example

uniforms can influence not only the way in which we perceive ourselves but also the

way in which we are perceived by others. An interesting example was studied by Tanay

(1976) he suggested that handguns can be considered a symbolic penis for their owners

this hypothesis was later questioned by Kates and Varzos 1987 whom pointed out the

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real rather than figurative power given by weapons. Both of the above views illustrate

that having possessions can contribute to ones capabilities for doing and thus extending

their basic functions. Personal belongings can also play additional roles in the extension

of self adding value to ones sense of identity by creating, enhancing and preserving it.

As a result of this possessions can be a useful tool for people of ages and to some extent

can help us to identify who we really are.

The questions however remains how do we actually incorporate such objects into the

extended self Sartre (1943) presents 3 primary ways through which we start to view an

object as part of our personality. One is learning by doing meaning exclusive usage and

control of intangible objects by overcoming, conquering and mastering them for

example learning new skills, driving your first car or climbing a mountain and gaining

control of its great panorama. The remaining two ways of incorporation identified by

Sartre are creating an object and knowing one. According to Sartre buying objects can

be seen as another form of creating an object and that even the hidden buying power of

money adds to a sense of self this view while quite controversial can be explained

through the fact that money extends the possibilities of things that we might obtain and

do. All of the above are active and intentional ways of self extension people purchase

cloths, housing and cars as a sort of second skin it is displayed to the eyes of other

people and through it they perceive us. Moreover a very important aspect connected

with this issue is that people maintain multiple levels of self some objects can be more

central to one’s self than others. There are four main levels of self recognized by

Rapoport(1981)are individual, family, community and group the most important

distinction in the levels of self construct is made between the collective versus

individual conception. Boorstin (1793) in his study puts forward that one of the

essential ways of expressing and defining group association is by sharing common

consumption symbols which help to identify group members and define the group self.

A great example of group identification are clubs, fan clubs, forums and other

organizations associating people with common interests for example owners of luxuries

cars such as BMW, Mercedes etc. Every member of this sort of club can use their

personal possession as to express belonging to a group. As a result membership in this

kind of club helps people to define an individual sense of self and at the same time

further affirms it by group identity and a sense of belonging to the specific group. As

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the main indicator of the level in which group members are reeling on the group for an

identity is the relative variability of the consumption tastes in a group the above

examples illustrate an very big group dependence. Another concept that is helpful in

understanding the underlying assumptions of such incorporation is the care that people

take in handling their own possessions. According a study made by (Belk 1987b,1998)

there is a connection between the level of incorporation of objects into the extended self

of people. The research carried out on male car owners aged between 19 and 29

describes that washing, waxing and taking care of one’s car is considerably correlated

with the extent to which the car is central to the extended self of the owner.

The elementary ways in which possessions can become part of extended self has been

presented above nonetheless there are additional areas of consumer behavior that can

also be characterized with self-extension. Two of them namely money and collections

are worth mentioning and can contribute to a better understating of the reasons and

motives behind people’s perception of luxury goods. The primarily role of collections

according to Belk (1982b) was the need for future security nowadays however most

often people collect not essential goods mainly for distinction and self-definition. “From

the small boy to the connoisseur, the joy of standing before one’s accumulated pile and

being able to say “this belongs to me” is the culmination of that feeling that begins with

ownership of the first item… they become us” (Belk, 1988 p.154). The importance of

collections to people can be easily seen on the example of famous car collectors like Jay

Leno American comedian and TV host whom are constantly striving to acquire the most

unique car that it is possible in order to add to their collection. Additionally for many

men at some point in their childhood it has been a dream to have a model of Ferrari in

their toy car collection. Undoubtedly as Stewart (1984)shows “…creating one’s

extended self through devoted development of a collection is the ultimate in self-

definition by means of having rather than by the less tangible means of doing or being”

(Belk, 1988 p.154). According to Wicklund and Gollwitzer (1982) people experiencing

low self-esteem adding new objects to an collection may be seen as a form of

compensation and serve as a restoration to a more complete sense of self.

As my work discusses the perception of luxury cars it is understandable that money

plays a significant role here especially in the process of obtaining such luxury items. It

was previously noted that money can also contribute to an extension of self the function

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that money plays in this process has a dual perspective. They way it is perceived by

people is essential to a better understating of this issue for some it might be the effects

of using the power of money as a tool of obtaining desired material goods and

performing activates that otherwise a person would be in incapable of achieving. On

the other hand by others money itself is viewed as an extension of self and as a result

becomes an end rather than a means of attaining other things. “Money is thought to

bring love, fame and respect. Money is commonly seen as a symbol of success and

power (Rubenstein, 1981)”. Similarly to other formerly outlined elements of the

extended self when consumers believe that money is part of their extended personality

their happiness is directly connected to the well being of their money. One of many

examples illustrating the extent to which this can have an effect on people is an

interesting study made by New Yorker in 1975 it found that there is a positive

correlation between the sexual potency of businessmen and the level of the Dow Jones

Industrial Average. “This appears to be another case of viewing money as an

unconscious symbol of masculinity and power” (Lindgren 1980). Although a direct

connection between money and happiness has to be questioned due to the fact that

numerous research in this field brought many sometimes contradictory results.

Nevertheless it has to be recognized that there is a considerable amount of evidence that

depicts people with higher than average incomes as those reporting higher levels of self-

esteem, subjective happiness and satisfaction (e.g. Diener 1984) yet a surplus in income

that does not raise a person above a certain level in direct comparison to others has little

significance (Duncan, 1975). There is additional research showing that people with

higher incomes are considered to be viewed by others as being better off, happier and

healthier (Luft 1956). Taking all the above facts into account it is important to note that

also abuse of money and its extreme use in service of enhancing oneself can lead to

pathologies i.e. substituting money for love and happiness (e.g. Bergler 1959; Jones

1948; Krueger 1986).

The above theoretical concept is essential in understanding the underlying assumptions

of people’s perception of luxury cars is it shows that consumer behavior is guided by

one simple yet very powerful principal we are what we have.

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1.2.3 The concept of Psychological Ownership

In additions to Belk research I would like to touch on the subject of psychological

ownership in relation to possessions as it extends the notions mentioned by Belk and

provides a more complete view on the approach of people to goods presenting the

various attitudes and emotions that represent the feeling and act of owning.

Pierce, Kostova and Dirks (2002, p.5) constructed a definition of psychological

ownership. It is a psychological phenomenon in which we feel a possessive feelings for

the target of ownership. The essence of ownership is strictly linked with the meaning of

words ‘MY’ or ‘MINE’, and ‘OUR’. Psychological ownership emphasis a relation

between the owner and the object, in which according to Belk’s research the object

functions as a part of ‘extended-self’.

These three researches describe the state of psychological ownership as a complex of

cognitive and affective elements. ”It is a condition, of which one is aware through

intellectual perception. It reflects an individual’s awareness, thoughts, and beliefs

regarding the target of ownership. This cognitive state, however is coupled with an

emotional or affective sensation. Feelings of ownership are said to be pleasure

producing per se (cf. Beggan, 1992; Furby, 1978a; Nuttin, 1987; Porteous, 1976) and

are accompanied by a sense of efficacy and competence (White, 1959). The affective

component becomes apparent in the feelings that arise when others lay claim to objects

for which one feels a sense of personal ownership (e.g., Those ideas are MINE!) or

collective ownership shared with a group (e.g., That garden space is OURS!).” (Pierce,

Kostova and Dirks, 2002, p. 5). A luxury car treasured by the owner can be a perfect

example of such a possession it is quite uncommon to lend such cars to another person

and even when the owner decides to borrow his car he might feel uncomfortable with

this decisions and in some extreme situation worry about the car being damaged.

According to Pierce, Kostova and Dirks (2002, p. 14) three basic motives influence

people’s relation to their possessions – efficacy and effectance, self-identity, and having

a place (home).

Efficacy and effectane are in many cases the basic reason behind the need for

possessing a product as this motives are directly linked with being in control of a

personal item which can satisfy one’s need for ownership becoming an end itself. 20

However the final importance of having is combining the ownership target with the self

which in turn leads to a literal form of possessing and controlling. As the authors state

the “motivation for possession stems from the individual’s need for effectance and

ability to produce desired outcomes in the environment (cf. White, 1959) In other

words, they enable one to effect desired outcomes in one's environment. In addition to

producing intrinsic pleasure, control over the environment may produce extrinsic

satisfaction as certain desirable objects are acquired” (Pierce, Kostova and Dirks, p. 10)

This concept is expanded further by also recognizing that the power to produce desired

outcomes through ownership and control over items is in itself a pleasure for the owner

and thus it starts to be viewed as personal efficacy and a part of the extended self.

The connection between self-identity and possessions was mentioned before in the text.

Researchers like Belk, Allport, Simmel, Niederland and Sholevar have examined this

issue. Results of these studies proved that the possessions “help people to come to

define themselves and express their self-identity to others, and maintain the continuity

of the self across time.” (Pierce, Kostova and Dirks, 2002, p. 10)

The last motive is a basic human need for owning a certain space. ”Heidegger and

Polanyi, Dreyfus notes that when we inhabit something, that something is no longer an

object for us, instead it becomes a part of us. For Heidegger and Polanyi, this is called

‘dwelling in’ or ‘inhabiting’. (2002, p.14) We become psychologically attached to this

place and it provides us a sense of security. I see a certain similarity between ‘having a

place’ motive and ‘having a car’ motive in Poland. For some people nowadays cars

become their own private places people often buy cars and luxury cars in particular can

be considered to be a play the role of an improved, unique and attractive personal space.

Such car owners seem to be a very good example of Porteous’ theory which states that

we derive three satisfactions from ownership: “(1) control over space per se; (2)

personalization of space as an assertion of identity and, (3) stimulation (achieved, for

example by thinking about, using, improving, or defending one’s

possessions/territory).” (2002, p.6-7)

1.2.4 Self-Discrepancy Theory (Edward Tory Higgins)

TBA – nie wiem czy zdążę

21

1.2.5 Intrinsic motivations, self-esteem and luxury goods consumption

As the above concepts recognized not only the importance of the conspicuous reasons

behind owing luxury cars and other goods but also the intrinsic factors associated with

possession I would like to continue by showing a perspective which concerns the latter

in a publication by Yann Truong, Rod McColl on “Intrinsic motivations, self-esteem

and luxury goods consumption” from the Australasian Marketing Journal 18 (2011, p.

555–561). The authors argue that despite the dramatic growth of the luxury market

during the last twenty years the studies regarding luxury consumer research remain

scarce and largely fragmentary. In order to address this knowledge gap their study deals

22

with the motivation for purchasing luxury products, analyzing data with the use of

structural equation modeling.

Contemporary research on luxury goods is based on the theory of conspicuous

consumption, which assumes that the higher the means of a consumer, the more he will

consume and the more visible goods they will chose in order to “display their wealth

and gain social status” (Truong, McColl, 556). In general, people tend to overpay for

products which they perceive as prestigious, trying to gain status in society by willingly

spending irrationally high amounts of money. The higher social classes have always

been setting the trends and behavioral, economic and social patterns for the lower

classes. This principle has been shaping the image of society for years – individuals

have been purchasing products aiming at emulating the higher social classes in order to

be identified with them. In the modern world this has led to shaping both consumers’

preferences for goods and the marketing strategies utilized to sell them.

While conspicuous consumption is an undeniably popular practice, not each and every

consumer adheres to it. Seeking products of the highest quality or aspiring to self-

pleasure are the other motivations for purchasing luxury goods.

The desire for the best quality is, according to the authors, one of the essential attributes

of luxury goods and one of the most popular motivation of buying them. In fact, quality

is often identified with luxury, being its most distinguishing characteristic. The authors

postulate that “since a desire for quality appears to be intrinsic, it is posited that […] a

direct positive relationship exists between intrinsic motivations and quality” (Truong,

McColl, 556). They notice that the desire for self-reward can induce consumers to

purchasing – this has been referred in literature as “hedonic motivations”. These run

deeper than the need to benefit from a superior quality product and are often related to

personal emotions, the seeking of other advantages for the self. Thus, the authors

classify them as intrinsic, drawing another relationship between intrinsic motivations

and “self-directed pleasure” (Truong, McColl, 556).

Further on, Truong and McColl link self-directed pleasure with self-esteem, which they

perceive as “an essential part of the human ego” which individuals “strive to enhance”.

Being an essential need, self-esteem connects with pursuing one’s aims and thus is

23

relative to the notion of motivation. As consumer behavior research shows, the

acquisition of products improves self-esteem and self-worth.

The authors make an important observation that the abovementioned related factors,

constituting intrinsic motivations are irrelevant in the case of luxury product purchasing

aimed at emulating higher social groups, i.e. motivated extrinsically. Based on that

assumption they derive a “direct negative relationship between intrinsic motivations and

conspicuous consumption”.

Further in the text, the authors delve deeper into these relationships, describing studies

they have conducted. These studies support their theories, showing that people

purchasing luxury goods with intrinsic motivations are the most interested in the quality

of goods (however subjectively perceived they may be) and the wish to acquire personal

pleasure. Also, the studies point that self-esteem is connected to self-directed pleasure

and irrespective of the notion of conspicuous consumption and quality, thus pursuing

self-esteem serves as a motivation only for the former. As the study shows that

intrinsically motivated purchasers rarely buy luxury goods conspicuously, the

compatibility of the former with the latter may be only partial. The most influential

internal motivation identified by the authors is personal growth.

In their article, Truong and McColl postulate that the earlier studies on luxury

consumption were partially erroneous, as they focused on a relatively narrow definition

of luxury. Dealing only with conspicuous consumption led to focusing only on the

wealthy consumers, which in the modern world tends to leave out a whole social group.

Nowadays, the growth of income of the middle and lower classes has led to a situation

where representatives of these social groups are also occasional luxury consumers.

Another conclusion is that more people purchase luxury goods motivated by intrinsic

factors. These people tend to value real quality of the purchased goods as well as their

capacity for providing self-directed pleasure. Citing the authors “the relationship

between self-esteem and self-directed pleasure proves to be very salient, suggesting that

purchasing luxury goods as a self-reward may be a powerful way to satisfy one’s need

for self-esteem”.

1.2.6. Evolutionary psychology

24

As the marketing and psychological concepts presented previously clearly indicate the

importance of research on perception in general there is one additional related field of

study that is key in order to truly grasp the nature of human perception namely

evolutionary psychology. That is why I would like to put forth the ideas of evolutionary

psychology basing on the book by Geoffrey Miller Spent, Sex, Evolution, and

Consumer Behavior (2009) on a more personal note this book was essentially the

starting point of my thesis. In his book the author not only recognizes and underlines the

importance of marketing by stating “It has become the most dominant force in human

culture. It is, ideally, a systematic attempt to fulfill human desires by producing goods

and services that people will buy” (Miller, p. 39) He also argues that nearly everything

that is available for buying has been developed by a marketing employee of a randomly

existing company with the goal of selling products that supposedly or actually will

make consumers more satisfied and happy. In essence Miller shows a direct link to

marketing and our everyday life including the perception of luxuries items and the

biological reasons behind the usage of such products. According to the author a great

extent if not all of this links importance can be explained through human biology and

studies on evolution of mankind. Further topics on Miller TBA: sensible model of

consumerist capitalism, Consumerist Narcissism, Fitness Indicators, BMW & Mercedes

etc. … app. 1,5 pages nie wiem czy zdążę

25

2 The luxury/premium goods market

2.1. The Polish premium goods market

A detailed analysis of the available source materials shows that there has been a limited

amount of studies and research directly tackling the Polish premium goods business. In

order to present a comprehensive analysis of the Polish premium goods market I will

draw on several secondary data sources ranging from Euromonitor International,

Eurostat, Polish Ministry of Finance, CEPiK and GUS data to GFK/Polonia3 and

KPMG4 market research.

It is until quite recently that a reliable and factual study has been made in this field in

2010 the consultancy firm KPMG published the first edition of a report titled Rynek

dóbr luskusowych w Polsce. The findings of the 2011 edition of this report will serve as

a base for the following description.

Although the general level of wealth of the Polish society is consistently increasing

(see ) the average level of buying power in comparison to other EU members especially

the leading economies is fairly small.

3 GfK Polonia - Polish market research agency http://www.gfk.pl/index.en.html 4 KPMG - in Poland is a part of global network of professional services firms providing Audit, Tax and Advisory services http://www.kpmg.com/pl/en/Pages/default.aspx

26

4962

0

50

100

150

200

250

300 2000 2010

GDP per capita in Purchasing Power Standards (PPS)(EU27 = 100)

Source: Eurostat

Purchasing Power Standard is the variable created by Eurostat . The aim of the measure is comparing Purchasing Power between countries in Europe

Exhibit B

However it is important to note that the average levels of buying power are not always

positively correlated with both the demand for luxury goods and the value of such a

market.

According to the findings of KPMG resulting from an analysis of tax payers income in

2009 those above the taxation bracket 32% PIT are consider rich and affluent Poles.

Exhibit C shows that More than 600 k fall into this category with monthly income that

exceeds PLN 7,100 among which around 50 k are characterized by monthly incomes of

over 20 thousand PLN and assets above 1 mln USD. There has also been an aspiring

group identified of approximately 2 mln people with monthly incomes between 3,700

and 7,100 PLN. It is estimated that the total number of rich and affluent will grown to

620 k in 2010, as the Ministry of Finance data indicates their average monthly income

as of 2009 is 15,2 PLN and has grown by 4 % on a yearly scale since 2008, for year

2010 this value is anticipated to reach 15,5 PLN. As for the demographics an

interesting phenomenon can be observed more than 190 k near one third of this group

are residents of mazowieckie voivodeship followed by śląskie (64 k), wielkopolskie

(50,5 k) and małoposkie (47k) voivodeships.

27

Exhibit C

The below data presented on Exhibits D&E indicates there is a strong concentration of

wealthy Poles in the central region of Poland additionally this results correspond with

the average level of wages in mazowieckie which are the highest in Poland also an

important contributor to this is the fact that most of the headquarters of the biggest

international companies are based in Warsaw this and many other factors contribute to

the fact that this voivodeship is the richest one in Poland.

28

Exhibit E

Exhibit D

The Polish luxury goods market has an estimated declared worth of 28,3 billion PLN as

of 2009 and the year on year expenditures for luxury goods are increasing in

comparison to 2008 they grew by 4,4 %.

Poland continues to be a fairly ”young” market for luxury goods the 7 main segments

that can be indentified are: auto-motive, clothing, watches and jewellery, yachts,

airplanes and helicopters.

As can be see on above Exhibit F of over 200 brands taken into consideration in the

KPMG report just over a half of luxury brands from the above mentioned were

available for Polish consumers in the year 2009 53 %. The growth of this market and

increasing demand for new goods has been recognized by many of the key players in

the global luxury goods industry and as a result the availability of this type of goods in

Poland is systematically increasing. The newest data for 2010 shows that the availability

has increased by 8% in comparison to corresponding year ago period and amounted to

61% yet one third of the main brands are still to be introduced.

From all of the currently available the largest market share goes to Italian brands which

constitute for 21% followed by French 18%, Swiss 15%, US 13% and Germany 9%

this countries are the top 5 players in the Polish market.

29

Exhibit F

2.2. Luxury cars industry in Poland

I will continue with a presentation of detailed insights on the luxury segment of cars in

Poland as it is one of the largest segments in terms of value and one that is most

commonly considered by Polish society to bear all the necessary traits of a luxury good.

Over recent years the Polish car industry has evolved the wealth of Poles increases and

as a consequence the demand for luxuries cars enhances accordingly. Although more

and more people can afford cars that are considered luxuries ones an important tendency

does not change over the years according to CEPiK data the largest number of premium

cars is being registered in the category of used cars 5 years or older. When we take this

into account and compare to the situation in Western Europe majority of the luxury cars

registered in our country would not even be considered luxurious abroad. Such a

situation can indicate that the demand for luxury cars exceeds the current buying power

of Poles. Among the 118 382 luxury car brands registered in 2010 92 872 was 5 years

or older another 14 679 were the cars between 2 and 4 years of age and only 10 831 of

them were new and one year old. When compared to the leading European markets such

as Germany with 800 k, Great Britain 353 088 k or France 160 k luxury cars registered

in 2010 in Poland with only 10 831 new luxurious cars falls short and has comparable

results to Denmark 11 117 and Ireland 8 791. Nevertheless for the moment having this

specific situation in mind I will continue to analyze the market focusing on the country

specific definition of luxury cars. Often car sales and luxury cars sales in particular are

considered to be a mirror reflection on the level of wealth and current moods of

consumers in 2010 there was a significant decline of 39% vs. last year in the number of

new and one year old luxury cars registered. The main reason for this drop was the

financial crisis of 2008-2009. However the newest data from Samar Institute indicates a

positive shift in sales for this market in the period from January to August 2011 the

number of premium cars registered increased by 3 %. This year’s result demonstrates

that although Euro zone’s economy is currently struggling the moods of wealthy Polish

consumers are optimistic. According to CEPiK data in 2010 the most popular luxury car

brands registered in Poland were Audi with over 50 k cars registered second place came

to BMW with 26 726 third is Mercedes with 23 519 and not far behind “the big three” is

Volvo with 13 479 cars registered.

30

2.3 The Global premium goods market

TBA (GLOBAL market) ) nie wiem czy zdążę Global luxury goods accounted for $175 billion in retail sales

in 2008 (Bain and Company, 2009), and expectations are that the fast-growing markets of China and India will sustain the luxury

market expansion for the next 10 years (Anestis et al., 2009). While the size and growth of this market has attracted increasing

research interest to the luxury industry (see Tynan et al., 2010), in comparison to other research sectors, the literature remains

scant (Truong et al., 2008). Consumer behavior is a cornerstone of marketing in which individual aspirations and motivations play

an important role. Aspirations influence motivation, which in turn influences a consumer’s actions (Grouzet et al., 2005; Kasser

and Ryan, 1996; Kim et al., 2003; Sheldon et al., 2004). Previous investiga- tions of purchase motivations broadly categorize

consumer motives for luxury consumption as either intrinsic or extrinsic. Intrinsically oriented purchases reflect internal self-

fulfillment goals (Tsai, 2005). Extrinsically oriented purchasing reflects the importance of others’ perception of the consumer as the

main motivating factor. Thus, extrinsic motivations fall within the theory of conspicuous consumption, which states that customers

purchase luxury goods largely to signal their wealth and status (Veblen, 1899).

31

3. The Research

3.1 Research description

3.1.1. Research subject and its goal

The main focus of prior chapters was to highlight the complexity and explain what a

broad concept human perception is even taking the specific context of luxury car brand, it is

important to remember that it is a part of an extremely complex and to this day not holistically

studied process.

Taking the above into consideration I have concentrated my research on this specific

part of the human psyche with the goal of presenting valuable insights on how luxury brands are

perceived in Poland. The goal of this research was to adequately measure and define the

perception and attitudes of Polish people and to draw conclusions on basis of the research

findings.

Additionally the goal of this thesis and the research which followed was to construct

and develop adequate measures for attitudes and perception of luxuries car brands and to

combine contemporary theories and put them into practice with empirical research.

I hope that my research and other similar studies can be used and applied to construct

improved future marketing strategies, implications can be broad and the area for further

research in this field is substantial.

TBA + sampling method + methodology declarative Questionnaire …

+ hypothesis thesis?!

3.2. Analysis of research results

3.2.1 Questions 1-6 sampled group demographics, ownership and car usage

The participants of the research were a group of 50 part-time Koźminski University

students. As figure 1. indicates the within this group gender was distributed evenly near

32

half of the respondents were woman 54% the remaining 46% were men.

54%

46%

Figure 1.Q1. Gender

Woman

Men

The average age of respondents was 25,1 years with a SD of 10,29.

As it is seen on Figure 2. almost 2/3 of the study participants owns a car to be exact

68% of the sample group of respondents and only 32% did not have a car. number for

those owning a car.

68%

32%

Figure 2. Q3. Do you have a car?

YesNo

Moreover as the next Figure 3. shows nearly all of the 32 % of respondents who did not

currently own a car plan to buy a car in the future to be exact 94% plans to do this.

33

94%

6%

Figure 3. Q4. If you do not own a car currently do you plan to buy one?

YesNo

Even more interestingly as can be seen on Figure 4. more than half of the respondents

(31 out of 50) can be classified as heavy car users with only one third (15) participants

stated to be light car users.

Almost ev-eryday

At least 5x a week

Not more than 3-4x a week

Less than 3x a week

A number of times in one

month or less

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Figure 4. Q5. How often do you use a car as your main means of transport?

34

Business/as means of transport to work/school

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Figure 5.Q6. What is your most common use of a car?

As can be seen above on Figure 5. the most common uses of cars are the widely

understood usage related to work and/or studies this means either as a way of transport

or an essential part of the occupation. The second most common car usage is classified

as a Leisure activity this include i.e. trips, shopping or any other action that includes

using a car during the free time. The research participants answered that mostly they use

cars during work related activities 30 however not far behind with 19 answers was the

leisure car usage.

The above data can lead to a conclusion that the sample group for this study was

correctly chosen thus the results of this research are to reasonable extent reliable, taking

into account the following hypothesis: people who own cars are more aware of the

luxuries car brands even if they do not own such brands personally.

35

3.2.2 Questions 7-8 top of mind luxury brands and purchase declaration

The next series of questions was constructed in order to check whether or not or not the

top of mind 5 luxury brands mentioned by respondents are correspondent with the ones

they would consider buying in the future.

The results were:

Acura

Aston Marti

n BMWFer

rari

HummerJag

uar

Lamborgh

iniLex

us

Maserati

Mercedes

Porsche

Saab

Toyota

Zonda Paga

nii

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Figure 6. Q7.Please name 3-5 luxury car brands that you can think of:

The above Figure 6 indicates that the participants chosen the following brands as their

top of mind luxury car choices (next to brands in brackets please find the number of

answers given) the brand which had the largest number of declarations was Ferrari with

(27), at join 2nd place came BMW and Mercedes (24), 3rd also on par came to Lexus

and Bentley (17). Not far behind the top five were respectively Porsche on 6th (14) and

7th Lamborghini (12).

36

Alfa Romeo

Aston M

artinAudi

Bentle

yBMW

Bughati

i

Chrysler

CitroenDodge

Ferrar

iFia

tFo

rdHonda

Jaguar JEE

P

Lamborgh

ini

Land/Ran

ge RoverLex

usLotus

Maserati

Maybach

Mazda

Merced

esMini

Ford M

ustangNiss

an

Porsche

Saab

Toyo

taVolvo

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Figure 7Q8. Which car brands would you consider to buy in the future given

no price limit?(choose up to 3) :

As Figure 7 shows the results for purchase intent of the research participants are

significantly different from the top brand awareness and it can be easily seen that the

results clearly do not correspond with the previous. Only BMW maintained a strong

position being the most desirable car one considers buying with (20) declarations. This

results may indicate that the brand is very strong in Poland both in terms of brand

awareness and possible purchase intent successfully overcoming the “gangster

stereotype” it had not more than a decade ago. 2nd place here came to Audi (13) which

interestingly enough in the previous question was the 10th most popular brand. On 3rd

place we have Mercedes (11) than in that order there is Aston Martin in 4th and at joint

5th Porsche and Lexus (7) lastly we have Ferrari with only (6) declarations. This is

undoubtedly an interesting phenomena occurred although Ferrari was the top-of mind

choice most popular brand for more than half of respondents when compared with

purchase declarations only a marginal number of people are willing to buy it.

Additionally as can be seen in both of the above figures Volvo by many people in

Poland considered to be a luxury car brand which has had great sales results in Q4 of

2011 the company achieved the largest growth rate of in the segment. Surprisingly had

minor declarative results in both situations in brand awareness and purchase intent.

37

3.1.3 Questions 9-12 Analysis of luxury car traits and their perception by TG

Additionally to the preceding questions 7&8 in order to further gauge brand perception

a double check was made with the use of projection techniques based on an abstract

comparison in order to correctly assess the attitude and perception towards the most

popular luxury car brands in Poland. The below questions used a projection method in

order to more adequately analyze and measure the respondents perception of 4 luxury

car brands:, Ferrari, Volvo BMW and Mercedes To achieve this respondents were

asked to imagine that the newest model of these cars is a woman and name what kind of

traits would she posses.

The results were as follows:

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Figure 12. Q9. Try to imagine the newest model of Ferrari is a woman

what kind of traits would she have ?

As can be seen in figure 12. for Ferrari top 5 traits reported by the sample group were(in

brackets number of answers given): 1st Fast (19), 2nd Sexy & Beautiful (13), 3rd

Elegant (12)4thPredatory (11)

38

safe calm comfortable elegant family oriented reliable settled0tan28a566028owy

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Figure 13. Q10. Try to imagine the newest model of Volvo is a woman

what kind of traits would she have ?

Figure 13. shows the following results for Volvo top 5 traits reported by the sample

group were(in brackets number of answers given): 1st Safe (13), 2nd Calm (9), 3rd

Elegant & Reliable (7)4thComfortable(6

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Figure 14. Q11. Try to imagine the newest model of BMw is a woman

what kind of traits would she have ?

As can be seen in figure 14. indicates BMW top 5 traits reported by the sample group

were(in brackets number of answers given): 1st fast (11), 2nd luxuries (9), 3rd

aggressive (7)4thSexy (6) and 5thSporty (5)

39

calm distinguished elegant luxuries old settled0tan28a566028owy

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Figure 15. Q12. Try to imagine the newest model of Mercedes is a woman

what kind of traits would she have ?

As can be seen on the above figure Mercedes top 5 traits reported by the sample group

were(in brackets number of answers given): 1st elegant (11), 2nd luxuries (9), 3rd old

(7)4thsettled (6)&distinguished (6)

Due to the fact that BMW is a brand with a well established position on the market and

a high level of recognition among polish consumers I decided to extend this analysis

and compare other luxury car brands in relation to BMW. The strong position of BMW

was additionally confirmed in my research as it was the 2nd most commonly indicated

brand in question 7(concerning the luxury car brands top of mind familiarity) and the

1st in question 8(car brands respondents would wish to purchase)this indicates a very

significant brand awareness for BMW among the SG.

3.1.3.a In-depth analysis of questions 9-12

A closer analysis of the results indicates that 11 respondents stated BMW to be fast

making it the most popularly represented trait for this brand analogically a similar

situation is with Ferrari were this trait is also the top one with 19 indications making it

even more strongly represented than in case of BMW . Surprisingly the trait fast did not

even appear in the results for Volvo and Mercedes although most of their models have

comparable performance to BMW and Ferrari. The second BMW trait most commonly

pointed out is being luxuries this answers appeared 9 times the exact same number of

times this trait was indicated in case of Mercedes, also quiet surprisingly this trait was

not given in case of Volvo and Ferrari. Also for the second time a common trait Sexy 40

appeared in case of BMW - 6 indications and for Ferrari - 13 indications, to some extent

not surprisingly this trait did not appear in case of Volvo and Mercedes and as a result

Ferrari appears to be perceived as the most erotic from all studied brands. The two

unique traits of BMW that did not appear among the description of other brands were

Aggressive - 7 indications and Sporty – 5 indications. This might show that the current

marketing strategy of BMW is successfully differentiating itself from the competition

by embedding strong emotions and sport in the brand image. In case of the other brands

traits I will only focus on the distinctive and unique characteristics for Ferrari such

characteristics are beautiful – 13 indications and Predatory with 11 answers this also

shows strong a strong emotional message in the brand yet its general perception tends to

mainly focus on the esthetics. For Volvo such traits are first and foremost being safe

with 13 responses it is the top trait for Volvo showing that the current brand positioning

and focus on safety is noticeable in the minds of consumers second distinct trait is being

comfortable. Lastly we have Mercedes among its unique characteristics are old with 7

indications followed by settled and distinguished with 6 responses these traits clearly

indicate a slight perception problem with which the company is currently struggling

Mercedes is viewed by many as old and the company is working to change this

perception.

(this can lead to being viewed as out of date or not trendy only indicated did not

appear, was not)

Declarative

41

3.1.4 Question 13. Most valued traits of cars in general

Respondents were asked the following question What do you value the most about cars

in general?” and to assign values to the listed car traits on a scale from 1 where 1 -

meant very important, 2 – important, 3 - moderately important, 4 - not important, 5 - not

important at all. Next the gathered data was analyzed by taking an average out of each

value.

As the below Figure 16. demonstrates the participants of the research pointed out that

the most desirable traits for them were accordingly(Average values in brackets): 1st

Reliability (1,49), 2nd Safety (1,53), 3rd Comfort (1,55) these three traits are in the

first cluster and scored the highest average scores such results clearly indicate which car

characteristics are preferred in the studied target group. In the second cluster we have

respectively 4th Practicality (1,83), followed by 5th Exterior design (1,88) 6th

Economy/Efficiency (1,94) and 6th Interior Design (2,07)all of the mentioned traits

scored considerable above the mean value of 2.5.

Brand

Comfort

Ex.Desi

gn

Int. Desi

gn

Practical

Economy

Perform

aPain

tsaf

ety

Reliab

ility

Prestige

000

001

002

003

004

005

002

002002

002002 002

002

003

002 001

003

Figure 16. Q13.Average value for traits

42

3.1.5 Questions 14-17 What makes a car personal

The goal of this questions was to describe ones personal relations with the car he or she

owns. Respondents were asked what car brands they currently own, what do they dislike

and if given the chance what would they change in their cars. As the personal

perception of one’s car differs significantly between genders the results outlined below

were differentiated accordingly with regard to this.

Audi BMW Ford Mercedes Opel Toyota0tan28a566028owy

0tan29a566029owy

0tan1a56601owy

0tan2a56602owy

0tan3a56603owy

0tan4a56604owy

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0tan6a56606owy

0tan7a56607owy

0tan8a56608owy

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0tan5a56605owy

0tan4a56604owy

0tan8a56608owy

0tan2a56602owy

0tan3a56603owy

0tan4a56604owy

Figure 17. Q.14 What is the car brand you are currently using? or If you currently

do not own a car what brand would you consider buying in the near future?

As the above Figure 17 shows the most common car brands used by the study

participants were in accordance: 1st Ford (9) making it the most popular brand among

respondents , 2nd Audi (6) and on joint third BMW and Toyota (5). The results are

another confirmation that the sampled group was well chosen due to the fact that show

that nearly half to be exact 14 of the total 32 declared owned brands are considered to

be luxuries.

43

unreliable nothing too small old color too slow bad preformance0tan28a566028owy

0tan29a566029owy

0tan1a56601owy

0tan2a56602owy

0tan3a56603owy

0tan4a56604owy

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0tan4a56604owy

0tan2a56602owy

0tan3a56603owy

0tan4a56604owy

0tan3a56603owy0tan3a56603owy

0tan1a56601owy

Figure 18Q15. What is most disliked by you in your current car? (woman)

As the above Figure 18

…

Figure 19 shows:

…

better preformance color less fuel consumption0tan28a566028owy

0tan29a566029owy

0tan1a56601owy

0tan2a56602owy

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0tan4a56604owy

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0tan4a56604owy

Figure 19 Q16. If you were given the chance

what would you change in yourcurrent car? (woman)

For men the result were as follows:

Q15 Dislike bad preformance Q16 Changebetter engine

Men 8 Men 7

44

The below graphs Figure 20 & 21 indicate what do respondents need cars for and what kind of activates are most often connected with car usage.

22%

22%

17%

11%

19%

8%

Figure 20Q17. Name 3 to 5 most important things that having a car

enables you to do?(woman)

comfort

being independent

mobility

shopping

transport/transport to work

travelling

29%

29%

17%

13%

13%

Fiugre 21Q17. Name 3 to 5 most important things that having a car

enables you to do?(men)

travelling

transport/transport to work

shopping

practicality

mobility

45

3.1.6 Questions 19-20 Cars dedicated for Woman and man

Perfect manly car:

33%

17%16%

8%

6%

6%

5%5%

5%

Figure 22Q19. If you were to quickly describe the main attributes of a

truly manly car what would they be?

Fast

Big

Black

Sporty

Pretty

Powerful

Elegant

Massive

Great preformance

Ideal Womanly car:

28%

18%

15%

9%

9%

8%

8%

5%

Figure 23Q 20. If you were to quickly describe the main attributes of a

truly womens car what would they be?

Small Pretty

Safe Comfortable

Easy 2 use Fast

Economical Manoeuvrable

46

3.1.7 Question 21 Importance of technology

H PSaf

e... 4 AC Mu Ri M Ho Eng D P Sea000

001

002

003

004

005

003

003

001

003

002

003 003003

003

002 002

003003

002

Average Value

47

3.1.7 Question 21 Consumer Preference

24%

67%

8%

23. Imagine yourself having a budget of 30 k PLN would you for example rather buy a brand new Chevrolet Aveo or Audi A3 from

2004?

1 Aveo2 AudiDNA

65%

29%

6%

24. Do you think that having a luxury car in Poland can influence the way in which the owner is regard by other people, is such a person

more respectable?

Yes No

DNA

48

4. The Conclusion & areas for further research

As the result of the study carried out show Poland still remains an emerging market for

luxury cars given the fact that…

Important implications for marketing:

In addition to building brand image through various form of advertising as the research

showed it is vital to underline the importance of 3 key traits reliability, safety and

comfort. A case of Volov is a very good example of this strategy although almost non

existing in the minds of respondents as a luxury car sales results beg to differ.

Hypothesis one:

People how are rich and affluent in Poland are mostly between their 30-50’s and are

more mature therefore they might seek different values in luxuries cars meaning that

either real or projected/perceived safety is by far above all other characteristic one of the

most important factors and has a great influence upon consumers buying decisions.

Areas for further research…

49

BIBLIOGRAPHY:

Books and periodicals

1. Berthon, P., Pitt, L., Parent, M., Berthon, J. P. (2009) Aesthetics and

Ephemerality : Observing and Preserving the Luxury Brand, California

Management Review vol. 52, no. 1, Fall 2009 CMR.BERKELEY.EDU

2. Pierce, J. L., Kostova, T., Dirks K. T. (2002) The State of Psychological

Ownership: Integrating and Extending a Century of Research, In Press: Review

of General Psychology

3. Belk, R.W. (1988), Possessions and the Extended Self, The Journal of Consumer

Research, vol. 15, issue 2, September 1988, pages 139-168

4. Truong, Y., McColl R. (2011) Intrinsic motivations, self-esteem, and luxury

goods consumption, Journal of Retailing and Consumer Services, vol. 18, issue

6, November 2011, pages 555–561

5. Miller, G. (2009) Spent, Sex, Evolution, and Consumer Behavior, Penguin

Group

6. Thompson, C. J., Arnould, E. J. (2005) Consumer Culture Theory (CCT):

Twenty Years of Research, Journal of Consumer Research, vol. 31, no. 4, March

2005, p. 868-882

7. Badanie KPMG, Rynek dóbr luksusowych w Polsce edycja 2011, www.kpmg.pl

8. Wankle, Ch. (2009) Encyclopedia of Business in Today's World, SAGE

Publications, Inc.

9. Heine, K. (2010) Identification and Motivation of Participants for Luxury

Consumer Surveys. In: Proceedings of the Ninth European Conference on

Research Methodology for Business and Management Studies, Madrid, June

2010, pages 183–193.

10. Smith, A. (1776) An Inquiry into the Nature and Causes of the Wealth of

Nations, London: W. Strahan & T. Cadell

50

11. Popper, K.R. (1979) Objective Knowledge: An Evolutionary Approach Oxford,

UK: Oxford University Press

12. Geertz, C. (1973) The Interpretation of Cultures, New York: Basic Books

13. Allport, G. W. ( 1937) Personality: A Psychological Interpretation, New York:

Henry Holt

14. Dixon, S.C., Street, J.W. (1975) The Distinction Between Self and Non-Self in

Children and Adolescents, Journal of Genetic Psychology, 127, pages 157-162

15. Rochberg-Halton, E. (1984) Object Relations, Role Models, and Cultivation of

the Self, Environment and Behavior, 16 (3), 1984, p. 335–368

16. Rochberg-Halton, E. (1986) Meaning and Modernity, Chicago, IL: University of

Chicago Press

17. Rochberg-Halton, E. Csiksyentmihalyi, M. (1981) The Meaning of Things:

Domestic Symbols and the Self, Cambridge, MA: Cambridge University Press

18. Simmel, G. (1950) The Sociology of Georg Simmel, trans. Kurt H. Wolff,

Glencoe. IL: Free Press

19. Niederland, W. G., Sholevar, B. (1981) The Creative Process – A

Psychoanalytic Discussion, The Arts in Psychotherapy, 8 (1), pages 71-101

20. Bloch, P. (1982) Involvement Beyond the Purchase Process: Conceptual Issues

and Empirical Investigation, Advances in Consumer Research, vol. 9, ed.

Mitchell, A., Arbor, A., MI: Association for Consumer Research, pages 413-417

21. Tanay, E., Freeman, L. (1976) The murderers, Indianapolis, IN: Bobbs-Merill,

pages 25-43

22. Kates, D. B. Jr., Varzos, N. (1987) Aspects of the Priapic Theory of Gun

Ownership, paper presented at the 1987 Popular Culture Association Meetings,

Montreal, Quebec, Canada

23. Sartre, J. P. (1943) Being and Nothingness: A Phenomenological Essay on

Ontology, New York: Philosophical Library

51

24. Rapoport, A. (1981) Identity and The Environment: A Cross-cultural

Perspective in Housing and Identity: Cross Cultural Perspectives, ed. Duncan

J., London: Croom Helm, pages 6-35

25. Boorstin, D. (1973) The Americans: The Democratic Experience, New York:

Random House

26. Stewart, S. (1984) On Longing: Narratives of the Miniature, the Gigantic, the

Collection, Baltimore, MD: John Hopkins

27. Wicklund, R. A., Gollwitzer, P. M. (1982) Symbolic Self Completion, Hillsdale,

NJ: Lawrence Erlbaum Associates

28. Rubinstein, C. (1981) Money & Self-esteem, Relationships, Secrecy, Envy,

Satisfaction, Psychology today, 15, May, pages 29- 32

29. Lindgren, H. C. (1980) Great Expectations: The Psychology of Money, Los

Altos, CA: William Kaufmann

30. Pierce, J. L., Kostova, T., Dirks, K. T. (2002) The State of Psychological

Ownership: Integrating and Extending a Century of Research, Review of

General Psychology

52

APPENDIX:

APPENDIX 3: Questionnaire (PL + czy dodać wersję ENG też?)

Dobra lukusowe – kwestionariusz

1. Jestem:

□ Kobietą

□ Mężczyzną

2. Mam ___ lat.

3. Czy masz samochód?

□ Tak

□ Nie

4. Jeśli teraz nie posiadasz samochodu czy w przyszłości planujesz go kupić?

□ Tak

□ Nie

5. Jak często używasz samochodu jako głównego źródła transportu?

□ Prawie codziennie

□ Przynajmniej 5 razy na tydzień

□ Nie więcej niż 3-4 razy na tydzień

□ Mniej niż 3 razy na tydzień

□ Kilka razy w ciągu jednego miesiąca lub rzadziej

6. W jakim celu najczęściej korzystasz z samochodu?

□ Biznesowo/jako środek transportu do pracy lub szkoły

□ Czas wolny(wycieczki, zakupy etc.)

□ Inne: _________

7. Proszę podaj od 3 do 5 luksusowych marek samochodów:

_______________________________________________________________________________

53

8. Jakie marki samochodów chciałbyś posiadać w przyszłości gdybyś nie musiał sugerować się ceną?(wymień 3)

_______________________________________________________________________________

9. Spróbuj sobie wyobrazić, że najnowszy model Ferrai jest kobietą jakie cechy charakteru by posiadał?

____________ , ____________ , ____________ , ____________, ____________

10. Spróbuj sobie wyobrazić, że najnowszy model Volvo jest kobietą jakie cechy charakteru by posiadał?

____________ , ____________ , ____________ , ____________, ____________

11. Spróbuj sobie wyobrazić, że najnowszy model BMW jest kobietą jakie cechy charakteru by posiadał?

____________ , ____________ , ____________ , ____________, ____________

12. Spróbuj sobie wyobrazić, że najnowszy model Mercedesa jest kobietą jakie cechy charakteru by posiadał?

____________ , ____________ , ____________ , ____________, ____________

54

13. Co najbardziej cenisz w samochodach? Obok wybranych cech zaznacz które z nich są dla Ciebie najważniejsze. Gdzie:(1 – bardzo ważna, 2 – ważna, 3 – dosyć ważna, 4 – niezbyt ważna , 5 – w ogóle nie ważna) (możesz zaznaczyć kilka odpowiedzi)

□ Marka bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Komfort (łatwość użytkowania)

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Zewnetrzny Design

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Wewnętrzny design

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Funkcja praktyczna (przewozi z miejsca A do B)

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Ekonomiczność (zużycie paliwa, koszty utrzymania/serwisowania)

bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Osiągi

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Kolor samochodu

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Bezpieczeństwo

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Niezawodność

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Prestiż

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

Również uważam za ważne:

□ : ________ bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie

ważne

55

14. Jakiej marki jest Twój samochodu? Jeśli obecnie nie posiadasz samochodu napisz markę samochodu, którą rozważasz kupić w przyszłości:

________________________

15. Czego najbardziej nie lubisz w swoim samochodzie?

________________________

________________________

________________________

16. Gdybyś dostał szansę zmienić dowolną rzecz w swoim samochodzie co by to było?

________________________

________________________

________________________

17. Wymień od 3 do 5 najważniejszych rzeczy/czynności, które umożliwia Ci posiadanie samochodu:

________________________ ________________________

________________________ ________________________

________________________ ________________________

18. Podaj 3 główne powody dla których rozważyłabyś/rozważyłbyś kupno nowego samochodu?

________________________

________________________

________________________

19. Gdybyś miała/miał opisać prawdziwie męski samochód jakie według Ciebie posiadałby cechy?

____________ , ____________ , ____________ , ____________, ____________

20. Gdybyś miała/miał opisać prawdziwie kobiecy samochód jakie według Ciebie posiadałby cechy?

____________ , ____________ , ____________ , ____________, ____________

56

21. Wskaż, które kryteria technologiczne w samochodzie, który posiadasz lub który chciałbyś posiadać są dla Ciebie najważniejsze Gdzie:(1 – bardzo ważne, 2 – ważne, 3 – dosyć ważne, 4 – niezbyt ważne , 5 – w ogóle nie ważne) (możesz zaznaczyć kilka odpowiedzi)

□ Hybrydowa technologia (silnik spalinowo-elektryczny)

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Kolor samochodu

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Systemy bezpieczeństwa n.p. ilość poduszek, ESP, ASR, ABS

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Napęd na 4 koła bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Klimatyzacja bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Systemy multimedialne np. wysokiej jakości sprzęt audio, GPS etc.

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Bogate wnętrze

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Manualna skrzynia biegów

bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Automatyczna skrzynia biegów

bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Ilość koni mechanicznych

bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

□ Pojemność silnika bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

□ Silnik Diesla bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Silnik Benzynowy

bardzo ważny ważny dosyć ważny niezbyt ważny w ogóle nie ważny

□ Ilość miejsc

bardzo ważna ważna dosyć ważna niezbyt ważna w ogóle nie ważna

Również uważam za ważne:

□ : ________ bardzo ważne ważne dosyć ważne niezbyt ważne w ogóle nie ważne

57

22. Wyboraź sobie, że masz do wydania 30 000 PLN na jeden z dwóch samochodów Chevrolet Aveo lub Audi A3 z 2004, który z nich wybierasz?

□ Chevrolet Aveo

□ Audi A3 2004

23. Czy według Ciebie posiadanie luksusowego samochodu może wpłynąć na to jak właściciel jest postrzegany przez innych ludzi czy taka osoba twoim zdaniem jest bardziej szanowana?

□ Tak

□ Nie

58

FOR EXHIBIT LIST

Exhibith B

Exhibit C

59

4962

0

50

100

150

200

250

300 2000 2010

GDP per capita in Purchasing Power Standards (PPS)(EU27 = 100)

Source: Eurostat

Purchasing Power Standard is the variable created by Eurostat . The aim of the measure is comparing Purchasing Power between countries in Europe

Exhibit D

Exhibit D

60