What is a luxurious good?

There are many different definitions for what luxury good. Some economists define this as any item where demand is primarily influenced by income or wealth. Others consider luxury good to be any item that is optional, unlike the necessary or items significantly above the level of necessity. Several other factors may affect whether a specific object is considered to be luxury goods, including brands, availability, price and socio -economic or cultural state.

The economic definition of luxury goods is based more on availability factors compared to income rather than on cultural status or vs. He wants the criteria. In this initial definition, good is considered a luxury when one has to have some income or level of wealth to make it. In addition, items that see increased demand based solely on increasing income, are also economically considered luxury goods. In some cases the luxury good is nEBO service, such as the CLCOM Country in UB, may not be available to the general public, instead reserved for those who have proven wealth.

Another definition of luxury goods concerns their status of optional items. Food, shelter and clothing are considered basic needs that do not change regardless of the state of income. Television, however comfortable and pleasant, is not a necessity of survival, and therefore considers luxury good. People's income can affect their ability to spend money on luxury goods, but the need for survival is unwavering regardless of income.

upgraded or improved version of the necessary item can be considered a luxurious good. For example, a person may need vegetables, but do not necessarily need organically grown vegetables. Water is a constant basic necessity, but bottle cleaned water is a luxury version. Shelter helps keep the cold away and rain, but Amansion works far behindThese basic standards. Luxury market segments allow consumers to concentrate their one -off income on areas that are important to them; While many people cannot afford to choose luxury good in every area, the existence of luxury segments can allow a little luxury into the lives of most people.

The state is another concept that is often associated with the idea of ​​luxury goods. Some brands are commonly considered to be luxury brands, often because of the price, the history of the company or limited access to the market. Cultural identification of the item as a high condition can give it a reputation as a luxury goods, although the product quality is similar to or less than a cheaper version. Some market studies have shown that people are more willing to pay more for the brand's product because of its loyalty or perception as a better product, although it is demonstrably lower than the general version.