Research On Product Strategy And Pricing Based On Conspicuous Consumption In Luxury Market

With the continuous improvement of people's income levels,luxury goods have gradually entered the public's field of view.Some studies have shown that the main motivation for the continuous development of the luxury market comes from people's conspicuous consumption.At the same time,consumers in the new era are pursuing personality and have different personal needs for products.Therefore,we analyze and study the product strategy of the luxury market according to the current social environment and the characteristics of consumers in the new era,and discuss the pricing and manufacturer profit issues under different product strategies.The purpose of this paper is to study the pricing of customized products in the luxury market and the comparative analysis of profits from different product strategies.We have developed an analytical model to study the personalized product strategy of luxury goods to help manufacturers make decisions about pricing and product management.We have proposed four product strategies:(a)product strategy with only standard products;(b)product strategy with only custom products;(c)hybrid product strategy;and(d)consumers with the freedom to choose a mix of customized products Strategy.We explore the optimal pricing of different product strategies and the optimal decision of the company's different production costs for four strategies,obtaining some interesting conclusions.First,the effect of status utility on the pricing of customized products is more significant than that of standard products.Second,based on the comparative analysis of profits,we give the optimal choice of product strategy,and the company's choice of product strategy is related to the company's production flexibility.We studied the oligopolistic market in the main text.In the expansion research,we discussed some profit analysis under the competitive market for one of the product strategies.The paper is one of the first attempts to put status utility into luxury custom research and discuss the effect of status utility on pricing under different product strategies of the company.The study contributesto the discussions of the new product strategy in the fashion sector and provide manufacturers with rationalization advice on product pricing.