Sociological & Psychological Factors Affecting The Purchase Of Luxury Cars

Abstract

The Knight Frank “India Wealth Report 2021” states that India has 113 billionaires (&) and 6884 UHNIs (Ultra High Net worth individuals). India has a solid foundation of 350,000 HNIs at the foundation of this special pyramid. The decision-making for high involvement products like a luxury car follows a series of the stage-wise purchase process. The purchase is sequential which starts from the cognitive stage followed by the affective stage and ends up with the action of trial or purchase. AIDA (Attention – interest – desire – action) as a process follows the same three-step process. Over a period of time following the departure from the product-oriented approach of marketing to the consumer-oriented approach the model is modified. The underlying factors which go into the decision-making of high involvement products like the luxury car are a matter of deeper study. The psyche of the Indian customers towards the purchase of luxury cars during the present period is of great importance. The luxury car was reserved for the elite in the society namely the aristocrats and the Maharajas of the society during the pre-independence period. In the current era where we have the Second and third-generation post-independence, the new Maharajas of the society are the professions, first generation business entrepreneurs, family business communities, and celebrities. The factors which influence the minds of the new luxury class customers in India from a psychological and sociological perspective are of importance to study. This study attempts to study the correlation between the variables involved in the purchase of luxury brand cars. The research questions used to aid the research process are - 1. What are the psychological and sociological factors involved in the purchase of luxury Automotive? 2. What is the correlation between the Sociological & Psychological factors? 3. Derive mathematical equation to define Luxury car purchase in terms of Sociological and psychological factors. 4. What would be the impact of Sociological and Psychological factors on age? This research would support the marketing heads & product heads in the identifying the psychological factors and sociological factors involved in the purchase of the luxury car.