We know that people are motivated by status and not money, and often buy high-status luxury items like cars, watches, or electronics to flaunt their status. However, studies have also shown that people buy pricey goods when they are experiencing a bout of low self-esteem in an effort to make themselves feel better and relieve their internal pain.People have been shown to be particularly prone to impulse buying luxury items after a break-up, job loss, foreclosure, repossession, or even the death of a loved one.
While it might be considered a predatory marketing tactic o target people who are already down and out, an effective marketing strategy for businesses that sell luxury items is to identify potential customers with life events that may contribute to low self-esteem. Then they can use open-ended questions to help their customers get in touch with their negative feelings about themselves, thereby increasing the chance they will buy.
Has your customer experienced a significant life event that may make him prone to more impulsive buying habits?
