Term Paper Lucia Suquia Fernandez (2018-81696)

Understanding Consumer Psychology Behind Chanel no.5 Perfume Purchases

“No elegance is possible without perfume. It is the unseen, unforgettable, ultimate accessory of
fashion”- Gabrielle Bonheur Chanel.

At the turn of the twentieth century, economist and social theorist Thorstein Veblen heavily
criticized the capitalist nature of the American society. In his book, “The Theory of the Leisure
Class”, Veblen introduced the concept of conspicuous consumption to explain consumers’
reasoning behind purchasing goods of higher quality and in greater quantity than necessary
(Phillips, 2018). According to Veblen (1899), consumers purchase luxury goods in a conspicuous
manner to gain reputability. The concept of conspicuous consumption, which has become highly
influential in nature, serves as an initial explanation to understand consumer psychology behind
purchases in the luxury perfume market, specifically purchases of Chanel no.5 perfume. This paper
will aim to analyze the psychological and behavioral appeals of this luxury product. Specifically,
the assumptions made regarding consumer attitudes towards this Chanel fragrance will be analyzed
as well as the product’s appeal derived from its design, marketing, pricing and cultural
connotations.

The history of perfume can be traced all the way back to 3000BC, when ancient Egyptians
used aromatic scents for religious rituals and beautification purposes (Thorpe, 2015). Initially,
fragrances were only available to members of the noble class and were employed to signify their
power and wealth in society (Buchan, 2016). The first liquid perfume was created between 1400
and 1500s, when the Venetians discovered how to manufacture aqua mirabilis. Shortly after that,
Italian perfume was popularized in France, and consequently the rest of the world, by Catherine
de Medici, an Italian noblewoman who married King Henry II of France (Thorpe, 2015).
Interestingly, the modern perfume industry did not emerge until the end of the nineteenth century,
when synthetic compounds were discovered in Victorian England (Thorpe, 2015). As its history
suggests, perfume has always been a symbol of elegance, class and luxury. For this reason, luxury
brands like Chanel have capitalized on this idea by manufacturing emblematic perfumes such as
Chanel no. 5, which are symbolic of class and sophistication, and are therefore priced accordingly.

Despite being a well-recognized and iconic symbol of luxury, the Chanel brand was created
by a woman from a rather austere background. This woman, Gabrielle Bonheur Chanel, grew up

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in an orphanage ran by nuns where she learned how to sew from a very young age (Benedick,
2017). Mademoiselle Chanel opened her first store in Paris in 1910 and was quickly recognized as
a reputable fashion designer after her shop became the preferred boutique amongst French
actresses (WGACA, 2018). Consequently, Maison Chanel became an iconic fashion house
throughout the roaring twenties. The brand’s first perfume, Chanel no.5, was created in 1921 by
Ernest Beaux, a Russian-born French perfumer to the Tsars (Designer-Vintage, 2016).
Unsurprisingly, this perfume was a huge success and to this day, is considered one of the world’s
best perfumes. Perhaps it is for this reason, or maybe due to the history of perfumes as a symbol
of elegance and class, that consumers all over the world are attracted to Chanel no.5. Regardless,
to fully understand what drives consumer purchases of this luxury perfume, it is essential to
analyze the assumptions made by marketers regarding consumer attitudes towards Chanel
fragrances.

In her book Consumer Psychology, author Catherine V. Jansson-Boyd (2010) describes

attitudes as being evaluations of objects, ideas and people that consumers learn over time. She
distinguishes between three types of attitudes depending on whether they are cognitively,
affectively or behaviorally based (Jansson-Boyd, 2010). When it comes to Chanel no.5,
consumers’ attitudes are affectively based, given that people purchase this product based on how
they feel about it (Jansson-Boyd, 2010). Chanel no.5 has both tangible and intangible attributes
that satisfy consumers (Sadeghi and Ghaemmaghami Tabrizi, 2011). Its classic bottle design
constitutes the product’s tangible attribute, as its geometric, crystal clear bottle (see appendix 1)
showcases the luxurious nature of this perfume, satisfying the consumer’s wish to be perceived as
elegant and wealthy. As an intangible attribute, the perfume’s famous scent serves as an
introductory element to its wearer, and it greatly influences the person’s self-image as well as
other’s perceptions of them as economically well-off (Sadeghi and Ghaemmaghami Tabrizi,
2011). It is for these reasons that consumers develop affectively based attitudes towards Chanel
no.5 and hence, are unable to rationalize their purchase of this fragrance over other (Jansson-Boyd,
2010).

Chanel’s brand name is also an important attribute that adds value to the perfume given
that the brand symbolizes class and elegance (Sadeghi and Ghaemmaghami Tabrizi, 2011).

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Interestingly, Chanel’s brand identity is not only derived from its history as a luxurious company
but also from social categorization and comparison processes undergone by consumers.

Social categorization allows consumers to categorize the objects and individuals around
them (Jansson-Boyd, 2010). The perception that consumers have of one another is often derived
from each other’s material possessions. A consumer that owns Chanel no.5, for instance, will be
perceived as classy, wealthy, and of good taste solely due to their ownership of this fragrance. This
is because, Chanel uses marketing techniques such as celebrity endorsements when advertising
their fragrance (see appendix 2), which allows consumers to associate well-known A-listers to the
product, making it appear popular and glamorous. Hence, consumers’ perception of Chanel no.5
inevitably influences their perception of those who own it. In turn, this leads to consumers
engaging in social comparisons. Through this process, consumers learn about themselves by
looking for similarities and differences in relation to others (Jansson-Boyd, 2010). A consumer
who owns Chanel no.5 is likely to think of him/herself as better than others, given that they own a
product perceived as luxurious. In other words, this consumer achieves self-esteem by engaging
in downward social comparison, given that not everyone owns a bottle of Chanel no.5. Hence, by
engaging in social categorization and comparison processes, consumers reach the consensus that
the Chanel brand and its fragrance, Chanel no.5, represent luxury and class. Interestingly, if Chanel
no.5 came in an unbranded bottle, as opposed to its well-known packaging, consumers would
probably perceive it as cheaper in quality. This comes to prove the importance of the Channel
brand as a value adding attribute, given that to consumers, Chanel no.5 is more than just a perfume;
it is symbolic of wealth, exclusivity, glamour and good-taste due to the brand associated with it.

Consumers’ motivation to purchase Chanel no.5 is driven by their wish to fulfill their self-
esteem needs, the effect of price and the retail environment in which Chanel no.5 is sold. Such
factors are considered when advertising and promoting this perfume.

Consumers’ desire to fulfill their self-esteem needs can be explained by looking at

Maslow’s hierarchy of needs. In his paper “Theory of Human Motivation”, Maslow (1943)
proposes a set of human needs classified as basic, psychological and self-fulfillment needs, stating
that the needs down in the five-tier hierarchy must be satisfied first (Maslow, 1943). Consumers
that purchase luxury fragrances such as Chanel no.5 are assumed to have satisfied their basic and
psychological needs, and hence, focus on following a posh lifestyle and belonging within a higher-

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class community, given that they find aspects such as class and glamour important. Chanel no.5’s
advertisements are made to appeal to this type of consumer, by using black, white, pink and golden
color schemes which portray the simplicity, freedom and elegance that the perfume represents.
The bottle itself is considered an artwork, justifying why fragrance collectors seek to purchase it
for display purposes (Financesonline, 2018). For this reason, consumers are motivated to purchase
Chanel no.5 to satisfy their self-esteem needs (Corefinder, 2016).

The perfume market is characterized as one in which consumers have imperfect

information, the same product is produced at different quality levels, and consumers’ evoked set,
or considered alternatives, is large (Financesonline, 2018). Given such market characteristics,
prices in the perfume market serve as signals of quality (Wolinsky, 1983). On average, Chanel
no.5 retails for 80$ a bottle, a price higher than that of many other fragrances, which creates a
price-value bias that incites consumers to perceive the brand’s perfume as higher in quality
(Corefinder, 2016). Hence, consumers base their purchasing decisions on the appeal of the brand
name, perceiving the perfume’s price tag as appropriate given that they believe it signals the
product’s quality.

Lastly, the retail environment in which a perfume is sold influences consumers’ motivation
to purchase it (Corefinder, 2016). As previously mentioned, consumers associate Chanel no.5 with
glamour and class, and hence wish to associate themselves with this product to satisfy their self-
esteem needs. Consequently, the retail environment must reflect such luxury. For this reason,
Chanel stores are often bright and modern, and have classic elements such as couches and carpets
(see appendix 3), which are used to create a luxurious environment that will attract consumers and
motivate them to purchase their products, specifically Chanel no.5.

Prior to the creation of Chanel no.5 in 1921, there were only two types of perfumes; those
which smelled like a singular flower, worn by respectable ladies, and those which smelled like
jasmine, which were worn by courtesans to attract males (Idacavage, 2016). Chanel no.5 became
iconic given that its scent combined both singular flowers and jasmine, and hence, made the
statement that women could be both attractive and pure. Furthermore, the perfume’s high
percentage of aldehydes allowed it to linger on the skin for longer, and hence, made it more
convenient for working and active women to wear (Idacavage, 2016). The brand employed
memorable campaigns to advertise the fragrance by using tag lines such as “Every Woman Alive

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Loves Chanel No. 5” (see appendix 4). The perfume’s appeal increased when icon Marilyn Monroe
stated that all she wore to bed was a couple of drops of Chanel no.5 (Idacavage, 2016). All these
elements allowed the perfume to become a cultural symbol of the modern woman; a woman who
dreams big, is passionate and struggles.

Interestingly, Chanel no.5’s cultural connotations has allowed it to become a popular

product all over the world, specifically in China. Chinese consumers associate Chanel’s brand with
grace and luxury, and hence, Chanel no.5 is viewed as the fragrance which helps consumers reflect
such an image of class and glamour. In 2011, Chanel’s “Culture Chanel” exhibition (see appendix
5) was hosted in Shanghai’s Museum of Contemporary Art, making this brand and its products
even more culturally iconic and appealing to Chinese consumers. As a result, Chanel has become
the preferred luxury brand in China (David, 2013).

In conclusion, Chanel no.5’s appeal is not only derived from its history as a revolutionary
fragrance, but also from its tangible and intangible attributes, such as its bottle design, its scent
and the brand associated with it. All these factors allow consumers to develop affectively based
attitudes towards Chanel no.5 and view this product as one symbolic of class and glamour. Hence,
consumers’ motivation to purchase Chanel no.5 is driven by their wish to belong within
communities of wealthier individuals, their biased perception of price as a signal of quality, the
luxurious retail environment in which Chanel no.5 is sold and the product’s cultural connotation.
Coco Chanel stated that girls should aim to be both classy and fabulous, a goal which, after
analyzing the consumer psychology behind Chanel no.5 purchases, seems to be achievable if only
one can afford this fragrance.

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References
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fragrance/history-of-perfume/ [Accessed 2 Dec. 2018].
Corefinder. (2016). Consumer behaviour and Gucci perfume. [online] Available at:
https://corefinder.dk/consumer-behaviour-and-gucci-perfume/ [Accessed 9 Dec. 2018].
David, M. (2013). Market analysis: Chanel in China. [online] Daxueconsulting.com. Available
at: http://daxueconsulting.com/analysis-on-chanel-in-china/ [Accessed 9 Dec. 2018].
Designer-Vintage. (2016). The ultimate timeline of the house of Chanel. [online] Available at:
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of-chanel [Accessed 3 Dec. 2018].
Financesonline. (2018). Top 10 Most Expensive Perfumes In The World: Chanel No 5 Is Not The
Top One! - Financesonline.com. [online] Available at: https://financesonline.com/7-most-
expensive-perfumes-in-the-world-chanel-no-5-is-not-the-top-one/ [Accessed 9 Dec.
2018].
Idacavage, S. (2016). Fashion History Lesson: The Truth Behind Chanel No. 5. [online]
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[Accessed 9 Dec. 2018].
Jansson-Boyd, C. (2010). Consumer Psychology. 1st ed. Open University Press.
Maslow, A. (1943). A Theory of Human Motivation. 1st ed. Martino Fine Books.
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https://www.britannica.com/topic/conspicuous-consumption [Accessed 2 Dec. 2018].
Sadeghi, T. and Ghaemmaghami Tabrizi, K. (2011). The Correlation Between Feelings and
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[Accessed 3 Dec. 2018].

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Thorpe, J. (2015). The Strange History Of Perfume, From Ancient Roman Foot Fragrance To
Napoleon's Cologne. [online] Bustle. Available at:
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Veblen, T. (1899). The Theory of the Leisure Class. New York: Macmillan, pp.64-70.
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Appendices
Appendix 1. Chanel no.5 bottles

Appendix 2. Celebrity endorsements of Chanel no.5 From left to right: Marylin Monroe (1954),
Catherine Deneuve (1972) and Nicole Kidman (2005).

Appendix 3. Retail environment of Chanel no.5.

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Appendix 4. 1957 Chanel no. 5 advertising campaign starring Suzy Parker.

Appendix 5. 2011 “Culture Chanel” Exhibition in Shanghai’s Museum of Contemporary Art