Kalpataru Vidya Samsthe®

Kalpataru Institute of Technology, Tiptur-572201

Department of Master of Business
Administration (MBA)
Academic Year: 2021& 2022
SEMINAR
Subject Name :Marketing Research And Analytics
Subject Code :20MBAMM304
Seminar Topic :Luxury products
Presented & Submitted Date: /01/2022
Submitted to Submitted by
Faculty Name : Sujatha N Sheeri Student Name :NIKHIL B
Designation : Associate professor. USN : 1KI20BA032
Signature : Batch : 2020-2022
Remarks : Semester : 3rd
Signature :
LUXURY PRODUCTS
A luxury good can be identified by comparing the demand for the
good at one point in time against the demand for the good at a
different point in time, with a different income level. When
income goes up demand for luxury goods goes up even more
than income went up.
When income goes down, demand
for luxury goods go down even more than income went down.
For example, if income goes up 1%, and
the demand for a product goes up 2%, then the product is a
luxury good.
MARKET CHARACTERISTICS:
•Luxury goods have high income elasticity of demand.
•Some luxury products have been claimed to be examples of
Veblen goods, with a positive price elasticity.
• Luxuries may be services. The hiring of full-time or live-in
domestic servants is a luxury reflecting
disparities of income.
•Luxury goods often have special luxury packaging to differentiate
the products from mainstream
competitors.
Advantages of Luxuries:
(1) Income to Government:
Certain luxuries are a major source of income to the Government. The
government collects money by imposing taxes on luxuries like liquor, cigarettes,
cars, etc.

(2) Increase in Production and National Income:

The total production as well as national income of the country increases with the
increase in the production of luxuries.

(3) Increase in Employment:

Production of luxuries creates employment for a large number of people who
are unemployed. If the production of luxuries is stopped many persons will
become jobless.

(4) Incentives for Hard Work:

Everybody desires to make use of luxuries. To satisfy these desires or wants one
has to work hard to increase his income.
Disadvantages of Luxuries:
(1) Decrease in Efficiency:
The consumption of luxuries sometimes causes a decline in the efficiency and
ability to work. The use of opium and liquor decreases the efficiency to work
of a person.

(2) Wastage of Resources:

Our resources are limited. These scarce resources are wasted in the
production of luxury goods. It creates a further shortage of the resources for
the production of necessities. From the social point of view, the resources
used in the production of luxuries are simply a waste.

(3) Harmful to Health:

The consumption of certain luxuries is harmful for health. For example, one of
the causes of cancer is smoking.
Top Indian Luxury Brands
THANK
YOU