Consumption of luxury goods in Brazil: purchasing motives and values of Brazilian consumers and implications for marketing

Aiming at success in the currently challenging Brazilian market, luxury firms must consider a number of factors. Not only the adaptation to certain economic and political conditions but also the understanding of Brazilian luxury consumers’ characteristics as well as their value perceptions towards luxury are crucial in order to create an effective marketing strategy. This study investigated the value perceptions and purchasing motives of 428 Brazilian consumers. Brazilians purchase luxury goods in order to conspicuously put them on show to certain social reference group or to the general public. Thus, they display their wealth, income and social status. Social groups therefore play a distinct role in the purchasing decision process. Moreover, Brazilians are found to be hedonic consumers, seeking pleasurable moments and the reduction of stress when consuming luxury products. In addition to that, they use luxurious products to express their own personality. Brazilians hence place a much higher importance on self-expressive, emotional product benefits rather than on rational, functional product benefits. Marketers of luxury goods are advised to make use of this knowledge in order to adequately address consumers’ needs, wants and beliefs. The study focuses on consumers living in Rio de Janeiro and does not take into account different value perceptions on different luxury product categories. Therefore, suggestions for further research include replicating the study in different Brazilian regions and probing for differences among product categories.

Essays on the Issue of Piracy in the Market of Information Goods

Thesis (Ph.D.)--University of Washington, 2016-06

Optimal price regulation in a growth model with monopolistic suppliers of intermediate goods

In this paper we investigate the trade-off faced by regulators who must set a price for an intermediate good somewhere between the marginal cost and the monopoly price. We utilize a growth model with monopolistic suppliers of intermediate goods. Investment in innovation is required to produce a new intermediate good. Marginal cost pricing deters innovation, while monopoly pricing maximizes innovation and economic growth at the cost of some static inefficiency. We demonstrate the existence of a second-best price above the marginal cost but below the monopoly price, which maximizes consumer welfare. Simulation results suggest that substantial reductions in consumption, production, growth, and welfare occur where regulators focus on static efficiency issues by setting prices at or near marginal cost.

Vector Error-Correction Models in a consumer packaged goods category forecasting decision support system

A framework for developing marketing category management decision support systems (DSS) based upon the Bayesian Vector Autoregressive (BVAR) model is extended. Since the BVAR model is vulnerable to permanent and temporary shifts in purchasing patterns over time, a form that can correct for the shifts and still provide the other advantages of the BVAR is a Bayesian Vector Error-Correction Model (BVECM). We present the mechanics of extending the DSS to move from a BVAR model to the BVECM model for the category management problem. Several additional iterative steps are required in the DSS to allow the decision maker to arrive at the best forecast possible. The revised marketing DSS framework and model fitting procedures are described. Validation is conducted on a sample problem.

New product screening in fast moving consumer goods

Theory suggests that the dimensions that are incorporated in the new product screening decision will differ according to the stage of the development process. The outcome of the application of different screening dimensions would be quicker, realistic and more reliable screening decisions. This research project builds on existing new product development and screening literature by investigating new product screening in international fast moving consumer goods companies. It further builds on the existing literature by measuring decision-making relating to projects in 'real time', as managers' responses refer to projects they are currently working on. The introduction of branded consumer products allows us to evolve scales used in new product research by further developing variables relating to branding, promotion and retailer power. The project uncovers multiple dimensions of new product screening and evaluation within this branded product sector. These dimensions are found to differ in their ability to discriminate between two groups of accepted and rejected projects at each of four stages of the new product development process. This investigation provides the intelligence with which managers can determine the likelihood of project acceptance and rejection at different stages of the development process. It highlights the need for managers to apply stage-specific dimensions in the new product screening decision and advocates the redefinition of new product screening from both an academic and managerial perspective. The screening decision should not be viewed as a single, early decision in a product development process, but as a series of stage specific decisions regarding future project potential.