Global fashion as a factor of the formation of conspicuous consumption

Abstract

This master thesis represents the research in the influence of global fashion on consumers and its role in the formation of conspicuous consumption. The research objective was to identify fashion factors that form conspicuous consumption. The research has multi-step structure and a complex of qualitative research techniques used because of the nature of the field of research and the type of consumers: method of observation, method of screening questionnaire, “snow-ball” method, in-depth interviews, and method of textual analysis. As a result of the conducted research , consumers ‘relation to fashion, their awareness on global luxury goods, 4 groups of motives of conspicuous consumption and reasons to follow fashion, combining both classical and post-modern characteristics, product- and atmospheric factors that influence the mood and desire to make luxury purchases, were identified. Finally, a new segmentation of conspicuous consumers in the relation to their style of life was offered: conspicuous dreamers, conspicuously addicted and mature conspicuous consumers. The managerial contribution of the research is preparation of recommendations for the global luxury companies operating on the Russian market for luxury product’s categories which are susceptible to fashion influences, taking into consideration the results of the conducted in-depth interviews and focusing three segments of the conspicuous consumers. The goal was to help global luxury companies increase sales of luxury products, improve service and design in the boutiques, comment on advertisement and other ideas. Besides, this also helps companies increase loyalty of the customer s and acquire new ones.