Q1. On the basis of shopping habits, what type of consumer goods should Louis Vuitton be classified? Justify your answer with reason.
There are generally 4 types of consumer products. They are : 1. Convenience Product A relatively inexpensive item that merits little shopping effort, such as things that can be bought in supermarket.
2. Shopping Product A product that requires comparison shopping, because it is usually more expensive and found in fewer stores such as refrigerators, washing machines, etc. 3. Specialty Product A product not purchased on a regular basis and consumers do extensive research before purchasing these items. It is typically expensive and not easily substituted. For example, antiques, diamonds, etc.
4. Unsought Product A product Unknown to the potential buyer or a known product that the buyer does not actively seek such as insurance.
Louis Vuitton should be a specialty product as it is a luxury good. People buy them randomly. Because of the label effect of LV, people may think that using LV product will bring them a higher social statues. Also, they think LV product is unique due to the high price and quality. In fact, LV products are not produced in mass scale and some of them are handmade.
How does an exclusive brand such as Louis Vuitton grow and stay fresh while retaining its cachet?
LV products are made with stateoftheart materials, designers use a combination of art, precision, and craftsmanship to produce only the finest products. However, LV has always been facing a difficult problem, counterfeiting. LV takes this problem seriously because counterfeits dilute its prestigious brand image. So LV takes all the action they can in order to fight the ...
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