Saturday, April 28, 2007

How do you decide to buy expensive products?

Word of mouth marketing for luxury goods has always been one of the most effective communication tools, but now is becoming even more so, with the use of online forums, customer ratings, reviews on blogs etc. According to The Luxury Institute, 84% if consumers who earn more than $150,000 a year, get information on products and services from sites with customer reviews and rate products and services. Of all the consumers, women between the ages of 45 and 54 are the most likely to base their decision on other users opinions.
“Across the luxury spectrum, nimble luxury firms understand the world has just become transparent and there is nowhere to hide,” says Milton Pedraza, CEO of The Luxury Institute, a research organization. “If you have rigid customer processes such as onerous return policies, confusing fees, conflicted endorsements, etc., fix them now and favor the customer. If you are not socially responsible, bet that consumers will gang up on you online.”

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