Luxury is a word which is attached to some products which are intentionally produced for a rich and famous after a deep study of the affordability of the product and the incessant desire of the rich to belong to a different, a higher social class and display their difference from others (Okonkwo, 2007). Luxury products are made with an intention to cater to a market, though small in size, which is starving for a social differentiation and to break free from the social stigma they have been living in, since moving out of it will make them more different than the normal and higher in class than the normal.
The emergence of luxury products is due to the cultural development of classification of people based on socioeconomic status and how they seek to be different in all their actions, including purchase (Chevalier and Mazzalovo, 2008). This is again linked with human psychology of how they think about themselves and how they differentiate with others and in doing so, seek a higher position which is also reflected in the excess of material wealth they have and this in turn helps the brands to develop such a niche market and make and sell products are exorbitant prices. It is observed that status-concerned buyers are more impacted by the symbolic strength of the brand and the arousal of interest is much higher for status hungry buyers for brands which are represented as higher in value and status (O’Cass and Frost, 2002).
Thus, those who are seeking a higher status are always drawn to such advertising of brands which display their brand as unique and not easily affordable, as if like throwing a challenge to consumers to own the product. These are marketing tactics especially designed for rich and wealthy consumers who tend to take these challenges and make a purchase to show their power and wealth and get recognised. Deed down the inherent desire for recognition plays a significant role in the luxury brand products, because people always like and feel important when someone points out to them that the shoes they are wearing are precious and costly. This elevates the person wearing it and it becomes a social signifier in society. Rolex a watch brand used these tactics very well. It is just a watch which shows the same time as shown by a simple and cheap watch, but still they are able to find customers for their watches selling at thousands of dollars at least. They tend to signify the brand with its association with the rich game of Tennis, and associating the watch brand with rich games like Yachting. These advertisements when highlighted show the worth of the watch and the measurement of its luxury value is clearly defined.