Attracting Indian Gen Z in the Luxury Market Assessment Answer

Introduction

Background and Context of the Research Problem

The background and the context of the research problem are the foundation of the research, It helps in understanding the purpose of the research and in identifying the aims and objectives of the research. It also sets the scope as well as the focus of the study. The rise in Genz customers is becoming important for the business. This is because understanding their shopping habits as well as preferences can help in increasing their sales and profitability (Thangavel et al., 2021). It is also important for the brands to increase their market share. Further, the luxury market is continuously evolving and traditional brands are facing challenges in coping with it. The attitude of Genz customers is changing towards the luxury market and shopping habits. Therefore, understanding the shopping habits and attitudes toward the Luxury market can help the brand to remain competitive in the market. Further, the growing technology, as well as social media, is playing an important role in changing buying behavior of GenZ customers. GenZ has grown up in the digital age and it is reflected through their shopping habits (Semanticsscholar, 2023). For instance, they prefer shopping on the online platform as compared to traditional shopping. Therefore, understanding their shopping habits can help the brand to make more effective marketing strategies. The market for luxury goods is rapidly increasing in India. However, the economic landscape and cultural context in India are continuously changing, Hence understanding the factors can help the brand to attract GenZ customers.

Research Question or Problem

What are the luxury market's Gen Z consumers' purchasing patterns in India, and how do luxury businesses try to entice them? The research problem will deal with the changes that are noticed in the shopping patterns for luxury goods among the Indian GenZ.

Purpose and Objectives of the Research Project

The main aim of the research is to understand the shopping patterns of luxury goods and the trends of the luxury market that is prevalent among the GenZ population. The focus is mainly shifted towards the Indian GenZ.

The main objectives of the study include:

1. To determine the elements including consumer motives, preferences, and values that affect Indian Gen Z consumers' luxury market purchasing decisions.
2. To investigate the most well-liked luxury goods and services amongst Indian Gen Z customers and to ascertain the influences on their purchasing choices.
3. In order to better understand how Indian young people shop for luxury goods, it is important to look at how social media and digital platforms are used in these activities.
4. To evaluate the efficacy of various marketing tactics employed by luxury businesses to entice Indian Gen Z customers and to ascertain which strategies are most efficient in generating interest, loyalty, and purchases.

Significance of the Research

The research on understanding the shopping habits of GenZ customers in the luxury market is significant. This is because GenZ customers have an impact on the sales and profitability of the business (Digitalcommons, 2023). Understanding the shopping habits of GenZ customers can help the brand to remain competitive in the market. The research can also provides interesting insights that can help business in making effective marketing strategies to provide a customized experience to GenZ customers. The brand can also tailor the products to meet the demand of GenZ customers. The spending power of GenZ customers is continuously increasing. Therefore, understanding the shopping habits as well as preferences of this demographic can help brands to contribute economic growth. GenZ customers are also aware of the impact of their activities on the environment. Moreover, they demand sustainable products (Tran et al., 2022). An understanding of their shopping habits can allow the brand to become socially and environmentally responsible. Further, it can also help their demand for sustainable products. Researching in shopping behavior of GenZ customers can contribute to the academic literature which can be used for conducting future studies. This can also result in informed discussions in the field of consumer behavior, marketing, and luxury studies. India has a rich cultural heritage and has a strong influence on the shopping attitudes of the consumer. The research can help the brand to make effective marketing strategies in order to avoid conflict with their traditions, beliefs, and ideas. Further, understanding the shopping habits of GenZ customers can help brands understand how they use digital channels for shopping.

Literature review

Review of Relevant Literature and Research Studies

According to research, Gen Z customers in India have a great desire for luxury goods and are prepared to spend more for them. They appreciate quality, reliability, and design highly and are more inclined to buy luxury goods to show off their unique personalities and sense of flair. Indian Gen Z customers use social media sites like YouTube and Instagram to find new items, check prices, and read reviews, therefore these platforms have a big impact on how they shop (Bakir et al., 2020) . According to a study by Luxury Connect Business School (LCBS), Indian Gen Z customers like luxury companies with a distinguished history and tradition as well as those that provide an exclusive and one-of-a-kind shopping experience. Additionally, they are inclined to shop at upscale establishments that provide specialized services like customized clothing, personalized coloring, and VIP lounges . Luxury businesses are utilizing a range of tactics, such as digital marketing, influencer partnerships, and experiential retail, to draw in Indian Gen Z consumers (Jain et al., 2021). Luxury businesses are reportedly spending a lot of money on digital channels to interact with Indian Generation Z customers, with a concentration on social media sites like Instagram and TikTok, according to a McKinsey analysis. In order to advertise their goods and reach a larger audience, they are also collaborating with local celebrities and influencers. Another tactic used by premium firms to draw in Indian Gen Z customers is experiential retail. With comprehensive and interactive experiences like augmented reality excursions, sculptures, and in-store cafes, companies like Gucci as well as Louis Vuitton have launched flagship stores in India (Singh and Nigam, 2021). These encounters are intended to foster a sense of fashion and luxuriousness among them.

Identification of Gaps in the Literature

There are a few gaps that have been noticed in the literature review. There is a dearth of information about the precise interests and habits of Indian Gen Z customers in the luxury sector. More research is required to fully comprehend the distinct preferences and behaviors of Gen Z consumers in the luxury sector, even though studies have looked at their shopping habits both globally and in India. There is little information on the effects of cultural variables on the luxury market purchase behaviors of Indian Gen Z customers. More research is required to fully comprehend how India's numerous cultures, customs, and beliefs affect the purchasing behavior of Indian Gen Z customers in the luxury sector. There is little information on the efficiency of the various luxury brands' methods for luring Indian Gen Z customers. More research is required to determine the most effective approaches for the various sorts of luxury goods and services, even though there is some evidence of the usefulness of online advertising, influencer partnerships, and experiential retail.

Theoretical Framework for the Research

Different theoretical framework has been implemented in the research to understand the topic. The first theoretical framework that has been used is the consumer behavior theory. This hypothesis can aid in understanding the variables affecting Indian Gen Z consumers' purchasing behaviors in the high-end market. The theory states that both internal and exterior elements, including culture, socioeconomic status, and marketing stimuli, have an impact on consumer behavior. Internal components include personality, motivation, and perception (Yin et al., 2021). By using this theory, the study can pinpoint the precise elements that affect Indian Gen Z consumers' shopping preferences in the luxury sector, such as their perceptions of luxury brands, the reasons they choose to buy luxury goods, and the impact of marketing and social media stimuli. The second theoretical framework that has been used for supporting the research is brand equity theory. The techniques employed by luxury firms to draw in Indian Gen Z customers to the luxury market can be better understood using this approach. According to the notion, brand equity refers to the value that a brand brings to a product above and beyond its practical advantages. This value depends on the company's image, perceived quality, and psychological connection with customers (Rojas-Lamorena et al., 2022). The research can use this theory to determine the precise tactics employed by luxury firms to develop brand equity with Indian Gen Z consumers, including the creation of products, advertising, endorsements from famous people, and experiential marketing. The sustainability theory has also been used but to a smaller extent to understand the importance of the concept of sustainability as understood by the GenZ population.

Research methods

Description of Research Design

The descriptive research design has been used in this research. For the purpose of describing and analyzing a phenomenon or a collection of occurrences, a descriptive research design is one sort of study design. It entails gathering information via surveys, interviews, observation, or other techniques, summarizing it, and then analyzing it to spot patterns, trends, and linkages. The research study can employ a range of data gathering techniques with descriptive research design because it is versatile and adaptable, and they can change their strategy in response to the data and findings. A more comprehensive understanding of the topic or group of behavior’s being examined is made possible by descriptive research design, which has enabled research study to gather a variety of data. The results of descriptive research may frequently be extrapolated to apply to different populations or environments, making it useful for developing hypotheses or testing accepted theories (Braun and Clarke, 2022). The study has been gathered by using the qualitative research data.

Exploring and comprehending the views, living experiences and interpersonal relationships of one or more persons or groups is the main goal of qualitative research, a type of study methodology. In-depth interviews, focus groups, document analysis, and observation are just a few of the approaches that can be used to gather data for qualitative research. Thematic analysis and grounded theory are frequently used to analyze the data. In this research study the primary data has been collected to maintain the accuracy of the research. In contrast to leveraging pre-existing data sources, primary data collection involves obtaining fresh information by contacting the source. Primary data collection enables research projects to have more control over all aspects of the research process, such as the research design, sample procedures, and data gathering techniques. The accuracy and quality of the data can be increased in this way.

Research Participants or Population

To identify the Genz customers' shopping habits in the luxury market, focusing on Indian Genz and the strategies used by brands to attract Genz customers, the research participants are the members of the Indian Genz population who have engaged in luxury shopping. The participants in the study are individuals belonging to the Indian Genz demographic who have shopped for luxury goods in order to determine the buying behaviors of Genz customers in the luxury sector with a focus on Genz in India and the techniques utilized by brands to entice Genz customers. Members of the Genz generation, who are usually born between the middle of the 1990s and the beginning of the 2010s, are participants (Kiger andVarpio, 2020). 20 participants has been chosen for this research study as population. At least once throughout the previous year, participants bought a luxury item. Participants are all either residents of India. Participants are essential to research because they offer information that is analyzed, utilized to develop inferences and conclusions regarding the issue being investigated or subject under study, and so on. Participants provide a variety of viewpoints and life experiences to the study, which can aid researchers in developing a more thorough and nuanced knowledge of the subject under investigation. By ensuring that the data gathered is approximate to the population that is being investigated, participation from a wide group of people can aid in improving the reliability and validity of the research findings. Participants can offer comments and thoughts on the study process and methodologies, which can aid researchers in modifying and strengthening their strategy.

Sampling Technique

For the collection of the sampling the research study has been chosen the simple random sampling method. Each person in a population stands an equal chance of being chosen for the sample when using the probability sampling technique known as simple random sampling. In order to make sure that the sample is accurately representing the population being investigated, participants are chosen using a random technique, such as a random number generator. Simple random sampling is a common option for academics since it provides a number of advantages. The fact that simple random sampling guarantees the sample's objectivity and representation of the population under study is one of its key advantages. Due to the fact that each member of the general population has a comparable probability of being chosen, the number of participants is more probable to be a representation of the whole population (Lester et al., 2020). This can aid in minimizing sample bias and improving the ability to extrapolate of the study's findings to a larger population. Another advantage of simple random sampling is that it can be carried out with no prior information of the population being researched and is straightforward to implement. As a result, it is a quick and economical technique to gather data for study, especially when the population is big or diverse. The measurement error, or the discrepancy from the sample's mean and the population's mean, can also be calculated by researchers using simple random sampling. This can provide researchers a better idea of the accuracy of the estimates and allow them to gauge their level of confidence in the study's conclusions.

Data Collection Methods

In order to gather information from a sample of people, surveys are a popular research approach in the social sciences, marketing, and other disciplines. Surveys are a useful tool for collecting information from a big population. The information gathered in a survey is extremely helpful for analysis since it allows researchers to generalize the findings to a larger population by utilizing a representative sample (Sutton and Austin, 2018). Close ended questions have been taken up for the research. A closed-ended question is a form of survey question where only a small number of prepared answer alternatives are shown to the responder. These inquiries are also referred to as fixed-response inquiries, and they can be presented as multiple-choice, Likert scale, or rating scale inquiries. Multiple choice questions have been used in the survey where the participants are given certain choices from where they had to pick their answers.

The second methodology that has been used is the research. Visual data analysis has been carried out manually using tools like Microsoft Excel or automatically using tools for data visualization like Tableau, Power BI, or RStudio. Using specialized software has the benefit of enabling more intricate and interactive visualizations, which makes it simpler to see the trends and patterns in the data. Researchers and analysts can present complicated information in a way that is simple to grasp and analyze by using visual data analysis, which is a potent tool for investigating information and communication.

The third process that has been adopted for the collection of data is Social media analysis. Social media analysis is the process of analyzing social media information to learn more about how people think, act, and feel about a given subject. Researchers can use social media sites like Twitter, Facebook, and Instagram as a rich data source to learn how people interact with and discuss various issues.

Data Analysis Methods

For the survey data, descriptive analysis has been used. This involves in the summarization of the data that has been collected from the survey by the use of measures like median, mean, mode as well as standard deviation (Walsh et al., 2019). This method will be helpful in the description of the characteristics of the sampling choice. Along with that the identification of the trends and patterns that are present in the data are also analyzed with the help of descriptive statistics. Frequency distributions are also used for the identification of the responses that have been made by the participants.

The analysis of the visual data has been taken up by the help of histogram. Histograms are helpful for the understanding of the visual representation of distribution of the single variable. They are useful in showing the spreading of the data over the range that has values for the considered variables. Histograms are useful for the interpretation of the statistical models and tests that will be used in the research. Comparison of data from different population can be done from overlaying the histogram on the same graph.

For the interpretation of the data that is collected from social media, social network analysis has been taken up. This has helped in the identification of the trends and the brand perception of GenZ in Indian market and context. Analyzing of the relationships between the groups of users that follow a certain platform has been taken up. The exploration of the social structures, identification of the influencers that are key and important has been taken up. Keeping track of the information and ideas that are famous according to the social media sites have also been possible with the help of social network analysis.

Justification

The research is done on identifying the shopping behavior of GenZ customers in the context of India. In the Word document research is divided into four main parts including an introduction, literature review, and methodology followed by the finding and discussions. The research is done in two parts including a Word document and 15-minute video transcription of the research done in the Word document. The second part of the research is a live talk that includes research findings and analysis. The findings and analysis are based on the research methods, previous studies, and the concept as well as theories that are related to the research topic. The research done on identifying the shopping behavior of GenZ customers in the luxury market is perfect for the major project as it includes a mix of both written as well as visual work. This will make it easier for the viewers to read and understand the information shared through the research work. For instance, it will help brands to understand the changing behavior of GenZ customers in the luxury market with the advancement in technology and social media. The brand will be able to make effective strategies that help in satisfying the needs of GenZ customers. Further, the video transcription will be interesting for the business practitioners to learn and watch something new which they can share with colleagues and partners. Further, this is a new concept because social media has become important with the advancement of digital media and marketing. Therefore, the recording of the Word document will be beneficial. Visual representations will also allow the audience to understand the information and factors that influence the buying behavior of GenZ customers. Moreover, it is not easier for the general public to understand the complex data of the research. Therefore, visual representations will be more expressive as well as easier to interpret.

Timeline

The timeline that will be used for the completion of the research is from 23 May 2023 to 22 August 2023.

Conclusion

In conclusion, it's critical to understand the shopping patterns of Gen Z clients in the luxury industry, with a particular focus on Indian Gen Z as well as the techniques utilized by high-end companies to appeal to them. A thorough analysis of the literature makes it clear that marketers must comprehend Indian Gen Z consumers' distinct beliefs and interests if they want to successfully appeal to them. The literature also emphasizes the necessity for luxury firms to implement successful marketing techniques that are appealing to Indian Gen Z consumers, including digital marketing, influencer partnerships, and experiential shopping. Additionally, brands need to emphasize sustainability and ethical behavior because Gen Z customers are paying more attention to these issues when making purchases. The research should utilize an extensive theoretical framework that relies on consumer behavior, the equity of brands, and environmental theory in order to comprehend Indian Gen Z consumers' purchasing behaviors. The behaviors of Indian Gen Z consumers and the methods that marketers might employ to appeal to them will become clearer as a result of this.

References

Bakir, A., Gentina, E. and de Araújo Gil, L. (2020) “What shapes adolescents’ attitudes toward luxury brands? the role of self-worth, self-construal, gender and national culture,” Journal of Retailing and Consumer Services , 57, pp. 102–208. Available at: https://doi.org/10.1016/j.jretconser.2020.102208.

Braun, V. and Clarke, V. (2022) “Toward good practice in thematic analysis: Avoiding common problems and BE(com)inga knowing researcher,” International Journal of Transgender Health , 24(1), pp. 1–6. Available at: https://doi.org/10.1080/26895269.2022.2129597.

Digitalcommons (2023) Academic festival - sacred heart university . Available at: https://digitalcommons.sacredheart.edu/acadfest/ (Accessed: April 27, 2023).

Jain, A., Joshi, N. and Mayee, A.J. (2021) “Millennial’s tide over the COVID-19 crises: Buying behavior of indian millennial’s post-COVID-19 crises,” Jindal Journal of Business Research , 10(2), pp. 214–221. Available at: https://doi.org/10.1177/22786821211045196.

Kiger, M.E. and Varpio, L. (2020) “Thematic analysis of qualitative data: Amee Guide no. 131,” Medical Teacher , 42(8), pp. 846–854. Available at: https://doi.org/10.1080/0142159x.2020.1755030.

Lester, J.N., Cho, Y. and Lochmiller, C.R. (2020) “Learning to do qualitative data analysis: A starting point,” Human Resource Development Review , 19(1), pp. 94–106. Available at: https://doi.org/10.1177/1534484320903890.

Rojas-Lamorena, Á.J., Del Barrio-García, S. and Alcántara-Pilar, J.M. (2022) “A review of three decades of academic research on brand equity: A Bibliometric approach using co-word analysis and bibliographic coupling,” Journal of Business Research , 139, pp. 1067–1083. Available at: https://doi.org/10.1016/j.jbusres.2021.10.025.

Semanticsscholar (2023) The online shopping habits and e-loyalty of gen Z as natives in the ... Available at: https://pdfs.semanticscholar.org/ac8b/3954204613cc8a23f85b0d479a135ba8af46.pdf (Accessed: April 27, 2023).

Singh, N. and Nigam, S. (2021) “Value-based segmentation of generation Z women consumers of India : Replication and validation of model,” Prabandhan: Indian Journal of Management , 14(10), pp. 8–45. Available at: https://doi.org/10.17010/pijom/2021/v14i10/166641.

Sutton, J. and Austin, Z. (2018) “Qualitative research: Data collection, analysis, and Management,” The Canadian Journal of Hospital Pharmacy , 68(3). Available at: https://doi.org/10.4212/cjhp.v68i3.1456.

Thangavel, P., Pathak, P. and Chandra, B. (2021) “Millennials and generation Z: A generational cohort analysis of Indian consumers,” Benchmarking: An International Journal , 28(7), pp. 2157–2177. Available at: https://doi.org/10.1108/bij-01-2020-0050.

Tran, K. et al. (2022) “Eco-friendly fashion among generation Z: Mixed-methods study on price value image, customer fulfillment, and pro-environmental behavior,” PLOS ONE , 17(8). Available at: https://doi.org/10.1371/journal.pone.0272789.

Walsh, R.S. et al. (2019) “A thematic analysis investigating the impact of positive behavioral support training on the lives of service providers: ‘It makes you think differently,’” Frontiers in Psychology , 10, pp. 2–4. Available at: https://doi.org/10.3389/fpsyg.2019.02408.

Yin, B., Yu, Y. and Xu, X. (2021) “Recent advances in consumer behavior theory: Shocks from the COVID-19 pandemic,” Behavioral Sciences , 11(12), pp. 171–181. Available at: https://doi.org/10.3390/bs11120171.

You Might Also Like:

Coles Supermarket Case Study Assignment Help

Integrated Marketing Communication Assignment Sample Online

Marketing Plan for Open Agent Company in Australia - Assessment Answer