The Impact of Price Conformity and Nonconformity on the Desirability of Luxury Clothing

Abstract

The concept of price conformity, the relative similarity between a product's price and the predominant market price, has attracted attention in consumer research. However, there remains a gap in research for understanding how consumers perceive price conformity and how that perception impacts their behavior. This study investigates the influence of price conformity on consumer perceptions, particularly in the context of luxury clothing purchases. Using insights from studies on social conformity and of the consumer groups themselves, this paper will analyze six distinct consumer types and their responses to different pricing strategies. The paper’s findings suggest that individuals driven by status seek exclusivity and perceive higher prices as indicative of desirability. Conversely, those inclined towards conformity tend to adhere to established pricing norms. Notably, individuals with a patrician mindset may exhibit indifference towards price conformity, suggesting that pricing holds minimal sway over their preferences. These insights offer valuable guidance for marketing practitioners, enabling them to tailor their strategies to specific consumer demographics and preferences.