Luxury Marketing and Consumer Psychology

This chapter explores the interplay of behavioral science and marketing, focusing on how brands like Hermes leverage psychological principles to cultivate demand and loyalty. The discussion centers on the Birkin bag as a case study for scarcity and exclusivity, revealing how such elements influence consumer behavior and perceptions of status. Additionally, it examines the impact of group identity and cognitive biases in shaping consumer experiences with both luxury and value-driven brands.