Detailed description of psychology behind luxury competition

1. Presentation By-
Nabeela Khan
MBA LBM- 2023-2025
Luxury Competiton
T H E P S Y C H O L O G Y O F

2. DEFINING
LUXURY
Luxury refers to the state of great
comfort, elegance, and
extravagance, often associated with
high-quality and exclusive
experiences, products, or services
that are typically beyond what is
considered essential or necessary for
basic living.

3. Competing in the luxury market satisfies
the inherent human urge for competition,
enabling individuals to vie for status and
recognition. This pursuit yields
psychological rewards, such as a sense of
accomplishment and elevated self-
esteem, as ownership or access to
exclusive, high-end products signifies
success.
WHY WE COMPETE IN
LUXURY

4. THE ROLE OF SOCIAL COMPARISON
Social Comparison Theory: Humans gauge themselves
by comparing with others, shaping self-esteem and
identity.
Social Media Impact: Social platforms intensify
comparisons as people flaunt their lives, leading to
envy or motivation.
Social comparison influences perceptions and actions,
especially within luxury and social media contexts.

5. LUXURY BRANDS AND STATUS
Brand Perception: Luxury brands
shape how we perceive status.
The Halo Effect: A positive brand
image can enhance overall
perception.
Social Status and Loyalty: The
connection between luxury brands
and social status often leads to
brand loyalty.

6. COPING
STRATEGIES
Balancing Competition and Well-being:
Striking a harmony between competition and
personal well-being is crucial.
Mindfulness and Gratitude: Practicing
mindfulness and cultivating gratitude can
help mitigate the negative effects of luxury
competition.
Re-evaluating Personal Values: Reassessing
our values can guide us in making healthier
choices amidst the allure of luxury
competition.

7. CONCLUSION
The psychology of luxury competition uncovers the intricate
relationship between desire, social influence, and identity. We've
explored subjective luxury definitions, our innate competitive
drive, and the role of social comparison. This knowledge
empowers us to strike a balance, using strategies like mindfulness,
gratitude, and reevaluating our values, ensuring we enjoy luxury
without sacrificing our well-being.

8. THANK YOU