Surprise! Wealthy Consumers Don't Lust After Logos on Luxury Goods

Identifying with a luxury brand is a lot more subtle among wealthy consumers than you think.

"Subtle Signals of Inconspicuous Consumption," a paper appearing in the current issue of Journal of Consumer Research, suggests that high-end shoppers are more in tune with "discreet markers, such as distinctive design or detailing," than obvious brand logos.

"Signaling Status with Luxury Goods: The Role of Brand Prominence," another study (this one published in the July issue of Journal of Marketing), finds that "luxury brands charge more for 'quieter' items with subtle logo placement and discreet appeal."

Paris Hilton may not care, but brand marketers should.

The Journal of Marketing study, by a doctoral student and two professors, examined three categories of luxury goods: designer handbags, men's shoes, and high-end vehicles. A consumer survey was conducted in Southern California malls chosen for their demographics. In addition to the surveys, the researchers analyzed market data and included counterfeit goods in their study.

Joseph Nunes, associate professor of marketing USC's Marshall School of Business and one of the study's authors, said, "A significant segment of the population does not want to be branded, preferring to be understated... and is willing to pay a premium to have 'quiet' goods without a brand mark."

The study classified consumers into four groups, based on whether they preferred "loud" products (with prominent brand logos) or "quiet" goods. The four groups are:

- Patricians: "Wealthy consumers low in need for status" who "pay a premium for quiet goods, products that only their fellow patricians can recognize"
- Parvenus: "Wealthy consumers high in need for status" who "use loud luxury goods to signal to the less affluent that they are not one of them"
- Poseurs: Consumers who "emulate those who they recognize to be wealthy;" they cannot afford luxury goods but will buy counterfeit items.
- Proletarians: Consumer who are not driven by status purchases.

According to the study, Patricians do not buy "flashy" items that have prominent logos; rather, they find subtle logo placement more appealing.

Although certain heiresses still fall into the "parvenus" camp of and flaunt their designer logos, it seems that less is indeed more. Or perhaps it's just that in these frugalista times, classy people like classy (discreet) luxury goods...