Public-private and luxury-necessity nature of goods

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We know that the influence of reference groups on consumers’ purchase behaviour is not equal for all goods. The public-private and luxury-necessity nature of goods are significant moderating variables in the relative strength of the relationship between reference groups and purchase decisions. Explain how brand and product choice are affected based on the private-public and luxury-necessity nature of goods. Provide an example of a particular good that fits each category of the model, and explain how the strength of reference group influence affects the brand/product choice for that good.

Reference no: EM131121841

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