Hermes, is a French luxury goods manufacturer. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury. Currently, the range of products under the Hermès brand name includes leather goods, lifestyle accessories, furniture, fragrances, watches, jewelry, ready-to-wear and saddlery. Gradually, the company’s product offerings expanded through generations. The eye the ultra-premium luxury segment, the “Birkin bag” was introduced in 1984. Each Birkin costs between USD 12,000 to USD 300,000 and is the exquisite handiwork of a single craftsman, who takes between 18 to 25 hours to complete the job via hand, more if the hide is a delicate crocodile skin. In 2014, an extremely rare Himalayan Nilo crocodile Birkin bag sold for USD 185,000, becoming the second most expensive bag to be sold at auction. Hermès is infamously known to burn imperfect Birkins, showcasing its dedication to the finest quality. Explain the concept of reference groups. What are the likely factors that that determine the degree of influence reference groups will have on Adlina’s purchase decision. Identify TWO reference groups that may influence Adlina’s decision to buy or not buy a Hermès product.
Hermes, is a French luxury goods manufacturer. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury. Currently, the range of products under the Hermès brand name includes leather goods, lifestyle accessories, furniture, fragrances, watches, jewelry, ready-to-wear and saddlery. Gradually, the company’s product offerings expanded through generations. The eye the ultra-premium luxury segment, the “Birkin bag” was introduced in 1984. Each Birkin costs between USD 12,000 to USD 300,000 and is the exquisite handiwork of a single craftsman, who takes between 18 to 25 hours to complete the job via hand, more if the hide is a delicate crocodile skin. In 2014, an extremely rare Himalayan Nilo crocodile Birkin bag sold for USD 185,000, becoming the second most expensive bag to be sold at auction. Hermès is infamously known to burn imperfect Birkins, showcasing its dedication to the finest quality.
Explain the concept of reference groups. What are the likely factors that that determine the degree of influence reference groups will have on Adlina’s purchase decision. Identify TWO reference groups that may influence Adlina’s decision to buy or not buy a Hermès product.
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