The New Luxury in Canada Having a sister who married a Canadian, I can tell you that the standard of living there is good. Canadians, benefiting from their strong economy, can afford to purchase premium products and services – the “new luxury”. To meet the needs of these consumers, new luxury marketing strategies must innovatively incorporate three levels of a benefit scale: 1) superior quality, 2) functional performance and 3) an emotional benefit that affects and engages the consumer. This global, consumer-driven economy – the “trading up” phenomenon – was created and is driven by the following social and economic demand factors. Consumer Income: What Consumers CAN Buy: The increase in discretionary income has influenced what consumers can buy. Increase in the number of women working outside the home increases total household income An increase in the number of wealthy families.  A growing number of childless married couples, single working women, and empty-nesters Boomers who are willing and able to spend Consumer Taste: What Consumers WANT to Buy: Consumer tastes are shaped by their knowledge, culture, and personality . Consumers are more educated, informed, and discerning about the items they purchase Consumers are sophisticated; they enjoy unconventional and conversation-seeking experiences and have the expectation that the things they want are available to them. Household structures have changed such that convenience items, even if at a premium price, are desired/ needed to allow for valuable family time Women have become more influential as primary purchasing decision makers. Consumer needs for status, class, exclusivity demand premium products and services Consumers want to spend time and money on things that are meaningful to them such as personal relationships, self-improvement, adventure vacations and their individual styles. Globalization of business and commerce has expanded the volume and variety of premium products giving consumers more choices and has refined their taste for foreign imports. Competitor Product and Price: Companies need to know their business climate – be aware of what the competition is doing and maintain a competitive advantage by thinking outside the box. I consume customer motivation and behavior in providing real value to the 4 Ps of marketing. Price: continuous demand for low-cost alternatives; “Trading down” allows more of the consumer's income to be used for “trading up” Because premium products and services are accessible to the middle market consumer, they can also be sold in much higher volumes than high-cost super-premium products. price, and therefore have greater potential for continued growth.