Title-

Importance of colour psychology in branding and driving the purchase decision of

luxury brand consumers.

Abstract –
Colour is crucial to the marketing of goods. It is a potent marketing and branding
strategy that has a wide range of effects on customer purchases. This paper aims to
review the advances in the psychology of luxury consumer behaviour. Discussing the
purpose of this study, which is unique in its own right, is to evaluate the application of a
theory and the consequences of luxury consumption from recent research. The ability of
colours to draw attention has been a long-standing strategy utilised by marketers to
draw in customers. This study uses both primary and secondary data gathering
techniques to examine how luxury firms employ colour schemes to display their
products in London while also taking into account current trends. Although there has
been a lot of research on this subject, it has only looked at it from a marketing angle.
There is also a viewpoint on branding in this research. Due to the very tiny sample size,
the results are very limited. They are compared and researched from the perspectives of
two distinct countries (India and UK – London) as well as various other factors
including age, gender, and income. A survey was conducted with 50 participants. it
demonstrates the association links between colour theories, trend forecasting, designs,
visuals, branding and marketing. It can be shown that the colour of an object can decide
the success or failure of a brand if the brand has not considered colour research as it
plays a major role in marketing. Conclusions are drawn based on statistical analysis.
Keywords- Colour, consumer behaviour, colour schemes, trend forecasting, psychology,
age, gender, income.

Highlights-
• The psychology behind luxury consumption.
• Forecasting the trends in the UK, London. How the recent trends
related to consumers' purchase decisions.
• Understanding of the factors that affect the consumption of luxury
goods.
 • The consequences of luxury consumption.
• How colour psychology plays a role in purchasing decisions.
• Limitations due to the small sampling size of the primary research
data collection.

Introduction –

The historical significance of luxury in preserving class distinctions and the structure of
the social hierarchy was made plain by French historian de Waresquiel's description of
the luxurious life of the nobles as a microcosm that replicated "the distance of blood and
the etiquette of ranks." We argue that much more than the traditional rank separation
mentioned in the writings of historians and philosophers drives pursues, and results in
luxury consumption. To do this, we highlight innovative luxury consumption causes,
mechanisms, and effects from current research. There are many reasons why people
purchase expensive material objects, but almost all of them are connected to the potent
feelings that we associate with doing so. whether a consumer is in a financial position
that makes it possible for them to buy a financial item, they could nonetheless decide to
do so to get a certain feeling, for instance, the acceptance of others or a sense of
accomplishment from their hard work. The landscape of luxury products increasingly
includes mass marketing of luxury items. In actuality, it is not unexpected that more and
more luxury producers are attempting to expand the market for their goods by including
more reasonably priced items in their product lines. developed the "masstige" concept,
which refers to "mass" prestige, along similar lines of thought. The financial value,
functional value, uniqueness value, self-identity value, hedonic value, prestige value,
conspicuousness value, social value, and materialist value are the nine categories that
can be used to classify the worth of luxury. These nine criteria can be used by the buyer
to assess the value of luxury during the purchasing process. The executives of luxury
brands at this time must ensure that the brand has the elements necessary to uphold
these principles. Premium products are seen as luxury or premium goods that have been
priced to be accessible to the middle classes and are defined as "premium but
achievable." The global market for luxury products has grown significantly in recent
years, from being estimated at $60 billion in 1990 to over $240 billion in 2015. Today,
Internet connectivity, rather than geographic location, viewing celebrities, brand
advertising, and ordinary people using luxury goods in many societies around the world.
Therefore, it is not unexpected that consumers in the developing world now have
interests in branded fashion accessories that are very comparable to those of their peers
in the developed world. This tendency is especially noticeable in developing nations
like Brazil, India, and China, where the luxury market is growing at rates between 20
and 35 per cent thanks to both wealthy consumers and less wealthy people who buy
premium products (Suiden, M'Saad, and Pons 2011).

Humans are visual creatures, visual plays a much bigger role in influencing what we
purchase than we might think. The benefits of using colour psychology in the realm of
commerce to affect consumers' subconscious reactions and purchase decisions are vast
and include all forms of packaging, interior design, advertising, and promotional
material. Consider the inaccuracy of making broad statements such as “green means
calm.” The context is absent: Sometimes green is used to brand environmental issues
but other times it’s meant to brand financial spaces. while brown may be useful for a
rugged appeal see how it’s used by Saddleback Leather — when positioned in another
context, brown can be used to create a warm, inviting feeling (Thanksgiving) or to stir
your appetite (every chocolate commercial you’ve ever seen). When it comes to picking
the “right” colour, research has found that predicting consumer reaction to colour
appropriateness is far more important than the individual colour itself. Purchasing intent
is greatly affected by colours due to their effect on how a brand is perceived; colours
influence how customers view the “personality” of the brand in question. And while
certain colours do broadly align with specific traits (e.g., brown with ruggedness),
nearly every academic study on colours and branding will tell you that it’s far more
important for colours to support the personality you want to portray instead of trying to
align with stereotypical colour associations. mood, emotions, sentiments, memory, and
behaviour are the main focus of colour psychology. Recognizing a consumer's
communication, association, and response to colour is necessary to comprehend
psychology. Although everyone experiences colour differently, some hues have a
common meaning. Colour symbolism is prevalent in our daily lives and frequently has
historical connotations. Coloured clothes may be worn on particular days to mark
festivities, important events, or even political allegiance in some cultures. To begin to
understand the importance of colour in forecasting, one must recognize that colours
evolve from season to season. Changes are always occurring, so to predict the future
needs and desires of consumers, both changes in direction and speed of change must be
considered. Changes in colour choices and pattern repetition are known as colour
cycles. Change is the defining characteristic. As consumers seek out novelty, certain
colours become attractive. According to research, the colour cycle progresses from high
chroma (bright) colours to many hues, then the Earth tones, then achromatic (tonal
greys and black), next to purple phases, and finally back to high chroma colours. Warm
to cold colours are accepted, and some revivals follow historical trends and are
impacted by the economy, but there is no clear mechanism in place to completely
comprehend the process of colour evolution. Similar to how trends are adopted, there
are various stages in how consumers absorb colours. For instance, innovators and
trendsetters are likely to try a new hue first, followed by mainstream consumers and
trend followers, before the conservative customer progressively adopts it. Customers are
inclined to try out new colours by buying jewellery, handbags, or shoes in those hues.
When a customer is certain about the new hue, bigger purchases are made. When it
comes to home decor, adding pillows, accent rugs, or tabletop items may give a space a
fresh coat of colour. When colour confidence is higher eventually larger or more
expensive items, such as sofa or artwork can be added. The forecaster recognizes the
different connotations that each colour has in various cultures. To understand the
symbolic significance of an individual colour its origins have to be investigated and
then interpret with modern context. To forecast the colours that consumers will find
appealing in the following seasons, a process known as colour forecasting involves
obtaining, analysing, understanding, and interpreting information. To detect hue shifts,
forecasters conduct studies and draw on their imagination, intuition, and experience.
Given that colour has a significant impact on consumer behaviour, a forecaster must be
aware of the appeal that colour engenders. Numerous facets of the fashion and
manufacturing industries employ colour forecasting. Hence developing research from a
scientific approach remembering that colour evolves this paper studies the past,
identifies the current times and then predicts the future based on the data collection.

The evolution of brown-

Tracking the colour brown from Fall 2010 into the forecasts for Spring 2011 will help to
highlight this evolution. Earlier projections used a rich brown colour scheme.
Spicy mustard, merlot wine, and decorative rust served as accent colours to warm tans
and earthy neutrals. The accent colours provided the dent with a way to introduce
browns while retaining the traditional enthusiasm of brighter tones that dominated the
previous season. The brown colours entered the market, providing the consumer with an
option of black or blue, thanks to the retention of the accent colours in the palette.

The following Spring season's prediction moved the brown and neutral palette forward
by tinting the shades of brown to lighten them and by blending the brown shades with
additional colours: pinkish brown or a brown shade with a hint of silver. Since the
brown palette had already been introduced, the accent shades were no longer needed
because the customer was already accustomed to the brown hues.

Comparing the two mood boards the first from the late 90s and the second from recent
2022 how people have changed their perspective about colours and how aesthetically
people find it more appealing studies have shown that people often recognize a brand by
associating it with the colour, logo and design hence for a brand choosing a right colour
palette is very important.

Brand image- In the eyes of consumers, certain products are frequently perceived as
having a positive brand personality due to the psychology of colour and good logo
design; on the other hand, a product that is poorly designed and uses a low-quality logo
colour is perceived as having a negative brand personality. Determining the degree to
which design features like figurativeness have a positive impact is crucial as aesthetic
appeal and design grow in importance as parts of corporate marketing. A logo's choice
of colour has a particular psychological effect. In logo design, colour is a crucial
component. Although there are extra meanings for colours, they are not regulated. It's
important to pick the proper colour for your logo. Having the necessary knowledge
about the influence of colour on the consumer perception of the advertised product is
important so that you can create ads that will evoke the right emotions and will
contribute to making a purchasing decision.

Let's think about how consumers interpret the fundamental hues.

According to psychology, blue is the most widely used colour for logos. It stands for
being "reliable, dependable, responsible with money, and secure." When you consider
how important it is to the identity of well-known companies like Facebook, Wal-Mart,
AT&T, and possibly your local police force, this makes sense. The greatest colour for
these brands is blue since customers trust them with many aspects of their daily lives,
including shopping, texting friends, and saving for a new automobile. As they continue
to innovate and expand their businesses, it gives consumers confidence that they are in
good hands. Fast Company describes yellow as an upbeat colour. It has the advantage of
being bright enough to draw attention from a distance from a customer. To attract
hungry travellers, Denny's and McDonald's both employ yellow in their logos. Orange
is frequently described as a "pleasant" colour. Everyone uses it, from sportswear giants
Nike and Fanta to luxury label Hermes. Stores use the vivid, assertive orange to
advertise value. Whatever the shade, orange certainly plays up the approachable
element for these businesses by bringing in billions of dollars.

Black connotes wealth and success. That is why it is the colour of choice for upscale
clothing and executive cars. This colour will work if you want to portray drama,
refinement, and a hint of status.

Drivers of luxury consumption

Socio-economic - The very expensive items that are solely accessible to the elite class
and that confer specific social status on their customers are included in the available
luxury level, which is at the top of the hierarchy pyramid. The professional class has
access to the mid-level of luxury. On the other side, the middle class can access the
luxury level if they want to use their purchasing power to advance in society.
The individuals are categorized into four different groups according to the
categorization-based class-

1. Aristocrat class: Wealthy members of this class are typically less inclined to indulge
in luxuries to obtain notoriety and interact with other elites. The consumers in this class
may favour luxury consumption to gratify their desires because it is already widely
accepted that they are aristocrats.

2. Parvenu class: With the goals of connecting with the aristocratic class, setting oneself
apart from other classes, and achieving prestige, parvenu class consumers favour luxury
purchases. Instead of acting for internal reasons, they are driven by external
consumption. They have the means to afford the extravagance.

3. Poseur class: Consumers in this class present themselves as someone they aspire to be
but have not yet achieved, and they may favour luxury purchases to elevate their social
position. The primary distinction between this class and the parvenus is that members of
this class are unable to afford true luxury. As a result, they can favour luxury-goods
knockoffs and spend more on their luxury consumption. They can feel guilty about their
indulgence as a result.

4. Worker class: This is the group of customers who do not seek prestige, interact with
the affluent or set themselves apart from the others. Luxury makes no sense to the
consumers in this class. In addition, these people do not tend toward luxury
consumption, as they do not have the financial power to access luxury.

The ambience of the store- The ambience of the store where luxury brands are offered
can be crucial since it may affect customers' purchasing decisions. The environment of
the store has an impact on people's emotional responses while shopping, according to
studies on the topic in the literature. People's emotional state and the enjoyment they
derive from shopping are influenced by several variables, including the store's
employees, its interior and exterior, its promotions, and its after-sale services. People
frequently shop at places where they are treated well and feel special. One of the
elements influencing the consumption of luxury goods is fashion. People select
fashionable goods and maintain their sense of style by adhering to trends. By offering a
high calibre of service, luxury brands increase value for customers. This primarily takes
the shape of highly skilled and knowledgeable employees, who are often affluent people
prepared to go above and beyond in the provision of services. Staff members should
convey the corporate values conveyed by the brand. Presentation is important since no
spoken communication conveys the majority of meaning in face-to-face contact. Staff
members should be well-groomed and dressed in upscale attire. High-quality customer
service training should be provided, and HR should regularly check to make sure that
employees are consistently abiding by customer care regulations. Customers frequently
look up employees on LinkedIn and other social networking sites in today's corporate
culture, especially those who might be asked to handle huge amounts of money.
Therefore, personnel needs to have precise and consistent descriptions, especially when
there are several profiles across different platforms.

Consequences of Luxury consumption –

Ironically, some luxury consuming practices are harmful to the luxury companies
themselves. A luxury brand, like Tiffany, can lose its charm if it is used extensively.
Observers who value justice may have a negative opinion of the brand as a result of
seeing unjustified luxury consumption. In one study, fairness-focused participants had a
lower opinion of Louis Vuitton after knowing that a customer had used their parents'
money rather than their own to buy a product from the company. Because the intended
luxury customer appears less prestigious due to unjustified luxury expenditure, there is
brand dilution.
Conspicuous consumption- The American economist and sociologist Thorstein
Veblen coined the term in his book The Theory of the Leisure Class (1899). The
concept of conspicuous consumption can be illustrated by considering the motivation to
drive a luxury car rather than an economy car. Any make of car provides transport to a
destination, but the use of a luxury car additionally draws attention to the apparent
affluence of the driver. Examples of conspicuous consumption are wearing fur coats and
diamonds and driving expensive cars. However, the dichotomy that Veblen draws
between the honorific aspects of such goods and those that further the “life process”
implies that all goods possess these dual characteristics; they have both serviceable and
honorific elements. For example, the fact that one drives a car implies that one is
wealthy enough not to have to take public transportation, but a luxury automobile
conveys still-higher status in society because it shows that one does not have to take
public transportation or drive an economy car. Consuming luxury can act as a
psychological buffer against self-threats, but it can also give rise to emotions of
inauthenticity, which pose a new threat. The perception of luxury users may be positive
in some areas (competence), but bad in others (warmth). It would be worthwhile to look
at how people deal with these conflicts when they anticipate these divergent effects of
luxury expenditure. To make a good impression and start business relationships, they
might put aside their true sentiments and utilise luxury, yet when they want to establish
trust and emotionally connect with others, they might choose to do the opposite. Future
studies should look into how various settings or objectives may influence how the
competing effects of luxury spending are strategically resolved.

Literature review-
In recent years there has been increased interest in research on colour and psychological
functioning.

Methodology –

Primary research method - The tool for data collection is a self-directed questionnaire
with closed-ended questions based on the Likert- 5 coding technique ranging from
highly disagree to highly agree. The questionnaire was written in English, to collect
data, the free survey software google forms were used. Records were identified by name
and date of birth to ensure no duplication of respondents in the database. A total of 100
surveys were conducted 50 from participants living in London, UK and 50 from India.
Keeping an equal number would make finding the results easier. This method was best
for my research as I am trying to understand how people make buying decisions and
directly I could come in contact with the people trying to understand. There are
limitations as the sample size is small and the participants are of different ages, gender,
income and nationality. The subjects were friends and family living in the UK as well as
India. This is because my research is trying to prove how cultural differences influence
purchasing decisions.

Aim-

1. To evaluate the trends in London, UK, the new trends in the area, the colour
schemes and marketing practices.
2. How trends are related to colour psychology and how consumers associate with
it.
3. To understand how cultural differences influence purchasing decisions
4. Does sustainability make a difference in purchasing decisions?

Hypothesis –

a. Colour significantly influences consumers' purchase decisions

b. The connection between the psychology behind luxury consumption and
consumers' purchasing choices
c. Colour communicates the brand image