Assignment task:
Not so long ago, a bicycle was, well just a pedal-powered way to get around. Today, a growing number of consumers are buying bikes for commuting, for fun, for status, for personal style and for environmental reasons.
Especially in developing nations, where incomes are rising and middle-class consumers are looking for more than basic transportation, demand for better bicycles is rising as the product category takes on new significance as a sign of wealth and of interest in a healthy leisure-time activity. As people become more affluent, they tend to go for global brands.
Some top automotive firms are putting their brands on upscale bicycles. Porsche, for example, offers high-end bicycles with precision-made bodies and brakes so that riders can glide smoothly on paved paths and navigate off-road trails. Each carries the red, black, and gold brand badge positioned below the handlebars, signalling that the rider is pedalling a Porsche.
Luxury designer brands are also involved in the burgeoning bicycle business. Gucci's creative designer has developed a lightweight, high-performance bicycle and accessories (such as a helmet and riding gloves) for Bianchi, decorated with the red and green stripes that are Gucci's brand symbol. Missoni's colourful bicycle is for city dwellers or suburbanites who want to pedal along in style.
From the great outdoors to the inner city, bicycles are often used to show off the rider's personal style. In China, for example, wealthy Chinese consumers are purchasing high-end bicycles as status symbols. In some cases, such high-end products cost more than three times the average annual salary. In this market the demand for mainstream luxury items such as premium cars or watches has reached saturation point, and now high-income groups are turning to high-end bicycles to show off their uniqueness in taste and healthy lifestyles.
(Adapted from: Consumer Behaviour Case Bicycles: More than Pedal Power, in Hoyer, W.D., Macinnis, D.J., Pieters, R., Chan, E & Northey, G 2021, Consumer Behaviour 2nd Asia-Pacific Edition, Cengage, Australia, pp. 394-395).
Question:
1. How can a bicycle be part of a social status transition?
2. How could a luxury branded bicycle take on meaning as a consumer's special possession?