In terms of consumer products, what factor often distinguishes luxury goods from non-luxury goods?

The distinction between luxury goods and non-luxury goods is primarily rooted in brand positioning. Luxury brands cultivate a specific image and identity that communicates exclusivity, quality, and prestige. This positioning creates a perception in consumers' minds that differentiates these goods from non-luxury alternatives.

Luxury goods are often marketed as symbols of status and affluent lifestyle choices, which significantly impacts how consumers perceive their value and desirability. This helps them maintain a strong emotional connection with their target market, encouraging consumer loyalty and a willingness to pay a premium price. In contrast, non-luxury goods tend to focus on practical benefits and affordability, appealing to a broader market without the same emphasis on brand prestige.

Although factors like demand levels, advertising strategies, and price elasticity can influence consumer behavior and purchasing decisions, they do not encompass the ideal differentiation criteria that brand positioning provides for luxury goods.