The Anchoring Effect on Luxury Goods Consumption among the Chinese Middle-Class

The Chinese Middle-Class, defined as households with annual incomes ranging from 300,000 and 1.5 million in first-tier cities, has become a significant consumer demographic for luxury goods. An uncommon phenomenon is that rising prices fuel consumer demand in the luxury goods market in Chinas burgeoning middle class. This research attempts to investigate the anchoring effect in this phenomenon by combining the perspective of psychological and behavioral. By recruiting 200 participants from China's first-tier cities, the treatment group and control group with the variation of price increase and public and private settings are designed to explore its influences on decisions about luxury purchases. The expected finding can provide valuable insights for both consumers and luxury brands by conveying the complex interplay between economic behavior and social influence in Chinese luxury market.