I'll take the liberty to apply a slightly modified version of Four Ps model to demonstrate this fact:
- Product. The physical characteristics of a product determine Utility-Luxury placement, perception, and expectations. More luxurious products are often associated with quality and durability - whether this is factual is irrelevant. On the other hand, silly putty isn't expected to last forever.
- Price. Price serves as both an actual result of the market, but also as a signal - often a higher price screams that a product is really useful/necessary, that it's very luxurious, or both.
- Placement. This usually refers to the physical or digital point of sale. I often expand the definition to include customer placement - i.e. segmentation and targeting. A new Mercedes is never sold to low-income individuals via a multi-brand car dealership in an inner-city setting.
- Promotion. The public image of a product is the most direct way of communicating where the product is on the Utility-Luxury grid and where it wants to be.
The Four Ps are the vital components that make up a product or service. The past, present, and future placement of a particular offering along the Utility-Luxury grid directly influences and is influenced by the product's particular characteristics.