For $700,000 you could own historically significant chimney piece heads. They’re not just any chimney piece heads. According to Luxist, it’s:

An extremely rare, important and well-preserved neo-Gothic terracotta chimney piece commissioned for Franz Joseph I, Emperor of Austria, King of Bohemia and King of Hungary, in the late 19th century

For potential buyers, the most important aspect of this is not the craftsmanship, or even how the chimney piece heads look. The most important aspect is its age and royal associations.

A Theta personality will be attracted to this because of the piece’s backstory. This piece serves no purpose other than to be put on display. Thetas gravitate toward luxury items that can be added to their existing personal picture and sense of unity. Thetas would see this item as fulfilling that need.

Thetas look for benefits that improve their social standing. Thetas look for recognition. As I mentioned above, this item would be bought and immediately put on display. A Theta personality would take great pride in showing off this historically significant item off to their friends and others who he perceives as also being part of his desired social circle.

The two guards on the chimney are engraved with a staying that Theta personalities would find great significance in:

Two knights standing on Corinthian columns flank the mantelpiece, which also bears the Emperor’s motto Viribus Unitis, “With united forces.”

Thetas seek unity within themselves, so it is likely that a Theta will attach some personal significance to this phrasing, which would make the item more attractive. Also, because the item is so old, it will likely become some kind of personal adage for the Theta personality.

Ultimately it will be the item’s rarity that will be the most items most attractive feature. Thetas will link their status to the rarity of the product. According to their worldview, if the product is rare, it would imply to anyone viewing it, that the owner, too, is unique.

World famous sports and entertainment arena Madison Square Garden in New York City, is developing a “supersuite” for the highly affluent segment of its clientele. The 5,000-square-foot suite will fit up to 300 people and is said to feature granite-topped kitchen islands, formal dining tables, full bars and a fireplace.

The cost of enjoying the supersuite remains to be confirmed as pricing decisions have not yet been made, but the Vice Chairman of MSG, Hank Ratner, has said the company is trying to learn from other sports venues who are cutting their prices in an uncertain economy. The Yankees, for example, have cut the price of over 100 front-row seats from $2,500 to $1,250 after seeing empty rows of the top-priced spots game after game.

But prices are still likely to be only in range for a select few. MSG is determined to pursue the development despite difficult financial times, and hopefully there are still enough people able to afford spending their money on this type of experience. As MSG itself is already a very strong brand on a global scale, it definitely has good prerequisites.

The supersuite is also likely to appeal to most people, whether they have Theta or Lambda worldviews on luxury. The self-focused Lambda would be attracted to the opportunity to show off his wealth in this one-of-a-kind environment. The Lambda would also be drawn to the freedom of movement and sense of independence that the suite would offer, as compared to even the most attractive seats. The socially-focused Theta would instead find it appealing as a means of gathering all of his friends and associates together in one place.

I found this recent article about how luxury retailers are weathering the financial crisis to be very interesting. In three different places, it describes how luxury is shifting in a Theta direction. Let me elaborate:

The author describes a shift to craftsmanship from ‘bling’–appreciating craftsmanship is something that Thetas do. On the other hand, Lambdas believe that nature creates luxury, not craftsmen.

Francois-Henri Pinault, the chairman of French group PPR was quoted as saying, “People want a return to genuine values like timelessness.” Thetas think luxury is timeless, while lambdas think that luxury requires a lot of time.

Suzy Menkes, fashion editor of the International Herald Tribune, said that luxury consumers are looking for designer goods “that can be passed on to the next generation.” This characteristic of luxury holding its value over time is another Theta mark, whereas Lambdas think that luxury holds its meaning over time.

Is the global economic crisis shifting the luxury market towards Theta? I’m not sure–I think there will always be space in the market for Thetas and Lambdas. It just takes different marketing strategies to reach them.

Photo by *spud* via Flickr

Janusian Thinking is derived from the concept of paradox.

Janus, the Greek god of doors and gates and beginnings and endings, was most often depicted with as man with two heads, each facing in opposite directions.

The obvious benefit of such a dual perspective – and the underlying power of Janusian thinking – is that it provides the ability to consider multiple perspectives simultaneously. Failure to do this results in decision-making paralysis, depression or in wasted effort, pursuing false goals.

Variants of Janusian thinking are applied in contemporary contexts to military planning, corporate strategy, and academic analysis.

Janusian thinking can be a valuable tool in everyday life. Our modern existence requires us to weigh complex, competing phenomena concurrently and make decisions we can stick by, despite having incomplete information.

In this blog I often apply the concepts of Janusian thinking to luxury marketing and to the behaviour of the diamond industry, but it offers us many more valuable insights into human behaviour. Mastering Janusian thinking holds the key  to moving beyond personal and institutional blockages and becoming a committed, purposeful leader.

In my PhD I offered descriptions of two predominant ‘worldviews’, which I termed Theta and Lambda.

People tend to prefer one of these two Theta or Lambda worldviews in their pursuit of life purpose, and thus also in the pattern of their purchasing decisions.

The Theta-Lambda worldview is particularly applicable to one’s consumption of luxury products as this category of goods and services aims to tap into our desire to reflect externally what we see as our internally derived identity.

While we can only see the world from one perspective, we can strive to respect and understand that there may be a different perspective, thus also respecting the person who has adopted that viewpoint.

Handling this apparent paradox – of holding one view to be true while allowing for another valid perspective to exist – is the key to achieving a rich and full interpretation of the world.

The Wall Street Journal’s Wealth Blog recently posted about how true luxury — “goods that are rare, expertly made and sold to a select few” — is on the rise in spite of the recession. The wealthy seem to appreciate the exclusivity of luxury, and the economic climate has widened the gap between those who can afford to spend on true luxury and those who can’t. In a recent survey of private jet owners, 94% defined luxury as ‘for one’s self’ rather than for the masses. This is in line with my my thinking, that luxury depends on how the individual interprets it.

While I didn’t have the chance to research this for my PhD, my feeling is that Lambda personalities are the early birds and will be the early majority to start spending on luxury again. I hope to have the opportunity to research in the future whether the purchasing cycle from early birds to late comers follows from Lambda to Theta. My colleague Randy has observed that Lambdas tend to spend more than Thetas on similar offers. Theta buyers buy smaller diamonds, for example.

We are now seeing Lambda consumers interested in bespoke (and more expensive) purchases while Thetas will potentially follow later. This could be explained by the yearning of the Lambda for novelty while Theta look for social affiliation so the society has to be created first so they can join it.

It seems that the economic crisis has put many luxury shoppers into a state of shock. We can’t forget that luxury is what makes us human: it allows us to choose. People learned quickly how to overcome this shock.
Lambdas have already started but Theta will follow. Thus all the claims that the cheaper stuff is out is premature. People will go back to Burberry but it will take some time since the more expensive things will be sold first. However, if we talk about an economic recovery in 2010, luxury recovery will start earlier, maybe in 2009.

Unbranded shopping bags, secret shopping parties at homes, purchases made to look like gifts–these are the lengths to which people are going to hide their spending from their husbands, wives and the public this holiday season.

The New York Times and the Daily Beast have both recently run articles about how people who don’t want to be seen as insensitive to the financial crisis are finding more discrete ways to spend money. Who are these people (mostly women judging from the reports), and what do their new habits say about luxury?

I believe that many of these women are classic Thetas–they seek affiliation and control, and want to contextualize themselves in a group of like-minded women (a group that often gets together and has these secret shopping parties.). They are not acting like Lambdas, who seek achievement and uniqueness and want to stand out.

Said an editor at Allure, a likely Theta:

Shopping is almost embarrassing, and a little vulgar right now.

Despite this sentiment, people are still going out of their way to consume luxury secretly; there’s still demand for it. Thetas are seeking it out on their own–perhaps more attention should be placed on reaching Lambdas during the recession to unlock their desire for things they need.

As the economic crisis turns into a recession, luxury companies are showing signs that they’re being affected negatively. According to this New York Times article, Marc Jacobs has cancelled his lavish annual holiday party, Mastercard SpendPulse estimates that luxury spending dropped 20.1% in October, magazines are reporting cutbacks, and luxury companies (including Graff Diamonds and Brioni) are purchasing fewer advertising page.

Surely these budget cuts and delays in marketing plans are a worry for luxury companies. But a greater worry is that the credit crunch will change peoples habits and make them less willing to spend on the very best. Wealthy people may no longer think it’s appropriate to wear $280,000 earrings to events while so many others are losing their jobs. Will the recession force conspicous consumption to end and make people stop buying luxury products all together?

I’m hopeful that the answer is no: if people stay true to themselves and they way that they interpret luxury, they’ll continue to buy what gives them the most pleasure. Thetas will find perfect things for affiliation, and Lambdas will find things that make them feel truly exceptional. Economic conditions may make the luxury buyer’s budget smaller, but if he or she is buying something (like a diamond) that represents love in a relationship, such affection won’t be suppressed by difficult economic times.

The Bentley brand is associated with quality and for creating products that allow customers to travel in style. The luxury car manufacturer is now aiming to make cruising the information super highway a similarly extravagant experience for the select few who will own the new Bentley laptop computer.

Bentley’s new product, one of the most expensive on the market, debuted at the British International Motor Show in London in July and will be retailed globally in high-end stores in October – but only to the first 250 people able to splurge the £10,000 to get one of the limited edition laptops.

Featuring Windows Vista, a 64-bit processor, a 160GB hard drive and 12 direct access keys, each Bentley laptop is hand-built, and encased in leather with the same cross-over stitching detail seen on the car seats. The chrome carry handle is modelled after the trademark automobile’s door handle as well.

Bentley paired up with Ego Lifestyle, a luxury and lifestyle product designer, who specialize in creating customized computers, to produce the laptop. Though it’s not the first time high-end car brands have relied on their brand perception to launch into the electronics market, to date this type of pairing has been mostly the domain of sports car manufacturers, like Ferrari, Lamborghini and Koenigsegg.

Bentley’s newest addition to the market stands apart from the specialist designs created by the sports car manufacturers. These brands are associated with products that are sharp and fast, and promote the idea that the computers will have the same type of edge the sports cars evoke. The difference with the Bentley laptop closely reflects the differences in the brands, with Bentley emphasizing individuality and class. And while the sports car branded laptops retail at between £1,200 and £1,700, the Bentley laptop’s much higher price is a clearly distinctive point.

Bentley’s new product will appeal to luxury consumers of both the Lambda and Theta worldviews. Each PC can be moulded into a highly specialized look based on the consumer’s colour choice for the leather casing as well as the chrome interior, so there’s little chance of running into someone with the same piece and the same bespoke detailing, a plus from the Lambda perspective. On the other hand, the Bentley logo is clearly visible, and the laptop exudes the same sense of craftsmanship associated with the automobile brand, which will appeal to the Theta consumer.

With the Bentley laptop set to go on sale next month, it will be interesting to see how quickly the few available products will be snatched up. Success in this venture may see Bentley, like other luxury goods makers, continue to use its status as a trusted brand as a platform to hype existing markets.

Gone are the days when demographics were the primary marketing targeting resource. Information available through demographic analysis cannot solely be accounted for marketing strategy since it’s based on correlation, not causality. Demographics continue to be important within the marketing craft, but without the context of psychographics they have limited usefulness.

Psychographics refer to a set of characteristics shared by specific demographic markets that indicate lifestyle choices, buying habits, attitudes or opinions.

The Theta-Lambda worldviews that I’ve developed are an example of psychographic characterisation consisting of two personality types. The typical Theta (Θ) personality seeks affiliation and control whereas the Lambdas (Λ), seek achievement and uniqueness as an ultimate end goal.

As another example, SRI Consulting Business Intelligence classifies luxury consumers into three segments based on psychographics:

• Luxury as functional: This segment is composed of consumers who buy luxury products for their superior functionality and quality. They usually involve themselves in a longer decision making process in order to make rational and logical decisions, rather than emotional or impulsive ones.

• Luxury as reward: This segment purchases luxury goods in order to showcase their achievements. They are motivated by their desire to be successful and demonstrate this to others. They usually purchase ‘smart’ luxury that demonstrates importance while not leaving them open to criticism.

• Luxury as indulgence: This group’s purpose for luxury goods is to self-indulge. They are willing to pay a premium for goods that express their individuality. They enjoy luxury for the way it makes them feel, therefore have a more emotional approach to purchases.

The understanding of psychographics plays an important role within the luxury industry. Although there is no standard definition of luxury or classification of consumer psychological profiles, by understanding the importance of psychographic analysis, one can constantly redefine and refine the term ‘luxury’ in relation to individual customers’ views. By engaging in this analytical process, marketers are able to tailor a product and the marketing message in order to appeal to customers’ desires and motivations.

Luxury marketers should make note that the luxury consumer is always looking for newer ways to satisfy his/her continuously changing needs. Hence, the need to keep a close tab through insightful and concurrent psychographic research is of prime importance.

How far will one go for a bottle of bubbly? To the bottom of the ocean it seems for some, as 200 bottles of champagne have been recovered after nearly 100 years underwater. Not only will you be drinking one of the oldest champagnes in the world but you must be able to pay £156,000 a bottle for this luxury. The vintage 1907 Heidsieck champagne, that sunk on its way to the Russian Imperial family in 1916, was found near Finland and will go up for auction at the Ritz-Carlton in Moscow, date still unknown.

Earlier this year we saw the “community of the super-rich” offered up the chance to customize their own bottle of Perrier Jouet champagne, whereby, after lengthy discussion with the Cellar Master, you could personally add your chosen ‘liqueur’. At the time, this limited edition offer was the most expensive bottle of new champagne, going for a mere $6,485. it doesn’t compars to the starting price for this most recent discovery.

Has the time come when the elite are paying over the odds for a unique experience? Those with a Lambda worldview may disagree: for them, this once-in-a-lifetime, long lasting, perfectly preserved bubbly provides them with an unparalleled, unique experience, not to mention a great talking point over dinner. Thetas, on the other hand, would likely purchase one of the 200 bottles on offer for the chance it gives them to gain entry to this most elite “community of the super-rich”. To them, this bottle is yet another validation ticket into the inner circle for champagne connoisseurs.

Those lucky enough to be able to purchase one of the 200 bottles may be satisfying a collector’s impulse or simply indulging on a small piece of history.