SOCIOECONOMIC DETERMINANTS OF DEMAND FOR LUXURY GOODS IN YABA, LAGOS STATE, NIGERIA
Onyebuchi Iwegbu* & Kolawole Joseph Anjorin
Department of Economics, University of Lagos, Akoka, Yaba, Lagos, Nigeria
This study examines the socioeconomic determinants of demand for luxury goods in Yaba, one of the densely populated areas of Lagos. Specifically, it investigates the impact of consumers’ income level, family size, religion, gender variations, and price levels on their decision to purchase luxury goods. The study uses self-administered and online questionnaires to collect data. The data was estimated using the Binary Logistic Regression (BLR) estimation technique. The findings show a positive influence of income level on the demand for luxury goods, whereas price level, gender and family size had a negative influence. Although religion has a positive impact, it is insignificant. The implication from the findings shows that an individual’s income level is crucial in determining the choice of luxury goods. Therefore, macroeconomic instability or policies that can cause job loss and income reduction can as well hurt demand for luxury goods. The study, therefore, recommends that there should be consistent payment of income for income earners and macroeconomic policies and a stable environment that can boost the income of self-employed consumers.
Keywords: Socioeconomic Factors, Luxury Goods, Binary Logistic Regression Analysis (BLR), Yaba-Lagos