For example, brands like Dyson and Shark. Both have similar products but Dyson is just way more expensive. Is it better because it’s more? Or are you really just paying for the name.
I owned both air wrap hair tools and saw no difference between but the price was dramatically different.
I don’t understand how some things are more expensive. Lululemon has shirts for $70+ but similar ones of another brand are way cheaper. Louis Vuitton products are insanely priced but people buy them. Why are they so expensive and why do people buy them? Is it a way to say I have money? I do not understand. Thanks for any replies.
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Mostly the name. One of the most explicit examples was the Pontiac Vibe/Toyota Matrix. They’re literally the same car…designed by one engineering team, built from the same parts in the same plant. It was just co-marketed by GM and Toyota. The Matrix sold for a couple thousand $ more than the Vibe…all based on brand reputation.
The key to recognize is that branded stuff is value-priced…it is priced based on what the customer is willing to pay, not what it cost to make, and value is both subjective and can change (between people and over time). The brand is part of the perceived value. People are willing to pay more for some brands…it doesn’t really matter why, as long as they are then the brand will charge appropriately. Could be perceived quality, could be actual quality, could be warranty, could be anything. Could be people like their ads. Could be people love or hate their owner. Anything.
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