Power of Branding: Price tag as a product feature

The price you pay sometimes is the biggest feature of the product or service. There are so many instances where higher the price translates into higher customer satisfaction.
A INR 1,00,000/- watch has the same accuracy & features as a 200/- watch. A 1,000/- mobile phone often has the better cell tower reception & battery life than a 30,000/- smart phone. A foreign vacation is no better than a domestic travel/road drive. Same is true with bags, shoes, cars and so many products… yet we buy them.
Neo-rich do an ostentatious display of wealth through solid gold jewelry & flashy/gaudy accessories. ‘Khandani Raseesh” (who inherited wealth) might not be flashing their price tags, but they let their brand, logos and club membership to speak for them.
Human beings have a herd mentality and always want to be part of that inner-circle. They would go to any lengths to showcase that they belong to that most coveted exclusive club. In today’s capitalistic society that is often determined by the price tag. More the price of the product, the more exclusive it becomes. Sometimes the price-tag & exclusivity supersedes everything else. I guess no wonder any company (including the pharmaceuticals) have a higher branding budget than R&D.
You might like my older post here.

 

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