04-28-2022, 02:12 PM
(04-27-2022, 04:30 PM)Pyrrho Wrote: Price differentials with luxury items such as BMWs are divorced from practicality. If you're not familiar, check out Veblen goods -- with luxury items, increased price alone can drive consumer interest because of many factors: rarity, status, conspicuousness, etc.
The excess that is never used is often an internal justification for purchase, with considerations completely divorced from reality. If some Starbucks-hopper bought a GS because they want to be viewed like Boorman or McGregor yet they never ride it off asphalt -- but it fulfills their self- and projected-image goals (possibly the primary reason they bought the bike at all) is that a waste, or money well spent?
I'm sure there are some who buy a Porsche, or a BMW or Ducati motorcycle for those reasons. However, these products also have objective differences and performance advantages that justify the cost. I don't think the same case can be made for a handbag.