How do you justify buying an expensive brand?
Many a time, I have pondered over the question – Why do people purchase expensive brands when cheaper alternatives offer the same utility? People often reason for their expensive purchase behavior by boasting about the premium and luxury aspects of brands. However, the brand aspect is but a mere perceived understanding of consumers. The human psychic and the way it functions heavily influences purchase decisions. For this reason, I contend that people do not justify the purchase of expensive brands; they rationalize it.
Being a minimalist, I have questioned my own choices when making purchase decisions on numerous occasions. Does buying a guitar worth over a grand bring me greater joy? Will it magically make my playing a lot better? Why not just get a guitar that costs a lot lower but serves the same purpose? Why not save up another grand and purchase an even more expensive and premium brand? Surely you must have dealt with such quandaries when making your own purchase decisions. Here, an exploration into human psychology will aid in understanding why people build a preference for expensive brands.
Irrationality
A perfectly rational person’s actions are backed up by concrete logic; therefore always acting in his/her best financial interests. Alas, modern disciplines such as Behavioral Economics have referred to real people as irrational beings. Succumbing to the capitalistic game of marketing & branding, people do not always act upon their best financial interests. Many consumers spend more than their financial capability to purchase expensive goods, be it at the cost of debt or a compromise on other aspects of life. Furthermore, consumers get barraged with financing options for their expensive purchases which only adds to their irrationality.
Low Self-Esteem
Put simply, human beings are social beings. A sense of belonging in a cohort can largely influence purchase behavior. Especially when it comes to expensive products, owning them provides a boost of self-esteem as the people surrounding you will be observant of your expensive purchase. Moreover, there is also a complacent feeling that emanates from purchasing a premium brand that is not owned by the majority. Add to that the brand image projected by the likes of Rolex as something worn by successful people only; consumers are likely to make a luxury purchase for a boost of self-esteem.
Higher the price, better the quality?
A major factor to consider here is that some people buy the most expensive products simply because they can afford to. Consumers with high spending power can easily afford to pick the most expensive brands without much burden. Besides, people are engulfed by the prejudice that a higher price ensures better quality. For instance, consumers get head over heels for Apple’s products although they are not technologically superior yet the most expensive.
Conclusion
People will buy expensive brands by hook or crook if they are fixated on purchasing them. Human nature is such that people will make sense of their actions even if rational logic says otherwise. Additionally, the marketing & branding efforts of businesses also work in unison to influence the human psychic into purchasing expensive products.
