What is a common belief regarding the price of luxury goods?

The belief that the price of luxury goods reflects the craftsmanship and exclusivity is rooted in the perception that high-quality materials, intricate design, and skilled labor contribute to the overall value of luxury items. Consumers often associate higher prices with a symbol of prestige and social status, leading to the idea that paying more for a luxury good ensures a unique product that is not mass-produced.

Luxury brands typically invest in superior craftsmanship, exceptional service, and unique brand experiences that justify their pricing strategy. When consumers purchase luxury items, they expect the price to correspond not only to the physical product but also to the experiential value and status associated with the brand. This belief reinforces consumer loyalty and brand equity, as luxury brand buyers often engage with the brand on an emotional level, valuing authenticity and rarity.

Other beliefs regarding pricing in the context of luxury brands generally do not align with the established perception that high prices are indicative of quality and exclusivity. For instance, the idea that luxury goods should be affordable for mass markets contradicts the core concept of luxury itself, which thrives on exclusivity. Likewise, suggesting that luxury goods should be lower than mid-tier brands undermines their positioning as products that signify status and superior quality. Lastly, the notion that price is irrelevant to brand