How much will you pay for a purse/wallet?

I asked 5 of my guy friends.  Steven, a commerce student,  told me his wallet is around $100, which is a Diesel.  Ricky, who is also an commerce student, bought his wallet from Guess for around $40.  Another friend of mine, Lu, a science student, told me he will never pay more than $30 for a wallet and his bought his wallet from China, which is around $6.  My close friend just bought a Chanel purse for $2500.  I was so surprised that she would actually pay thousands of dollars for a purse and asked why she did that.  Her answer was only one sentence. “Because it’s Chanel.”

I also did some research about Chanel in Chinese market.  I thought in a market like China, where you can get an super nice purse for $10 or an identical Chanel purse for $30, people may not pay thousands of dollars for a wallet.  However, women in China are even more enthusiastic about luxuries.  Actually in China, a Chanel purse is around $4000 and Chinese women are still crazy about them.  I would say Chanel is a typical brand that using profit orientation strategy.  According to my friend, Chanel doesn’t need any advertisement.  The logo itself is the best ad.  Chanel is elegance, taste and feminity.  People spend surprising amount of money on it because it is Chanel.