Why are some consumers willing to pay A LOT more to obtain a product of similar functions as those with a much lower price?
The answer lies in the different perceived values consumers place on the rather similar products. For instance, a handbag from H&M would probably only cost $20 whereas, a handbag from Prada would cost a few hundred dollars, even though they carry the same function. Some consumers might prefer the Prada brand simply because its merchandises are expensive and therefore, by purchasing them is a way for those consumers to distinguish themselves from the public and to to signal their social status. With the high price that those consumers pay, they also have higher expectations for the products, or at least they expect the company who owns this luxurious brand to show them that their products are worth the price they pay.
Many luxury designer brands depend heavily on their official Web site portal as a way to bring values to its consumers by displaying the most recent fashion shows, new projects, gossip and news …etc. Prada is an example where the company displays its women’s fashion campaign by using sex appeal to tell its female customers that by wearing Prada clothings, you will have an endless supply of guys chasing after you.
In addition, Prada also features 20 short films about its production process, including shots showing artists sketching handbags, the makin of a Parada ballerina slipper, and more.
The featured craftsmanship reminds consumers why they pay premiums for these products. Consumers spend more time on these Web sites than ever before probably because the video, three-dimensional branding, and luxury appeal help create emotional connections with customers. Luxury retailers can distinguish themselves from other producers by allowing customers to feel as though they really know what oes on behind the scenes.