Is it a want or a need? Luxury Brands

As I was reading My Le‘s blog post about the gray area’s between needs and wants, I thought that this might be the most important point marketing is all about. Other than the basic necessities we need in life, all the other rest are considered luxury goods. Well, today, even basic items we use everyday are differentiated to the extent that even a pen can have a much higher level of value. This gray area is the place where marketers brainstorm to make consumers WANT to buy them even though there are way more cheaper options available to them.

In economics , I learned that luxury goods is a good for which quantity demanded increases more than proportional as income rises.  That is not necessarily true to some people. Some people pay debts just to buy Hermes and Chanel bags. These consumers see something so special and unique about these luxurious brands that marketing brought to them. Perhaps, it is the prestige, perhaps it is the fashion, perhaps, it really is the quality..