Prestige products are goods that are perceived as being very high quality. The purchaser therefore is willing to pay more as he/she suspects that they have higher added value.
In fact prestige products not always have increased quality. The prestige sometimes comes from good marketing and that how other people see those products. For example, people buy prestige cars because they are prestige cars, and not because of high technical quality. In most cases it is possible to find similar functions in cheaper cars. That what is really important for those buyers is to show off.
For example, an Audi is seen as prestige product, while Skoda as normal product. However, many parts used in both cars are identical (both are manufactured by Volkswagen) and functions are similar. But the prestige related to Audi is higher than to Skoda or Volkswagen.
- Liu, L. (2003). The products of minds as well as of hands: Production of prestige goods in the Neolithic and early state periods of China. Asian Perspectives, 1-40.
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