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Only Buziness

Business enthusiasti...ย โ€ขย 25d

โ€œThe Pricier, the Better: How the Veblen Effect Drives Luxury Brand Obsessionโ€ The Veblen Effect is a psychological phenomenon where demand for a product increases as its price risesโ€”because the high price signals status, not just value. Luxury brands thrive on this. When someone buys a โ‚น5 lakh watch or โ‚น1 crore car, theyโ€™re not just buying functionalityโ€”theyโ€™re buying prestige. The product becomes a symbol of identity and social proof. Scarcity, exclusivity, and limited editions amplify this effect. Even advertising for luxury avoids discounts or โ€œvalueโ€ languageโ€”instead, it whispers elegance, legacy, and access. In this world, higher price isnโ€™t a barrierโ€”itโ€™s the attraction. Thatโ€™s the power of perceived status. From Only Buziness

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