In a world full of different choices, premium goods have seen a boom in their demand. People have started to understand the importance of quality in products and give priority to it. But choosing a premium well also has some psychological factors behind it. Continue reading to learn more about the human psyche.
Perceived Value
Premium good (สินค้า พ รี เมี่ ยม, which is the term in Thai) creates a perceived value in the eyes of customers. A higher price becomes a symbol of exclusivity and premium quality. It shapes the perception and expectation of consumers for the products.
Owning a premium good also gives the illusion of being wealthier and being top of the status pyramid. It helps in creating a statement and showcasing your social position.
Emotional Appeal
Owning or gifting premium goods gives you a glimpse of all the hard work you have done to achieve it.
It promises you a wealthy lifestyle, fit in a part of society, or a luxurious experience. Brands are experts at tapping into the desires, emotions, and aspirations of their customers.
Halo Effect
The Halo effect occurs when our favorable perception of a product or brand is predicated on just one feature. If our initial impression is favorable, it will influence the decisions we make in the future.
A high-quality product of a brand will influence consumers to believe that all products are like it. They will believe that the same standards are being applied justifying the premium price.
Principle Of Scarcity
Limited editions, exclusive releases, or products that are not easily available become high in demand. Everyone wants to be part of the exclusive group that owns them. Humans don’t like the fear of missing out (FOMO) and would pay a hefty price to own it.
This process raises the actual value of the product itself, urging the consumers to grab something unique or rare.
Endowment Effect And Habit
Once we own something, its value increases in our perception just because we own it. This is known as the endowment effect. This creates a reluctance to be away from the item as it now holds more than just monetary value.
Also once you start buying these items, you will realise what you have been missing for so much time. Premium good comfort, durability, and quality would make you keep on asking for more.
In conclusion, brands use psychology to appeal to the psyche of their customers. Understanding these concepts would help in knowing the reasons behind the allure of opening premium goods.
