There are particular types of products that we buy from different stores at different prices, yet the products are the same. For instance, a wristwatch that we buy from an average store, when we inquire of the price in a mall, is likely to be more expensive. Note that both wrist watches serve the same function.
Now the question is, why should the prices differ when they serve the same purpose, which is telling time, of course?
Many people will find this ridiculous and doubt that many people would go for the brand that is more expensive when it serves the same purpose as the other brand that is less expensive, but that's not actually true. There are lots of people that will actually patronize the expensive brand than we think.
One of the reasons why people would prefer the expensive brand over the other is because of their Status. People tend to live a certain lifestyle based on their status. This comprises the kinds of stuff they get for themselves. Generally, everyone carries out expenses based on their distinct statuses. I once read of a story where Cristiano Ronaldo went to a restaurant and, when given the menu to make his choice, he became disappointed.
Simply because all the foods listed on the menu were at prices that were considered too cheap for him. They had to provide him with a special menu that they gave to only prestigious customers who visited their restaurant. People with high standards believe that things that have quality shouldn't come cheap. And quality is all they go for.
The quality of the cheaper brand cannot be compared to that of the expensive brand. When compared together and carefully observed, you'd definitely point out some differences. The brand that costs you much has a higher potential of lasting longer for you than the other one. Imagine losing a wristwatch worth 10 dollars and losing another wristwatch worth 45 dollars; which of them would hurt you more?
Of course, it'll be the one of 45 dollars. So, to avoid that from happening, we'll be extra careful of the way we handle it because whenever we remember how much it cost us to acquire, we just possibly can't imagine losing it. That is one of the advantages of going for quality. It has the capacity of lasting for a long period of time.
So, what is in the mind of people with high class whenever they buy something is not necessarily the function. They consider their status when making purchases. They also consider the longevity the product can provide for them. This mindset helps entrepreneurs know how to treat their clients differently.
As an entrepreneur, one of the major things to point out is the type of customer you are faced with. This helps you know the right approach towards them.