Each of us surely come across small shops with garish signboard known brand and truly "space" prices.Despite the fact that the quality of this product, you can safely buy and at a reasonable cost, there are people who prefer to pay for useful properties of the products sold in these shops.Moreover, the desire to get to your wardrobe little piece of prohibitive cost is sometimes so strong that people spend precious time waiting in long queue - how to explain this behavior?
Veblen effect: concept and essence
In economic theory can be divided solvency requirement for the product into two broad categories: functional and non-functional demand.And if the first group is directly due to the consumer qualities of goods or services, the second depends on factors whose relationship with useful properties is quite difficult to trace.Some people buy what they prefer to buy their friends (bandwagon effect), while others tend to stand out from the crowd (snob effect), and still others want to raise their prestige and deliberately buy expensive things.The latter case is described in detail the economist Thorstein Veblen, after which the use of goods or services not directly, but in order to create a lasting impression, and received its name - "Veblen effect".
This American futurist and writer has written a number of books such as "The Theory of Entrepreneurship", "Theory of the Leisure Class," et al., By which the concept of "a prestigious and conspicuous consumption" has firmly entered into the everyday life of sociologists and economists.According to Veblen, in today's society, the demand is very much influenced by the way live "cream of society".Lifestyle leisure class is increasingly becoming the norm, and the benchmark for all other people.So many try to copy the tastes and preferences of the oligarchs, the "golden youth," Stars of show business, etc.But these marketers are great.
Veblen effect: life examples
consumption The status can be seen at almost every turn.Just look, how they dress our deputies and what they drive.You can also go for fun in one of the fashionable boutiques and ask prices.Veblen effect is often manifested in the evaluation of works of art, it acts in expensive restaurants and hotels, often manifests itself in advertising on the pages of luxury magazines.And if you add that the Russian soul tend to go to extremes, it becomes clear why some people believe that spirits should be necessarily from Armani, clothes from Brioni, and the clock - from the collections of Patek Philippe.The latter, incidentally, is very popular among the Russian elite - among the fans of this brand includes Vladimir Putin, Anatoly Chubais, S. Naryshkin, etc.
Features status of domestic consumption
Veblen paradox has long been known, and there are no countries that could be written in the exception.However, the way it works in the countries of the former Soviet Union, is significantly different from its manifestations in Europe.If the rich residents of developed countries give their preference to the exclusive unique product or brand with a history of several hundred years, the main indicator for our compatriots is nothing more than a high price.The higher the value of the goods, so to them it becomes more valuable and desirable.It must be borne in mind if you suddenly have a desire to indulge in some "branded" bagatelle.Our marketing specialists - people are cunning in their actions, they do not disdain to use all sorts of psychological tricks.Knowing what motivates us for the purchase of certain things, we will be able to more intelligently make choices and avoid unnecessary expenditure of its budget.
