The Veblen Effect

6 thoughts on “The Veblen Effect”

  1. Hahaha! Well, I don’t spend money on iPhone or high-end Samsung phones. I always prefer mid-priced mobiles, which performs whatever I want. So, I am not under the influence of Veblen Effect. Nice Post.

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  2. It is also called a marketing maneuver in other words the perceived value of the product/ brand is disproportionately higher than the cost+ mechanism of pricing. A classic example is our simple Tea… you can buy it as low as ₹1 a cup at a roadside stall and also pay ₹200 + taxes at a 5star restaurant.
    In today’s Times of India, there’s an ad of Titan Edge wristwatch…the USP of the brand (Edge) is that it is perhaps the thinnest (2mm approx) watch… I have two of them and was curious if the new offering… I remember the ones I have do not cost more than 5K, therefore, was taken aback at the price of ₹1.85 Lac quoted (for the limited edition!!)…
    Will you call this Veblen effect??? 😊

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    1. Veblen effect is a relative term. So long, there is a willing buyer to buy at the quoted price, the price demanded by seller is justified. After all, the seller has also put in something to create the Veblen effect. 🙂

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  3. Yes, read about it earlier. However, the story of Ceasar was not known, until it was narrated by Aro, which is elaborated further by you. Nice post. Cannot afford Veblen effect affect me…haha…

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