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Many consumers who buy luxury goods are not in a financial position to afford luxury goods. They do not always act rationally and may spend thousands of dollars on a luxury brand that performs the same function as a similar durable item at a much lower cost.
Many people prefer to buy luxury goods, but the price tag can be off-putting. Unless you earn a high salary or have a great personal savings habit, buying luxury consumer goods can be cost-prohibitive.
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Humans tend to overemphasize the positive elements of a product and ignore the downsides. For example, consumers wait overnight for new releases of certain products, even though other brands have better features and are cheaper.
One reason is that people view non-luxury goods as inferior simply because they are non-luxury. They also conclude that higher-priced goods must be of better quality, regardless if the goods are better or not.
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People prefer to pay the full price for an authentic luxury item over a fake one (even if they look identical).
Researchers found that this desire for authenticity develops in childhood. The sentimentality of the item is part of the reason. If you treat yourself by buying a fake brand, it would be the same as not treating yourself at all.
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"There's no money in poetry, but then there's no poetry in money, either." ~ Robert Graves
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