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This article is a reminder that many luxury goods don't have enough intrinsic value to account for their price. In those cases, marketing needs to actually add

This article is a reminder that many luxury goods don't have enough intrinsic value to account for their price. In those cases, marketing needs to actually add value to a product, not just inform people of the intrinsic value of a product. This practice is used in almost all end-consumer products on the market. Seeing an Apple ad of a shiny image of a new iPhone imprints that image into the customers mind, even after they purchase and use the product. Their perceived value of their iPhone one year after purchase is greater than if they have not seen any advertisements, because they keep associating the product in their hands with the very high quality image on TV. This is what's happening here with Mast Brothers chocolate. The high price itself can increase perceived value ("If it's expensive, then it must make me happy!"), appeal to values held by the consumer ("I support small businesses so I value the purchase more!"), and the packaging or storefront proximity ("Imagine how much value the product is since the packaging is such high quality, or the presentation on the shelf is high quality"). None of these have anything to do with the edible substance they're buying (the "end product"). In fact, I would argue that the end product matters the least for this particular product. Beyond some point, the quality of product does not affect its intrinsic value. Mast Brothers is beyond that point. The marketer therefore must use the above methods to further increase perceived value. If you are a business owner yourself, you can choose to increase perceived value of your product in ethical or unethical ways. Some customers will detect unethical practices, some won't notice (such as people who don't read this article), and some won't care.

smacktoward 7y ago
Or artisanal products like Mast Brothers' are actually Veblen goods (see https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good), where demand for the product is driven by the high price because it lets its buyers conspicuously signal that they're better off than everyone else. Poor people can't afford $12 chocolate bars, so for a person who regularly buys $12 chocolate bars, part of the value to them is the opportunity to demonstrate how not-poor they are. All the markers of authenticity are just there to let the buyer convince themselves that they're doing something loftier than that.
- Animats 7y ago
  "Artisanal products" Right. Getting really tired of that. Overpriced bread. Oh, and because wide bread is now "artisanal", long-slot toasters have acquired luxury pricing and are more expensive than four-slot toasters. Even though they have identical heating elements.
  - pfranz 7y ago
    It's an evolution. In the 50s white bread was considered modern, sanitary, more shelf stable, and futuristic. Now rustic and artisanal bread is considered nutritious with higher quality ingredients because we have fewer worries about quality and we're not giving up many of those other traits. Soon enough, that will be mass produced and there will be some other signal of higher quality or desirable trait that requires us to buy newer toasters. I still think white bread makes a better grilled cheese, pb&j, and brioche makes superior french toast. Those are all terrible on multi grain bread, which has its own uses.
    - Animats 7y ago
      Here's how "artisanal bread" is made now.[1] Conveyors, robots, stainless steel. No people. "When you want to bake as much bread as possible, you need robotic assistance. You have to get out of the way. If you have 12 or 15 oven decks, you can't physically load it fast enough." [1] https://www.youtube.com/watch?v=2Qm_iHgFsPw https://www.youtube.com/watch?v=2Qm_iHgFsPw
  - itronitron 7y ago
    I hope this doesn't break you >> https://www.heirloomfire.com/ https://www.heirloomfire.com/
    - krysp 7y ago
      Quite honestly thought that video was a joke until the final cut
    - StudentStuff 7y ago
justaguyhere 7y ago
There are a couple of videos on youtube comparing $1000 Louis Vuitton color pencils (yes, you read that correctly, thousand US dollars for a bunch of color pencils made by Louis Vuitton) to cheap everyday color pencils and the LV pencils lose! It is amusing to watch. I guess many luxury goods are just good marketing and advertising.
- pfranz 7y ago
  I'm surprised by a lot of those kinds of products. I figured they're "art projects" and promotional. Other examples seem to be veblen goods. I think other A/B comparisons are looking at the product the wrong way, like complaining baby seats don't fit in a Lamborghini.
  - wodenokoto 7y ago
    They are, but the least they could do at that price is repackaging high quality pencils, instead of low quality.
ulkram 7y ago
> imprints that image into the customer's mind It's actually deeper than that. It imprints the image into our collective minds. Even if YOU don't think iPhones are better, it may still be rational for you to buy one if you know that people will think more highly of you when they see you holding one.
phoobahr 7y ago
In those cases, marketing needs to actually add value to a product, not just inform people of the intrinsic value of a product In this specific case, and others like it where a truly common good is priced into a truly niche market, the marketing is the value.

smacktoward 7y ago

Or artisanal products like Mast Brothers' are actually Veblen goods (see https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good), where demand for the product is driven by the high price because it lets its buyers conspicuously signal that they're better off than everyone else. Poor people can't afford $12 chocolate bars, so for a person who regularly buys $12 chocolate bars, part of the value to them is the opportunity to demonstrate how not-poor they are. All the markers of authenticity are just there to let the buyer convince themselves that they're doing something loftier than that.

Animats 7y ago
"Artisanal products" Right. Getting really tired of that. Overpriced bread. Oh, and because wide bread is now "artisanal", long-slot toasters have acquired luxury pricing and are more expensive than four-slot toasters. Even though they have identical heating elements.
- pfranz 7y ago
  It's an evolution. In the 50s white bread was considered modern, sanitary, more shelf stable, and futuristic. Now rustic and artisanal bread is considered nutritious with higher quality ingredients because we have fewer worries about quality and we're not giving up many of those other traits. Soon enough, that will be mass produced and there will be some other signal of higher quality or desirable trait that requires us to buy newer toasters. I still think white bread makes a better grilled cheese, pb&j, and brioche makes superior french toast. Those are all terrible on multi grain bread, which has its own uses.
  - Animats 7y ago
    Here's how "artisanal bread" is made now.[1] Conveyors, robots, stainless steel. No people. "When you want to bake as much bread as possible, you need robotic assistance. You have to get out of the way. If you have 12 or 15 oven decks, you can't physically load it fast enough." [1] https://www.youtube.com/watch?v=2Qm_iHgFsPw https://www.youtube.com/watch?v=2Qm_iHgFsPw
- itronitron 7y ago
  I hope this doesn't break you >> https://www.heirloomfire.com/ https://www.heirloomfire.com/
  - krysp 7y ago
    Quite honestly thought that video was a joke until the final cut
  - StudentStuff 7y ago

justaguyhere 7y ago

There are a couple of videos on youtube comparing $1000 Louis Vuitton color pencils (yes, you read that correctly, thousand US dollars for a bunch of color pencils made by Louis Vuitton) to cheap everyday color pencils and the LV pencils lose! It is amusing to watch. I guess many luxury goods are just good marketing and advertising.

pfranz 7y ago
I'm surprised by a lot of those kinds of products. I figured they're "art projects" and promotional. Other examples seem to be veblen goods. I think other A/B comparisons are looking at the product the wrong way, like complaining baby seats don't fit in a Lamborghini.
- wodenokoto 7y ago
  They are, but the least they could do at that price is repackaging high quality pencils, instead of low quality.

ulkram 7y ago

> imprints that image into the customer's mind It's actually deeper than that. It imprints the image into our collective minds. Even if YOU don't think iPhones are better, it may still be rational for you to buy one if you know that people will think more highly of you when they see you holding one.

phoobahr 7y ago

In those cases, marketing needs to actually add value to a product, not just inform people of the intrinsic value of a product In this specific case, and others like it where a truly common good is priced into a truly niche market, the marketing is the value.