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Years ago, a luxury car company (I believe it was Mercedes) did a study measuring demand with the same car across a relatively wide range of prices. Contrary to
by bumby 3y ago
Years ago, a luxury car company (I believe it was Mercedes) did a study measuring demand with the same car across a relatively wide range of prices. Contrary to economic models that assume rational actors, there was a point where lowering price further made demand go down. People apparently assumed the higher price tag on a car made it more attractive as a consumer.
- SoftTalker 3y agoProbably why Mercedes does not bring their lower-end or lower-optioned car models to North America. They want to maintain their image as a luxury marque so they can command premium prices that their customers are happy to pay.