Directions:
1) ANNOTATE/TALK TO THE TEXT by writing main points in the margins.
2) Briefly explain the Veblen effect.
3) Briefly explain the Snob effect.
4) Briefly explain the Bandwagon effect.
5) After the bandwagon effect, describe two other reasons people sometimes prefer
brand name products.
6) Is the author of this article trying to point out what is wrong with always buying
brand name products OR is the author simply trying to explain why people do it.
EXPLAIN YOUR ANSWER.
The Reason Why We Purchase Brand Name Products – March 12th
A few months ago, it was reported the price of the luxury brand products was increasing. In
spite of their surging prices, Korean consumers have never been reluctant to buy luxurious
goods. Koreans have not stopped buying a product of luxury brand even during the
economic recession in 2008. A survey showed that the majority of one thousand
respondents had experience of buying imitations of luxurious products. Buying imitations
reflect a desire to eventually afford brand-name goods.
At the first, most people want to show off. Purchasing luxury brand goods is one of means
to be distinguished since many people cannot afford to get those goods. Some terms below
explain this idea.
Veblen effect: Explains why people buy an expensive product. Veblen effect describes the
psychology of the consumer that people buy clothing or car worth of million dollars to
flaunt their fortune.
Snob effect: Demanding of particular product decrease, when consumption of the product
increases. Consumers have a good feeling about products that most consumers cannot
purchase; the products are high-class and brand-name.
Band wagon effect: Points out consumers prefer to follow a trend. This word is originated
from a band that attracts the people in front in parade.
The second thing is people, do not want to fall behind another people and have an
excessive competitive spirit. Commonly, this phenomenon is called ‘Covetousness breaks
the sack.’ If a middle school student wears high-priced shoes, a half of students in the class
will wear the same shoes.
The third thing is that people reveal themselves with substantial things like their looks or
car. Sometimes, we had an experience that people judge person as appearance.
Lastly, consumers believe that ‘high-priced products guarantee high quality’ and ‘low price
indicates low quality. Consumers are asked what they consider when they purchase
luxurious fashion products, according to an inquiry, 33 % of respondents considered
design another 32.4 % of them considered a brand’s fame. Only a few consumers put
emphasis on scarcity.
Should we totally blame consumers for zealous love of luxurious goods? Some companies
have employed gimmicks to manipulate preference of consumers. A secret of manipulation
is labeling goods ‘high-priced’ or ‘limited.’ Mass media also fuels vehement worship of
luxury brand. Most entertainers appear in TV are luxury brand lovers, therefore, viewers in
their 20s and 30s could be influenced easily since they tend to purchase without serious
consideration.
Above all, Koreans’ love of luxury brand leads to many problems. A problem is some people
want to spend money disproportionately to their income. In France, people do not idolize
well known brands. French people prefer to think what suits them instead of blindly
looking for expansive goods. I am not telling you ‘Do not buy brand-name goods!’ I want to
tell you ‘Consider your economic condition when you purchase a high-priced product.’
Keep in mind that enjoying a fruitful life is more important than having a superficial life.
So Do We Need the Cool Brands?
With the economy where it’s at, “necessity” is brought into consideration more. It’s one
thing to look like a trend setter, but at what point does the extra cost get bought out by
practicality?
It’s important to be an intelligent consumer, check reviews as much as possible, and make
sure to keep out of debt. If you feel what we own defines your place in society, think again.