In this new world companies release expensive products on the market with no rea

Question

In this new world companies release expensive products on the market with no real value, I clearly understand that price is a perception and often does not have any relationship with the real cost of the product. If these new products have no real value, how are they able to command huge prices? In this new world companies release expensive products on the market with no real value, I clearly understand that price is a perception and often does not have any relationship with the real cost of the product. If these new products have no real value, how are they able to command huge prices?

Explanation / Answer

The answer to this question is very simple, it is the brand value of a product that actually is able to command huge prices and I don't think anybody can deny the fact because once an organization or brand is able to get popularity and acceptance it will use the opportunity to go big and Everytime it is the brand value that matters. We buy a Shirt from a popular particular brand for a good amount. Do you think that the shirt is actually worth that amount? The answer is no the value of the shirt is maximum 50 percent of the amount charged which includes all the cost incurred and the remaining 50 percent is for the logo of the brand. The popular the brand the cost of the logo increases.

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