Quote:
Originally posted by Jeremy@Jun 16 2005, 08:38 AM
Oddly, though I seem to remember info on a Marketing course from way back when that certain luxury goods are thought to be fairly price insensive purchases *unless* the drop below a certain level at which they're no longer perceived to be luxury and actually lose sales. Things like Rolls Royces, swimming pools etc.
(I've never seen any proper data to back this up, so it may just be a myth).
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Ahem, let me put on my economics hat. What you speak of is called a positive network externality. For luxury items, take a womens hand bag for example (you know those freakin $2000 LV bags!?!?) , as the price increases, so does its 'prestige value' and thus actually increases the demand (in a graphical sense a +ve externalilty flattens the demand curve, and in extreme cases can actually create an upward sloping demand curve! ie demand increases with price)
I know all those years at school would be good for something! :P
Though, I dont know whether this effect could be seen in porn sites.. someone should try it! $99.99 a month, no trial!!