Cruising Sailors Forum Archive

old wives tale
In Response To: You get what you pay for... ()

Where you have oligopolistic markets and product differentiation (and hence a high amount of
spending for advertising and marketing) firms can develop brand loyalty for any number of
reasons unassociated with quality. This allows those firms to then jack-up the price and reap
monopoly-like profits. What Apple consumers are really paying for, in large part, is simply
the name. Nike sneakers, anybody?

Jerry

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