For example, let's say you're in the market for a new phone. What sounds more appealing: an expensive smartphone produced by a well-known brand name, or a cheaper smartphone with comparative features made by a less-recognizable brand? Luxury retailers and their marketing departments rely on consumers to buy the more expensive products because of the legitimacy and quality associated with brand names. As a result, it's easier for consumers to ignore the higher cost of the pricier product and purchase it anyway, because it feels as though it's worth the extra money.
