Why would people buy something at double, triple or even ten times the price as their neighbour? The answer is not in taste, utility or even necessity, but rather one of the strongest forces that influence people: status. The notion seems quite ridiculous. This blog aims to decode consumer preference and how luxury goods are an important exception in Marshall's law of demand, and how an enterprise can position their goods and services as "elite." What are Luxury goods? Here, people prefer paying a higher price regardless of quality, quantity (sometimes a lesser quantity is appreciated due to lack of supply), utility, impact, and usage. These goods exploit the core human behaviour of relative status or the need for "display." Human success is not mainly measured by wealth or status, but in terms of relativity, of the success of others. This economic exception understands and thereby takes advantage of humans' competitive natures. Taking a classic example and ...