I am speaking only from an observational point of view and don't have any experimental data to back-up my observations so feel free to correct me.

Why does the US appear to have a market that does not follow basic rules of Price and Demand? Higher priced products are automatically considered of better quality. And this excludes products that provide a status quo, like iPhones and designers clothing. Things that we do not even have to advertise about their brand to our friends such a basic goods, like furniture, beds, tooth brush etc.

I have observed that products above medium priced are doing better financially than lower priced products that offer the same quality of product. Hence it is difficult for a competitor to just launch a cheaper same product and do well in the market.

My personal hypothesis:

Lack of knowledge from the public, lack of skepticism, and deceiving marketing strategies from the manufacturers

Also the public in the US is highly less likely to research a purchase, and opt for a medium priced product. In addition to that, the economy does well and people feel like their time is worth more than their money


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.