“You can get better quality than we offer, but you can’t find a higher price than ours.” Oddly, that pitch works when not stated so bluntly. Known in marketing circles as the Mercedes Effect, it shows that people are willing to pay money for no added value aside from perception. Mercedes, Coach handbags, Apple computers and many other products have remarkably higher prices and margins than competing products of equal functional value. The difference is almost entirely because people want to own the brand and enhance their sense of self-worth by proxy. There are other reasons for cultivating cult brands aside from getting obscenely rich. Great brands, well-crafted and relentlessly enforced can: Create buyer/market/investor faith in the product/company/cause. Bias purchase decisions, thereby increasing the number of conversions per promotional dollar. Create a sense of mystic relevance (or as the authority on propaganda calls it, perceived hidden underground knowledge). Allow you … Continue reading →