BMW is a very nice car right? What’s your opinion about some one who drives a BMW, a very neat one. This person is seen as a person with class, someone who is comfortably rich right? Rolls Royce is another great car right? You don’t see it all the time compared to seeing a BMW, you can see a BMW at least 5 times in a day, but a rolls Royce, not so much, except you stay in an elite environment. The latest BMW can cost you may be $160,000 and the latest Rolls Royce would cost you at least over $500,000.
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But do you know the plot twist here? Rolls Royce is owned by BMW, and most times the BMW and Rolls Royce gets built the same, that is the same material just different branding. But Rolls Royce is marketed as the luxury car while BMW is marketed as a classic car for the comfortably rich people. The Rolls Royce brand status makes it more expensive than the BMW, and quantity is limited compared to that of the BMW, making it valued higher and scarce. I can say through out this year, although I am always indoors, I haven’t seen a Rolls Royce, but I have seen a BMW.
This is society for you, it’s a matter of branding, why is a Rolex watch more expensive and more valued than an unbranded good gold wrist watch. People by brand and class, and place value on them. This is why brands spend a lot of money to try and convince people that they are special and different from others when they use their brands. This same principle is applied to Toyota and Lexus, they are both owned by Toyota but one is branded to be more luxurious than the other which is Lexus.
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Oh wow, interesting thoughts about branding. I'm seeing the good and the bad of it now. But what's interesting is that it is the same thing nonetheless, just marketed differently. It's a form of leverage to entice people into living in a particular status or class.
thats the human construct with regards to how they see value
This post made me think. I consider both those who drive a BMW and a Rolls-Royce to be very classy, but a Rolls-Royce actually costs more. This means, in my opinion, that BMW has done very well in terms of marketing over the last 30 years
exactly