The market for super clone watches is an example of a horizontal market with close substitutes. When more than one product is the same, the price tends to vary and buyers must decide which brand they prefer based on other features. Here are the key price factors affecting the market for Richard Mille super clone, watches:
The Role of Quality as a Differentiating Factor
When many products sell at the same price, consumers often buy them because of the quality features, not brand. The buyers do consider brand and quality as differentiators in their value equation, but they are not willing to pay more for them.
Balancing the Trade-off Between Price and Quality
The price of watches determines consumers’ perception of the product’s value, so a high price spells high quality. However, when buyers are considering the trade-off between price and other product features, they assess value by their personal perception. In general, they are willing to pay more for quality products, but their assessment of quality varies based on their personal preferences and experiences.
The Role of the Changes in Competition
One of the factors that makes a product super clone is the degree of competition in the market. Products undergo changes when the firms compete based on price, quality, and other factors. When excessive competition occurs, a super clone market forms and buyers can choose from a variety of products at the same price point.
The Role of Substitutes
When comparing Richard Mille replica watches, buyers prefer brands to super clones. When the consumer has a limited budget and must choose between an expensive brand name and a watch of equal quality that is not a branded product or is even a super clone, the buyer will choose the brand name for status reasons. However, if the buyer is less concerned about status and can afford to purchase both products, he or she will choose based on price.
The Role of Advertising
Advertising a product makes it seem more valuable. The advertising creates the perception that the price is worth it because the product is high quality. As a result, customers are willing to pay a higher price for that product. When many brands compete with super clones, they devote their budgets to advertising and creating status through brand name recognition.
