Why do Customers pay more for Exclusivity?
When we hear the word ‘Exclusive’, the first thing that comes to our mind is that it is something ‘special’. Not everyone has it. Not everyone can join or afford it.
An item or a service becomes exclusive when one party offers the other party with the sole rights to a product, service or special business event.
Customers are enticed to pay more for exclusivity because of a lot of reasons such as quality and comfort, rarity, price, goodwill and self-gratification.
Quality and comfort. We must admit that most exclusive items are much higher in terms of quality and comfort compared to regular items. This is one type of marketing strategy most companies use to attract potential customers to subscribe to their exclusive membership. If you can afford it, why settle for anything less?
Rarity. Exclusive items mean they are sold limitedly in terms of quantity, location and time. They are considered as something that is usually hard to find and purchase. Not all stores have them. Not everyone can buy them. Often times they are sold for a limited time offer only for a limited number of pieces.
Price. We have this mentality that items which are sold for a higher price have more value compared to items sold at a regular price although that is not always the case. There are always some items which are sold cheaper yet can perform as good as its expensive counterpart.
Goodwill or Name. Some customers are willing to pay for exclusivity because they are greatly satisfied by what the company offers and their first-rate customer service.
Self-gratification. People just want to satisfy their own motives like becoming unique by owning a ‘special’ item which not all people can afford or if they want to impress others because of their mentality that owning an exclusive item means you are one of those people who can afford paying much higher.
In conclusion, some customers pay more because they want to enjoy the benefits of exclusivity while there are also some who have other motives like they want to be unique or they just want to impress others.