Why Being a Snob Helps Some Brands – Snob Effect

Every Year in Middle of June thousands of people flock outside The All England Lawn Tennis Club, London. They queue outside for hours to get an entry and watch the “Wimbledon”. It’s really surprising that most part of the year Tennis players & some of the tournaments go unnoticed. People want to be associated with Wimbledon because it’s associated with wealth & success. Perhaps if Wimbledon were cheaper and more accessible, there would be less demand for it. Less demand among the middle class at least.

Another sport, also known as “King of Sports” possesses an aura around it. Polo is also considered to be a rich man’s game. These examples are of an effect called “Snob Effect”. Marketers use this to position their products in the high end segment.

General Law of economics states that if price is lowered demand increases, this is also known as Elasticity of Demand. Interestingly Snob Effects works reverse of this principle.

The higher the price the more premium that product is; more people are attracted towards it.

Goods that are often used as a sign of social and personal status:

Snob Goods or Snob Effect is defined as an effect/ goods where the main attraction is related to its image of being expensive, exclusive and a symbol of social status. These goods will have restricted supply and only be available to people with high income.

• Famous brand named handbags, e.g a Gucci Zumi small embellished alligator shoulder bag which retails for £22,280.00
• Exclusive watches, e.g. Patek Phillipe Grand Complications Split-Seconds Chronograph Perpetual Calendar for £199,000.
• Expensive and rare artwork, e.g. modern art with limited print runs, e.g artwork of Jeff Koons.

How small businesses can use this effect:

1. Create some niche product offerings that are exclusive in nature.
2. Don’t over discount your products; in fact discounts are counterproductive if you want to create a premium image.
3. Create a customer base that has exclusive tastes, address their needs in a tailor made fashion.
4. Work on store ambiance and experience.