Quote:
Originally Posted by donq
Of course it does, but in this case it is irrelevant.
The value of a Veblen good is based on its expensive nature combined with limited accessibility. The more difficult it is to get, and the more expensive, the more it becomes a signifier that the owner is a person of wealth and influence.
If anything, the situation is helping Rolex, not hurting them.
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That is a fair point.
I was thinking about this from the perspective of:
person has a bad experience with distributor (for example, if someone cannot get a watch and believes that ADs are selling that to secondary dealers)-->generalizes this to the overall values of the brand-->personally loses affinity for the brand-->encourages others to avoid the brand as well.
I guess perhaps luxury goods are a little different in that regard.