Prices vary a lot because of the brand.

Prices can vary a lot ,even for the same product. For example, you pay 27cents for a cola in the supermarket , 44cents for the same cola from a dispensing machine an as much as 99 cents for a cola in a restaurant ,Why are the prices so different’

In the case of the cola prices are affected by volume.

A supermarket for example buys large amounts of a product and so can sell it more cheaply than restaurants.

But pricing is also affected by we’re prepared to pay. Consumers won’t pay a lot for certain things, like detergent or paper towels.

They only choose these products only on the basis of price .Would you pay $60.00 for a pair of sneakers? It depends .If shoes are well-known brand. You would probably pay that much .If they were sneakers in the supermarket, you probably wouldn’t. In this case, price is influenced by the consumer’s perception of the brand.

People will pay more for certain exclusive brands like Rolex Watches, Ferrari cars, Gucci Bags and Calvin Klein jeans because they perceive more value in them.

Finally, people buy certain brands, even if (or because) they are more expensive because they give a feeling of prestige and of being different. For example buying a Rolls Royce makes people feel special and part of an elite group.