Prestige. And finally there is the most important factor. This is what brands spend the big bucks on; associating their brand with prestige, with a good life, with a luxury lifestyle. Why buy off-brand sugar water when you can buy Coca Cola? But we see this more with true luxury goods; if you've ever been in the market for an expensive car, bottle of booze, handbag, or anything, you know that you are paying partly for the increased cost to make it, but partly because you can now say that you can spend that much for the good. Prestige matters. And buying an off-brand Rolex is cheaper than the real thing.