The snob effect occurs when the relationship between price y demand it is positive, which makes the demand curve positive as well. This effect causes that, when the price increases, the demand also increases. It is the effect that occurs contrary to the normal goods.
In itself, "snob" refers to people who imitate behaviors of other people who consider themselves superior or distinguished in a specific field. The snobby effect is due to this type of behavior. That is, people who are not distinguished but who want to acquire certain exclusive or differentiated goods as if they were distinguished.
On the other hand, we must emphasize that the snobbish effect causes the choices that consumers make when buying to be studied, explaining that we are not always totally rational when we choose one product over another.
Among some of the examples that we can take out of the snob effect, we will highlight:
- Prestigious brand clothing. There are some brands in which the prices skyrocket and do not really correspond to the material that has been used (whether raw material, machinery or human capital). The attractiveness of the brands, the margin of the quality of their products and the exclusivity is what allows placing such high prices on some products. As the price increases, the number of people who buy said product grows (their demand grows), because they tend to think that it is more exclusive and they buy more.
- Wines It is the same as the previous case: the higher the price, the higher the quality of the wine (or so it is thought) and the more it is consumed.
- Luxury car. As has happened with the previous cases, people who buy luxury cars think about who would be able to buy that car, in this way they are realized in the idea that only a few can access said good.