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Understanding people who only want expensive stuff

We see it with every new iPhone that hits the market: People making lines days if not weeks in advance of the product's launch. We see people scouring stores for the "best" brands, whether it be Michael Kors, Marc Jacobs, or Coach.

Where did this frenzy for the latest and greatest stuff come from? People are replacing their perfectly functional phones once a year,  if not sooner. They're swapping clothing bought two or three years ago for newer garments like it's nobody's business.

This illustrates one key fact: Advertising/marketing is alive and well. The promotional landscape has been altered tremendously by the advent of social media. From product recommendations to banner ads, exposure to content shared by friends and companies alike on sites like Facebook exerts an immense influence on our purchase decisions.

That's not to say that traditional media like TV and radio are no longer effective, but what makes online marketing so potent is that it's highly interactive. People can easily share posts on, say, great travel deals, whereas the effectiveness of a TV commercial depends on how well the viewers retain the message and the propensity to generate buzz via word-of-mouth.

Can you guess the single most effective way to drive consumers to purchase a product? It's to have their friends or loved ones recommend the product to them. That means that if people are on Facebook raving about the latest Calvin Klein product, there's a good chance I will be motivated to buy it.

A lot of people would rather indulge in the most premium of products than opt for cheaper brands. That's fine as long as you make enough money to sustain that kind of lifestyle. If you find yourself up to your elbows in debt, you need to reassess your spending habits. I, for one, am perfectly content living a simple lifestyle, unburdened by heaps of possessions.

Do you only go for the top brands? Why or why not?

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