Thursday, 10 March 2011

Economics explains almost everything

Why does Victoria's Secret offer multimillion-dollar jewel-studded bras that no one ever buys?

The company probably never expected to sell these bras but producing them and hiring one of the most popular models is a good advertisement. Every time such a bra is shown to customers the media announces it to people which attracts  them to visit the shop which brings a lot of attention and income to the company. If the bra is not sold it is easy to remove the jewels so Victoria's Secret doesn't lose much.  
It also has a big influence on customers because they subconsciously compare the price of the bra that costs  several millions with the things that they want to buy e.g. $450 which then seems like nothing.

1 comment:

  1. So, no Wednesday blog and this is all you can do for Thursday?

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