The reason: consumers, in general, see value in a luxury brand versus a non-luxury brand even if all the other product attributes are equal. “But the luxury brands must continually strive to live up to those reputations and must succeed.”Jominy agrees that failing to meet elevated expectations is a potential trap for luxury brands. Further, Corvette has another attribute that can be an important differentiator in determining what the consumer sees as a premium or luxury car — heritage. In the realm of heritage, the European luxury brands seem to hold all the high cards. The magic that it has been able to capture in becoming a widely acknowledged luxury brand stems from its advanced technology and from its charismatic leader, Elon Musk.

Source: Forbes June 23, 2019 13:07 UTC