Veblen effect
Named after the economist Thorstein Veblen, the Veblen effect is a phenomenon in economics and marketing where the demand for a product increases as its price rises. This is primarily due to the perception that a higher price indicates prestige, exclusivity, or social status. For luxury brands, leveraging this phenomenon is vital to set themselves apart from mainstream brands. By adopting premium pricing approaches, they cultivate an aura of exclusivity, unique allure, and scarcity. This reinforces their market positioning and attracts consumers in search of status symbols.
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Motiva is an independent branding agency specialising in hospitality, tourism, and upmarket brands, operating in Vienna, Belgrade, and Porto Heli. Using insights from behavioural economics, we tap into core human motives to spark connection and influence choice—creating distinctive hotel brands, destination strategies, and luxury brand experiences that drive sustainable growth. Our work has been recognised internationally with multiple iF Design Awards, the Good Design Award from the Chicago Athenaeum, and the Tourist Austria & International Advertising Grand Prix.
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