How angry are you when your favorite underground band hits the radio? When you identify with certain bands or brands and are trying to signal the sophistication of your tastes to others in the know, mainstream acceptance dilutes the power of the message.
The more a handbag costs, the more likely it is to display a prominent brand logo—up to about $300, Jonah Berger of U Penn and Morgan Ward of UT Austin found in an unpublished study. Above that, logos shrink. In another study, most people couldn't guess that subtly marked expensive bags cost any more than subtly marked cheapos, but insiders (fashion students) could tell the difference. Further, the insiders preferred discreet markings more strongly than the outsiders did, a preference accounted for by their greater desire to differentiate themselves.
Insiders don't simply eschew ostentation (gaudiness being a signature of new money). In a fourth study, the researchers found that fashion students preferred bags by obscure brands over more well-known brands even when they had larger logos. People want to signal their taste, but only to desired targets. Once those signals are poached by the masses and counterfeits hit the streets, it's time to find a brand new bag.—Matthew Hutson
