If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex watches offered lower-priced products, what might happen to the demand for their products? Why? For prestige products, lower prices might increase the quantity demanded up to a point. Then, lower prices would result in less quantity demanded as the products lost their exclusiveness and status. When more consumers have the product, it loses its prestige or social status. The elasticity of demand is greater than 1 for a luxury good. They are also referred to as superior good Prestige pricing is a physiological pricing strategy that sets prices of luxury products to the expectations of a niche class of customers who associate higher prices with superior quality. These customers then seek to satisfy the desire for higher prestige and higher social status by owing the product. For these customers, quality is directly proportional to the price paid and so for them, their association with that quality image links to their own perceptions of self-worth. Prestige pricing recognizes the fact that a niche class of high net worth, nonprice sensitive customers obtain self-expression and emotional value from prestige or luxury products, only if they are priced high. The fact that only a limited number of individuals can afford these product, adds to the product's exclusivity and therefore its appeal to these customers. This explains why in the long run, lowering the prices of luxury or superior goods would lead to a decrease in their demand as the goods have a price elasticity of greater than 1