Branding

The end game to any product is the brand equity it creates. Why are Samsung devices costlier than Micromax devices? One might argue that their costs of production are higher as they use better quality parts in their devices and this might be true to some extent. the real reason why there is a difference in price of similar products from different brands is because of their brand equity. A Versace costs how much it costs because it comes with a tag of Versace. A brand reaches its pinnacle when customers associate it with quality. A brand reaches its pinnacle when it becomes a cult. Ship so far has not been able to accomplish this as it faces near perfect competition from other brands even through most other brands are also owned by ITC.