svtmike is right. The premium end (read high priced) end of the market subsidizes the lower cost end of the product spectrum for those of us who can't afford or won't pay the high priced item.

Once a product is good enough beyond its primary utility, the balance of the premium goes towards perceived benefits or ego-marketing.

I train boxing\kickboxing 3 times a week. At 44+, I'm like the oldest guy in class. My training partners are 18-26. I'm spotting these juniors 20 years. In the same class, there are people who buy $40 Muay Thai-specific shorts, fancy protective gear for sparring, ladies who buy PINK gloves to match their Lululemon outfits. I wear $8 polyester shorts, usually a black sleeveless cotton t-shirt or generic Gap short sleeve shirt. My gear is basic black and so are most of my boxing attire. Its easier so I don't have to think about matching colors. I usually outwork most people in class.

One lady who comes has terrible form. But she wears nice matching outfits and uses pink gloves. For some people, fashion will always be an important part of the sporting experience. Me? I look at it as a chance to challenge myself, find my personal limits and learn a practical skill. I don't want to look like a clown, neither do I want to pose. Hey if pink gloves keeps a person coming back to exercise, who am I to tell her otherwise? LOL.