You are correct, .. ghopper, … the "Cadillac Effect".
I haven’t been there in 20 years, ….. but Shahady's Antiques in Bridgeport, WV is a really high-buck retailer. Bridgeport borders the city of Clarksburg, is 20 minutes to Fairmont and 30 minutes to Morgantown. Lots of money up that way.
Shahady could sell furniture, etc. at 2 to 3 times what I could because his cliental was the affluent, well-to-do Doctors, Lawyers, business owners, etc., etc. and thus I’m sure it was a “status” thingy to say “I bought that at Shahady's”.
Ya gotta remember, ….. it’s a tough call, ….. but if you price an item too “high”, …. most people won’t buy it.
But on the contrary, if you price an item too “low”, …. lots of people won’t buy it because, 1) they ain‘t gonna buy a “cheapy” anything ….. and/or 2) they like to brag about how much they paid for it. 😊