Which upscale Disney products & services best fit the definition of Veblen goods?

[jcruise86]

Perhaps Disney marketeers are betting that Premium APs are Veblen goods.
What other Disney products & services would you consider Veblen?
The newest Club 33 memberships?
The concierge area at Disney's deluxe resorts?



--Tom Sinsky

[GusMan]

I dont think there is anything that elite or exclusive at Disney that I think becomes more desirable just because its price goes up. There might be people who may -think- that, but it does not mean that it necessarily means that it really falls into that category. Are there exceptions to this rule? Im sure there is.

Your C33 example is a good one. At the same time, I think its desirability is more related to "status" and being a part of an exclusive club more than the desire to spend more and more money each year because you think that it adds value. In fact, if I recall correctly, when C33 changed some of their rules and fees a year or so back, there were many irate members that were willing to walk away from their membership. That in of itself tells me that even that such a membership does not purely fit the "Veblen" definition.

I think we will find that people will pay for unique or special experiences. Concierge is a good example of this as well. However, I think even those who go all out on a Disney vacation have their upper price point where an event or experience will finally become cost-prohibitive.

[olegc]

I can see why jcruise brought this up - but my opinion leans more towards GusMan.. in that it's not that folks want to PAY MORE - but to me now that prices are in a higher range, and some of the fare offered in locations is of higher perceived quality/price point (carthay circle's menu) you will see more folks who happen to be in a higher income bracket make more choices towards the disney parks for entertainment because there is a perceived higher value with higher prices. and with fewer middle income people attending as often it does provide an avenue for more affluent guests to choose to come to the parks. one blogger wrote about this a couple of years ago - with the whole nighttime at Animal Kingdom idea with crazy experiences - but all for a very hefty price. It's not that far off here on the west coast I see. If AP holders can be convinced to spend $50 to "avoid crowds" then what's to say they won't bring back private nights for a fee.

as I said - it's not really the Veblen as defined based on PRICE - but it is more about the status and the "must have" nature of the product. Who knows, will Disney admission ever be in the same breath as a Mercedes or a Bentley in this country? you never know...

[olegc]

interesting add on here..
I was in DCA yesterday for the Parks Blog meetup. Went to dinner at the Garden Grille. When I showed my premium the cast member said "ooh, fancy shancy, big spender premium pass"... and then I responded "well, not after the price hikes" to which he replied "yeah, we cast members get in for free and we were all scratching our heads as to why the prices went so high"...

so in one interaction you had a comment that it made it seem the premium pass is reserved for the upper middle folks (really?) and then almost an immediate turn around as to how its overpriced. Just interesting, that's all.

[AVP]

Perhaps Disney marketeers are betting that Premium APs are Veblen goods.

For those without a minor in economics, Veblen goods (for Thorstein Veblen, who coined the term "conspicuous comsumption") are goods that people are more likely to buy as the price goes up, perhaps out of a perception that a higher price indicates the best quality or most exclusive.

AVP

[pixar]

Maybe if Disney charged a little more for the Premium passes and thew in something that lets you proudly wear it like a Louis Vuitton bag...

[Toocherie]

We had a discussion about the hike in prices at Memorial Day bbq---it was interesting that 30 somethings---who grew up going to Disneyland and had passes--were not happy with the price increase in annual passes because they weren't getting something "unique" or "extra" with it--not necessarly the Louis Vuitton bag, but a perk that wasn't available to the general public--for example, one "free" fastpass per visit, or access to valet parking (not even including the valet fee in the ticket--just having the right to use it). Most at the table felt like they would be willing to pay "more" to get more.