The Chivas Regal effect

[Analogous]

Could this apply for HiFi gear too?
If so to what extent?

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[Sean de Silva]

Could this apply for HiFi gear too?
If so to what extent?

Undoubtedly. The only way big $$$$$$ brands ply their trade and stay afloat.
A good old proverb applies, "A fool and his money are soon parted"

 

[ronthedon]

Yes this does happen. When someone spends a large sum on a piece of gear, they will be predisposed to perceive it as sounding better although it might actually be lo-fi.

 

[square_wave]

This effect is mostly prevalent in the luxury products segment and usually works well on rich people who are very brand conscious. The effect is less pronounced in markets with well-informed consumers who rely on more than price for judging quality. A brand relying solely on price for "perceived quality" can backfire if the price exceeds what people are willing to pay, or if eventually enough percentage of customers feel misled.

 

[Analogous]

This effect is mostly prevalent in the luxury products segment and usually works well on rich people who are very brand conscious. The effect is less pronounced in markets with well-informed consumers who rely on more than price for judging quality. A brand relying solely on price for "perceived quality" can backfire if the price exceeds what people are willing to pay, or if eventually enough percentage of customers feel misled.

A segment of Audiophile equipment could fall under “Luxury” segment?
The import tax on Audio Equipment from outside India however regards all items as luxury goods.

 

[square_wave]

A segment of Audiophile equipment could fall under “Luxury” segment?
The import tax on Audio Equipment from outside India however regards all items as luxury goods.

Yes, some of them definitely fall under the luxury segment. Usually the ones that fall into that category have unnecessary embellishments that have no technical function and are ridiculously priced.