Conspicuous mediocrity
Luxury goods originated as a way for the wealthy to both show off their resources and possess a scarce, coveted item of better functionality.
Over time, as luxury goods have become more competitive (it's a profitable niche if you can find it) a variation is becoming more common: goods and services that aren't better (in fact, in some cases, not even that good). At some level, they're proud of this inferiority.
The thinking is, "If you have to ask if it's any good, you can't afford it."
And so we have cars, hotels and restaurants that are far more expensive and dramatically inferior to what a smart shopper could have chosen instead. What's for sale isn't performance or reliability. Merely exclusivity.
They offer the customer the satisfaction of looking around the room and saying, "yep, I'm here."
But it's a risky strategy, because sooner or later the frequent breakdowns, the lousy service or the poor design communicate to the well-heeled customer, "this merely makes me look stupid."
No one likes looking stupid.
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