Mckinsey defines luxury brands as those that have constantly been able to justify a high price, i.e.significantly higher than the price of products with comparable tangible functions. This stric economic explantion does not help explain how well-known brnads are differentiated from luxury brands. A jaguar is considered less expensive than a Porsche, but in terms of comparable tangible functions it has a much stronger luxury brand image than Porsche. For some reason, Porsche is fast and expensive, just not luxury. A breitling watch is generally more expensive than a watch from Tiffany, Hermes, or Gucci, yet it is often perceived as prestigious, not luxurious.