Dr. Solomons (anti-virus company) where I used to work used this approach. They were the most expensive anti-virus software on the market at the time (and the best) and justified it, internally, by saying that people are willing to pay extra to be assured of getting the best.

Not sure if that's the same sentiments echoed here though. As a consumer, I always tend to look for things that are different, I guess in my head I'm equating that to being exclusive and, therefore, more expensive. Not sure though.

I think the one difference between the brands above and Dr. Solomon's is the emotional investment, the perceived emotional benefits, of the products. It's difficult at best to get the average consumer motivated emotionally about computer software, particularly antivirus -- unless you use fear, which is not, really, what Trading Up is about. It's about spoiling yourself with a few higher end items - luxury coffee, better (healthier?) water, more luxurious furnishings, etc. Hard to think of spoiling yourself with an antivirus product. :)

I interviewed James Twitchell last year about his book "Living It Up: Our Love Affair With Luxury" - you can read our discussion at http://www.portigal.com/FM/fm19.htm