Answer to Question #302517 in Finance for zoohaib

Question

 For Mr. Crowder, the Ferrari is a specialty good. What kind of product would it be for you? Why?

Answer 1

Specialty goods are goods with particularly unique characteristics and brand identifications for which a significant group of buyers is willing to make a special purchasing effort.

If I earn so much (high income earner) that buying such such good does not in anyway take a huge chuck of my income or affects me and I also have a taste for high quality brands of product, the Ferrari would be a specialty good to me also because I could afford.

If I belong to a low income group, such good would basically have no appeal to me as I can't afford it. I naturally go for such goods that I can consume and would be more beneficial to me given my current state of income and living.