What is a Superior Good?

What is a Superior Good?

What is a Superior Good? Jonathan Poland

A superior good is a type of good that tends to see an increase in demand as income levels rise. This is in contrast to an inferior good, which sees a decrease in demand as income levels rise.

For example, luxury goods such as designer clothing or expensive cars are often considered superior goods because people tend to purchase more of them as their income increases. On the other hand, basic necessities like rice and bread are often considered inferior goods because people tend to purchase less of them as their income increases.

Superior goods can be either normal or luxury goods. Normal goods are those that see an increase in demand as income levels rise, but they are not considered luxurious. Luxury goods are those that are considered luxurious and see an increase in demand as income levels rise.

Here are 12 examples of superior goods:

  1. Luxury cars, such as Mercedes-Benz or BMW
  2. Designer clothing and accessories, such as Gucci or Prada
  3. Fine jewelry, such as diamonds or gold
  4. High-end watches, such as Rolex or Omega
  5. Luxury hotels and resorts, such as the Ritz-Carlton or the Four Seasons
  6. Fine dining restaurants and Michelin-starred restaurants
  7. Luxury cruises, such as those offered by Carnival or Royal Caribbean
  8. Private jets or helicopters
  9. Luxury vacation homes or vacation rentals
  10. Artwork and antiques, such as paintings or sculptures by famous artists
  11. Premium spirits, such as whiskey or champagne
  12. High-end electronics, such as Apple’s iPhone or Samsung’s Galaxy.

Learn More…

Growth Strategy Jonathan Poland

Growth Strategy

A growth strategy is a plan to increase or improve some KPI, like revenue, profit, subscribers, etc.

Workplace Issues Jonathan Poland

Workplace Issues

Workplace issues can negatively impact employee satisfaction and organizational performance. These issues…

Strategic Planning Jonathan Poland

Strategic Planning

The strategic planning process is a systematic way for an organization to…

Employee Benefits Jonathan Poland

Employee Benefits

Employee benefits are additional forms of compensation offered to employees as part…

Experience Goods Jonathan Poland

Experience Goods

Experience goods are products or services that are consumed through an experiential…

Channel Structure Jonathan Poland

Channel Structure

Market penetration is the percentage of a target market that purchased a company’s product or service over a period of time.

Media Planning Jonathan Poland

Media Planning

Media planning involves the strategic selection and scheduling of various media channels…

Economic Advantage Jonathan Poland

Economic Advantage

A competitive advantage is a feature or characteristic that allows a company…

Supply Chain 101 Jonathan Poland

Supply Chain 101

A supply chain is the network of organizations, people, activities, information, and…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Customer Service Jonathan Poland

Customer Service

Customer service is the practice of providing support, assistance, and guidance to…

Design Innovation Jonathan Poland

Design Innovation

Design innovation refers to the development of designs that represent a significant…

Thought Process Jonathan Poland

Thought Process

Thought is the mental process of perceiving, organizing, and interpreting information. It…

Idea Generation Jonathan Poland

Idea Generation

Idea generation is the process of generating new and original ideas. It…

Data Security Jonathan Poland

Data Security

Data security is the practice of protecting data from unauthorized access, use,…

Scaling 101 Jonathan Poland

Scaling 101

Scaling is the process of increasing the size, scope, or reach of…

Veblen Goods Jonathan Poland

Veblen Goods

Veblen goods are a type of consumer good that is perceived as…

What Is Analysis? Jonathan Poland

What Is Analysis?

Analysis is the process of breaking something down into its component parts…

Industrial Design Jonathan Poland

Industrial Design

Industrial design involves creating designs for mass-produced products. A common principle in…