Rarely do people start off purchasing the best BMW. They first buy a lower end model and as they “mentally buy into” the brand, they upgrade. (Unless you are like my friend Angelo Pericci who buys the top of the line everything.)
But for the most part people will spend their money on what they emotionally find value in, even if it’s not a tangible item.
Apple has the Mini mac (entry level), Mac Pro (mid level) and the Xserve (top end). My local ice cream stand has plain cones (entry level), Blizzards (mid level) and banana splits (top end).