Pricing, Prestige, and Perception: A Comparative Game-Theoretic Analysis of Brand Strategy in the Fragrance Markets of France, the UAE, and India

https://doi.org/10.65161/recfftpc8U5mTX6bq

This paper examines how pricing strategies and brand positioning influence consumer choice in the perfume industry across three culturally distinct markets: France, the United Arab Emirates (UAE), and India. The perceived value of perfumes varies significantly due to differences in cultural norms, luxury consumption patterns, and income sensitivity. Drawing on theories such as price-value perception, brand equity, and signalling, the study integrates economic modelling through signalling games, Hotelling spatial competition, and sequential game frameworks. The findings indicate that pricing operates as a symbolic rather than a purely financial variable, functioning as a strategic signal within market-specific equilibria. In France, price reinforces perception of heritage and craftsmanship within a stable, high-loyalty equilibrium; in the UAE, it acts as a costly signal of status and exclusivity, consistent with signalling game dynamics; and in India, it interacts with affordability constraints to produce a differentiated masstige equilibrium. The paper concludes that optimal brand strategy depends on aligning pricing and brand identity with market-specific perceptions of value, as firms must adapt their signalling and positioning strategies to differing consumer responses across markets.