Generally, people are flawed in their thinking that if it costs more it must be better. This bias lives in the imagination of humans and makes it easy for scammers.
Years ago Starbucks coffee was doing poorly. They kept lowering the price to lure customers but it wasn't helping. New management came in and immediatly tripled the price on coffee to change the perception that the cheap price = cheap/crap product. Instead the new higher price gave a new image that this coffee is now improved, higher quality. "it must be better at that price!". Even though the coffee was unchanged, people with money were now lured in due to price. A smart marketing tool that didn't cost them anything.
Certainly the people with money can see the Emporors new clothes. They also hear the sound improvement from a $2000 box of rocks. (they'd never buy the rocks if they were only $50 )
The difference of buying a Rolex vs. a Timex has NOTHING to do with telling time.