Rolex really keep better time than a Timex? Does a Mont blanc pen write better than a Cross? Do Sony radios get better reception that Sanyo's? Do Calloway Clubs really improve your golf game? Not really, but all of these brands carry a perception of higher quality because of their higher prices.
Believe it or not, high price is a benefit to some customers. It allows the affluent consumer to obtain psychological satisfaction from the public purchase and consumption of a high end product. Of course, the product or service does need to have some perk or difference to justify the higher price. For instance, Rolex makes a heavier watch than Timex. Mont blanc has a fatter pen than Cross. Calloway clubs have a bigger head than Titleist. Each of these characteristics gives the perception of quality.