Watches vary in price by a factor of over 10,000. I have a very cheap watch which I like because it has a stopwatch and is waterproof, so I can swim with it. It is extremely accurate and if I lose it a new one will cost me £5.80 (about \($9)\) from Amazon. This watch is shown in the figure that accompanies this exercise, along with a Rolex, currently priced at \($11,870\) but that is nothing compared with the Sky Moon Tourbillon 5002 P from Patek Philippe which will set you back \($1.5\) million. How do the makers of really expensive watches create the value that their products apparently have, at least to some people? Their advertisements in glossy magazines and their web sites give away a lot. Research these to reveal how materials, associations, brand image status can create value.