I see this question being asked in logo and branding discovery phases. Anyone want to weigh in as to why this is?
Fast moving consumer goods (FMCG) are sold to consumers, and one of the fundamental principles of marketing is the market segmentation. Companies offer various products for the various segments based on their income level. So in order to target a certain audience, you need to know the average income.
A premium-looking product will appeal to a different audience than a cheap one, and the branding is part of that experience.
People which frequent "Horror" movies are generally not the same people which attend the "Emotional Drama". Both equally viable audiences, but vastly different in terms of what appeals to them.
The same general division can be found in financial capabilities. A family bordering on the poverty line are not the people purchasing luxury items. And luxury item purchasers are not the individuals shopping at the local dollar store.
Just as branding for Men varies from the branding for Women, so should the branding based upon financial capabilities vary.
Luxury brands often have a specific air about them, script type, lots of white space, ambiguous symbols, muted or pastel limited colors.
Lower-end brands typically use "louder" color, more color, bolder type, identifiable symbology or even mascots/comic type of symbology.
If a brand appears too "luxury" to more price-minded consumers, they may simply overlook the brand entirely based upon a visual snap-judgement. And the converse is also true - a brand which appears to be more "loud" or "bold" may be overlooked by luxury buyers as "not for them."
The brand should "feel" like it belongs to the audience to some degree. Stepping out of that constraint can often alienate the brand with the very audience they are trying to reach. There's a reason all the "Monster Truck Rally" advertising is loud, in-your-face, and uses a rainbow of colors. And there's a reason "perfume" ads you see are esoteric, ambiguous, lofty, monotone, and often a bit pretentious....