These are both economic terns that refer to products whose demand increases when their prices increases according to current web lore. But when I was studying for my economics degree, a Giffin good was defined as a less desirable product which was purchased when income dropped. In other words, a Giffin good is a cheaper substitute for the product actually preferred by the consumer. My father was paid monthly and at the end of the month, we often ate spaghetti and hamburger instead of roast beef.
Demand for Veblen goods increases as their prices increases because the higher prices convey a perception of desirability. Marketers know that many people believe that higher price equals higher quality or exclusivity.
Veblen and Giffin goods both violate the classic perception that demand declines as price increases and vice versa.
Does your organization produce Veblen or Giffin goods? Do any of your competitors? Both Veblen and Giffin goods may have pricing power. Veblen goods do because of their images and Giffin because they may still be cheaper than the preferred products.
As a CI professional, how do you predict pricing changes by competitors who product Veblen and Giffin goods? You do that by understanding the value perceptions of competitive products in the marketplace. Of course, price changes by competitors have many factors, but this classification is a useful tool for analyzing future competitive actions.