The answer is quality. While a fair amount of the popularity of designer fragrances is owed to marketing and promotion along with snob appeal and the desire to emulate celebrities, the deciding factor is the fact that they are better. Some may argue this point, having found some type of generic fragrance that they simply adore, but anyone who has smelled or worn a higher priced designer fragrance knows the difference.
While the celebrity endorsers or the designers whose names grace the bottles rarely actually design the fragrance, more research and development usually goes into creating the actual product than the five dollar bottle of Lady Stetson on the Wal-Mart shelf. This is because the celebrity or designer is lending their name and image to the product and wants to be associated with something of high quality.
Another reason behind the popularity of designer fragrances is the fact that perfume and cologne are luxury items with which we pamper and reward ourselves. The sixty dollar bottle of perfume is a much more indulgent reward than a can of three dollar body spray that anyone can pick up for everyday use. We get the opportunity to feel special and perhaps even rich and opulent when we spray on the good stuff.
Better fragrances have always been marketed with that in mind, as well as snob appeal and our desire to emulate our heroes. The classic Chanel No. 5 ads are a wonderful example of appealing to our desire to be able to spoil ourselves with a designer fragrance. Being able to mention the name of the perfume you're wearing and have others immediately know how much it costs plays into the snob appeal part of fragrance marketing. And, finally, wearing a fragrance named after your favorite celebrity lets you enjoy being like them, at least in some small way.
Fragrance is meant to be a way for us to escape the everyday and the ordinary. Therefore, everyday and ordinary perfumes don't give us what we need in the same way luxury designer fragrances do. They fill our needs to live above our means in a way, to satisfy that feeling that we deserve the best, and to aspire to be something more than what we are in our everyday lives. If you pay attention to the advertising and promotion, and even the names of many of the designer fragrances, you'll notice those themes of escape and reaching new heights clearly illustrated.
No one should buy anything simply because it is expensive or simply because a celebrity tells them they should. However, if a quality, long-lasting and delicious smelling perfume makes you feel better about yourself or makes you happy in even a small way, no one should fault you for not settling for less. Whatever fragrance you choose, whether it's from the dime store counter or from a high-end department or specialty store, if it makes you feel special it has done what it should.