Upgrades, Status and Affiliation

How do you feel when you meet with friends for a coffee or a beer and they put the latest top-of-the-line cell phone on the table, while you put your trusty three-years-old model?

Would you pay an additional $700-$1000 today if you could buy next year's iPhone? If not, then why are you changing your perfectly working, one-year-old cell phone for the latest model?

Status and affiliation affect our decisions, whether we notice it or not. Seth Godin explains it brilliantly: For the upgrade