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What do people really pay for when they patronize supposedly premium services?

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I really have to question what people really pay for when they patronize premium services. A guy that I know barbed his hair at a premium barbing salon at double the price that I barb at a regular barbing salon. The hairstyle is very nice. My own is equally very nice.

What do people really pay for in premium services when the quality of service is almost the same with the regular service providers?
 
They might just be paying for the ambience and aesthetics of the place. That might just be the premium in the services.
 
Everyone have their reasons though, for some they simply prefer that experience, then there are those who go there because they can afford it so they take that as their standard.
 
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