Brand and the buying decision

These days I have been quite interested in the branding aspect of marketing. I guess the fact that my job is related to brands and retail does also help.
The other day when I was making a sort of buy-list or rather a wish-list I realised that as I was putting a number in front of my objects of desire, I found out just how branding works, at least for me. Let me explain..
I have always been attracted to watches. I have found that there was a gap between the amount I wanted spend and the maximum cap that I wanted to put on it. This grey area is where brands came into play because as I started naming each brand the cap for each changed and for one particular brand I couldnt even put a number (if only that was possible in buying the watch too!). But then I realised what my professor had taught me about brand valuation in monetary terms. Thus if i was ready to pay x rs. more for brand B over brand A wasnt that what brand power is?
Thus brand power lies in that grey range and it is every individual brand that then turns this into a particular value (hopefully positive) for a particular individual.
I know I am probably not telling anything new however the reason I am writing this is because I actually experienced it in the most exact terms and after having read a lot about commoditisation of products this was a powerful reminder of how much the 'brand tag' still adds to each of our lives.
Thus as someone has said, "Brands announce something about ourselves to the world"