I don't think its the price tag of the clothes that catches our eye, to be honest.
As someone that has interviewed many people for jobs, I can immediately tell the guy who walks through the door that is wearing a suit....and hasn't worn one since the last time he went on an interview. Male interviewers can recognize this too. Its not a woman thing, or a fashion thing. Poise and confidence speak louder than anything else.
Nor is this limited to how men dress. If you take a look at the people around you, and look at their dress, their demeanor, their temperment, their personality, I think that you will find that many people that care about what others think of them dress in decent clothes, mind their personal appearance, and pay attention to what other people think and do, do so out of habit.
The poise, posture, and confidence of another person is what catches our eye. It doesn't matter whether the admirers are male or female, nor does it matter if the people being admired are male or female. Human nature.
Take a distinguished gentleman and put him in tasteful clothing from the sale rack at JC Penny, he will still come across as distinguished.
Take a chump, and put him in a luxurious designer suit, he'll still come across as uncomfortable in his own skin.
Take a chump that decides to start coming across to others as a confident person....that builds better habits, and with time and effort, everyone will notice.