Possibly but not necessarily. Automation limits what you can do as you are restricted to what the machines can do. Hand-made components do not have the same limits. Additionally, materials are often not perfect or uniform and a machine will work with different tolerances than a craftsman. Lastly, in certain cases the idea is the craftsman can discern the better materials and choose accordingly.

So for instance when making acoustic instruments, being "hand-made" means that the craftsman could tap-test the wood and use discretion on which pieces to use for each instrument. They would have examined the wood for both structural and form considerations. There would be special attention to assembly and anything custom can be done. Independent decisions would be made on a case by case basis instead of using a general rule.

Handmade also implies superior materials because when automation is used, often the inputs are the most expensive part. When you go to a handmade hob, the labor generally will far surpass the costs of materials so using premium materials is of little consequence to the final price.

But yes, marketing can be a big part of it in many cases.