The Second Economy by Steve Grobman & Allison Cerra
Author:Steve Grobman & Allison Cerra
Language: eng
Format: epub
Publisher: Apress, Berkeley, CA
2. Higher premiums create the perception of higher quality. A 2008 study by Antonio Rangel of the California Institute of Technology found that if people are told a wine is expensive while drinking it, they really do think it tastes better than a cheap wine, rather than just saying they do. Dr. Rangel and his associates measured the neurological patterns of 20 volunteers to measure changes in the brain associated with registering pleasant experiences. Of course, the researchers used the same wines in the test and simply manipulated price points to determine the effect on respondents’ evaluation and physiology. 51 Perceived quality has been linked to higher prices, in part, due to the brain’s impulsive nature of finding shortcuts to decipher meaning. 52 Higher prices and higher quality naturally seem to go together, producing a convenient timesaver for overtaxed brains.
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