On the financial value of the framing effect of brands

๐Ÿ’Ž On the financial value of the framing effect of brands

This framing effect of brands is not marketing hype; it increases the perceived value and the willingness to pay a premium price โ€” even for objectively identical products. The VW Sharan and the Ford Galaxy are identical cars – both produced in the same factories – but consumers have been willing to spend a premium of โ‚ฌ2,000 for the frame that the VW brand added. In the UK, Virgin Mobile has higher perceived network quality and satisfaction scores than T-Mobile despite the fact that it uses the exact same network.

Excerpt from: Decoded: The Science Behind Why We Buy by Phil Barden

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