On the power of a price tag (they are used as an incorrect indicator of quality)

๐Ÿ’Ž On the power of a price tag (they are used as an incorrect indicator of quality)

Wine without a price tag doesnโ€™t have this effect. In 2008, American food and wine critics teamed up with a statistician from Yale and a couple of Swedish economists to study the results of thousands of blind tastings of wines ranging from $1.65 to $150 a bottle. They found that when they canโ€™t see the price tag, people prefer cheaper wine to pricier bottles. Expertsโ€™ tastes did move in the proper direction. they favored finer, more expensive wines. But the bias was almost imperceptible. A wine that cost ten times more than another was ranked by experts only seven points higher on a scale of one to one hundred.

Excerpt from: The Price of Everything: The True Cost of Living by Eduardo Porter

Facebook Comments

Product Geek?

Join over 5,000 product geeks and get one email every Monday containing the best excerpts I've read over the previous week.

See some of what you're missing...