Are expensive wines really better? Who knows, but they sure make people happy! From the Boston Globe:
Scientists at Caltech and Stanford recently published the results of a peculiar wine tasting. They provided people with cabernet sauvignons at various price points, with bottles ranging from $5 to $90. Although the tasters were told that all the wines were different, the scientists were in fact presenting the same wines at different prices.
The subjects consistently reported that the more expensive wines tasted better, even when they were actually identical to cheaper wines.
But surely, wine experts would be able to tell the difference, yes? Wrong!
A few years ago, Frederic Brochet, a cognitive psychologist at the University of Bordeaux, conducted a rather mischievous experiment. He invited 54 experienced wine tasters to give their impressions of a red wine and a white wine. Not surprisingly, the experts described the wines with the standard set of adjectives: the red wine was “jammy” and full of “crushed red fruit.” The white wine, meanwhile, tasted of lemon, peaches, and honey. The next day, Brochet invited the wine experts back for another tasting. This time, however, he dyed the white wine with red food coloring, so that it looked as if they were tasting two red wines. The trick worked. The experts described the dyed white wine with the language typically used to describe red wines. The peaches and honey tasted like black currants.
Imagine the business implications of such a finding…
It’s possible to make a product more “effective” by increasing its price. A good marketing campaign can have a similar effect, as it instills consumers with lofty expectations about the quality of the product. For instance, Shiv cites research showing that cars made in the same factory, with the same parts, but sold under different brand names (such as Toyota and Geo) receive markedly different reliability ratings from consumers. When we drive a car with a less exalted brand name, we are more likely to notice minor mechanical problems.
So, does anyone want to buy my… $10 million corolla?