Comments on: Do expensive drugs treat better?

By: Mike Allen

Mike Allen — Fri, 07 Mar 2008 17:17:09 +0000

Interesting study and one that says a lot about the mind’s inner workings — at least for some people.

I think there tends to be a perception that the same product sold at a more prestigious store is better than if it were sold at Walmart. I’m guessing that even the exact same product sold at Target would get ranked as better than its counterpart sitting on a Walmart shelf.

This scenario probably has to do with our “first impression sense” which is hard to overrule logically. If we believe Target or Macy’s is better or more prestigious then we extrapolate that feeling to all the products on their shelves. Thus we become biased from the start and are willing to pay more based on the feeling we are getting more.

By: Yan

Yan — Fri, 07 Mar 2008 03:31:17 +0000

Yeah, it is just a spoon. :-) I was playing tennis yesterday and I lost the game (in my head) while driving to the tennis club before I even hit the ball! I simply convinced myself I was not in shape that morning.

By: Mike G.

Mike G. — Fri, 07 Mar 2008 03:11:42 +0000

Yan, now that you’ve told us about the specific details of the placebo effect for more expensive drugs, the price factor placebo should have no impact, right?

By: Yan

Yan — Fri, 07 Mar 2008 02:53:48 +0000

Wherever there is a quantitative metric to measure the result the other factors give way and it becomes pure math.

In your case with blood pressure and cholesterol, since there is an easy way to measure both, the price you pay becomes irrelevant as long as you see the result. Not so with headache which can be (and often is) a product of your imagination.

This is why branding is very important with consumer products. If you build that perception factor you can charge twice your competitors’ price and get away with it

By: I like to save money.

I like to save money. — Fri, 07 Mar 2008 01:09:29 +0000

I have seen other tests like this, and it does work like that on pain-killer type pills, but I don’t think there’s quite a difference on pills like blood pressure or cholosterol ones.
I think people believe the higher priced items at places like Macys are somehow better than ones at walmart. Probably even the same fruit of the loom underpants are probably more highly regarded at a more expensive store.
Its just a weird mentality, but as frugal consumers like we are here, the goal is to educate the masses that paying more isn’t necessarily better.