Placebo Effects of Marketing Actions: Consumers May Get What They Pay For

We show that offering products such as energy drinks at a discount can change the efficacy of those products (—a placebo effect) because it leads consumers to incorrectly believe that those products are less effective. A set of experiments show that consumers paying a discounted price for a product (e.g., an energy drink thought to increase mental acuity) may extract less benefit from the product compared to consumers who purchase the same product at full price.



Citation:

Wendy Liu, Itamar Simonson, and On Amir (2005) ,"Placebo Effects of Marketing Actions: Consumers May Get What They Pay For", in E - European Advances in Consumer Research Volume 7, eds. Karin M. Ekstrom and Helene Brembeck, Goteborg, Sweden : Association for Consumer Research, Pages: 308-309.

Authors

Wendy Liu, Stanford University
Itamar Simonson, Stanford University
On Amir, Yale University



Volume

E - European Advances in Consumer Research Volume 7 | 2005



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