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.


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.


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


E - European Advances in Consumer Research Volume 7 | 2005

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