Biases › Price

Price

Marketing placebo effect

Marketing such as price can change how well a product actually works for us.

Shiv, Carmon & Ariely (2005), Placebo Effects of Marketing Actions: Consumers May Get What They Pay For.

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What is Marketing placebo effect?

Marketing placebo effect is a behavioural bias (price family): marketing such as price can change how well a product actually works for us. Discounted products may be experienced as less effective. Nudgeswipe rates the evidence as limited. Source: Shiv, Carmon & Ariely (2005), Placebo Effects of Marketing Actions: Consumers May Get What They Pay For.

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The original study

Shiv, Carmon & Ariely (2005), Placebo Effects of Marketing Actions: Consumers May Get What They Pay For.

What the paper reports
Across three experiments, people who paid a discounted price for an energy drink sold as boosting mental acuity solved fewer puzzles than people who paid the regular price; expectancies mediated the effect.

Summarised from the paper's abstract.

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The research

Discounted products may be experienced as less effective.

● Limited evidence

Source: doi.org/10.1509/jmkr.2005.42.4.383

Limited evidence: a small number of studies, and we haven't yet found independent replications. Treat it as promising, not proven.

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Key takeaways

  1. Honest nudge

    Don't undercut products in ways that misrepresent value.

  2. Dark-pattern line

    Inflating prices to manufacture perceived efficacy.

Use it

Apply this with your agent

The prompt carries this bias, its evidence rating and the honest-vs-dark line.

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Frequently asked questions

What is Marketing placebo effect?

Marketing placebo effect is a behavioural bias: marketing such as price can change how well a product actually works for us.

How does Marketing placebo effect work?

Discounted products may be experienced as less effective.

How strong is the evidence for Marketing placebo effect?

Nudgeswipe rates it limited evidence. Original source: Shiv, Carmon & Ariely (2005), Placebo Effects of Marketing Actions: Consumers May Get What They Pay For.

How can you use Marketing placebo effect honestly?

Don't undercut products in ways that misrepresent value.

When does Marketing placebo effect become a dark pattern?

Inflating prices to manufacture perceived efficacy.

In the wild

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