It cost more, so it must be better

Lightspeed Venture Partners Blog have a post here about a study in which students were given five wine samples to taste and rate. Each had a price label attached to them, but in fact only three different wines were given i.e. two wines given twice but with different prices.

Sure enough, the students opined that the wines were all different and improved with price.

Sometimes, being cheapest seems the best strategy but charging more can differentiate you and imply higher quality to consumers. Not a new revelation, but certainly worth repeating from time-to-time as so many companies seem to forget it.

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