Chapter
The Psychology Behind High-End Products
32:21 - 36:28 (04:07)
Customers who choose to buy expensive items, whether it's shoes or wine, may do so for the satisfaction of having the absolute best or for the signaling effect, while businesses benefit from the higher profit margin of these products.
Clips
The idea of price equals quality is true in many cases, but when it comes to bikes, a higher price point does not always mean better quality.
32:21 - 33:05 (00:43)
Summary
The idea of price equals quality is true in many cases, but when it comes to bikes, a higher price point does not always mean better quality. However, it is a common notion among people that a high price point signifies better quality.
ChapterThe Psychology Behind High-End Products
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
This transcript discusses the pricing methods for Nike's shoe range and the consumer behavior that leads to people buying expensive shoes for reasons beyond just signaling.
33:04 - 35:05 (02:00)
Summary
This transcript discusses the pricing methods for Nike's shoe range and the consumer behavior that leads to people buying expensive shoes for reasons beyond just signaling.
ChapterThe Psychology Behind High-End Products
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The ratcheting up of sneaker prices is a marketing strategy that doesn't make the shoes better, but it makes the consumers perceive them to be of higher quality.
35:05 - 36:28 (01:23)
Summary
The ratcheting up of sneaker prices is a marketing strategy that doesn't make the shoes better, but it makes the consumers perceive them to be of higher quality.