Odd J Eidner: Price is part of the product. Suppose I place two bottles of water in front of you and tell you that one costs 50 cents and the other costs 2 dollars. Despite the fact that you wouldn’t be able to tell them apart in a blind taste test (the products are similar enough), you might be inclined to believe (or at least wonder) whether the more expensive water is of higher quality. Here, price has the power to change your perception of the product.

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Price is part of the product. Suppose I place two bottles of water in front of you and tell you that one costs 50 cents and the other costs 2 dollars. Despite the fact that you wouldn’t be able to tell them apart in a blind taste test (the products are similar enough), you might be inclined to believe (or at least wonder) whether the more expensive water is of higher quality. Here, price has the power to change your perception of the product.

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