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> You think they’re happier to pay more than to pay less? People are not rational consumers. See the Palessi story from a few years ago: https://www.cbsnews.c
by sokoloff 3y ago
> You think they’re happier to pay more than to pay less?
People are not rational consumers.
See the Palessi story from a few years ago: https://www.cbsnews.com/amp/news/payless-sold-discount-shoes-at-luxury-prices-and-it-worked/ https://www.cbsnews.com/amp/news/payless-sold-discount-shoes...
Tl;dr: Payless Shoes, a discount shoe retailer, opened a fake high-end store under the Palessi name and got fashion influencers to gush about how great the shoes were. People who actually bought such Palessi shoes probably were happier with them than if they’d bought them at Payless.
- tough 3y ago1000$ wine always tastes better than 100$ one
- ilyt 3y agoAnd https://www.odditycentral.com/news/2-70-supermarket-wine-wins-gold-medal-at-international-wine-contest.html https://www.odditycentral.com/news/2-70-supermarket-wine-win...
- sokoloff 3y agoHah. Love it! > winners that they could buy 1,000 gold stickers to display on their wine labels for just €60. That's not a bad price at all for gold stickers intended for wine bottles. €0.06/sticker. I assumed they'd be able to get a good bit higher price.
- bumby 3y agoYears ago, a luxury car company (I believe it was Mercedes) did a study measuring demand with the same car across a relatively wide range of prices. Contrary to economic models that assume rational actors, there was a point where lowering price further made demand go down. People apparently assumed the higher price tag on a car made it more attractive as a consumer.
- SoftTalker 3y agoProbably why Mercedes does not bring their lower-end or lower-optioned car models to North America. They want to maintain their image as a luxury marque so they can command premium prices that their customers are happy to pay.