Brand names act like marketing placebos

Moty Amar, Dan Ariely, Maya Bar-Hillel, Ziv Carmon and Chezy Ofir

Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem

Abstract: This research illustrates the power of reputation, such as that embodied in brand names, demonstrating that names can enhance objective product efficacy. Study participants facing a glaring light were asked to read printed words as accurately and as quickly as they could, receiving compensation proportional to their performance. Those wearing sunglasses tagged Ray-Ban made fewer errors, yet read more quickly, than those wearing the identical pair of sunglasses when tagged Mango (a less prestigious brand). Similarly, ear-muffs blocked noise more effectively, and chamomile tea improved mental focus more, when otherwise identical target products carried more reputable names.

Pages: 8 pages
Date: 2011-02
New Economics Papers: this item is included in nep-mkt
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Citations: View citations in EconPapers (2)

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