Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Paradox of Price-Quality Heuristics
In Episode 231, Lucas and Luna dissect the 'price-quality heuristic' — the mental shortcut where consumers assume higher prices signal superior quality. Using the specific case of luxury skincare brands versus drugstore alternatives, they explore how this bias distorts spending decisions. The hosts examine why people pay premiums for packaging and branding, often ignoring objective performance data. They discuss the psychological mechanics behind this belief, citing studies on perceived value and consumer trust. Listeners will learn how to identify when price is a true indicator of…
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