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Brand names act like marketing placebos

Author

Listed:
  • Moty Amar
  • Dan Ariely
  • Maya Bar-Hillel
  • Ziv Carmon
  • Chezy Ofir

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.

Suggested Citation

  • Moty Amar & Dan Ariely & Maya Bar-Hillel & Ziv Carmon & Chezy Ofir, 2011. "Brand names act like marketing placebos," Discussion Paper Series dp566, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp566
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    File URL: http://ratio.huji.ac.il/sites/default/files/publications/dp566.pdf
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    1. repec:cup:judgdm:v:7:y:2012:i:2:p:149-164 is not listed on IDEAS
    2. Doina Gurita, 2021. "Studies Regarding Placebo and Nocebo Effect in Marketing," Anuarul Universitatii „Petre Andrei” din Iasi / Year-Book „Petre Andrei” University from Iasi, Fascicula: Drept, Stiinte Economice, Stiinte Politice / Fascicle: Law, Economic Sciences, Political Scien, Editura Lumen, Department of Economics, vol. 28, pages 189-196, December.
    3. Maya Bar-Hillel & Alon Maharshak & Avital Moshinsky & Ruth Nofech, 2012. "A rose by any other name: A social-cognitive perspective on poets and poetry," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(2), pages 149-164, March.

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