Effect of price on the efficacy of a medication
Marketing variables not only influence people’s perceptions and expectations, they actually influence the real efficacy of products such as medications. This is according to Ziv Carmon, INSEAD Professor of Marketing who, along with Rebecca Waber and Dan Ariely from MIT and Baba Shiv from Stanford, tested the effect of price on the efficacy of a medication by administering electric shocks to those taking part in the study to test their resistance to pain
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]