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Although this Placebo effect might work well within medical fields, the Placebo effect is an
undesirable effect that can either be avoided altogether, or else the marketeer comes up with a
strategy against the effect.
Based on the fact that higher price means higher quality...
• GOING TO EXTREMES:
MarkeAng pracAAoners should market new products on the market at a reasonable price
which is neither too low nor too high.
This will prevent the product from appearing as an inferior product in the eyes of the
customers, lowering its market posiAon if the selling price is too low. This will also prevent
the service from losing out its compeAAve edge as a result of a high selling price since it has
yet to establish a stable market share.
• OVER‐PROMISING:
MarkeAng pracAAoners should not raise the expectaAons of customers beyond what the
product is able to deliver as this “over‐promises” the customers and customers will
experience disappointment when the product fails to reach their expectaAons and ends up
losing its customers.
• LOSING POTENTIAL CUSTOMERS DUE TO HIGH PRICING:
MarkeAng pracAAoners should market new products at a price that is slightly cheaper than
the market price iniAally so as to aGract a larger number of potenAal customers to try out
the service. AHer the test trial period, the increase in frequency of prior usage of the product
will dispel the perceived price‐efficacy beliefs.
Also a good chance to sAmulate product differen(a(on:
If the new product is marketed at a price comparable to other similar products in the market
that has already established its market share, the new product should have extra add‐ons or
features that will give them the compe((ve edge.
• REMAIN STATUS QUO:
MarkeAng pracAAoners can draw aGenAon to price‐quality beliefs to make customers realize
that the price‐quality relaAonship is not applicable, and thus reduces the strength of
response expectancies. This weakens the impact of such beliefs and eliminaAng the
undesirable placebo effect observed in the reduced‐price condiAon.
• IN‐ESTABLISHED BRAND
If markeAng pracAAoners intend to posiAon their product as one of superior quality, it is
important for them to establish a solid and respectable brand name that matches the status
of the customers they are trying to appeal to (Market posiAoning). Also, they should prevent
from offering price discounts for their product as this is an extrinsic cue that triggers beliefs
that the product quality is inferior, leading to undesirable placebo effects.
THIS WORKS ESPECIALLY FOR FIRST‐WORLD PPLE:
Service markeAng pracAAoners should also look into the market they are trying to penetrate
into. For a first world country like Singapore, it would be vital for the building up of a
reputable brand. It is okay for the pricing to be high, but there must be quality and presAge
in order to gain greater market share (esp. amongst the Y‐generaAon).
If a marketeer were to think of markeAng a product in a third world country, I would think
that pricing would be of primary concern how a product appeals to the market. In such
markets, the Placebo effect is not in its full effect, so building a brand is perhaps not the
greatest concern (though sAll important).
• NO PROOF:
MarkeAng pracAAoners have to ensure that the efficacy of their service is strongly supported
by evidence, and not just weak claims. Facts and figures have to shown at sales
presentaAons in order to convince customers of the product quality as supporAng facts that
the product quality will not be compromised as a result of the lower price. Leave no room for
wild guesses or accusaAons against product.