Two recent studies suggest that we expect products to be more effective and perceive them to be of higher quality when they cost more.
A brain scanning study shows that we connect the price of wine to how enjoyable it is, and suggests that more expensive wine tastes better partly because we expect it to. The brain scans showed that the pleasure recording parts of the testers' brains were activated when told they were drinking top dollar wines.
Similarly, the American Medical Association just published a study that told its subjects they were testing a new kind of pain medication. Instead of receiving actual meds they were given sugar pills, and some were told their pills cost $2.50, and the others were told the pills cost 10 cents. 85 percent of those with the more expensive placebo said their pain reduced significantly while 61 percent noticed their pain decreased when they took the cheaper pill.
Are you someone who thinks that price dictates effectiveness and quality?