Hitting the spot
Jan 17th 2008
From The Economist print edition
People do not just say they enjoy expensive things more
than cheap ones. They actually do enjoy them more
EVERYONE loves a bargain. But retailers know that people will
sometimes turn their noses up at a cheap version of a more expensive item, even
if the two are essentially the same. That suggests something is at work in the
mind of the consumer beyond simple appreciation of a product's intrinsic
qualities.
The something in question is expectation, according to research
published this week in the Proceedings of the National Academy of Sciences by
Antonio Rangel of the California Institute of Technology. Dr Rangel and his
colleagues found that if people are told a wine is expensive while they are
drinking it, they really do think it tastes nicer than a cheap one, rather than
merely saying that they do.
Dr Rangel came to this conclusion by scanning the brains of 20
volunteers while giving them sips of wine. He used a trick called functional
magnetic-resonance imaging, which can detect changes in the blood flow in parts
of the brain that correspond to increased mental activity. He looked in
particular at the activity of the medial orbitofrontal cortex. This is an area
of the brain that previous experiments have shown is responsible for
registering pleasant experiences.
Dr Rangel gave his volunteers sips of what he said were five
different wines made from cabernet sauvignon grapes, priced at between $5 and
$90 a bottle. He told each of them the price of the wine in question as he did
so. Except, of course, that he was fibbing. He actually used only three wines.
He served up two of them twice at different prices.
What is truth?
The scanner showed that the activity of the medial orbitofrontal
cortices of the volunteers increased in line with the stated price of the wine.
For example, when one of the wines was said to cost $10 a bottle it was rated
less than half as good as when people were told it cost $90 a bottle, its true
retail price.
Moreover, when the team carried out a follow-up blind tasting
without price information they got different results. The volunteers reported
differences between the three “real” wines but not between the same wines when
served twice.
Nor was the effect confined to everyday drinkers. When Dr Rangel
repeated the experiment on members of the Stanford University wine club he got
similar results. All of which raises the question of what is going on.
There are at least two possibilities. The point of learning is to
improve an individual's chances of surviving and reproducing: if the experience
and opinions of others can be harnessed to that end, so much the better. Dr
Rangel suspects that what he has found is a mechanism for learning quickly what
has helped others in the past, and thus for allowing choices about what is nice
and what is nasty to be made speedily and efficiently. In modern society, price
is probably a good proxy for such collective wisdom.
However, goods can be desirable for a reason other than survival
value. Many of the things for which high price is an enhancement are purchased
in order to show off, as any male confronted with the wine list in a fancy
restaurant knows. Indeed, conspicuous consumption and waste are an important
part of social display. Deployed properly, they bring the rewards of status and
better mating opportunities. For this to work, though, it helps if the
displaying individual really believes that what he is buying is not only more
expensive than the alternative, but better, too. Truly enjoying something
simply because it is exclusive thus makes evolutionary sense.
Besides its role in giving cachet to wine, this may be the
explanation for the sort of modern art that leaves the man in the street cold.
Art collecting is a high-status activity par excellence. Many lowlier mortals
regard it as pretentious. If Dr Rangel is right, though, pretence may not be
the true explanation. The collector who has paid millions for a plain-coloured
canvas or a pickled sheep probably really does think it is beautiful.
Whichever explanation is correct (and both might be), Dr Rangel's
research also has implications for retailers, marketing firms and luxury-goods
producers. It suggests that a successful marketing campaign can not only make
people more interested in a product, but also, truly, make them enjoy it more.
