Reference no: EM131126014

Have you have ever fallen victim to a price/quality misperception? How does one determine quality for an alcoholic beverage such as vodka, gin, and scotch, as well as beer? By the taste? The advertising claims? Anything else?

Boston Beer was attempting to compete while having some of the highest prices in the industry. Was this the height of foolishness?

Why would anyone pay prices higher even than the expensive imported beers just for a different taste? The highest price can convey an image of the very highest quality.

We as consumers have long been conditioned to think this. With cars, we may not be able to afford this highest quality, such as an Infiniti, Lexus, or Mercedes convertible. But with beer, almost anyone can afford to buy the highest-price brew sometimes, maybe to impress guests or to simply enjoy a different taste that we are led to think is better. Sometimes such a price/quality perception sets us up. It might be or might not be valid. This is especially true where quality is difficult to ascertain, such as with beer and liquor, with bottled water, with perfume, as well as other products with hidden ingredients and complex characteristics.