In the present-day world, it becomes extremely difficult to make the right decision on a purchase since consumers’ perceptions do not align with the actual benefits of products. The reason for it is the seeming attractiveness of those goods that are believed to be better than others not because of their characteristics but their popularity. The price for such items is generally much higher, and the received benefits are questionable. However, it does not stop people from buying them, and my friend is no exception to the rule. He once purchased a NordicTrack treadmill, which was much more expensive than the amount he was ready to spend on such a product. As a result, he was disappointed due to the gap between the item’s actual benefits and his initial expectations.
This type of consumer bias is often referred to as willingness-to-pay, and its tremendous effect on buyers is confirmed by various studies. Thus, for example, the researchers proved that people in China are more willing to pay for more expensive EU food products rather than local goods of the same quality (Li et al., 2017). Such preferences seem to be irrational and, therefore, biased since the higher price does not indicate that a person will receive a better item. In this way, it can be concluded that willingness-to-pay is a typical bias when it comes to shopping.
Reference
Li, C., Bai, J., Gao, Z., & Fu, J. (2017). Willingness to pay for “taste of Europe”: Geographical origin labeling controversy in China. British Food Journal, 119(8), 1897-1914. Web.