Why do we pay for things we cannot see?
A wonderfully funny and provocative talk from TED on the need for — and utility of — “intrinsic value.”
It reminds me of a conversation over dinner many years ago with a friend who had just left a job at Procter & Gamble. He had worked on the Vidal Sassoon line of shampoos, helping to launch their new “two-in-one” shampoo+conditioner product. He explained that P&G had an entire line-up of new two-in-ones, a hot category at the time.
At the low-end was Ivory two-in-one, priced at $1.99. Above that, Pert, for $2.99, then Vidal Sassoon two-in-one at $3.99 and finally Pantene’s shampoo+conditioner product for $4.99. It was textbook price discrimination, covering the market at all key price points and as a new marketer myself, I reflected on this with some respect.
What I was shocked to learn, however, was that the product inside these bottles differed only in the color and fragrance added. The price range of 150% was justified by nothing more than the brand name of the shampoo, providing me a second textbook example, this time of intrinsic value and the power of perception.
Also: at 11:56, clips from a brilliant Canadian campaign for Shreddies, just coincidentally my favorite cereal of all time.
It reminds me of a conversation over dinner many years ago with a friend who had just left a job at Procter & Gamble. He had worked on the Vidal Sassoon line of shampoos, helping to launch their new “two-in-one” shampoo+conditioner product. He explained that P&G had an entire line-up of new two-in-ones, a hot category at the time.
At the low-end was Ivory two-in-one, priced at $1.99. Above that, Pert, for $2.99, then Vidal Sassoon two-in-one at $3.99 and finally Pantene’s shampoo+conditioner product for $4.99. It was textbook price discrimination, covering the market at all key price points and as a new marketer myself, I reflected on this with some respect.
What I was shocked to learn, however, was that the product inside these bottles differed only in the color and fragrance added. The price range of 150% was justified by nothing more than the brand name of the shampoo, providing me a second textbook example, this time of intrinsic value and the power of perception.
Also: at 11:56, clips from a brilliant Canadian campaign for Shreddies, just coincidentally my favorite cereal of all time.
