Expensive Product=Best Product?

SOURCE: Fabfutfun 

 The economic principle I’m exploring is people generally respond to incentives in predictable ways. My research question to help me study the economic principle is, should a person buy the most expensive product?

 The article published in Byrdie titled “Are Pricey Skincare Products Worth It? We Asked a Cosmetic Chemist” demonstrates this economic principle by arguing/showing is price an incentive to get people to buy their product, is the higher the price worth it.

 First, products have no problem changing the most expensive ingredients or scent but keeping the “star” qualities about it and repackaging it and selling it for the same price. The analogy they used was a cake. One company might have a stellar chocolate cake base, but then they use cream cheese frosting. The frosting might be the best part about the cake.

 Second, it’s hard for smaller companies to play the game because they have little to no reputation. A small company wants to make a good impression so they put the best ingredients and that results in higher pricing, but a consumer might not know that and don’t know the brand, so the choose the lower quality higher price item from a bigger company thinking they got a better deal. It is important to know what you are looking for in a product and what you want done so you can research the best ingredients for that thing and look for the product that has what you want.

 In my next blog post I will research the question: Why is it a big deal for people when a celebrity uses a beauty product?