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IS PRODUCT PRICING A TRICK USED BY DECEPTIVE COMPANIES?

by Blair Norfolk |

There’s a reason that “clean-eating” is associated with the rich and leisurely. Think about a tub of peanut butter. Now think about a tub of almond butter. Which one would you assume is better for you? Most people assume that almond butter is healthier because it usually costs about twice as much as peanut butter.

Authority Nutrition recently compared the two spreads and found that there’s not much difference between them when it comes to nutritional quality. In fact, peanut butter gets points for having fewer calories and more protein than almond butter. But because almond butter goes for about $3.50 per 100g while peanut butter is usually priced around $1.70 per 100g, the former is often considered the superior healthy choice.

In some cases, products are more expensive because they simply cost more to produce. The ingredient(s) might be hard to come by, the processing may be more involved, transport of the item is tricky or all of those things combined.

But experts are warning consumers to beware of companies pricing products high as a marketing tactic. These companies are well aware of the research and in some cases, may inflate the price of a product to in fact mask a lack of quality.

Think about it. If you’re passionate about caring for your body and eating well, there’s a good chance you’ll determine which products are premium based on their price alone. The Journal of Consumer research summed this idea up by saying, “Overall, the healthy = expensive intuition has a powerful influence on consumer decision making, with significant implications for both consumers and marketers.”

So, what can you do? As always, we urge you to educate yourself on label terminology, ingredient names, RDI of vitamins and the various loopholes companies can use to get away with vague labelling. Our post on Reading Labels and Making Sense of Nutrition Facts is a great place to start!

  

Sources: 
Authority Nutrition
Association for Consumer Research 
Journal of Consumer Research