The document discusses the placebo effect in marketing and price perception. It defines the placebo effect as how consumers' expectations, shaped by experiences, can influence their judgments of products. Expectations are mediated by conditioning and activate expectancies. Price premiums can signal quality or benefits, and people use price as an indicator of quality when information is limited. However, the relationship between price and perceived quality depends on the product, individual factors, and other cues like branding. An experiment found that consumers reported better workout experiences from an energy drink priced higher versus one discounted.