Just because an item is expensive doesn’t mean it’s actually worth more.
Try telling that seemingly obvious point to a rich person with a headache; they likely won’t believe you, a new study finds. Wealthy shoppers are more likely to spring for brand-name pain relievers for headaches than their poorer counterparts -- even though the cheaper generic medications are just as effective, according to recent research from the University of Chicago’s Booth School of Business.
Here's a chart that shows household income versus the likelihood of buying brand-name headache medicine:
As this chart illustrates, the amount of money you make is one indicator of whether you'll choose to spend $6.29 on a bottle of Bayer Aspirin or spend $1.99 for the same amount of CVS-brand Aspirin. But as the researchers note, there are some other predictors as well. For one, consumers who are less educated about the active ingredients in a product are much more likely to be wooed by advertisers into buying the brand-name medication, the study found.
This trend apparently costs Americans big time. If shoppers stopped favoring brand-name headache medicines they’d spend $410 million less than they are now on the remedies, the study found.
Talk about a headache!
(Hat tip: The Atlantic)
Also on HuffPost:
via http://www.huffingtonpost.com/2013/06/21/poor-people-smarter_n_3479934.html?utm_hp_ref=healthy-living&ir=Healthy%20Living
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