Research shows ‘higher food prices’ improve taste perception

Price is more than just a number; it influences taste, satisfaction, and perception. Cornell research reveals that higher-priced food and beverages are often perceived as tastier and more valuable, even when the actual quality remains the same.

Have you ever tried wine or tea for the first time and thought the taste wasn’t quite to your liking, but once you found out how expensive it was, your perception started to change, making it seem much more enjoyable? 

This phenomenon is similar to the case of the "Jay Fai" restaurant, where dishes such as the 4,000 baht crab omelette and 600 baht stir-fried vegetables are significantly more expensive than those found in the market. 

Despite the simple setup, with no air conditioning, customers still queue up and wait for hours just to taste the food.



So, what’s the explanation behind this phenomenon? And does “setting a high price” really enhance the perception of food?

According to research from Cornell University in the United States, this is a psychological phenomenon called the “Price-Placebo Effect”. 

The study found that people tend to perceive food as tastier when it is more expensive, even if it’s the same food. 

For example, customers who paid $8 for a buffet at an Italian restaurant in New York rated the food as 11% better than those who paid $4 for the same buffet.

This suggests that “price” plays a significant role in how we perceive the taste and overall satisfaction of food. 

We often associate higher prices with better satisfaction, even when the actual quality of the food is the same.

Conversely, “simply lowering the price of food in a restaurant can have a significant impact on how customers evaluate and appreciate the food,” said Brian Wansink, a professor of consumer behaviour at Cornell University’s Dyson School of Applied Economics and Management, who led the research team.

"As long as the food is in front of you, you’ll eat it," explained Ozge Sigirci, one of the researchers. "But the price greatly influences how you feel about the meal and how you will rate the restaurant."Not only that, but research also reveals that those who pay extremely low prices often report feeling that they’ve overeaten, regret the meal, and experience a decline in satisfaction as they continue eating. 

The very low price can trigger consumers to wonder if the quality of the meal has been compromised.

“Simply lowering the price of food in a restaurant has a huge impact on how customers evaluate and value the food,” said Brian Wansink.



Another example of this phenomenon is the case of the lobster. Even when lobster prices have dropped to historic lows, it’s rare to see restaurants passing these savings on to customers. 

James Surowiecki explained this paradox in The New Yorker: "High prices have become an essential part of lobster’s image. Just like with many ‘luxury’ goods, the high cost is often associated with pleasure.

Research shows that people tend to prefer cheaper wine when they taste it without knowing the actual price, but in reality, they enjoy the wine much more when they’re told it’s expensive. If lobster were priced like chicken, we might enjoy it less. This is a strange and sophisticated effort that both responds to and shapes customer demand simultaneously."

Moreover, adding high-priced items like lobster to a menu can make mid-range dishes easier to sell, as they make the other items "seem cheaper" by comparison.

However, setting high prices to increase perceived value comes with the inevitable rise in expectations. Along with higher prices, customers will expect corresponding quality.

When it comes to food, customers may expect top-quality ingredients, the tenderness of rice grains, the atmosphere of the restaurant, and even the fine details, such as the expertise of a sushi chef.

A skilled sushi chef, for instance, will pay attention to the number of presses and the weight of their hand when pressing sushi rice. Too much pressure makes the rice too firm and dry, while too little results in rice that may fall apart during consumption.

Therefore, if high prices are not aligned with the actual quality, it can backfire. This is similar to a stock with rising prices but no supporting profits, when expectations are unmet, the backlash can be swift and damaging to both customer trust and brand image.

(2025/08/23-00:00)