Researchers at the Stanford School of Business gave three bottles of wine to a test group—one was an expensive $95 bottle, another a mid-priced $35 bottle, and then a bottom-of-the-barrel $5 bottle.
But beforehand—and without the subjects knowing it—the researchers switched the labels so that the $95 bottle was labelled $5 and the $5 bottle was labelled $95. They left the middle-range price bottle at $35.
The subjects were then asked to taste each wine and rate them. Without fail, they all declared that the one labelled $5 was the worst and the $95 one was by far the best.
Turns out we all have expensive taste ... even when the product is crap.