12th November 2025
Whether or not we realize it, we’ve likely all fallen victim to the fallacy that pricier products must be superior to their less expensive competitors.
A psychological phenomenon sometimes referred to as the “Chivas Regal effect” causes shoppers to equate a higher price tag with greater value, regardless of the actual quality of the product.
But, let me share with you how Chivas Regal, a blended Scotch whisky, become the source of this enduring marketing term ?
In the late 1940s, after a sluggish global economy following World War II; the once thriving Chivas Brothers brand was struggling. While the details are murky, it was during this era that some sources assert that the “Chivas Regal effect” was born.
The company reportedly doubled the cost of its Scotch, which resulted in a considerable increase in sales and popularity.
More importantly, the whisky itself remained exactly the same — it was simply perceived as “better” because of the price increase.
Examples of the ‘Chivas Regal effect’ include universities raising tuition to boost enrollment, Payless selling expensive shoes under a luxury rebrand called ‘Palessi’ and pricing them at hundreds of Dollars, and the marketing of diamond engagement rings.
These examples demonstrate the principle that when a higher price is charged for a product, consumers often perceive it as being of higher quality, even if the actual product has not changed.
Price is not always an accurate indicator of quality, and we should consider other factors when making purchasing decisions & stay blessed forever.