Payless = Palessi

Payless opened a fake luxury store, ‘Palessi,’ to see how much people would pay for $20 shoes: (Answer? A hell of a lot.)

But, what’s really going on here? A couple of behavioral core drives:
*The Halo Effect*
*Social Influence*

Turns out we value things at a perceived higher price when surrounded by a beautiful, upscale environment with fashionistas in the mix. Because everyone wants to be trendy and this experiment is a perfect example of these core drives in action.