Presentation = Perceived Value Pt. 4

Ahhh, the power of branding.

You may or may not remember this “experiment” that Payless™ put on in 2018 to explicitly show how displaying items in a specific way and marketing them in-line with the intended perception is damn near fool-proof.

If you’re unfamiliar, let me paint the picture.

Payless™ is a discount footwear chain that has been around since the 50’s. The brand markets their lower-priced shoes, compared to the rest of the footwear industry, which can reach very high price points. They also market to families/kids which keeps their ideal customers at a wide range.

In 2018, Payless™ created a fake luxury shoe store, called Palessi (incredible lol), and set up shop in the shell of a former Armani store. They anonymously invited influencers to attend the (staged) grand opening of the store the proceeded to interview them.

The average prices for Payless™ shoes range from ~$25–$50, but in this stunt, they removed all traces of existing branding of their own and changed the shoes’ “designers” to the fake Italian-sounding name, and increased the prices up to 1,800%.

Then, they interviewed attendees asking their opinion on prices of the shoes—including what they’d be willing to pay—and what they think of Palessi in general. Across the board, the people they interviewed were raving about how opulent the store was and how “high quality, high fashion” the products were.

At the end of each interview, the interviewer revealed that every item was from Payless…HAAAAAA! SO EMBARRASSING!

The glamor-seekers were successfully tricked. And honestly, I probably would have been tricked too. Because they set every single thing up to look and feel like other existing and reputable luxury shops, they were able to craft a crisp and clear image of Italian-designer-quality shoes. Damn.

I love everything about it!!! It’s so clever and is so blatantly obvious how the way you present something affects its perceived value.

Have a look for yourself:

And if you’re as intrigued in the psychology of it all, check out this Forbes article by professor and author Michael Solomon: “Payless' Upscale 'Palessi' Stunt And The Power Of Branding.”