On a recent trip to Cafe Duke, the local 'everything in one place' lunch spot near our offices I came across this startling bit of marketing genius:

So, for $1.15 you can get 12OZ of a cold coke in the standard shapless can. And for $.80 MORE you can get 3.5OZ LESS of the same drink in a sexier aluminum bottle, herein known as "Coke Fancy Bottle." Not only were they charging accordingly, but they were telling you right to your face that you were paying more for less.
Before I had viewed the price tags associated, I found myself initially grabbing for the Fancy Bottle and then I looked down and saw the prices. I thought it was very odd that they were pricing the smaller, less value product higher but then I remembered the overmentioned adage Sex Sells. And here we were seeing it play out blatently before our very eyes.
The marketers conundrum. On the one hand we have this great product (Coke in a can), that comes in the shapeless, not so attractive, not extremely functional packaging, and then we have this other product (Coke in a Fancy Bottle) that has sensual curves, feels good in the hand, represents progressive thinking and enlightened purchasing decisions and a willingness to pay more for the badge that says 'I have style AND taste'. I mean, let's be honest, who ever got laid from a 12OZ can of coke, but there is probably some science behind the premise that iPhone users have more sex than Blackberry users, we choose products that we want to outwardly represent who we are and who we want to be, and we want people to notice and act accordingly.
The genius here is that, whether they know it our not, Cafe Duke has created the perfect microcosmic user study. As I stood and watched for about 15 minutes I counted 7 people (primarily guys btw, phallic shape?) that went for the Fancy Bottle vs 4 who went for the standard can. So conscious or not, almost 70% of the people chose form over function and were willing to pay a premium for it.
So next time you are thinking of how to market that product, perhaps focus more on the emotional triggers that it plays on versus the value the product may bring to the consumer's bottom line.