Methodology

The method in which we conducted our experiment in order to examine and prove the
hypothesis; supply and demand being a fallacy, we produced a face-to-face survey,
questioning our sample population in regards to their understanding of the prices of certain
goods.

In detail, we produced two different cards, displaying 3 distinctive pieces of tissue, unique in
both quality and texture. Placed on these two cards were two different pieces of tissue, one
being a pink and white striped piece, branded by ‘Flying Fox’, which would be the placebo in
the experiment; the tissue of which the price would have to be inferred after the other
piece of tissue is felt and touched. The second tissue on card 1, was a cheap value tissue,
priced at 30p per packet, at major shopping retailer, Tesco; whilst the second tissue on card
2 was a more luxury quality piece of tissue, priced at 60p per packet, and branded as
Kleenex. Our subjects in this case, amongst the volunteers, would touch the cheaper value
tissue, given its respective price of £0.02 per piece, and would then be asked to infer the
price of the flying fox piece of tissue, comparing the quality and texture in order to be able
to determine the price of the placebo tissue. Secondly, on card 2, the subject would feel the
higher valued piece of tissue, given the corresponding price of £0.05, and would then be
requested to infer and determine the price of the flying fox tissue, once again comparing
both the texture and total feel between both of the tissues.

Having selected a sample size of 80 people, consisting of students as well as non-students,

males and females and also young and old in terms of age, we were able to add great
reliability and validity to our test. In addition to this, the sample group of 80 people was
divided into two equal groups of 40 students, and 40 non students. Each group being further
split up into two groups of 20; one group who would see one card, and the other group
seeing the other piece of card. We maintained these control variables in order to produce
the most effective and reliable results from which we can draw conclusions and evaluations
from.

We piloted the experiment through this method, intending for the priced pieces of tissue,
both the low and higher quality pieces, to act as direct price anchors and create a
psychological element of understanding of the prices of the placebo tissue. In effect, this is
exactly what happened, and this will be further examined and analysed in the results of the
data.