As a marketing professional I understand the game. It is all about perception and social status.
As a consumer i always look for a bargain. But every now and then I still fall for “higher price equals better quality” belief. And every time I pay a premium price for a silly little feature of a cell phone that was not offered with the lower priced item, I get mad at myself for a few minutes, then I look at my new iPhone and get a funny happy feeling …“Ah, I am so glad I got it, it was expensive but I it is worth every penny I spent!”

As far as the Twain stroy goes, I consider myself somewhat of a Grey Goose fanatic, but I would easily fall for such a trick. But I’m not sure that it’s a matter of taste rather than perception. I’m fairly certain that in a blind taste test I could tell the difference between the two vodkas. I’m not enough of a snob to turn down Smirnoff, but the other day I was at an open bar and found the vodka drinks disgusting. When I saw the bartender making the next round with generic vodka, I knew why.

This blog is about money tho, so my real advice would be: Always in moderation.