B:ASSMASTER
Experienced
There's a psychological game that is sometimes used in marketing any kind of product, but not always.I reckon that Gibson in its pricing betted heavily on the effect that people tend to be distrustful of cheap things. If its too cheap people suspect that there's something wrong with the product and that the more expensive product is probably better.
One example, is about a buddy of mine. He used to work at a place like Sears or something similar. He was the top salesman in his department, which was electronics. He said his method succeeded in getting customers to buy the expensive televisions. He'd greet them, ask what they were looking for in a TV and then walk them past all the expensive models and right to the cheaper models. He'd go into a sales pitch about the cheap models, but the majority of customers would ask, "Well, what about these" (pointing at the expensive ones). After that it was pretty much a slam dunk in getting them out the door with the expensive TV. People feel insulted that they're led straight to the cheap models and they react by thinking "Hey. I can afford that. You assume I don't have enough money for the good stuff?"
One more example. There was a eating place that sold a $5 steak and it was really good. My friend (same guy who used to sell the TV's) would go there a lot because of that. One day he walks in there and it's not on the menu anymore. They said that they weren't selling enough and discontinued it. He told them put it back on the menu, but charge $15 for it. They eventually did and after some time had past, my friend went back there to eat. They told him that they were selling those SAME steaks like crazy, now. People equate price with quality.