The placebo effect is one of the most widespread phenomenon that appear in human history and its use and effects can be transferred into multiple different areas. The placebo effect has mostly been researched and categorized in the medical field, but this bachelor’s degree paper will focus on its inclusion and use in the marketing field. Placebo effect can be characterized as the positive effect that arises from an action or a product that has no power to bring that effect with its intrinsic qualities, and one of the staples of marketing being the action of promoting and getting potential clients interested in a product it can be seen how the placebo effect can find its way in the industry and influence the consumers. The topic and point of this study will be more closely examined in the Theoretical part and its overall goal will be to give the reader knowledge on the subject of placebos and its effects in marketing, and give insight on the specific relationship of price and perception of the product quality that is affected by it. This thesis will focus on research that tests the presented hypothesis of price affecting the consumers perception of quality with an experiment based on two questionnaires that will be sent to two different test groups. The results will be examined and explained in the empirical part of the study, where the intricacies of the price – quality relationship were studied with a conclusion in the end that proves the placebo effect that arise from it.