Why Consumers Prefer Red Bull Over Mountain Dew — Even at a Higher Price

The case study integrates:

Behavioral Economics Analysis

1. Pricing heuristics

2. Category framing

3. Anchoring & value construction

4. Expectation effects

5. Identity-based consumption

Psychological Analysis

1. Motivational systems: arousal, reward, mastery

2. Memory encoding

3. Ritual behavior

4. Social proof & group belonging

Neuromarketing Analysis

1. Subconscious brand associations

2. Emotional arousal triggers

3. Packaging perception

4. Priming effects

5. Cognitive fluency (ease of processing)

This multi-disciplinary approach reveals why people willingly pay more for Red Bull, even though they may not articulate the reason consciously.

3. Key Findings

Finding 1: Red Bull owns a unique mental category; Mountain Dew doesn't.

The Brain Doesn't Compare Across Categories

Consumers do not compare Red Bull to soda.

They compare Red Bull to:

• coffee

• pre-workout drinks

• energy boosters

• performance aids

• This changes the reference price.

The brain expects energy drinks to be more expensive.

Mountain Dew is put into the soft drink schema, where prices are lower and driven by quantity, taste, and refreshment—not performance.

Behavioral Economics Insight:

Category framing creates its own price logic.

Consumers will pay more for "energy" than "soda," even if the ingredients are similar.

Finding 2: Red Bull's Ritual Creates a Dopamine Loop

Red Bull has a certain ritual of consumption:

• Small slim can

• Crack the metal tab

• Sharp, medicinal first sip

• Expectation of quick alertness

Rituals create predictability, which then amplifies the brain's reward system.

Mountain Dew consumption is casual and unstructured—no ritual, no expectation cycle.

Psychology Insight:

Rituals strengthen habit formation and emotional anchoring, thus building loyalty and willingness to pay.

Finding 3: Packaging Triggers Fast, Subconscious Categorization

Red Bull's slim can says:

• efficiency

• speed

• strength

• Focus

• premium positioning

Its minimalistic design with elements in silver and blue resembles pharmaceutical or performance products, which connote functional benefits.

Mountain Dew's bright colors and busy graphics activate:

youthfulness

sugar

fun

impulsivity

Useful for a soda brand, harmful in commanding a premium.

Neuromarketing Insight:

Packaging serves as a visual heuristic.

Consumers trust products that "look" functional to deliver performance.

Finding 4: Red Bull Makes You Feel Like You're Buying “Energy,” Not a Beverage

Humans don't buy products.

They buy psychological states.

The implied promise of Red Bull is psychological and about identity:

"I am alert."

"I am active."

"I am productive."

"I perform under pressure."

It sells self-improvement, not taste.

Mountain Dew sells flavor enjoyment, which doesn't warrant a premium.

Behavioral Economics Insight:

Consumers pay more for those products that reinforce identity, capability, or status.

Finding 5: Price Itself Becomes a Signal of Effectiveness

In behavioral economics, a higher price can create a placebo effect:

If it is expensive, it must work better.

When people think that Red Bull is enhancing their performance, they interpret sensations such as:

increased heart rate

alertness

Energy

as proof that it works.

Mountain Dew's lower price anchors it as a "fun cheap drink" rather than a functional tool.

Key Insight:

Price amplifies perceived functionality, particularly when the purpose is performance, rather than pleasure.

Finding 6: Red Bull's Brand Story Activates the Brain's Reward System

The brand ecosystem of Red Bull comprises:

• extreme sports

• risk-taking

• physical mastery

• breaking limits

• record-breaking stunts (e.g., space jump)

The following stimuli elicit an emotional arousal in brain areas involved in:

• adrenaline

• aspiration

• Heroism

• excitement

• challenge

This makes the brand a symbol of action, not just a drink.

Mountain Dew's story was fun and rebellious, but non-functional.

It doesn't promise performance but only entertainment.

Neuromarketing Insight:

Emotional arousal reinforces the encoding of memory and enhances brand value.

4. Why Consumers Pay More for Red Bull (Summary)

1. Category Framing

Red Bull = energy booster

Mountain Dew = soft drink

2. Perception of Functionality

Red Bull activates performance schemas; Mountain Dew activates taste schemas.

3. Ritual and Habit Loop

Red Bull produces consistent experiential cues.

4. Packaging as a Subconscious Signal

Slim can = functionality and focus.

5. Identity Reinforcement

Consumers buy the feeling of being more capable.

6. Price as a Quality Cue

A higher price increases perceived effectiveness.

7. Strong Emotional Branding

It associates itself with high-arousal sports and achievement.

Together, these mechanisms override price sensitivity.

5. Behavioral Economics Model: The Red Bull Premium Preference Loop

1. Brand Story → Priming: Performance Expectations

2. Packaging → Cognitive fluency (“this works”)

3. Ritual → Dopamine anticipation 4. Consumption → Interpreted as energy (placebo boost) 5. Identity → Reinforced self-image 6. Loyalty → Willingness to pay premium This loop explains why taste, ingredients, or price does not significantly influence preference. 6. Conclusion Consumers do not analyze beverages rationally. They rely upon subconscious category cues, emotional stories, visual heuristics, and identity-based decision-making. The difference between Red Bull and Mountain Dew is not chemical; it's psychological. Red Bull is selling energy, capability, and performance, which the brain values more than flavor or price. This case highlights one of the basic principles of behavior science: People don't buy what they say they buy. They buy what their brain believes will change their state.

4. Consumption → Interpreted as energy (placebo boost)

5.Identity → Reinforced self-image.

6.Loyalty → Willingness to pay premium.

This loop explains why taste, ingredients, or price do not significantly influence preference.

Conclusion:

Consumers don't evaluate beverages logically.
They rely on subconscious category cues, emotional stories, visual heuristics, and identity-based decision-making.

The difference between Red Bull and Mountain Dew is not chemical—it's psychological.

Red Bull sells energy, capability, and performance, which the brain values more than flavor or price.

This case demonstrates a foundational truth of behavior science:

People don’t buy what they say they buy.
They buy what their brain believes will change their state.