Importance of price

Ever wondered what if there's no price tag on things we buy. How will it affect our buying decisions? Will we end up just getting the best or will the removal of price also removes the need to have different choices and we all end up buying the same thing? Some things are free, which means by definition they don't have a price. If you were to choose between a bunch of freebies what would you do? If price is no longer the differentiating factor or guide, will we be able to make better decision?

Price is important because our notion of value is based upon it. Without a price, we will have to judge products solely based on their specifications. Something we are supposed to do but apparently not many can due to the lack of domain knowledge.

So if the target of your product is the mainstream (e.g. clueless), should you use price as the guide to educate users on the value of your product in relation to your competitors? And if you are aiming for the early adopters, will being free makes it easier for them to see the true value of your product?