I've read some anecdotal evidence supporting this as well (atleast for goods). A store owner can't sell a line of jewelery, so they write a note to an employee to cut the price in half. The employee misreads the note and doubles the price of the jewelery instead. All of a sudden the line sells out.
Part of the reason is that if people notice something's cheap, they'll think the quality is cheap as well. And vice versa.
Part of the reason is that if people notice something's cheap, they'll think the quality is cheap as well. And vice versa.