When Does the Price Affect the Taste? Results from a Wine Experiment
Johan Almenberg and
No 717, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics
We designed an experiment that examines how knowledge about the price of a good, and the time at which the information is received, affects how the good is experienced. The good in question was wine, and the price was either high or low. Our results suggest that hosts offering wine to guests can safely reveal the price: much is gained if the wine is expensive, and little is lost if it is cheap. Disclosing the high price before tasting the wine produces considerably higher ratings, although only from women. Disclosing the low price, by contrast, does not result in lower ratings. Our finding supports the notion that price not only serves to clear markets, it also serves as a marketing tool; it influences expectations that in turn shape a consumer’s experience. In addition, our results suggest that men and women respond differently to attribute information concerning wine.
Keywords: Price-Quality Heuristic; Attribute Information; Role of Expectations; Marketing; Blind Tasting; Wine. (search for similar items in EconPapers)
JEL-codes: C91 D03 D83 M31 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2009-04-19, Revised 2010-03-02
New Economics Papers: this item is included in nep-agr, nep-cbe, nep-cul, nep-exp and nep-mkt
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Published as Almenberg, Johan and Anna Dreber, 'When Does the Price Affect the Taste? Results from a Wine Experiment' in Journal of Wine Economics, 2011, pages 110-121.
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Journal Article: When Does the Price Affect the Taste? Results from a Wine Experiment* (2011)
Working Paper: WHEN DOES THE PRICE AFFECT THE TASTE? RESULTS FROM A WINE EXPERIMENT (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0717
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