When Does the Price Affect the Taste? Results from a Wine Experiment
AbstractWe 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.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 717.
Length: 16 pages
Date of creation: 19 Apr 2009
Date of revision: 20 Apr 2009
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More information through EDIRC
Price-Quality Heuristic; Attribute Information; Role of Expectations; Marketing; Blind Tasting; Wine.;
Other versions of this item:
- Almenberg, Johan & Dreber, Anna, 2009. "When Does The Price Affect The Taste? Results From A Wine Experiment," Working Papers 51755, American Association of Wine Economists.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-04-25 (Agricultural Economics)
- NEP-ALL-2009-04-25 (All new papers)
- NEP-CBE-2009-04-25 (Cognitive & Behavioural Economics)
- NEP-CUL-2009-04-25 (Cultural Economics)
- NEP-EXP-2009-04-25 (Experimental Economics)
- NEP-MKT-2009-04-25 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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