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 indicates 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.
Source: “WHEN DOES THE PRICE AFFECT THE TASTE? RESULTS FROM A WINE EXPERIMENT” from American Association of Wine Economists, Working Papers
Follow me on Twitter here or get updates via email here.
Digests of posts:
Things you didn’t know about sex
How to quickly and easily improve your life
Things you didn’t know about sports
Things you didn’t know about happiness
Things you didn’t know about lies, liars and detecting lies
Things you didn’t know about negotiation, persuasion and influence
Things you didn’t know about marriage and relationships
97 
982 
4944