Managing Amid Perception: Wine Price-Point Considerations in Several States in the USA


In general, prices for goods and services are driven by multiple factors. Lemon and Verhoef (2016) discussed, “understanding key drivers…Perhaps due to the lack of sound measurement development for customer experience, there is also a dearth of research on how customer experience can be influenced and on the consequences of customer experience” (p. 85).  Three of the issues recognized by Lemon and Verhoef (2016) were “price, image, and brand” (p. 85).  Recognizing the multi-faceted aspects of consumer price perception, Schons, Alavi, and Wieseke (2016) wrote, “…importantly, customers’ perceived price fairness likewise belongs to the price evaluation phase because it comprises a weighing of perceived benefits and perceived costs (i.e., perceived sacrifice)” (p. 86).

Lichtenstein, Ridgway, and Netemeyer (1993) asserted that “price is unquestionably one of the most important marketplace cues.  The pervasive influence of price is due, in part, to the fact that the price cue is present in all purchase situations and, at a minimum, represents to all consumers the amount of economic outlay that must be sacrificed in order to engage in a given purchase transaction” (p. 234). Ritchie, Elliott, & Flynn (2010) examined consumers’ purchasing contexts for wine in the retail environment. Focus on price over other wine attributes is influenced by the retailers’ consumer communications and price promotions.

Retail wine managers engage consumers of varied incomes, product exposures, product knowledge, and price expectations.  Traditional marketing cues of product, price, and promotion influence consumer behavior, but the choice of wine is a more complex decision compared with other consumer goods (Lockshin & Corsi, 2012).  This research examined consumer perceptions of wine price bracketing in several states representing two out of four United States Census regions (2015).


Western Business Management International (WBM)
John T. Lambert, Jr.
Mary J. Weber
Kelley A. Conrad
Sherry S. Jennings
Presentation Date: 
Saturday, September 22, 2018
Event or Conference: 
Western & Business Management International Research Conference
Presentation Type: 
Paper Presentation
Boyer's Domain: 
Presentation Location: 
IBIS Bordeaux Centre Meriadeck
35 cours du Maréchal JUIN
33000 Bordeaux
The purpose of this research is to explore how United States consumers perceive price points for wine. The pilot study evaluated how price brackets or ranges of prices interplay with wine consumers’ income. A self-administered questionnaire was completed by nearly 3,500 consumers in nine states. Results implied no connection of income to wine price point considerations, with U.S. wine consumers in different marketing areas holding very similar perceptions of wine pricing. The respondents may not represent the general U.S. wine consumer, and therefore results may not be generalizable. Future research could include an exploration of consumers’ perceptions of wine cost categories, consumer experience and self-confidence in selecting wines, wine tastes, and how consumers evaluate wines in different cost categories.