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).