Asked by Lynette Madison on Jul 04, 2024
Verified
Many wines are priced high in order to
A) Indicate low quality
B) Indicate high quality
C) Indicate a bargain brand
D) None of the above
Price-cost Margins
The difference between the selling price of a product and its cost of production, often expressed as a percentage.
Wine Merger
The combining of two or more companies engaged in the wine industry, aiming to increase market share, efficiency, or geographic reach.
- Understand the implications of pricing strategies on consumer perception and demand.
Verified Answer
AM
Aashan MeiyappanJul 10, 2024
Final Answer :
B
Explanation :
Wines that are priced high are usually indicating high quality. High-quality wines use premium grapes, undergo meticulous winemaking processes, and are aged longer, which all contribute to higher production costs and a higher price tag. This is especially true for wines from renowned winemaking regions or from rare varietals.
Learning Objectives
- Understand the implications of pricing strategies on consumer perception and demand.
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