The Components Of Wine Prices

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Components of Wine Prices When people walk in a wine shop or grocery store’s wine aisle, there are often hundreds of wines with different price on display. The consumer may wonder what is the difference between a thousand-dollar wine and a twenty-dollar wine. On the bottle of wine, a typical label shows a lot of information. How to use those informations to evaluate the true value of wine definitely is a challenge. Even though consumer can easily find the quality rating of wine which published by various wine writers and critics; however, the wine writers’ opinion can influence consumer perceptions. Therefore, analysis the internal and external impact on wine prices helps consumer make a wise decision. According to a wine marketing research in Australian Marketing Journal, wine’s brand name, geographic region, grape types, fermentation method and vintage date are the main components that affect wine prices (Ling and Lockshin 19). Knowing where a bottle of wine comes from, what types of grape used and the reputation of its winery can help consumer have an idea how much it worth. Wine is produced in many countries throughout the world, but only a few of countries has developed a wine brand in order to obtain benefits from this industry (Aranda, Gomez and Molina 2057). Therefore, building brand image is a necessary step for wineries to increase reputation and competitiveness. Successful wineries focus on providing customer satisfaction in order to create higher reputation.
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