Consumer Sensory Evaluations of Wine Quality: The Respective Influence of Price and Country of Origin

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Abstract
The purpose of the study was to investigate the respective influences of price and country of origin as extrinsic cues on consumer evaluations of wine quality when all intrinsic cues are experienced through sensory perception. Taste testing experiments were conducted (N = 263) using Chardonnay as the test product in a 3 (country of origin, COO) × 3 (price) × 3 (acid level) conjoint analysis fractional factorial design. Price and COO were both found to be more important contributors to perception of wine quality than taste. Reliance on extrinsic cues was found to remain extremely robust even when all intrinsic cues were available through sensory experience for respondent evaluation. The research demonstrated that even when evaluating a product through consumption, consumer belief in the price/value schema dominates quality assessment. These findings mean that marketers cannot assume that intrinsic product attributes, even when experienced, will be weighted and interpreted accurately by consumers. The research significantly advances our understanding of consumers' use of extrinsic cues (price and COO specifically), and their respective influence in their determination of both expected and experienced quality. (JEL Classification: Q11, D12, M31)