Nickel & Nickel launched a new brand of wine, which it sold at $125 a bottle. The wine is allowed to age three times as long as lower-priced wines, and the grapes used in the wine's production are handpicked. Wine lovers appreciate how both production techniques improve wine quality. What did Nickel & Nickel use to build market share?

Question

Quizplus · Accepted Answer

Nickel & Nickel used value-based pricing to build market share. By charging $125 per bottle, which is significantly higher than the price of lower-priced wines, the company communicated the value of the handpicked grapes and longer aging process to wine lovers who are willing to pay for a higher-quality product.

Nickel & Nickel Launched a New Brand of Wine, Which