How does retail price factor into Label Analytics' research?
Price is a key indicator of product quality and is an important contributor to purchase interest.
Recognizing this, every Label Analytics study measures purchase interest twice.
First, we measure purchase interest without a visible price.
Later in the study, we measure purchase interest a second time, this time with the retail price displayed beneath the bottles.
This gives us a measure of the effect of the price, positive or negative.
This usually varies across respondents' usual price tier. We will present the effect of your price for each package option across the usual price tiers in our report.
Since your objective in running this package study is to measure how each of the three design options will perform on the shelf at retail, we recommend you price the product where you expect most retailers will price it. This way you will be able to see the overall performance of each design and how the (package with price) will perform with each respondent/shopper price tier.
You know the quality of your wine and the price tier of shoppers you want to sell to. Let that be your guide.
If you price your product at $10.99, you are positioning it to appeal to the under $10 and $10-$15 price tier shoppers. Shoppers who usually buy in the $15-20 and over $20 price tiers are less likely to feel the quality of a $10.99 wine is up to their standards. But if they really like the package, they can adjust their thinking and reach across price tiers. We have seen it happen.
I am describing what most often happens but every label/package is unique so it is important to measure how respondents react to each one.