Question

A brand of wine is priced at only $5 per bottle, far below the market price of most high quality wines. Before any reputation exists for the wine, consumers buy very little of this inexpensive wine because they interpret the low price to mean that the wine is of poor quality. The company decides to change the label on the wine to show that it has won awards for quality. This label change is an example of

Answer 1

Answer:

Re-branding

Explanation:

This is an example of re-branding the product. Re-branding is a strategy for marketing that associates a new name, image and designs to the existing product so as to change consumer perception of that product. This helps bring forward a new brand identity for an existing product allowing it to be able to be competitive and differentiated. It is basically now marketed as a new and or improved product.

Hope that helps.