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

a. signaling
b. screening.
c. selecting
d. All of the above are correct

Answer 1

signalling:

Step-by-step explanation:

signalling:

signalling is an approach or idea when one of the two party tries to convince other by showing some positive or convincing point about itself.

it is a strategy that introduce to take advantage from others. Just in the same way in the given information company tries to convey message that wine that they are selling below market price is of good quality by changing labeling on wine.