We held a blind taste test for 12 people with 14 wines ranging from 3.99 to $50. For each variety, there was one wine that was under $7 and one that was $11-50. We bought most, but not all, of the wine at Trader Joes. Participants had to guess if each wine was 'cheap' or 'expensive.' No one got more than 8 right. Aside from guessing the price category, people rated how much they liked the wine from 1-5 so they could see what they liked after the reveal. A 50 dollar Cabernet was one of the lowest rated.
This 3.99 bottle had the 2nd highest rating:
http://cheapwineratings.com/2008/04/10/villa-cerrina-montepu...
Highest rated was a 6.99 Pinot Noir whose name escapes me at the moment. I don't claim the results necessarily prove anything about the wider world, except that my friends have been overspending on wine.