An exploration of loyalty determinants in Greek wine varieties

Abstract

Purpose

This paper aims to provide a deeper understanding of the market structure of Greek red and white wine varieties and to measure the loyalty behaviour of frequent wine buyers in Greece.

Design/methodology/approach

The study measures brand performance and loyalty of four different Greek wine varieties. Based on stated preference data, basic brand performance measures are estimated through Juster purchase probabilities of brand choice. To measure loyalty behaviour, the polarisation index φ (phi) is used as a measure to model both loyalty to the brand name and specific wine attributes and their levels.

Findings

The findings of the present study point to the conclusion that each one of the four Greek wine varieties under examination exhibits its own market structure and loyalty profile, whereas price, quality certification and winemaker's size seem to function as loyalty stimulators more effectively for white wines. Moreover, it is also clear that the (Greek) origin or type of the wine variety per se does not constitute a particularly important loyalty component in the marketing mix of the Greek red and white wines examined here.

Research limitations/implications

Wine has always been one of the most challenging product categories to investigate. Many product‐related attributes contribute to building loyalty; this attribute‐based loyalty is often hard to delineate and take into account. Moreover, the present methodology is based on stated preference data, whereas revealed preference data could be the ideal for applying the specific methodology.

Originality/value

Few studies, if any, have used the present methodological approach to explore the issue of loyalty in the case of wine.

Citation

Krystallis, A. and Chrysochou, P. (2010), "An exploration of loyalty determinants in Greek wine varieties", EuroMed Journal of Business, Vol. 5 No. 2, pp. 124-137. https://doi.org/10.1108/14502191011065473