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Effect of extrinsic cues on willingness to pay of wine: Evidence from Hong Kong blind tasting experiment

Won Fy Lee (Department of Applied Economics, University of Minnesota, St. Paul, Minnesota, USA)
William C. Gartner (Department of Applied Economics, University of Minnesota, St. Paul, Minnesota, USA)
Haiyan Song (School of Hotel and Tourism Management, Hong Kong Polytechnic University, Kowloon, Hong Kong)
Byron Marlowe (School of Hospitality Business Management, Washington State University, Pullman, Washington, USA)
Jong Woo Choi (Department of Food and Resource Economics, Gyeongsang National University, Jinju, The Republic of Korea)
Bolormaa Jamiyansuren (Department of Applied Economics, University of Minnesota, St. Paul, Minnesota, USA)

British Food Journal

ISSN: 0007-070X

Article publication date: 8 August 2018

Issue publication date: 12 October 2018

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Abstract

Purpose

The purpose of this paper is to examine the effect of extrinsic cues on wine consumer’s willingness to pay (WTP) based on a blind tasting experiment conducted in Hong Kong.

Design/methodology/approach

Using data from a three-stage blind wine tasting experiment, the authors examine how an average consumer’s WTP for a bottle of wine changes as a result of knowing prior to tasting extrinsic information such as the country of origin or grape variety of an otherwise identical product.

Findings

The findings of this study align with previous research that finds subjective utility experienced by tasters can be significantly influenced by the belief or information given prior to the tasting. Sub-group analysis using a stratified sample based on the frequency of wine consumption and the wine taster’s prior experience with wine (grouped into expert and novice categories) suggests that it is the novice consumers that have a stronger response to the pre-tasting knowledge when evaluating wine. Experienced wine consumers, on the other hand, do not seem to respond strongly to the pre-tasting knowledge of the extrinsic attributes in their evaluation of wine.

Originality/value

The studies of taste preference and role of extrinsic characteristics in wine evaluation and consumption in the rapidly growing Asian market is increasingly important for the wine industry. The evidence from this study suggests the importance for producers and marketers to consider consumer heterogeneity and product differentiation when pricing and distributing their wine.

Keywords

Citation

Lee, W.F., Gartner, W.C., Song, H., Marlowe, B., Choi, J.W. and Jamiyansuren, B. (2018), "Effect of extrinsic cues on willingness to pay of wine: Evidence from Hong Kong blind tasting experiment", British Food Journal, Vol. 120 No. 11, pp. 2582-2598. https://doi.org/10.1108/BFJ-01-2017-0041

Publisher

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Emerald Publishing Limited

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