Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine

Birgit Gassler (Department of Agricultural Economics and Rural Development, University of Goettingen, Goettingen, Germany)
Carina Fronzeck (University of Goettingen, Goettingen, Germany)
Achim Spiller (University of Goettingen, Goettingen, Germany)

International Journal of Wine Business Research

ISSN: 1751-1062

Publication date: 17 June 2019

Abstract

Purpose

The mechanism by which organic labelling affects consumers’ willingness to pay (WTP) for wine is not yet fully understood. Organic labelling not only transports information about environmental benefits, but may also influence consumers’ perceptions of quality and taste. The purpose of this paper is to separate the information effect from the perception effect of an organic label on WTP.

Design/methodology/approach

Taste and quality perceptions of 110 German consumers and their WTP for white and red wines were collected in a second-price auction in conjunction with a blind tasting. Each measure was recorded under two experimental conditions: with and without organic labelling. Serial mediation analysis is used to identify the information and perception effect of an organic label on WTP. A moderating effect of commitment to organic consumption is considered.

Findings

Wines marketed as organic are perceived as tastier and of higher quality and value. The organic labelling effect is stronger for committed organic consumers. Mediation analysis confirms perceived better taste as a key driver for WTP, especially for less committed organic consumers. The findings highlight perceptions of wine quality as the main mediator through which organic labelling affects WTP for red wine and for committed organic consumers.

Originality/value

This paper adds to the literature by decomposing the signalling mechanism of organic labelling and by emphasising the role of individual characteristics in determining its magnitude and pathways. Implications from a marketing and wine industry’s perspective are discussed.

Keywords

Citation

Birgit Gassler, Carina Fronzeck and Achim Spiller (2019) "Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine", International Journal of Wine Business Research, Vol. 31 No. 2, pp. 221-242

Download as .RIS

DOI

: https://doi.org/10.1108/IJWBR-09-2017-0062

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.