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Abstract
Mexico has a long history of wine production beginning with the Spanish nearly 500 years ago. The alcohol beverage industry in Mexico is still largely dominated by the production and consumption of brandy, rum and tequila. However, there has been some recent interest in wine production and several large wineries are now producing quality products. Consumer interest in purchasing wine is still relatively low however, although there is growing interest in table wine. Most of the imported wine is from Europe and South America and these producers dominate the market.
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Sarita Ray Chaudhury, Pia A. Albinsson, George David Shows and Virginia Moench
The purpose of this study is to examine, through the lens of entrepreneurial marketing theory, everyday business practices of small-scale winemakers in a challenging small wine…
Abstract
Purpose
The purpose of this study is to examine, through the lens of entrepreneurial marketing theory, everyday business practices of small-scale winemakers in a challenging small wine region in the USA.
Design/methodology/approach
In-depth interviews and participant observations were utilized to elicit rich descriptions of entrepreneurial marketing efforts of six New Mexico winemakers.
Findings
This article describes winemakers’ entrepreneurial marketing efforts. We find that survival drives all other entrepreneurial marketing dimensions where accounting for risk is pervasive rather than a stand-alone dimension. Knowledge gained from intense customer focus is used for new product and service innovations. The leveraging of individual and shared resources is another dimension of entrepreneurial marketing that is demonstrated in our analysis.
Originality/value
As entrepreneurs stake their claim in developing small wine regions, understanding entrepreneurial marketing concepts will enable academics and practitioners to understand challenges of a business that is not only dependent on the economics but also on mother nature’s whims.
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The free trade area between the US and Canada was extended in 1994 to include Mexico. This article examines Mexico's demand for wine produced in the US. The citizens of Mexico do…
Abstract
The free trade area between the US and Canada was extended in 1994 to include Mexico. This article examines Mexico's demand for wine produced in the US. The citizens of Mexico do not traditionally consume wine. Brandy and rum are the preferred alcoholic beverages. But, Mexico has a large population and is expected to grow at a rapid rate in the future. Further, when the agreement took effect in 1994 the tariff on US wine was 20 percent The price of US wines will decrease significantly over the next ten years as the tariffs are eliminated. NAFTA also removed other wine specific trade barriers as well. The price elasticity of demand is −1.02 for the 1987–1994 period. The income elasticity is close to five and the cross price elasticity with EC wines was 0.3. Both the price and income elasticities portend a positive impact on the demand for US wines. The drawback to the optimistic predictions are the extremely low initial levels of consumption of wine in Mexico. So, even a doubling of consumption would still have a negligible impact on the US wine industry.
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In this article, information needed for potential US wine exporters to Mexico is provided. The opportunities for US wines in the Mexican market are closely examined in addition to…
Abstract
In this article, information needed for potential US wine exporters to Mexico is provided. The opportunities for US wines in the Mexican market are closely examined in addition to essential facts vital to a US wine producer interested in exporting wines to Mexico. With the increase of wine culture in Mexico, the recovery of the Mexican economy, and the increased demand for US wines in the Mexican market, the potential to increase market share in the Mexican market is enormous. In 1996, responding to a US tariff increase on Mexican brooms, Mexico greatly increased its wine tariffs. The US saw its wine market share in Mexico decrease by more than 50%. However, with the North American Free Trade Agreement (NAFTA) there will be a zero‐tax on US wines by the year 2003. The substantially lower prices of US wines and the increased demand for wines in Mexico should give US wine producers a very attractive market in Mexico. This article also informs potential exporters about label and packaging requirements needed to export wines into Mexico as well as the wine distribution channels in Mexico.
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Ana Laura Hernández, Silverio Alarcón and Lino Meraz Ruiz
This paper aims to offer an experiential segmentation based on the analysis of comments from wine tourists from different Mexican wine regions, using netnography as a data…
Abstract
Purpose
This paper aims to offer an experiential segmentation based on the analysis of comments from wine tourists from different Mexican wine regions, using netnography as a data collection and analysis tool.
Design/methodology/approach
The netnography methodology was applied in three steps: first, collecting consumer opinions (TripAdvisor 1,240 opinions, 2017–2019) from their visits to 20 wineries in four Mexican wine regions. Second, organizing of the data by classifying the various experiences. Third, by the application of multiple correspondence and cluster analysis to consolidate four segments taking as reference the 4Es Model.
Findings
The results show that of the four Mexican wine regions, Baja California is divided between the aesthetic and wine focus segments, Coahuila is more associated to the educational segment, while tourist who visit Queretaro tend to relate to the activities of the entertainment segment.
Research limitations/implications
The scarce literature that exists regarding wine tourism in Mexico made certain comparisons and relationships to the results difficult to establish.
Practical implications
The results provide stakeholders (wineries, state tourism departments, wine tourism marketers and wine tourism researchers) a segmentation proposal focused on tourist experiences to improve marketing programs and wine tourism offerings.
Originality/value
The use of netnography as a tool for wine tourism research in Mexico is one that has not been previously explored. In addition, this study considers different Mexican wine regions, which allows for comparisons and relationships between them that can contribute to greater market differentiation.
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Marc Michaud, Eduardo Segarra and Tim Dodd
This study estimates the economic impacts of the Texas wine and wine grape industry on the Texas economy by marketing channel. Survey data from the state's vineyards and wineries…
Abstract
This study estimates the economic impacts of the Texas wine and wine grape industry on the Texas economy by marketing channel. Survey data from the state's vineyards and wineries for 1996 is used to construct an input‐output model of the Texas economy and an industry impact framework using IMPLAN. Results show that the total core economic impacts of the Texas wine and wine grape industry were $85.8 million in output impacts, 1,157 jobs, $29.6 million in income impacts, and $46.6 million in total value added impacts in 1996. Much of these core economic impacts were attributable to the retail and restaurant marketing channels.
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Elizabeth C. Thach, Ms Thoraya Halhoul and Jay Robertson
What types of wine business practices have the most impact on employee productivity, leading to profitability? This qualitative study attempts to answer this question based on…
Abstract
What types of wine business practices have the most impact on employee productivity, leading to profitability? This qualitative study attempts to answer this question based on interviews and survey data from 109 winery and vineyard operations across the US. A total of 33 management practices were identified using a qualitative content analysis methodology; including the major categories of management communication, hiring, training, and positive incentive systems. Results suggest areas for future research, as well as simple and cost‐effective management practices which wineries and vineyards can implement now.
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Karen Ramos, Onesimo Cuamea and Jorge Alfonso Galván-León
In Mexico, wine tourism has become a relevant issue in the past 20 years. Research in this region is in a nascent stage and largely focused on the supply side. Nevertheless…
Abstract
Purpose
In Mexico, wine tourism has become a relevant issue in the past 20 years. Research in this region is in a nascent stage and largely focused on the supply side. Nevertheless, consumer behavior research on wine tourists of the region is needed to improve the wine region positioning. Therefore, the purpose of this paper is to find out the predictors for revisit intention (RI) to the Valle de Guadalupe wine route.
Design/methodology/approach
The information was obtained by applying an exit poll survey to a sample of 422 wine tourists at the micro, small and medium wineries in Ensenada, Mexico. The spatial-temporal model was used to predict the wine tourist RI. Three dimensions were used: pre-visit, in situ experience and travel to/from. Multiple linear regressions were carried out to assess the relation between the three dimensions and RI.
Findings
The results obtained show that the pre-visit and in situ dimensions have an effect on RI to the wine route.
Research limitations/implications
The generalization of the results may be limited due to fact that only the repeated visitors of the autumn season are included; therefore, it is not applicable to summer (high season of wine tourism) and first-time visitors.
Practical implications
The results provide implications for the owners of the micro, small and medium wineries seeking to improve the experience and increasing the tourist RI to the wine route.
Originality/value
The theoretical added value of this paper is its contribution to the body of knowledge about the wine tourism spatial-temporal model, evaluating the complete wine tourism experience to predict RI.
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Janeen E. Olsen, Linda Nowak and T.K. Clarke
This article investigates whether a negative country of origin bias facing imported wine can be offset when it is distributed in marketing channels alongside already accepted…
Abstract
This article investigates whether a negative country of origin bias facing imported wine can be offset when it is distributed in marketing channels alongside already accepted complimentary products. Specifically we consider the case of Mexican wine being introduced to consumers in a Mexican restaurant versus a more general themed contemporary restaurant. An experimental design was employed to investigate consumers' perceptions and future purchase intentions after tasting Mexican wine in a proposed restaurant with one of the two themes. Findings suggest that the best method for introducing Mexican wine to US consumers may be through Mexican restaurants although adoption of the wine for consumption at home may be slow.
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Jorge Pelegrín-Borondo, Ruben Fernández Ortiz and Lino Meraz-Ruiz
This study aims to compare the influence of emotions produced by the wine and the winery visit on wine purchase intent at two destinations with different cultural views (old and…
Abstract
Purpose
This study aims to compare the influence of emotions produced by the wine and the winery visit on wine purchase intent at two destinations with different cultural views (old and new wine worlds).
Design/methodology/approach
A quantitative approach was adopted using a total sample of 600 tourists from two different wineries, one in La Rioja (Spain, Europe) and the other in Baja California (Mexico, North America). All the tourists surveyed at the European winery were European, and all the tourists surveyed at the North American winery were North American.
Findings
The results expand on previous research. At the tested wineries, the emotions produced by the wine (product) had a greater influence than those produced by the winery (environment); however, the intensity of their respective influences varied depending on whether the winery was in the new or old wine world.
Research limitations/implications
While the wine description was controlled by showing the same offer at both destinations, the winery visit experience was neither controlled nor controllable because the tours were real. Additionally, although the research variables were very similar in this study, the effect of differences in income between the tourists from the different regions was not considered.
Practical implications
Winery managers wishing to positively influence wine purchases at their establishments should focus their efforts on generating high positive emotions through the wine offer. They should also keep in mind the possible need for different approaches because of cultural differences between the tourists (North American or European) visiting the winery. To sell wine and build their brand, they should identify those tourists truly interested in wine.
Originality/value
Although the literature recognizes the influence of the emotions produced by the product and the environment on wine purchase intent, this is the first study to simultaneously compare the influence of the emotions generated by both the wine on offer (product) and the winery visit (environment) on wine purchase intent in tourists to two different wineries (new vs old wine world).
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