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Article
Publication date: 10 August 2020

Daniel Moscovici, Rana Rezwanul, Radu Mihailescu, Jeff Gow, Adeline Alonso Ugaglia, Lionel Valenzuela and Azzurra Rinaldi

This study aims to analyze the wine industry’s response to changing societal attitudes towards the environment. Environmental considerations are now an increasingly important…

Abstract

Purpose

This study aims to analyze the wine industry’s response to changing societal attitudes towards the environment. Environmental considerations are now an increasingly important factor in both production and purchasing behavior. While many eco-certifications exist, there is still consumer confusion between the multitude of eco wine certifications, lack of clarity about what consumers think about the wines, and not enough data about their willingness to pay (WTP) for these environmental characteristics.

Design/methodology/approach

This study clarifies what the various wine eco certifications are, quantifies consumer knowledge and ascertains their WTP for five environmental or sustainable wine certifications, namely, biodynamic, fair trade, organic, natural and sustainable. The authors surveyed 456 wine drinkers in the USA.

Findings

The authors found that millennials, women, unmarried individuals, those purchasing eco-certified foods, low-income individuals and those looking to celebrate a special occasion have a higher WTP for eco-certified wines compared to respondents who are older, male, married, do not buy eco-certified goods, have higher incomes and are purchasing the wine for a regular occasion. They recommend marketing and targeting those in the former group for environmental or sustainable wines.

Originality/value

The study is the only research project, of this kind, to evaluate five types of eco-certifications for wine in a single WTP analysis.

Details

International Journal of Wine Business Research, vol. 33 no. 2
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 4 March 2022

Jeff Gow, Rezwanul Hasan Rana, Daniel Moscovici, Adeline Alonso Ugaglia, Lionel Valenzuela, Radu Mihailescu and Robert Coelli

There has been increasing consumer interest in recent times in the environmental providence of what they eat and drink. A number of different environmental wine certifications…

Abstract

Purpose

There has been increasing consumer interest in recent times in the environmental providence of what they eat and drink. A number of different environmental wine certifications have been created and these include biodynamic, fairtrade, organic, natural and sustainable. The purpose of this study is to survey wine consumers in Australia about their interest in these eco-certifications and their willingness to pay (WTP) a price premium for wine with one of these eco-certifications.

Design/methodology/approach

An online survey was developed to capture the knowledge and attitudes of consumers and their socio-demographic characteristics about their WTP for eco-certified wine. Data from 454 wine consumers in Australia were collected and analysed. Descriptive statistics and Pearson’s chi-squared test analysed the significant factors which determine consumers’ attitudes towards eco-certified wines. Ordinal logistic regression with marginal effects was used to examine whether the WTP a premium for different certified wines differs significantly based on wine knowledge, attitudes and socio-demographic characteristics.

Findings

The findings of this study indicate that consumers often buy pro-environmental goods. The majority have a positive (greater than 0) WTP a premium for biodynamic, fairtrade, organic, natural and sustainable-labelled wines. The main factors influencing eco-certified wine purchase decisions by Australian consumers are previously bought eco-certified goods, previously bought eco-certified wine and respondent age. Income, education or previous wine knowledge did not positively influence WTP a price premium for eco-certified wines. Gender was not significant in the ordinal logistic regression.

Research limitations/implications

Most studies in the literature use stated preference experiments to elicit WTP and these are valuable exercises, as they can provide an indication of consumer preferences for potential certifications, before they have been introduced to the market. In this study, we used an ordinal dependent variable in the logistic regression instead of a continuous variable (because of data limitations). Using ordinal dependent variables provides information on the probability or likelihood of occurring an event.

Originality/value

The study results provide the first price premium indications that Australian consumers are willing to pay for eco-certified wines (other than organic).

Details

International Journal of Wine Business Research, vol. 34 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

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