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Article
Publication date: 1 February 1997

Robert P. Hamlin and Victoria Watson

This paper examines the attitudes of the New Zealand wine industry towards the proposed New Zealand ‘Registered Origin’ appellation policy. Existing appellations are…

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213

Abstract

This paper examines the attitudes of the New Zealand wine industry towards the proposed New Zealand ‘Registered Origin’ appellation policy. Existing appellations are reviewed, including the motives for their establishment, their performance, and their relationship with the marketing activities of wine producers. The review concludes that existing appellations could be divided into two groups, the ‘active’ appellations of the Old World, and the ‘passive’ appellations of the New World. Passive appellations make assumptions as to industry behaviour. These assumptions are identified. These assumptions have to be both understood and supported by an industry if they are to adequately support a passive appellation policy. An interview survey of New Zealand wine producers examines the industry's understanding of the proposed passive appellation. The results suggest that the level of understanding is low, at around 25% of those interviewed, which has negative implications for the proposed appellation.

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International Journal of Wine Marketing, vol. 9 no. 2
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 23 March 2010

Thomas Atkin and Ray Johnson

The purpose of this paper is to examine the consumer use of geographical information in the wine purchase decision. Consumers often rely upon the place of origin of a wine…

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1412

Abstract

Purpose

The purpose of this paper is to examine the consumer use of geographical information in the wine purchase decision. Consumers often rely upon the place of origin of a wine product in order to assess its quality. This research examines the importance of place‐of‐origin information and what level of place is meaningful to consumers, as well as which consumers utilize that information.

Design/methodology/approach

Data collection took place by means of a highly structured online survey of 409 geographically dispersed wine consumers across the USA. Respondents were recruited by Survey Sampling International and screened for at least occasional wine consumption.

Findings

Brand and place‐of‐origin information such as region, country and state were the most important attributes in the consumers' choice of a wine. One type of geographical indicator, appellation, was not well utilized. Core wine consumers and those with greater expertise utilized place‐of‐origin cues to a greater extent than less frequent and less knowledgeable consumers.

Research limitations/implications

The study sample represents US wine drinkers and should not be taken as a general population sample. Potential respondents were required to have consumed at least one bottle in the last year in order to take the survey. The non‐probability sample includes participants from 46 states, 189 of whom are male and 211 are female.

Practical implications

Wineries in established regions should increase their efforts to promote regional identity at the county, state and national level, to enhance their existing product images. Regional information is more heavily utilized by consumers than appellation information, which allows producers to take advantage of pre‐existing levels of awareness. This research suggests that marketers develop strategies to increase sales that emphasize larger regions such as county or state rather than appellations.

Originality/value

This paper is of value to academic readers, wine industry practitioners and regional trade and tourism associations and other commercial entities that market their products with regional cues. The geographically dispersed sample provides results that generalize well to the wine consuming public.

Details

International Journal of Wine Business Research, vol. 22 no. 1
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 1 March 2005

Philippe Barbe and François Durrieu

As far as lasting of the great Bordeaux wines is concerned, each critic needs to identify his specificity if he is to maintain or increase market share. History shows…

Abstract

As far as lasting of the great Bordeaux wines is concerned, each critic needs to identify his specificity if he is to maintain or increase market share. History shows, however, that each new critic has had to position himself in relation to the market leader, namely the American wine critic Robert Parker. The question of whether or not the differences in evaluation are real or simply part of the critics’ grading strategy can thus be raised. To illustrate this we shall examine the results of Dubourdieu and Parker's evaluation.

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International Journal of Wine Marketing, vol. 17 no. 3
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 8 May 2018

Feng Chen, Xingqiang Du, Shaojuan Lai and Mary Ma

From the sociolinguistic perspective, the purpose of this paper is to examine whether the honorific and actual-name appellations that Chinese auditors use to address…

Abstract

Purpose

From the sociolinguistic perspective, the purpose of this paper is to examine whether the honorific and actual-name appellations that Chinese auditors use to address clients in audit reports connote differential financial misstatement risk. Specifically, the authors hypothesize that auditors’ use of honorifics signals their inferior social status relative to their clients, thereby leading to compromised auditor independence, lower audit quality, and higher financial misstatement risk.

Design/methodology/approach

The authors use a sample of manually coded appellation data from audit reports of Chinese public firms between 2003 and 2012 to conduct the research.

Findings

The authors find significantly greater financial misstatements, both in terms of likelihoods and magnitudes, for companies addressed by honorifics than for those addressed by actual names. Moreover, compared to auditors’ consistent honorific usage, discretionary honorific usage has a stronger positive association with misstatements. The authors further show that the positive association between honorific usage and client misstatement risk weakens when the audit firm is a Top 10 accounting firms in China, is an industry specialist, is formed as a partnership, or resides in a more concentrated audit market.

Originality/value

This study contributes to the sociolinguistics literature in accounting and provides evidence supporting the reform proposed by the International Auditing and Assurance Standards Board to enhance the usefulness of audit reporting.

Details

Asian Review of Accounting, vol. 26 no. 2
Type: Research Article
ISSN: 1321-7348

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Article
Publication date: 13 November 2007

Giulio Malorgio and Cristina Grazia

This paper aims to illustrate the mechanisms for the economic regulation of quantity and quality in the Chianti Classico appellation of origin, focusing on the role of the…

Abstract

Purpose

This paper aims to illustrate the mechanisms for the economic regulation of quantity and quality in the Chianti Classico appellation of origin, focusing on the role of the sectorial organization in regulating the intermediary market, reinforcing the product's identity and the reliability of the quality signal.

Design/methodology/approach

Starting from some background elements (literature review and legislation framework) and given the supply chain organization and the main market mechanisms, the quantity and quality regulatory tools are illustrated and it is suggested how to improve the role of the sectorial organization in achieving the effectiveness of the system.

Findings

Reinforcing the quantity constraint established by the production code, controlling and certifying the compliance process to the minimum quality standard from upstream grape production to downstream commercialization, reinforcing the link with the terroir and improving the promotional activity are some of the main strategies identified to improve the effectiveness of the system. In addition, a more operational role should be recognized to the sectorial organization, in order to stabilize and regulate the transactions on the intermediary market and attract a more market‐oriented approach.

Research limitations/implications

Using a case study and not a quantitative approach represents the limit of this paper.

Originality/value

The paper provides an original contribution in the sense that some empirical evidences are highlighted, which both support the theoretical arguments for an economic regulation of supply by the sectorial organizations and provide some suggestions, which might be useful outside the Chianti Classico to improve the effectiveness and reliability of the appellation of origin.

Details

International Journal of Wine Business Research, vol. 19 no. 4
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 28 August 2019

Katarzyna Pankowska

This paper aims to analyze the significance of British Columbia Vintners Quality Alliance (BC VQA) certification that constitutes BC’s wine appellation and its influence…

Abstract

Purpose

This paper aims to analyze the significance of British Columbia Vintners Quality Alliance (BC VQA) certification that constitutes BC’s wine appellation and its influence on wine prices, the volume of wine sales and winemakers’ revenues.

Design/methodology/approach

A three-stage endogenous dummy variable specification that addresses the endogeneity of the VQA certification is used. The data used in this research come from the BC liquor distribution branch, and it is composed of a monthly scanner wholesales data of all wines sold by the BC estate wineries located in the Okanagan and Similkameen Valleys of BC in 2011-2015.

Findings

The obtained results suggest that VQA certification has a positive and marginally significant effect on the average volume of sales of BC produced wines, but it seems not to influence the average wine prices and the average revenue share. The results imply then that VQA certification allows rent dissipation via over-certification, which, in turn, allows arbitraging away of producers’ rents.

Originality/value

The research constitutes the first attempt of the use of three-stage endogenous dummy variable modeling approach to correct for the endogeneity of the VQA certification in BC. The analysis is essential for BC winemakers as it can inform them about the current role of the VQA certification in BC. This knowledge is especially important now when the BC wine region is developing its collective, regional reputation and is in the process of introduction of new appellations and sub-appellations.

Details

International Journal of Wine Business Research, vol. 32 no. 1
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 1 March 2003

David E.R. Gay

Government regulation affects “the economics of what's‐in‐a‐name” in the U.S.A. and Italy, as well as in other nations. The paper briefly explores some of the economic…

Abstract

Government regulation affects “the economics of what's‐in‐a‐name” in the U.S.A. and Italy, as well as in other nations. The paper briefly explores some of the economic implications of creating viticultural appellations or geographic districts. Among the issues examined are the exclusivity principle, the problem of the commons, the value of governmental approval, and consumer issues. Also, several U.S. anomalies are introduced and discussed. This paper compares the establishment of U.S. viticultural areas with the Italian approach, which was initially private and later developed within the framework of the Italian wine laws. The Italian approach more closely resembles a private arrangement supported by law instead of a cartel.

Details

International Journal of Wine Marketing, vol. 15 no. 3
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 1 May 2006

Pierre Mora

For several years now, Bordeaux's vineyards have suffered from what would appear to be an interminable crisis. Some analysts view overproduction as the cause. Others blame…

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4522

Abstract

Purpose

For several years now, Bordeaux's vineyards have suffered from what would appear to be an interminable crisis. Some analysts view overproduction as the cause. Others blame the product Bordeaux puts out, decrying its lack of adaptation to new consumer expectations. What is true is that Bordeaux producers do not tend to spontaneously adopt a market orientation. However, faced with a dilemma that seems to be getting worse and worse, many are starting to seek their salvation in marketing. The purpose of this paper is to address these issues.

Design/methodology/approach

The present article uses a series of case studies covering regions outside of Bordeaux to find concrete answers to these questions. As a methodology, these case studies have been used to illustrate different ways to develop production and sales.

Findings

Consolidating the production, increasing the sales forces efforts, reducing the number of intermediaries between production and consumption, maintaining a niche position on the global market are one of the main findings of this paper and practical implication.

Research limitations/implications

Using case studies and not quantitative approach represents both limits of the approach and innovative methodology that permits rich comparison with local practices.

Originality/value

Analyzes a local crisis thanks to external case studies.

Details

International Journal of Wine Marketing, vol. 18 no. 2
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 13 June 2019

Luca Rossetto and Luigi Galletto

The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding…

Abstract

Purpose

The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding these wines.

Design/methodology/approach

A survey has been carried out on retailers by collecting data about wines as intrinsic attributes (grape variety, blending, origin, alcohol content, etc.) and extrinsic attributes (brand, price, packaging, etc.) and about outlet and retail environment. The hedonic analysis required a rearrangement of data survey, while a Box-Cox transformation allowed to control the strong heteroskedasticity detected of the data.

Findings

Results provide strategies for still, semi-sparkling and sparkling rosé market segments. Still rosé wines are strongly differentiated, while the price is affected by the appellation, grape variety, blending, brand and outlet features. Two main strategies are suggested: the first focuses on appellations endorsing consumer’s brand loyalty; the second is driven by retailers while involving weaker brands. Different pictures emerged for semi-sparkling and sparkling wines, as producers and retailers tend to follow consumer’s preferences for fresh and easy drinking wines as well as to extend the product assortment.

Research limitations/implications

Results for sparkling rosé wines cannot be generalized. The high fragmentation hinders the hedonic model performance in capturing the price effects of brands, appellations, grape variety and wine blend.

Practical implications

The hedonic analysis provides suggestions for rosé wine producers that should reinforce their brand through associations among intrinsic attributes, such as appellation, and extrinsic ones, such as price, while satisfying retailer requirements.

Originality/value

The paper contributes to the knowledge base about the Italian rosé wine market, which is mostly export-oriented. Model results help to understand why the domestic consumption is stagnant with respect to other countries such as France or the USA.

Details

International Journal of Wine Business Research, vol. 31 no. 3
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 30 August 2019

Geoffrey Lewis, Steve Charters, Benoît Lecat, Tatiana Zalan and Marianna McGarry Wolf

Tasting experiments involving willingness to pay (WTP) have grown over the past few years; however, most of them occur in formal wine-tasting conditions, removed from…

Abstract

Purpose

Tasting experiments involving willingness to pay (WTP) have grown over the past few years; however, most of them occur in formal wine-tasting conditions, removed from real-world experience. This study aims to conduct experiments on wine appreciation and willingness to pay in both settings, to allow a comparison of how tasters reached conclusions in different situations.

Design/methodology/approach

The authors conducted two sets of experiments in Dijon, France, with knowledgeable wine drinkers, in 2014 and in 2016, to explore the relationship between wine ratings, WTP and objective characteristics (appellation, labelling and price). The first was in a formal wine-tasting setting (n = 58), and the second in the social setting of a restaurant (n = 52). The experiments involved deception: the tasters were presented with five wines, but in fact only three wines were involved, two of the wines being presented twice.

Findings

The results from the 2014 study showed that even with a group of experienced tasters, objective characteristics overwhelmed subjective assessment (taste, sensory perception) of the wine. Ratings and WTP were driven by the appellation or brand, labelling and price of the wines. The authors replicated the experiment in a social setting in 2016 which, contrary to their expectations, produced very similar results. In neither experiment did the experienced tasters detect the deception.

Research limitations/implications

The social setting was a lunch in a restaurant with a group of students who were graduating together. The tasting was conducted by some of their professors, which may have influenced the results and raises questions about whether the setting was truly ‘social’. The sample size for the experiments was comparatively small and further research, including novice and expert tasters, might contradict these findings, or at least add nuances to them.

Originality/value

The study finds that, contrary to expectations, in the social wine consumption setting of a restaurant meal enjoyed with colleagues, objective wine characteristics over-rode subjective appreciation of the wine.

Details

International Journal of Wine Business Research, vol. 31 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

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