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Article
Publication date: 1 April 1993

Markus Salolainen

Examines the alternatives available for the Champagne producers and marketers to overcome the serious consequences the present recession has brought upon them…

Abstract

Examines the alternatives available for the Champagne producers and marketers to overcome the serious consequences the present recession has brought upon them. Recommendations are made to formulate and develop a strategic basis for turning the tide by means of linking the ethical and quality aspects of Champagne production to marketing activities. Lessons for producers of other wines are also given.

Details

International Journal of Wine Marketing, vol. 5 no. 4
Type: Research Article
ISSN: 0954-7541

Keywords

Book part
Publication date: 3 April 2018

Amandine Ody-Brasier

This article seeks to identify the type of producers most likely to deviate from category-based expectations in the pursuit of profit. I describe circumstances under which…

Abstract

This article seeks to identify the type of producers most likely to deviate from category-based expectations in the pursuit of profit. I describe circumstances under which a category’s core members are, paradoxically, more likely (than its peripheral members) to deviate. This phenomenon reflects market participants’ default expectations about core members and the resulting bias in information-search processes. I offer empirical evidence of Champagne producers getting involved in “buyer’s own brands” (BOB), a behavior that is not directly observed yet deviates considerably from grape suppliers’ category-based expectations. The econometric analysis leverages an exogenous shock that increased the scrutiny of BOB by grape suppliers. I find that before the shock, BOB products were more likely to be supplied by “traditional” houses – which grape suppliers view as core industry members and hence as being above suspicion in that regard. I discuss the implications of these results for prior work in this area as well as the article’s contribution to extant literature.

Details

Frontiers of Creative Industries: Exploring Structural and Categorical Dynamics
Type: Book
ISBN: 978-1-78743-773-9

Article
Publication date: 22 August 2008

Jan Bentzen and Valdemar Smith

Champagne is bought with low frequency and many consumers most likely do not have or seek full information on the quality of champagne. Some consumers may rely on the…

Abstract

Purpose

Champagne is bought with low frequency and many consumers most likely do not have or seek full information on the quality of champagne. Some consumers may rely on the reputation of particular brands, e.g. “Les Grandes Marques”, some consumers choose to gain information from sensory ratings of champagne. The aim of this paper is to analyse the champagne prices on the Scandinavian markets by applying a hedonic price function in a comparative framework with minimal models using sensory ratings.

Design/methodology/approach

Consumers optimize the quality–price relationship when buying champagne by seeking only the necessary market information. Within a search model framework, they choose between costless information from sensory ratings and using time for seeking information on the quality attributes of the champagnes. The model is tested on data for the Scandinavian markets in an econometric skeleton.

Findings

The retail prices of the champagnes on the Scandinavian markets can be fairly well explained by a hedonic price function. However, the ratings by the wine experts, especially Robert Parker, do just as well in terms of explaining the retail prices of champagnes.

Practical implications

Assuming that sensory ratings by wine experts reflect the true quality of champagne, which is supported by the results in this paper, it hardly pays for normal consumers to use resources on seeking detailed information on champagne quality. Thus, sensory rating is an efficient guide to optimize the quality–price relationship.

Originality/value

Champagne prices are normally analysed using experimental techniques. In our paper, champagne prices are analysed using a search model and tested on market data. Furthermore, the issue on expert ratings vs quality attributes as the optimal price predictor is expanded to the champagne market too.

Details

International Journal of Wine Business Research, vol. 20 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 4 June 2019

Martin Kunc, David Menival and Steve Charters

The traditional view of the process of value creation suggests that it occurs inside the firm through its activities or resources. However, there are special cases where…

Abstract

Purpose

The traditional view of the process of value creation suggests that it occurs inside the firm through its activities or resources. However, there are special cases where firms create value using external shared resources, e.g. a territorial brand. The purpose of this study is to demonstrate how the combination of both internal and external resources co-create value in wine regions.

Design/methodology/approach

An in-depth case study of nine firms covering different co-creation processes in Champagne, France. The selection of interviews was designed to cover the diversity of firms within the area with different market positioning. Most firms in the region have been selling champagne for more than 50 years, so they have established long-standing relationships with their markets.

Findings

While there is only one value, Champagne, firms create many different values based on owners’ perceptions with diverse effects on the process of value co-creation in the territorial brand. Some firms have strategies which could deteriorate the value of shared resource. This threat needs institutional changes with unknown consequences on the territorial brand.

Research limitations/implications

The research only involved one case study with a highly developed territorial brand system. There are multiple wine regions that have considered managing either implicitly or explicitly their shared strategic resources (e.g. a territorial brand). Consequently, the findings may not be applicable to all wine regions but it can provide a “gold standard” for regions and wineries that do not realize the impact that their value creation actions can have on the wine region.

Practical implications

Collective management of shared strategic resources, such as a territorial brand, can be a powerful action to sustain competitive advantage rather than individual actions to develop individual brands. However, it can work only with an institutional organization managing the collective process.

Originality/value

The paper offers lessons from a comprehensive and well-known case study where resource bundles co-create value with a territorial brand.

Details

International Journal of Wine Business Research, vol. 31 no. 2
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 February 2005

Ian Wilson

From the early 1900's the French champagne industry has been ruthless in its political and legal battles to protect the name of champagne whether from usurpation by…

Abstract

From the early 1900's the French champagne industry has been ruthless in its political and legal battles to protect the name of champagne whether from usurpation by foreign wine producers or from makers of non‐wine products (www.champagnemagic.com). In 2003 a new weapon was added to the armoury. A consumer advertising campaign incorporating five book mark — sized teasers have posed such questions as “Washington apples from Nevada?” and “Alaska salmon from Florida?” The questions are answered in full page adverts which explain why champagne can only come from Champagne (www.champagne.fr).

Details

International Journal of Wine Marketing, vol. 17 no. 2
Type: Research Article
ISSN: 0954-7541

Article
Publication date: 12 March 2018

Colleen E. Haight and Nikolai G. Wenzel

Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the new…

Abstract

Purpose

Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the new Appellation d’Origine Contrôlée system, forever altering the incentives and output of wine producers. The paper aims to discuss these issues.

Design/methodology/approach

As a result, some indigenous varietals have disappeared entirely from the region – and a handful remain only in the vineyards and bottles of a few bold entrepreneurs, constituting less than 1 percent of Champagne production.

Findings

The authors assess several traditional explanations (from taste and preferences to agricultural resilience)-and dismiss them as unconvincing. Instead, the authors adopt a public choice framework of regulatory capture to explain the puzzle of thwarted entrepreneurship and consumer choice.

Originality/value

This paper is original.

Details

Journal of Entrepreneurship and Public Policy, vol. 7 no. 1
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 12 September 2016

Joonas Rokka and Robin Canniford

Digital technologies are changing the ways in which the meanings and identity of both consumers and brands are constructed. This research aims to extend knowledge of how…

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Abstract

Purpose

Digital technologies are changing the ways in which the meanings and identity of both consumers and brands are constructed. This research aims to extend knowledge of how consumer-made “selfie” images shared in social media might contribute to the destabilization of brands as assemblages.

Design/methodology/approach

Insights are drawn from a critical visual content analysis of three popular champagne brand accounts and consumer-made selfies featuring these brands in Instagram.

Findings

This study shows how brands and branded selves intersect through “heterotopian selfie practices”. Accentuated by the rise of attention economy and “consumer microcelebrity”, the authors argue that these proliferating selfie images can destabilize spatial, temporal, symbolic and material properties of brand assemblages.

Practical implications

The implications include a consideration of how selfie practices engender new challenges for brand design and brand management.

Originality/value

This study illustrates how a brand assemblage approach can guide investigations of brands at multiple scales of analysis. In particular, this paper extends knowledge of visual brand-related user-generated content in terms of how consumers express, visualize and share selfies and how the heterotopian quality of this sharing consequently shapes brand assemblages.

Details

European Journal of Marketing, vol. 50 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 24 August 2010

Francis Declerck and L. Martin Cloutier

The purpose of this paper is to present a model and simulation results for the corporate financial value of an industry in a cobweb economy. Production‐consumption cycles…

Abstract

Purpose

The purpose of this paper is to present a model and simulation results for the corporate financial value of an industry in a cobweb economy. Production‐consumption cycles affect profit and financial needs in terms of equity and debt capital, and thus corporate value over time. The model is applied to the Champagne industry.

Design/methodology/approach

The paper simulates the financial value of Champagne makers by taking into account developments on the Champagne market and the short‐ and long‐term responses by input suppliers and Champagne makers. Financial modeling is combined with a vertical coordination model of production and consumption in a cobweb economy.

Findings

This paper makes theoretical advances in modeling the impact of short‐ and long‐run temporal tensions in production decisions on the financial value of processors. Temporal tensions are central to the decisions made by input suppliers (grape growers) and processors (Champagne makers) as they negotiate in a context of vertical coordination in a cobweb economy. Financial aggregates are forecast by the model and used as market multiples for estimating corporate financial value. Furthermore, this research strengthens previously published simulation studies in agriculture and food markets since system dynamics (SD) is applied in modeling both input production and consumption and the processor's financial value. SD modeling is well suited to simulation in a critical context, and Champagne makers find themselves in such a context: the Champagne protected designation of origin (PDO) area has reached its legally authorized size limit, while world demand continues to grow.

Practical implications

The market for corporate control of Champagne makers is active. The model presented is a useful guide for decision makers because it improves the anticipation of corporate value and improves understanding of the future of value creation in a legal framework currently considering revision of both authorized annual yield (short‐run decision) and the size of the appellation area (long‐run decision).

Originality/value

Two original features of this paper add specific value to the existing research: first, the theory is enlarged to capture the temporal tensions affecting decision making by input suppliers and processors operating in a cobweb economy, and deduce processors' financial value using financial aggregates forecast by the model. Second, the SD simulation method is applied in modeling input production and consumption and processors' financial value.

Details

International Journal of Wine Business Research, vol. 22 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 29 March 2013

Anne‐Louise Morton, Cheryl Rivers, Stephen Charters and Wendy Spinks

The purpose of this paper is to investigate the engagement of Australian consumers when buying and drinking Champagne.

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Abstract

Purpose

The purpose of this paper is to investigate the engagement of Australian consumers when buying and drinking Champagne.

Design/methodology/approach

The paper identified seven variables a priori that were expected to influence consumers' decisions and then used exploratory interviews to investigate how Champagne consumers were influenced by these. The authors interviewed Champagne marketers, sellers, educators, connoisseurs and aspirational consumers. The interview protocol allowed respondents to identify other variables.

Findings

The paper identified two new variables that, inter alia, influence Australian consumers in their Champagne selection. These were the kudos that comes from the people they serve or give it to and their sentimentality about previous experiences of Champagne consumption. The two new variables are the focus of this paper.

Research limitations/implications

The exploratory nature of this research means larger studies are needed to confirm the preliminary findings, particularly in other, non Anglo‐Saxon cultures.

Practical implications

Champagne houses could place greater emphasis on kudos and sentimentality in their marketing campaigns; additionally cultural issues could affect how the two factors operate in different markets.

Originality/value

Kudos and sentimentality have not been previously emphasised in the wine consumer behaviour literature.

Details

Qualitative Market Research: An International Journal, vol. 16 no. 2
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 1 August 2016

Natalia Velikova, Steve Charters, Joanna Fountain, Caroline Ritchie, Nicola Fish and Tim Dodd

The purpose of this paper is to test Luna and Gupta’s (2001) investigative framework on the interaction of cultural values and consumer behaviour by conducting a…

1067

Abstract

Purpose

The purpose of this paper is to test Luna and Gupta’s (2001) investigative framework on the interaction of cultural values and consumer behaviour by conducting a cross-cultural comparison of young wine consumers’ interpretation of images of champagne and sparkling wine. The research examined consumer responses to the images through the prism of the relationship between symbolism, ritual and myth, as well as other related values.

Design/methodology/approach

In a series of focus groups with consumers from four anglophone countries (the USA, New Zealand, Australia and the UK), six images of champagne and sparkling wine were used as stimuli to encourage affective and cognitive perspectives on the topic.

Findings

Overall, the UK market showed distinct differences from the other markets, due very much to its cultural context. The UK consumers valued traditional advertising; focused mainly on the product itself; and did not associate champagne with fun. Respondents from the New World focused on the general impression of the image and on enjoyment and fun associated with consumption of champagne and sparkling wine.

Practical implications

The most crucial implication of this research is the cultural variation in consumer perceptions of champagne and sparkling wine and the impact that it has upon marketing strategies on how to market this product category to younger consumers in different markets.

Originality/value

This research contributes to the study of cultural values and consumption behaviour, as well as image effectiveness in forming perceptions of the product category.

Details

British Food Journal, vol. 118 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

1 – 10 of over 1000