Search results

1 – 9 of 9
To view the access options for this content please click here
Article
Publication date: 1 January 2006

David A. Priilaid

Through the use of both sight and blind‐based quality metrics, the purpose of this paper is to ascertain the extent to which the sighted appreciation of a wine's intrinsic…

Downloads
1134

Abstract

Purpose

Through the use of both sight and blind‐based quality metrics, the purpose of this paper is to ascertain the extent to which the sighted appreciation of a wine's intrinsic merit is confounded by extrinsic cues such as price and region of origin.

Design/methodology/approach

Using a database of sighted and blind tastings of three red South African wines (Cabernet, Merlot and Shiraz) over the period 1993‐2001, a series of multiple linear regression models is developed to explain sighted quality ratings.

Findings

The meta‐model, with an adjusted R2 of 31 per cent, indicates three statistically significant explicatory factors, namely price, region, and intrinsic quality. The price cue alone explains 84 per cent of sighted quality assessments; the combined effect of both the region and price cue explains 95 per cent. This finding suggests that when quality is measured from a sighted perspective, area becomes a significant explicator, along with price. It is only once the cues of region and price have been factored into the meta‐model that intrinsic merit becomes relevant, and here, only to an extremely limited extent (5 per cent). The lack of correspondence between sighted and blind tasting scores, suggests that for sighted judgements – extrinsic cues appear to be masking the wine's intrinsic merit.

Originality/value

For the first time, blind and sighted tasting results are collated into one database and statistically interrogated. The findings show how we are deleteriously distracted by the apparent efficacy of extrinsic cues.

Details

International Journal of Wine Marketing, vol. 18 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

To view the access options for this content please click here
Article
Publication date: 7 March 2016

David Priilaid and Daniel Hall

– The purpose of this paper is to explore the manner in which the rate of product consumption contributes to the formation and strengthening of the price-quality heuristic.

Downloads
1027

Abstract

Purpose

The purpose of this paper is to explore the manner in which the rate of product consumption contributes to the formation and strengthening of the price-quality heuristic.

Design/methodology/approach

The research included a literature review with a series of tests across a sequence of blind and sighted tasting experiments involving 278 subjects assessing seven differently priced products of orange juice, coffee and wine.

Findings

The paper found evidence that consumption rates do affect the way consumers respond to price information and that sight-based “System 1” judgement errors accrue and increase progressively with consumption. This relationship was observed to be stronger in sight-based product assessments for consumption of four or more units per week compared to those consuming one unit per week. For blind-based product assessments, an inverse relationship between price affect and consumption was observed, with affect reported to be stronger for minimal rates of consumption.

Originality/value

The observation of sight-based and blind-based affect relationships which are dependent on the levels of product consumption appears to be an interesting advancement in consumer behaviour research. This provides support for a dual structure of rationality operated by an interconnection between “System 1” sight-based associations and “System 2” blind-based ponderous thinking. The paper further provides support for Kahneman’s “conflation of intuition” as classically conditioned memory.

Details

British Food Journal, vol. 118 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

To view the access options for this content please click here
Article
Publication date: 31 May 2013

David Priilaid, Michael Sevenoaks, Ryan Aitken and Clint Chisholm

Proceeding from studies that, at a general level, identify the extrinsic price cue as a mediator between a wine's perceived and intrinsic merit, the authors aim to report…

Abstract

Purpose

Proceeding from studies that, at a general level, identify the extrinsic price cue as a mediator between a wine's perceived and intrinsic merit, the authors aim to report on a tasting‐room experiment conducted to determine the impact of the price cue on sighted ratings across categories of gender, age, and relative experience.

Design/methodology/approach

A total of 73 subjects assessed seven merlot wines, first blind and then sighted. During the sighted tasting, the only available cue‐information was the price per bottle. The seven price points ranged from the cheap (R25) to the expensive (R160).

Findings

Across all segmentations, the authors' analysis of sighted scores revealed the marked extent to which price effects demean the intrinsic merit of a wine. Older, more experienced and female strata appear to respond the most to price information; their respective model price effects are shown to increase by 57, 33 and 24 percent relative to their base comparators.

Originality/value

These findings challenge the dogma that unbiased sighted assessments are best conducted by self‐proclaimed wine experts who are older and more experienced; and suggest alternately, and perhaps heretically, that such assessments would be better conducted by younger, less experienced, non‐experts.

Details

International Journal of Wine Business Research, vol. 25 no. 2
Type: Research Article
ISSN: 1751-1062

Keywords

To view the access options for this content please click here
Article
Publication date: 31 December 2019

David Priilaid and Jonathan Steyn

In increasingly competitive markets, opportunities exist to meaningfully differentiate product offerings by cue signalling the claims of emergent categories. Therefore…

Abstract

Purpose

In increasingly competitive markets, opportunities exist to meaningfully differentiate product offerings by cue signalling the claims of emergent categories. Therefore, and within the context of wine sales, the purpose of this study models the supply-led price importance of nascent, extrinsic old vine (OV) cues for South African wines to establish whether to what extent and how producers prioritise such nascent cues relative to more established extrinsic cues of worth.

Design/methodology/approach

A data set was compiled of 159 South African wines with OV category cues signalled on front labels, back labels or via marketing material. The play of contending cue variables was computed through an ordinary least square hedonic pricing model.

Findings

In addition to the contribution of established cues such as aggregated critic ratings, grape varieties and area of origin, this study confirms that vineyard age contributes significantly to wine price, particularly when signalled on back labels.

Practical implications

In price setting and positional models, such as brand extensions, the findings prove useful in understanding the inherent value of nascent cues and specifically vineyard age, relative to competing established wine cues of worth.

Originality/value

This study extends the wine pricing theory by validating the viability of nascent OV cues in the modelling of a wine’s value.

Details

International Journal of Wine Business Research, vol. 32 no. 2
Type: Research Article
ISSN: 1751-1062

Keywords

To view the access options for this content please click here
Article
Publication date: 14 March 2016

David Priilaid

This paper aims to understand how a fast moving luxury good like whisky is typically positioned within South Africa’s discounted retail environment and how this…

Abstract

Purpose

This paper aims to understand how a fast moving luxury good like whisky is typically positioned within South Africa’s discounted retail environment and how this positioning could be improved. So doing this paper introduces an econometric valuation model to establish the relative efficacy of contending extrinsic cues in the explanation of whisky prices.

Design/methodology/approach

An ordinary least squares regression model is developed from a data set of 122 whiskies drawn from the 2014 festive-season catalogues of two large South African discount retailers. In estimating the whisky pricing function, the hedonic contribution of the following input variables is estimated: age in respect of blended whiskies and single premium malts, in-store supply, claims of retail exclusivity, branding, country-of-origin and packaging formats.

Findings

Age effects as they relate to single malts, and mass produced grain whiskies offer the greatest explanation of price, while scarcity effects are observed, along with claims of retail exclusivity which are found to reduce product value significantly. Country-of-origin and packaging however have low to negligible effects.

Originality/value

To producers and marketers of whisky, these findings offer insight as to which extrinsic factors could be better amplified, modified or excised if the product is to be optimally positioned. Implications are explored.

Details

International Journal of Wine Business Research, vol. 28 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Content available
Article
Publication date: 1 September 2006

Michael Howley

Downloads
611

Abstract

Details

International Journal of Wine Marketing, vol. 18 no. 3
Type: Research Article
ISSN: 0954-7541

Content available
Article
Publication date: 1 January 2006

Michael Howley

Downloads
364

Abstract

Details

International Journal of Wine Marketing, vol. 18 no. 1
Type: Research Article
ISSN: 0954-7541

Content available
Article
Publication date: 3 June 2013

Ulrich R. Orth

Downloads
0

Abstract

Details

International Journal of Wine Business Research, vol. 25 no. 2
Type: Research Article
ISSN: 1751-1062

Content available
Article
Publication date: 31 May 2013

Ulrich R. Orth

Downloads
76

Abstract

Details

International Journal of Wine Business Research, vol. 25 no. 2
Type: Research Article
ISSN: 1751-1062

1 – 9 of 9