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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 real-world…

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

Article
Publication date: 1 February 1994

Joseph Fattorini

Whilst the phenomenon of the “wine snob” has been recognized for some years, particularly in the public imagination, the active use of wine “snobbery” to promote sales by…

Abstract

Whilst the phenomenon of the “wine snob” has been recognized for some years, particularly in the public imagination, the active use of wine “snobbery” to promote sales by retailers, particularly high street chains, has been avoided. This article discusses an apparent change in this policy, where the branding strategies of the major high street chains have developed the concept of “consumer as professional” in an effort to symbolically include some consumers in the mystique of the wine trade. This has been achieved by encouraging a process of consumer education, involving trade examinations, and using the symbols of wine production to merchandise wine in shops at the fine wine end of the market. The result of this strategy is to create a small but loyal group of highly knowledgeable (invariably affluent) customers, at the expense of excluding other, less knowledgeable, consumer groups who are targeted by less heavily branded shops.

Details

International Journal of Wine Marketing, vol. 6 no. 2
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 April 1991

Frances Edwards and Gillian Mort

It is intended to explore the use of an interesting researchmethodology in the relatively unresearched area of wine marketing. Theliterature on wine marketing is briefly reviewed…

Abstract

It is intended to explore the use of an interesting research methodology in the relatively unresearched area of wine marketing. The literature on wine marketing is briefly reviewed, wine as a product discussed, the concept of opinion leadership is examined, and the verbal protocol research method explained. The project currently under way will then develop a model of expert wine tasting, confirm and refine it, from which marketing and research implications will be drawn.

Details

International Marketing Review, vol. 8 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 17 May 2011

Vasco Boatto, Edi Defrancesco and Samuele Trestini

This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in…

1827

Abstract

Purpose

This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in different ways in large‐scale retail and specialised shops.

Design/methodology/approach

Tocai wine, which is produced in Northeastern Italian regions and is involved in a dispute with the Hungarian geographical indication Tokaj, is taken as a case study. A hedonic price model has been estimated based on retail prices observed in local markets.

Findings

The research shows that consumers buying at large‐scale retailers are willing to pay a higher price premium for quality signals than those buying in specialised shops, ceteris paribus. For the latter, willingness to pay for quality signals is reduced by the information provided by the specialised shop retailer, which decreases the customer's uncertainty about wine quality; quality signals appearing on wine labels generally have a more relevant positive effect on wine price than brand reputation, confirming the findings available in the current literature.

Originality/value

This paper contributes to the literature by proving, in a real market situation, that consumers are willing to pay a higher price premium for quality signals when information is supplied only by wine labels, as in a large‐scale retail environment, than when it is provided by the assistance of a knowledgeable seller, as in specialised shops. The paper confirms that the information transmitted to the consumer during purchase affects price in a way similar to that reported in the literature for simulated markets in the case of expert consumers.

Details

British Food Journal, vol. 113 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 January 2004

Trent Johnson and Johan Bruwer

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are…

Abstract

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are therefore constantly and increasingly trying to demystify wine in order to reduce the perceived risk levels of consumers in the purchase situation. Most previous research in the area of perceived risk literature tended to focus on the concept of risk and its measurement rather than on risk‐reduction. This study examined the preferred risk‐reduction strategies (RRS) employed by identified wine‐related lifestyle segments in the Australian wine market and linked these strategies to the wine retail environment. Relying on favourite brands or so‐called ‘safe brand’ buying was found to rank highest as a risk reduction strategy in the commercial (under $15 per bottle) and premium‐to super‐premium ($15‐$25) price ranges while the opportunity to try before buying ranked highest in the ultra‐premium ($25) price range. The results obtained have major implications for retailers and form the foundation for a competitive advantage. It also indicates the direction for future research in this strategically important area of wine consumer behaviour.

Details

International Journal of Wine Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 27 March 2007

François d'Hauteville, Marianela Fornerino and Jean Philippe Perrouty

Disconfirmation of expectations is the mismatch between the expected and blind evaluation of a product. The purpose of this paper is to explore the relation between expected and…

Abstract

Purpose

Disconfirmation of expectations is the mismatch between the expected and blind evaluation of a product. The purpose of this paper is to explore the relation between expected and perceived value (quality), focusing on wines from the French regions with varying levels of notoriety and image content.

Design/methodology/approach

From the consumer's point of view, the hedonic evaluation of a product under full information (intrinsic and extrinsic) is considered as a measure of perceived quality. Generally, the perception of the quality of a product differs according to tasting conditions (blind, or full information). Based on previous literature on food marketing it is assumed that the change of preference between blind and full conditions reflects the influence of extrinsic information (here, the region of origin). Two types of results can be expected from disconfirmation: “assimilation” occurs when the final evaluation of the product changes in the direction of the expectation provided by the extrinsic cue, whereas “contrast” occurs when this change is contrary to the expectation. Five wines selected among regions with different reputation levels, and two groups of consumers, characterized by their level of expertise (trained/untrained students) are used in the experiment.

Findings

The experiments suggest that disconfirmation may be used to measure and interpret region of origin equity on a behavioural basis rather than just attitudinal.

Originality/value

Provides information resulting from research on disconfirmation of expectations.

Details

International Journal of Wine Business Research, vol. 19 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 March 1992

Michael Howley and Nicola Young

Attempts to quantify the impact of de‐alcoholized, low and reduced‐alcohol wines on the UK wine market, from their appearance in the late 1980s, to the present day. Also assesses…

Abstract

Attempts to quantify the impact of de‐alcoholized, low and reduced‐alcohol wines on the UK wine market, from their appearance in the late 1980s, to the present day. Also assesses whether makers have been successful with the wines under discussion in their aim to capture a substantial percentage of the total wine market, examining the roles which the consumer and the marketing industry have played in the product and market development, and subsequently the wine's success or failure in attaining its goals. Particularly examines the role marketing may have to play in the future, if these products are to sustain market growth and finally gain acceptability as a purchase in their own right.

Details

International Journal of Wine Marketing, vol. 4 no. 3
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 15 June 2018

Lala Hu and Andrea Baldin

The purpose of this paper is to analyse the country of origin (COO) effect on wine purchase in China by considering a sample from an e-commerce website. The paper contribute to…

1220

Abstract

Purpose

The purpose of this paper is to analyse the country of origin (COO) effect on wine purchase in China by considering a sample from an e-commerce website. The paper contribute to the literature on hedonic pricing by applying this model to the Chinese market and including COO as product attribute.

Design/methodology/approach

A hedonic price model is adopted to measure the effect of search attributes on wine sales in China. A reduced form of the classical hedonic analysis is used as in Nerlove (1995), given the assumption that prices and attributes are taken as exogenous to consumers.

Findings

Results show that the COO represents the attribute that most influences wine sales in China. Protected indicators of origin, which denote wine with recognised certificates, are also significant, reinforcing the importance of the production area. Vintage attribute does not impact sales, suggesting a low level of consumer experience with wine.

Research limitations/implications

The study suffers from the limitations of results’ generalisability, given the size and characteristics of the sample. In the future research, the model should be tested on a larger sample. Moreover, it can be applied on other products, in which COO represents an information and quality cue.

Practical implications

Firms operating in sectors where COO implies specific characteristics of quality should enhance this attribute in their marketing strategies to increase their competitive advantage. Also policy implications with respect to the governmental actions to support wine producers are discussed.

Originality/value

Hedonic price analysis represents a well-established model; however, to the best of the authors’ knowledge it has never been used in China before. This study also highlights the primary role of COO as search attribute in wine purchase.

Details

British Food Journal, vol. 120 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 November 2009

Larry Lockshin and David Knott

The purpose of this paper is to focus on both the sales effects of free wine tastings and the effects on attitudes towards future purchases four weeks after the tastings.

1348

Abstract

Purpose

The purpose of this paper is to focus on both the sales effects of free wine tastings and the effects on attitudes towards future purchases four weeks after the tastings.

Design/methodology/approach

Store scanner data for the four weeks before and after each of ten wine tastings are used to measure the effect tastings had on sales. A total of 170 consumers, who attended a free tasting in wine shops across 4 cities, are interviewed as they leave the store and 37 of these consumers respond to a call back survey one month after the free tasting.

Findings

Scanner data shows a 400 per cent increase in sales of the wines tasted on the day of tasting, and a small but significant effect on sales during the four weeks afterwards. The survey shows that there is no difference in purchasing between those attending a tasting with the intention to purchase and those just stopping by. Both groups purchase at about the same rate. Only about 33 per cent of the attendees purchase; the other two‐thirds are boozing.

Research limitations/implications

Free tastings boost immediate sales just like most price promotions, but the effect on the intention to purchase is stronger for those who made a purchase. The study is conducted in one country among a small number of buyers, which limits its generalisability.

Practical implications

The results and implications of this research can be used by retailers and wine companies to make more informed decisions about free tastings. From this small study, attracting the maximum number of tasters to increase sales and long‐term purchasing intentions would be recommended.

Details

International Journal of Wine Business Research, vol. 21 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 February 1993

Lawrence S. Lockshin and W. Timothy Rhodus

This research compared wine quality evaluations by wine consumers and wine wholesalers for the same Chardonnay wine at three price levels and four different oak levels. Consumers…

Abstract

This research compared wine quality evaluations by wine consumers and wine wholesalers for the same Chardonnay wine at three price levels and four different oak levels. Consumers judged wines mainly by price, regardless of the oak level. Wholesale sales people ignored the prices and judged the wines by the oak level. Wholesalers predicted that consumers would respond based on the wholeaslers' quality judgments, and were unable to accurately predict the consumers' responses. Better targeting of consumers and better training of the wholesale representatives is recommended.

Details

International Journal of Wine Marketing, vol. 5 no. 2/3
Type: Research Article
ISSN: 0954-7541

Keywords

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