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Article
Publication date: 20 August 2018

Defecting wine club members: an exploratory study

Sandra K. Newton, Linda I. Nowak and Mayuresh Kelkar

The purpose of this study is to investigate the range of explanations for why wine club members defect and move on.

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Abstract

Purpose

The purpose of this study is to investigate the range of explanations for why wine club members defect and move on.

Design/methodology/approach

This quantitative research study uses data from US wine consumers, gathered through an online survey of 399 former wine club members who had quit their membership in the recent past. Consistent with literature on customer churn rates in subscription markets, data are analyzed using descriptive statistics, factor analysis, hierarchical multiple regression and analysis of variance.

Findings

The results reported by respondents indicate that higher levels of perceived product quality, fair value in pricing, variety seeking and commitment to customer service at the beginning and at the end of a wine club membership lead to higher levels of customer satisfaction and a desire to recommend the club to others even after quitting. Though variety seeking is more commonplace among experienced wine drinkers, the good news for wineries is that consumers are more likely to recommend a wine club to others if at least a year has passed after they decided to quit.

Practical implications

The results provide implications for wine club managers seeking to improve wine club retention with suggested means for mitigating the rate of customer attrition.

Originality/value

This paper presents original research addressing a variety of reasons why wine club members quit. The extant research has found that factors such as product quality, fair pricing, service commitments and variety-seeking behavior affect members’ satisfaction with their wine club, as well as their desire to recommend it to others. The authors have attempted to combine all these factors into a single study to gain insight into wine club members’ switching behavior, and to find out what the wineries can do to improve customer loyalty.

Details

International Journal of Wine Business Research, vol. 30 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IJWBR-06-2017-0038
ISSN: 1751-1062

Keywords

  • Customer loyalty
  • Survey research
  • Consumer behavior
  • Wine club membership
  • Wine club retention

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Article
Publication date: 1 March 2002

Building Brand Equity: Consumer Reactions to Proactive Environmental Policies by the Winery

Linda I. Nowak and Judith H. Washburn

The purpose of this study was to ascertain the existence and strength of the relationship between proactive environmental policies and brand equity for the winery. Results…

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Abstract

The purpose of this study was to ascertain the existence and strength of the relationship between proactive environmental policies and brand equity for the winery. Results of this study suggest that consumer perceptions about product quality, consumer trust, consumer perceptions about pricing, and positive expectations for the consequences of the winery's actions undertaking the pro‐environmental policies, all have strong, positive relationships with the winery's brand equity. Trust in the winery and brand equity for the winery increased significantly when the winery in this study adopted proactive environmental business policies.

Details

International Journal of Wine Marketing, vol. 14 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/eb008743
ISSN: 0954-7541

Keywords

  • Brand Equit;y
  • Environmental Policies
  • Consumer Behavior

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Article
Publication date: 1 September 2006

Using the tasting room experience to create loyal customers

Linda I. Nowak and Sandra K. Newton

The purpose of this research is to determine if positive affect, in combination with product quality, fair pricing, and customer‐focused operations leads to higher levels…

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Abstract

Purpose

The purpose of this research is to determine if positive affect, in combination with product quality, fair pricing, and customer‐focused operations leads to higher levels of customer satisfaction and repurchase intentions.

Design/methodology/approach

A total of 89 undergraduate and graduate business students, ages 23 to 59, each visited a winery they had never visited before. Afterward they filled out a questionnaire evaluating the winery on product quality, fair pricing, feelings of commitment towards the winery, positive emotions felt, preference for wine, overall customer satisfaction, and repurchase intentions. Data were analyzed using multiple regression. Repurchase behavior was the dependent variable.

Findings

Product quality, positive emotions felt, preference for wine, customer commitment, and fair pricing were all significant predictors of repurchase intentions.

Research limitations/implications

The findings are based on a small sample of 89 business students. Future research could replicate this study with larger samples of both marginal and core wine drinkers.

Practical implications

The results of this research empirically support the anecdotal evidence that through positive tasting room experiences, wineries can cultivate relationships with customers that build commitment and loyalty. The quality of the wine is not everything. Customers have many choices. The total experience at the winery, one in which the customer feels a sense of belonging and camaraderie and in which the experience is fun or exciting, contributes to repurchase intentions.

Originality/value

This is the first time that customer emotions have been measured after a tasting room visit and then tested for their relationship with repurchase intentions.

Details

International Journal of Wine Marketing, vol. 18 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/09547540610704738
ISSN: 0954-7541

Keywords

  • Customer loyalty
  • Experience
  • Customer satisfaction

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Article
Publication date: 21 March 2008

Using winery web sites to launch relationships with Millennials

Linda I. Nowak and Sandra Newton

The purpose of this study is to examine the attitudes of Millennial wine consumers and determine if positive evaluations of the winery's web site lead to increased trust…

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Abstract

Purpose

The purpose of this study is to examine the attitudes of Millennial wine consumers and determine if positive evaluations of the winery's web site lead to increased trust in the winery and perceptions of product quality, higher levels of brand equity, and increased purchase intentions. The tasting room experience will be evaluated for consistency with the image created by the web site and the meeting of Millennial expectations during the web site visit.

Design/methodology/approach

In total, 122 young people (Millennials) with an average age of 23 were asked to visit winery web sites and then evaluate the web sites for quality and perceptions formed relating to the overall image of the winery and its products. The participants were then asked to visit the winery and evaluate their winery experience and its products.

Findings

Web site quality was a significant predictor of increased trust in the winery and perceptions of the quality of the wine. Web site evaluations of brand equity carried over to influence evaluations of brand equity after the tasting room experience. When visiting the winery, the more the customers' expectations were exceeded, the higher the level of customer satisfaction with the tasting room experience.

Research limitations/implications

The research findings were based on a small convenience sample of 122 undergraduate US business students from Northern California. Future research should study larger and more diverse samples of the Millennial consumer.

Practical implications

Wine brands attempting to attract the Millennial customer should consider paying close attention to the design, development, and maintenance of a web site that appeals to the savvy Millennial consumer.

Originality/value

The potential for web sites to impact young adults' perceptions of the winery's image, trust in the winery, perceptions of wine quality, and intentions to visit the winery based on these perceptions has not previously been examined.

Details

International Journal of Wine Business Research, vol. 20 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/17511060810864615
ISSN: 1751-1062

Keywords

  • Worldwide web
  • Wines
  • Young adults
  • User interfaces
  • Brand image

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Article
Publication date: 1 December 1998

Antecedents to client satisfaction in business services

Linda I. Nowak and Judith H. Washburn

In today’s increasingly competitive environment, it is important to measure the service firm’s performance in the areas which contribute most significantly to the client’s…

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Abstract

In today’s increasingly competitive environment, it is important to measure the service firm’s performance in the areas which contribute most significantly to the client’s overall satisfaction. Previous research indicates that marketing research clients are concerned with a research provider’s performance in four areas; product quality, service quality, cost management, and timeliness. A survey of 155 marketing research clients indicated that these clients perceive product quality as being most important in accomplishing their research objectives, followed in order by service quality, cost, and timeliness. The results of the study indicate that less than half of the clients were completely satisfied with the ability of their primary research supplier to save them money or to provide them with a useful analysis. A research provider that is capable of improving performance in these two areas may be able to create a competitive advantage that could lead to increased client satisfaction and improved customer loyalty. These research findings provide insights for other business services in assessing client needs and tracking client satisfaction.

Details

Journal of Services Marketing, vol. 12 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/08876049810242713
ISSN: 0887-6045

Keywords

  • Organizational performance
  • Cost management
  • Customer satisfaction
  • Marketing research
  • Product quality
  • Service quality

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Article
Publication date: 1 August 2006

Wowing the millennials: creating brand equity in the wine industry

Linda Nowak, Liz Thach and Janeen E. Olsen

The purpose of the study is to examine the attitudes of millennial wine consumers and determine if positive affect in tasting room situations leads to higher levels of…

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Abstract

Purpose

The purpose of the study is to examine the attitudes of millennial wine consumers and determine if positive affect in tasting room situations leads to higher levels of brand equity for the winery.

Design/methodology/approach

A survey was developed to evaluate winery tasting room experiences based on standardized brand measurement scales. In total 80 millennials visited tasting rooms and then completed the survey to evaluate their experience.

Findings

The results of this research empirically support the anecdotal evidence that, through positive emotions associated with the tasting room experiences, wineries can cultivate relationships with millennial customers that may lead to long‐term, profitable relationships through continued patronage and brand loyalty.

Originality/value

Practical application of this study suggests that carefully orchestrating a tasting room experience to create a positive experience for the millennial customer appears to be a critical component of post‐purchase attitudes and building brand equity. In addition, customer commitment, product quality, service quality, and fair pricing are also significant predictors of brand equity.

Details

Journal of Product & Brand Management, vol. 15 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/10610420610685712
ISSN: 1061-0421

Keywords

  • Brand equity
  • Wines
  • Customer service management
  • Youth
  • Individual psychology
  • United States of America

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Article
Publication date: 1 January 2002

Country of Origin Effects and Complimentary Marketing Channels: Is Mexican Wine More Enjoyable when Served with Mexican Food?

Janeen E. Olsen, Linda Nowak and T.K. Clarke

This article investigates whether a negative country of origin bias facing imported wine can be offset when it is distributed in marketing channels alongside already…

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Abstract

This article investigates whether a negative country of origin bias facing imported wine can be offset when it is distributed in marketing channels alongside already accepted complimentary products. Specifically we consider the case of Mexican wine being introduced to consumers in a Mexican restaurant versus a more general themed contemporary restaurant. An experimental design was employed to investigate consumers' perceptions and future purchase intentions after tasting Mexican wine in a proposed restaurant with one of the two themes. Findings suggest that the best method for introducing Mexican wine to US consumers may be through Mexican restaurants although adoption of the wine for consumption at home may be slow.

Details

International Journal of Wine Marketing, vol. 14 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/eb008733
ISSN: 0954-7541

Keywords

  • Mexican wine
  • imported wine
  • country of origin bias
  • marketing channels
  • restaurant selection

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Article
Publication date: 1 March 1999

The Importance of Non‐Financial Performance Measures in Wine Business Strategy

Linda Nowak and Sherri Anderson

This article explores the importance, measurement and use of non‐financial performance measures in the wine industry. Results are compared to a similar study done on US…

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Abstract

This article explores the importance, measurement and use of non‐financial performance measures in the wine industry. Results are compared to a similar study done on US Fortune 500 and Canadian Post 300 companies. Findings indicate that a large percentage of US wineries believe in the importance of non‐financial performance measures, especially in the areas of process/product quality and overall customer satisfaction. On average, less than half the wineries are actually measuring for these factors. Also, while some wineries measure non‐financial performance, they then do not use the results of their findings in making strategic business decisions. The wineries differed from the Fortune 500 and Post 300 companies in that they ranked the measurement of employee involvement much higher in importance and market performance measurement much lower in importance.

Details

International Journal of Wine Marketing, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/eb008697
ISSN: 0954-7541

Keywords

  • Balances Scorecard
  • Strategy
  • Customer Satisfaction
  • Non‐Financial Performance
  • Measures

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Article
Publication date: 1 February 2004

Effects of the Dietary Guidelines Label Statement on Wine Purchase Intentions in Young Adults

Linda Nowak, Philip McGongh and Thomas Atkin

This study empirically examines the impact that statements on wine labels directing consumers “to learn the health effects of wine consumption, send for the Federal…

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Abstract

This study empirically examines the impact that statements on wine labels directing consumers “to learn the health effects of wine consumption, send for the Federal Government's Dietary Guidelines for Americans” may potentially have on attitudes and wine consumption intentions in college students both over and under the legal drinking age. The results of the study suggest that directional statements on wine labels will not have a significant impact on attitudes toward alcohol, the wine brand, disease risk, label believability, or purchase intention. The results, however, do show that college students both over and under the legal drinking age perceived the winery with the directional statement on the label as more “socially concerned” than the winery that did not use the statement.

Details

International Journal of Wine Marketing, vol. 16 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/eb008772
ISSN: 0954-7541

Keywords

  • Labels
  • Legislation
  • Packaging
  • Politics
  • Brand Image

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Article
Publication date: 1 December 2000

Toward effective use of cause‐related marketing alliances

Brian D. Till and Linda I. Nowak

Companies have become increasingly active in developing relationships between their brands and popular causes in such areas as the environment (e.g. nature conservancy…

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Abstract

Companies have become increasingly active in developing relationships between their brands and popular causes in such areas as the environment (e.g. nature conservancy) and health issues (e.g. breast cancer awareness crusade). As such alliances become a more important strategic component of the brand’s marketing mix, managers seek direction as to how to generate the most impact with these tie‐ins. This article uses associative learning principles as a framework for understanding how to facilitate building connections between brands and causes so as to increase the value of this highly visible marketing activity. Specific associative learning principles are detailed and applied, improving the use of cause‐related marketing alliances.

Details

Journal of Product & Brand Management, vol. 9 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/10610420010351394
ISSN: 1061-0421

Keywords

  • Brands
  • Marketing mix
  • Alliances
  • Charities
  • Marketing strategy

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