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 hav...
PurposeThe 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/approachA 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.FindingsProduct quality, positive emotions felt, preference for wine, customer commitment, and fair pricing were all significant predictors of repurchase intentions.Research limitations/implicationsThe 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 implicationsThe 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/valueThis is the first time that customer emotions have been measured after a tasting room visit and then tested for their relationship with repurchase intentions.
PurposeIndependent French wine producers are faced with excessive costs and a declining image of quality compared with their New World competitors. A confusing offer and weak brand identities also make their often poorly marketed products less attractive at the point of sale. As production continues to surge, plummeting prices have left many of these producers economically unviable. Is it possible for these small independent producers to survive in an ever more competitive global market? This paper attempts to answer this question, by studying the challenges confronting this group, as well as their advantages, both in their home and on a global market.Design/methodology/approachLiterature in French and English was reviewed in highlighting key issues impinging the industry. A small survey was conducted to ascertain the drinking habits of young adults market in France. Also SWOT, PESTLE, and Porter’s Five Forces were used in presenting a more strructured approach in discussing the nature of and challenges facing this industry.FindingsIt is evident that a lot of work needs to be done for French wines to regain their global competitiveness, and even more so for small producers who do not benefit from the massive promotional budgets of their larger competitors. However, by ensuring a superior level of quality, higher production costs can be justified, while still being carefully managed to ensure that all additional costs incurred add value to the end product. This quality needs to be guaranteed by a stronger and clearer AOC system that is regularly evaluated to maintain its credibility, and reinforced by a strong individual brand image, in order to gain consumer confidence. A cultural change is also necessary, away from defence and towards a more proactive approach. The innovation for which French winemakers were once famous must be reclaimed.Research limitations/implicationsIt would be interesting to further study the cultural metamorphosis that has taken place amongst French winemakers over the course of the last century. The comparative bargaining power of small producers against large supermarket chains is also a topic that could be further explored. Given that it will not be possible for all producers to become a key reference and guarantee shelf space amongst their highly marketed competitors, greater research into more innovative ways of getting products to market would be extremely useful.Practical implicationsForeign markets should be highly studied and understood before entry. Integrating products into local culture is often more successful than imposing the product as part of the culture of the producing country. Most importantly, however, producers should be prepared to adapt to a changing market and to invest in order to secure future capital inflows. The rise of new global players, such as China, will only intensify competition, and today’s less sophisticated consumers are more likely to be swayed by low prices and strong brands than by an overpriced and poorly positioned product from “Old Europe”.Originality/valueA fairly thorough account of the current state of affairs of the wine industry in France has been presented and both the French literature and relevant web sites in French have been reviewed in highlighting and evaluating issues impinging the wine industry.
PurposeThis research investigated wine tourism development and marketing in southwest Michigan, a longtime viticultural, but emerging wine tourism region. The aims involved discovering the motivations, expectations, and successes of Southwest Michigan Wine Trail member wineries in developing horizontal and vertical alliances.Design/methodology/approachSemi‐structured, in‐depth interviews were conducted with individuals in charge of the wineries’ marketing activities (i.e. marketing directors and members of the marketing departments, winery owners). These interviews were recorded and transcribed. Activities fostered through the horizontal and vertical alliances were identified.FindingsAlliances along the Southwest Michigan Wine Trail have furthered the development and marketing of wine tourism. The trail's member wineries have formed strong horizontal relationships, which include joint advertising, promotion, and production. They have also built vertical relationships with tour operators, lodging businesses, and restaurants that promote individual wineries as well as the wine region. Wine tourism has provided wineries with another sales outlet and established the wine region as a destination.Originality/valveThis study contributed to the limited literature on the development and marketing of wine tourism in Michigan and in other emerging wine regions in the United States. For those working to further such rural/agri‐tourism, this research indicated that there is considerable growth potential through an increased presence in restaurants and in packaging with accommodations. Adding new specialized wine tours, wine festivals,geographical target markets, and a focus on wine education on‐site and at educational institutions can expand wine tourism and sales.
Purpose – The importance of forging partnerships has become popular in tourism, and there is little empirical research investigating co‐operative marketing associations, like Scotland's Malt Whisky Trail (MWT). With the management of the organisation undergoing change as a result of new directions within VisitScotland (the body with statutory responsibility for promoting tourism), this paper takes a timely examination of the options for future leadership and operation. The paper aims to examine the management issues that arise from the diffuse nature of the stakeholders’ positions and explores the inherent problems in administering this type of co‐operative marketing organisation.
PurposeThe purpose of this paper is to examine the changing competitive landscape in the wine industry, focusing upon how premium Napa valley producers are responding to such changes.Design/methodology/approachThe in depth interview technique with 11 privately owned premium wine producers was used, with interviews conducted in early 2005.FindingsWineries identify the growing concentration and consolidation amongst distributors and domestic US producers; increased foreign competition, particularly from Australia; and the trend towards homogenised taste following the increased power of numerical wine ranking surveys as principal concerns that they face.Practical implicationsThe findings highlight the dilemmas faced by wineries as they attempt to stress their locational advantage for reputation building but endeavour to differentiate their product from other wineries in Napa.Originality/valueAs a pilot project the paper indicates how even firms in high value added product markets are facing heightened competition and what they fear might emerge in the near future from foreign producers.
PurposeTo explore the attributes of wine packaging that are enticing to consumers and the influence of age, gender and income on the wine‐buying decision.Design/methodology/approachTo evaluate how wine packaging interplays with age, gender and income to influence consumers’ decision to purchase. A self‐administered questionnaire with closed‐ended and five‐point Likert‐type scale questions was conducted in the State of Connecticut at two retail shops and five wineries. The questionnaire was pilot‐tested at a local retail wine store in Connecticut to ensure reliability and clarity of the questions.FindingsResults showed that label design and bottle closures were important to respondents and that self‐confidence was a significant factor for age and gender, with females and respondents between 31 and 40 years of age more concerned about making a wine‐buying decision.Research limitations/implicationsThe selection of the state of Connecticut and the testing sites may not represent the general US wine consumer, and therefore results may not be generalizable. Future research projects could include: comparing label configurations and bottle‐packaging choices with the situational use and sensory testing of wines to determine if the novice consumer can evaluate a wine characteristic such as “peachy” or “floral” as described on wine labels.Originality/valueThis paper fulfils an identified need by offering practical advice to wine producers on the necessity to understand what packaging characteristics or cues are important to consumers and to focus their marketing efforts towards simple wine packaging and label designs.
Purpose The paper aims to develop an understanding of the port wine sector from a relational, holistic, and dynamic perspective. Design/methodology/approach The research adopted a qualitative methodological approach. Primary data were collected through semi‐structured interviews. The analysis focused on the relationships established among both economic and non‐economic actors. Findings The paper offers an overview of the port wine sector on the basis of the conceptual background of the IMP (Industrial Marketing and Purchasing) Group. The study suggests that the dynamics of the sector is not solely determined by economic and technological variables, but also by interests assuming both an economic, social and political nature. Research limitations/implications Further research should develop and test the findings by using other cases and methodological approaches. Practical implications Managers must be aware that firms are embedded not only in economic systems but also in political and social networks whose dynamics cannot be neglected. Originality/value While most studies on the dynamics of economic systems have focused on the role played by technological factors, relatively few have addressed the importance of collective actions. In this line, the paper contributes for a better understanding of the role of collective actors created to defend the interests of their members. Moreover, since the port wine sector is not an idiosyncratic case because most of its features are also present in other wine regions, the conclusions of the paper are likely to be used for the understanding of other wine regions.
PurposeProceeding from the van Rensburg and Priilaid (“An econometric model for identifying value in South African red wine”, International Journal of Wine Marketing, Vol. 16 No. 1, 2004, pp. 37‐53) econometric valuation methodology mapping out the relationship between wine price and value, this paper seeks to explore the relationship between wine value and value‐for‐money.Design/methodology/approachA series of regression models are developed from a database of some 537 South African red wines available during the 2004 period. Five cultivars are included here: cabernet, merlot pinotage, pinot noir, and shiraz.FindingsThis research finds that successive increments in wine quality ratings are not equally priced. As a result, the relationship between value and price can be better modelled when increments in wine quality (as measured in stars) are proxied by dummy variables.Originality/valueAllowing for the possibility of the non‐linear hedonic pricing of wine avoids the bias of value‐for‐money misleadingly being identified excessively at the bottom end of the quality spectrum and neglected at the top end.
PurposeThe purpose of this paper is to look at the changing relationship between brewers and pub owners. The paper considers the acquisition of British public houses by brewers and the introduction of national brands supported by advertising. The recent separation of brewing from pub ownership has brought about different types of public houses and different methods of marketing the outlets and the products offered.Design/methodology/approachThe objectives are achieved by examining a variety of written material relating to public houses and brewers in different periods as well as more modern sources to allow an assessment of the changing pub and the advertising techniques employed.FindingsBrewers advertise their products. When they also owned pubs, the promise of these products acted as advertising for the pubs. Now that brewers own only a small number of pubs, the different techniques have to be employed to attract customers.Practical implicationsThe paper suggests that managed and rented estates have evolved, with different ways of marketing themselves. This paper may help to develop a practical approach to their promotion.Originality valueThe separation in ownership of brewers and pub owners is well enough known. The implications on group advertising have been largely ignored. This paper starts to address that gap.
PurposeThe purpose of this paper is to investigate how new wines are introduced to and adopted by the consumer within the grocery retail sector in Ireland.Design/methodology/approachSemi‐structured interviews were carried out with eight wine buyers/distributors for the grocery retail sector in Ireland and two retail store managers. Interviews were conducted early in 2004. Observation of wine displays in stores was used to confirm marketing communications and promotional techniques employed.FindingsThe findings confirmed a market that is growing, especially in the grocery retail sector and at the lower end of the pricing points. Competition and a desire for growth create the demand for new products and all the elements of the marketing mix are used to support the market entry and adoption of the product by the consumer.Research limitations/implicationsThis is an exploratory study with a small sample size; further studies could be carried out to confirm the findings of this study or to replicate elsewhere in the UK or in the non‐wine‐producing countries of Europe.Practical implicationsThe findings highlight the strength of competition within the grocery sector and the continued use of discounting as a promotional strategy; this has implications for wine producers in the longer term. There is a need to educate the customer with a view to encouraging them to trade up.Originality/valueThe paper provides some insight into the distribution and marketing of wine in the grocery retail sector in Ireland.
PurposeThe purpose of this paper is to present the methodology adopted and the main results achieved by an exploratory study on consumers perception of wine packaging.Design/methodology/approachThe research was designed to elicit the relevant dimensions through which consumers perceive and describe differences between bottles of wine. In order to allow respondents to freely express their perceptions without suggesting a priori descriptive category/dimensions a repertory grid (RGT) approach was followed. A sample of 30 consumers were asked to analyse differences across 11 bottles and to summarize them in descriptive bipolar constructs. The results were analysed performing a consensus procrustes analysis. An innovative feature of this study was the analysis of complete transcriptions of interviews to better understand the meaning assigned by consumers to descriptive constructs.FindingsThe attributes of bottles and labels represent the main factors underlying wine packaging perceptions. These characteristics are the very first “signal” perceived looking at bottles. Consumers use them to define more abstract “constructs” (as distinction or tradition) they use while assessing alternative products and choosing among them. From a methodological point of view, this study confirm the interest of combining RGT and content analysis as a tool for explorative research in marketing.Originality/valueResults seem to be a suitable basis for a survey on a representative sample directed to model the preferences about packaging features. Moreover, the analysis of preferences could be improved within a qualitative perspective, using laddering techniques of interview to elicit the hierarchical structure of motivation linking characteristics, attitudes consumers’ values.
PurposeFor 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/approachThe 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.FindingsConsolidating 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/implicationsUsing case studies and not quantitative approach represents both limits of the approach and innovative methodology that permits rich comparison with local practices.Originality/valueAnalyzes a local crisis thanks to external case studies.
Purpose – The purpose of this paper is to examine the issues related to the production of “Zivana”, a traditional alcoholic beverage produced by the Cypriot company LOEL, and the marketing practices implemented by the company. Thus, the product, its target market and competition are examined, a SWOT analysis is performed and the marketing mix is presented.
Purpose – This paper seeks to develop a framework for comparisons and benchmarking between wine tourism destinations.
PurposeThrough 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/approachUsing 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.FindingsThe 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/valueFor 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.
Purpose The paper aims to document a set of important success factors that need to be considered when undertaking traditional surveys within the Australian wine industry. Design/methodology/approach Reflecting on the relatively high rate of survey returns from research conducted within the Australian wineries, the author succinctly identifies a set of industry‐based values and operational conditions that appear to directly impact on improving survey response rates. Findings Six success factors should be considered in order to improve winery survey response rates. The factors entail survey design (length, stakeholder engagement, return‐by‐date), preliminary testing (pilot survey testing) and implementation (survey timing, feedback of results). Research limitations/implications As a viewpoint, the article needs to be considered from an Australian context with the proposed factors being a preliminary starting guide for researchers undertaking surveys. Practical implications The identified factors associated with improving survey responses are wine‐industry specific and will be useful to all researchers conducting surveys in the industry. Originality/value The paper is significant in that it identifies a set of wine industry‐based values and conditions that appear to influence survey response rates. The paper will be of interest to global wine‐industry researchers that use the survey instrument.
This article investigates the complaints leveled at alcohol advertisements to determine the kinds of ads that attract complaints and to what extent Ready‐to‐Drink (RTD) advertising accounts for these. The research will have relevance to all countries where RTDs have developed market share. The results show that ads for beer, spirits and especially RTDs (when Share‐of‐Complaint versus Share‐of‐Market is considered) attract the greatest number of complaints. Wine ads played a negligible role. Over.96% of alcohol ads attracting complaints used either a humorous or a sexual advertising appeal, the results emphasizing the risky nature of the humorous appeal. Rational, emotional, fear, and scarcity appeals made no impact on the findings.
The Internet has been heralded as having the potential to completely revolutionise the way organisations conduct their business and cited as the most rapidly adopted medium of our time. This study investigates Internet usage in the context of Hawke's Bay wineries within New Zealand. Although web potential has been well documented, the reality lags somewhat behind. A survey of thirty‐six Hawke's Bay winery websites was conducted applying a content analysis method previously used within the international wine sector. The results show positive adoption of current web technology. However, the analysis shows potential still remains for better utilisation by wineries of the web. There appears to be significant room to add value to websites and emphasise a range of brand and relationship building activities. Such a policy could confer competitive advantage and add another option for global exposure for wineries committed to incorporating a fully functioning web dimension into their long‐term marketing strategy. International markets will increase in importance as New Zealand wine production continues to rise steeply.
This research investigates wine drinkers' engagement with sparkling wine, including why they drink it, how they evaluate it, and certain country‐based preferences they have for it. It used qualitative processes with both professional and non‐professional informants, and was designed to explore in depth what drinkers feel about the product and their appraisal of its quality. The study confirms some existing assumptions about sparkling wine (for instance, its role as a symbol of celebration and country of origin issues) but also offers new suggestions about its function. Specifically, the study suggests that consumption of sparkling wine has more symbolic than experiential significance — and specifically that the role of memory and recollection may be important for some consumers. It also highlights the problems many drinkers have evaluating sparkling wine due to factors inherent in the style of wine (such as delicacy and mousse), as well as extraneous issues such as a paucity of benchmarks. The findings are useful to the marketer of sparkling wine as they offer insights into the motivation of those who drink it.
