Wine quality perception involves both intrinsic and extrinsic attributes and is related to consumer liking and acceptability of a product. The main purpose of this paper is to evaluate the actual role of the region of origin cue on the experienced, expected, and perceived quality of wine, as well as on the discrepancies between them. Using an experimental design set up, real tasting sessions were applied to elicit consumer quality perception in three different information conditions: (1) blind tasting (2) labelled tasting (region informed evaluation); and (3) wine tasting under full information. In total, 136 wine consumers stated their preferences through liking score. The results from the assimilation-contrast framework show that region of origin affects the experienced, expected, and perceived quality, as well as the agreement between them. Thus, the region of origin may offer a good predictive value of the product, increasing the consumer expectations. These results have important implications for producers as they demonstrate that the region of origin may be used as a brand.
{"title":"Region of origin and consumers’ quality perception of wine: an assimilation-contrast approach","authors":"Carla Ferreira, L. Lourenço-Gomes, L. Pinto","doi":"10.36253/wep-9418","DOIUrl":"https://doi.org/10.36253/wep-9418","url":null,"abstract":"Wine quality perception involves both intrinsic and extrinsic attributes and is related to consumer liking and acceptability of a product. The main purpose of this paper is to evaluate the actual role of the region of origin cue on the experienced, expected, and perceived quality of wine, as well as on the discrepancies between them. Using an experimental design set up, real tasting sessions were applied to elicit consumer quality perception in three different information conditions: (1) blind tasting (2) labelled tasting (region informed evaluation); and (3) wine tasting under full information. In total, 136 wine consumers stated their preferences through liking score. The results from the assimilation-contrast framework show that region of origin affects the experienced, expected, and perceived quality, as well as the agreement between them. Thus, the region of origin may offer a good predictive value of the product, increasing the consumer expectations. These results have important implications for producers as they demonstrate that the region of origin may be used as a brand.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43131653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Assuming that wine markets are efficient, ultimately a bottle of wine’s cost and therefore its price should reflect its vintage, grape variety as well as how it is vinified. Yet, being an experiential good, a wine’s price is also closely related to its place of origin. If the designated viticultural area of wine is coming from is not considered, even in a relatively new wine country, wine makers may end up over-estimating the premium attached to vintage, variety as well as how it is vinified. Regression results indicate that, for Ontario wines, the over-estimations vary between 1% points and 18% points.
{"title":"Does belonging to an appellation make a difference?","authors":"Omer Gokcekus","doi":"10.36253/wep-10391","DOIUrl":"https://doi.org/10.36253/wep-10391","url":null,"abstract":"Assuming that wine markets are efficient, ultimately a bottle of wine’s cost and therefore its price should reflect its vintage, grape variety as well as how it is vinified. Yet, being an experiential good, a wine’s price is also closely related to its place of origin. If the designated viticultural area of wine is coming from is not considered, even in a relatively new wine country, wine makers may end up over-estimating the premium attached to vintage, variety as well as how it is vinified. Regression results indicate that, for Ontario wines, the over-estimations vary between 1% points and 18% points.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70131078","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Advertising is one of the most widely used marketing resources in the beverage industry, yet the wine industry has not made an intense use of this resource over time. The small average size of wineries together with rising concerns about the effectiveness of advertising has led many wineries to use alternative strategies to market their products: collective brands, the display of prizes and medals on their labels, or positive ratings in expert guides. In this sense, the objective of the present study was to analyse the behaviour of wineries regarding their use of advertising as a marketing resource. Specifically, we analysed the advertising strategy of wineries with respect to the existence of publicly available wine ratings. The method was based on the estimation of a Heckit model that simultaneously identifies the variables underlying the decision to invest in advertising and the determinants of the amount of money invested. The results revealed a nonlinear relationship between wine ratings and advertising investment.
{"title":"Wine Ratings and Advertising Strategies: Is There a Link?","authors":"R. Sellers","doi":"10.36253/wep-10639","DOIUrl":"https://doi.org/10.36253/wep-10639","url":null,"abstract":"Advertising is one of the most widely used marketing resources in the beverage industry, yet the wine industry has not made an intense use of this resource over time. The small average size of wineries together with rising concerns about the effectiveness of advertising has led many wineries to use alternative strategies to market their products: collective brands, the display of prizes and medals on their labels, or positive ratings in expert guides. In this sense, the objective of the present study was to analyse the behaviour of wineries regarding their use of advertising as a marketing resource. Specifically, we analysed the advertising strategy of wineries with respect to the existence of publicly available wine ratings. The method was based on the estimation of a Heckit model that simultaneously identifies the variables underlying the decision to invest in advertising and the determinants of the amount of money invested. The results revealed a nonlinear relationship between wine ratings and advertising investment.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70131127","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
F. Cisilino, F. Madau, R. Furesi, P. Pulina, Brunella Arru
Several studies have focused attention on the differences between organic and conventional farms in terms of efficiency, and controversial findings have resulted from these applications. One source of controversy concerns the assumption about the frontier(s) adopted for the comparison: a common frontier or two separate frontiers for organic and conventional methods? This paper aims to estimate technical efficiency in Italian grape farming. A stochastic frontier analysis (SFA) was applied to a sample of 531 farms (440 conventional and 91 organic farms) collected from the Farm Accountancy Network Database. Among others, a test for evaluating whether a unique or separate frontier was performed. The findings suggest that organic and conventional farms would lie on a common frontier and that organic farms have greater capacity than conventional farms in using their own technical inputs (efficiency amounts to 83.6% and 77.8%, respectively). A number of implications derive from these findings.
{"title":"Organic and Conventional Grape Growing in Italy: a Technical Efficiency Comparison Using a Parametric Approach","authors":"F. Cisilino, F. Madau, R. Furesi, P. Pulina, Brunella Arru","doi":"10.36253/wep-10384","DOIUrl":"https://doi.org/10.36253/wep-10384","url":null,"abstract":"Several studies have focused attention on the differences between organic and conventional farms in terms of efficiency, and controversial findings have resulted from these applications. One source of controversy concerns the assumption about the frontier(s) adopted for the comparison: a common frontier or two separate frontiers for organic and conventional methods? This paper aims to estimate technical efficiency in Italian grape farming. A stochastic frontier analysis (SFA) was applied to a sample of 531 farms (440 conventional and 91 organic farms) collected from the Farm Accountancy Network Database. Among others, a test for evaluating whether a unique or separate frontier was performed. The findings suggest that organic and conventional farms would lie on a common frontier and that organic farms have greater capacity than conventional farms in using their own technical inputs (efficiency amounts to 83.6% and 77.8%, respectively). A number of implications derive from these findings.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70131419","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Adeline Alonso Ugaglia, Britta Niklas, W. Rinke, J. Gow, Daniel Moscovici
The wine industry has faced various environmental and social challenges. On the demand side, consumer demand for sustainable wines has been increasing but, to date, it is unknown whether consumers perceive wine companies’ efforts to obtain sustainable development (SD) certifications and labels as being valuable or how they differentiate them. On the supply side, sustainable wine production is increasing but producers report a lack of information to engage and select their SD strategy. This article uses a logistic regression and an artificial neural network model to show how French consumers differentiate and value different SD labels (Organic, Biodynamic, Sustainable, Fairtrade, Natural). Results show that consumers’ willingness to buy and willingness to pay are influenced by the importance each consumer gives to the certification. For all other drivers, consumers differentiate between labels, highlighting the importance of comparison between and knowledge about each of them, thereby aiding producers in choosing an appropriate marketing strategy.
{"title":"Consumer preferences for Certified Wines in France: A Comparison of Sustainable Labels","authors":"Adeline Alonso Ugaglia, Britta Niklas, W. Rinke, J. Gow, Daniel Moscovici","doi":"10.36253/wep-10382","DOIUrl":"https://doi.org/10.36253/wep-10382","url":null,"abstract":"The wine industry has faced various environmental and social challenges. On the demand side, consumer demand for sustainable wines has been increasing but, to date, it is unknown whether consumers perceive wine companies’ efforts to obtain sustainable development (SD) certifications and labels as being valuable or how they differentiate them. On the supply side, sustainable wine production is increasing but producers report a lack of information to engage and select their SD strategy. This article uses a logistic regression and an artificial neural network model to show how French consumers differentiate and value different SD labels (Organic, Biodynamic, Sustainable, Fairtrade, Natural). Results show that consumers’ willingness to buy and willingness to pay are influenced by the importance each consumer gives to the certification. For all other drivers, consumers differentiate between labels, highlighting the importance of comparison between and knowledge about each of them, thereby aiding producers in choosing an appropriate marketing strategy.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"41 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70131225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Antonio Graca is Director of Research and Development at SOGRAPE VINHOS and an eminent figure in the Wine Business. With this extensive interview, he shares his thoughts and views on many key aspects of the business, starting with the role of R&D and innovation and the connection between academic research and the operators of the wine sector. The experience and knowledge that emerges from this in-depth conversation can represent a precious source of inspiration for researchers, managers and all the stakeholders in the sector, as it sheds a light on many key issues in the way to success in the wine business.
Antonio Graca是SOGRAPE VINHOS的研发总监，也是葡萄酒行业的杰出人物。通过这次广泛的采访，他分享了他对企业许多关键方面的想法和看法，从研发和创新的作用以及学术研究与葡萄酒行业运营商之间的联系开始。从这次深入对话中获得的经验和知识可以为研究人员、管理人员和该行业的所有利益相关者提供宝贵的灵感来源，因为它揭示了葡萄酒业务成功的许多关键问题。
{"title":"The Role, Scope and Management of R&D and Innovation in the Wine Sector: an Interview with Antonio Graca","authors":"P. Hayes","doi":"10.36253/WEP-10084","DOIUrl":"https://doi.org/10.36253/WEP-10084","url":null,"abstract":"Antonio Graca is Director of Research and Development at SOGRAPE VINHOS and an eminent figure in the Wine Business. With this extensive interview, he shares his thoughts and views on many key aspects of the business, starting with the role of R&D and innovation and the connection between academic research and the operators of the wine sector. The experience and knowledge that emerges from this in-depth conversation can represent a precious source of inspiration for researchers, managers and all the stakeholders in the sector, as it sheds a light on many key issues in the way to success in the wine business.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"9 1","pages":"127-135"},"PeriodicalIF":0.0,"publicationDate":"2020-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42231168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Raimondo, Concetta Nazzaro, A. Nifo, G. Marotta
The paper aims at analyzing the effect of institutional quality on labor productivity in the agricultural sector. To meet this aim, a Gaussian log-linear model was applied to 773 vineyard farms, located in 71 Italian provinces. The applied methodology enabled to quantify the overall impact of the institutional quality on labor productivity by discriminating with respect to the Italian regions and macro-areas (i.e. North, South or Central Italy). The findings of the investigation show a positive effect of the institutional quality on labor productivity, with an overall impact of 39%. Moreover, huge differences among Italian regions and macro-areas were detected. The study findings provide recommendations for academics and policy-makers to improve both theoretical and practical aspects.
{"title":"Does the Institutional Quality Affect Labor Productivity in Italian Vineyard Farms?","authors":"M. Raimondo, Concetta Nazzaro, A. Nifo, G. Marotta","doi":"10.36253/WEP-7833","DOIUrl":"https://doi.org/10.36253/WEP-7833","url":null,"abstract":"The paper aims at analyzing the effect of institutional quality on labor productivity in the agricultural sector. To meet this aim, a Gaussian log-linear model was applied to 773 vineyard farms, located in 71 Italian provinces. The applied methodology enabled to quantify the overall impact of the institutional quality on labor productivity by discriminating with respect to the Italian regions and macro-areas (i.e. North, South or Central Italy). The findings of the investigation show a positive effect of the institutional quality on labor productivity, with an overall impact of 39%. Moreover, huge differences among Italian regions and macro-areas were detected. The study findings provide recommendations for academics and policy-makers to improve both theoretical and practical aspects.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"9 1","pages":"113-126"},"PeriodicalIF":0.0,"publicationDate":"2020-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48360871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
On a climate change scenario, a discrete choice experiment was applied to elicit the trade-off values for three environmental impacts of current viticultural management practices in vineyards of Mendoza, Argentina. Water availability for other uses was found to be the most concerning topic for the population, followed by use of chemical fertilizers and then by use and conservation of biodiversity. An increase of one percentage point in water availability was estimated to add each citizen on average 13.05 Argentinean pesos – 0.74 US dollars – per year in terms of increased welfare, a figure equivalent to the welfare drop a citizen would experience after an increase of 1.45 percentage points in the use of chemical fertilizers annually per hectare, or a decrease of 2.69 percentage points in the use and conservation of biodiversity. These trade-off values may help policy makers, planners, regional managers, and ecologists to take social preferences into account in setting resource allocation priorities intended to support viticulture. This study approach provides a framework that could guide similar assessments in other regions.
{"title":"Valuation of Viticultural Adaptation to Climate Change in Vineyards: A Discrete Choice Experiment to Prioritize Trade-Offs Perceived by Citizens","authors":"V. Farreras, Laura Abraham","doi":"10.36253/WEB-9823","DOIUrl":"https://doi.org/10.36253/WEB-9823","url":null,"abstract":"On a climate change scenario, a discrete choice experiment was applied to elicit the trade-off values for three environmental impacts of current viticultural management practices in vineyards of Mendoza, Argentina. Water availability for other uses was found to be the most concerning topic for the population, followed by use of chemical fertilizers and then by use and conservation of biodiversity. An increase of one percentage point in water availability was estimated to add each citizen on average 13.05 Argentinean pesos – 0.74 US dollars – per year in terms of increased welfare, a figure equivalent to the welfare drop a citizen would experience after an increase of 1.45 percentage points in the use of chemical fertilizers annually per hectare, or a decrease of 2.69 percentage points in the use and conservation of biodiversity. These trade-off values may help policy makers, planners, regional managers, and ecologists to take social preferences into account in setting resource allocation priorities intended to support viticulture. This study approach provides a framework that could guide similar assessments in other regions.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"9 1","pages":"99-112"},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45170184","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
F. Boncinelli, C. Contini, Francesca Gerini, Caterina Romano, G. Scozzafava, L. Casini
One of the most critical points for the validity of Discrete Choice Experiments lies in their capability to render the experiment as close to actual market conditions as possible. In particular, when dealing with products characterized by a large number of attributes, the construction of the experiment poses the issue of how to express the choice question providing sufficient information. Our study verifies the role of scenario definition in choice experiments and proposes a methodology to build customized scenarios by eliciting responses from interviewees on the main choice criteria, which makes it possible to render the conditions of the experiment more realistic. This methodology is applied to the case study of wine and is introduced by a systematic review of the Discrete Choice Experiments conducted on wine. The findings show that customized scenarios result in different preference estimates compared to the conventional approach. In particular, we found a significant decline in the importance of the price attribute, which could be attributed to a better definition of the product being evaluated. Moreover, the methodology is capable of gathering information on the decision-making process that would otherwise remain unobserved and that can be used for a better segmentation analysis.
{"title":"The Role of Context Definition in Choice Experiments: a Methodological Proposal Based on Customized Scenarios","authors":"F. Boncinelli, C. Contini, Francesca Gerini, Caterina Romano, G. Scozzafava, L. Casini","doi":"10.36253/WEB-7978","DOIUrl":"https://doi.org/10.36253/WEB-7978","url":null,"abstract":"One of the most critical points for the validity of Discrete Choice Experiments lies in their capability to render the experiment as close to actual market conditions as possible. In particular, when dealing with products characterized by a large number of attributes, the construction of the experiment poses the issue of how to express the choice question providing sufficient information. Our study verifies the role of scenario definition in choice experiments and proposes a methodology to build customized scenarios by eliciting responses from interviewees on the main choice criteria, which makes it possible to render the conditions of the experiment more realistic. This methodology is applied to the case study of wine and is introduced by a systematic review of the Discrete Choice Experiments conducted on wine. The findings show that customized scenarios result in different preference estimates compared to the conventional approach. In particular, we found a significant decline in the importance of the price attribute, which could be attributed to a better definition of the product being evaluated. Moreover, the methodology is capable of gathering information on the decision-making process that would otherwise remain unobserved and that can be used for a better segmentation analysis.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"9 1","pages":"49-62"},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44498032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to explore the country of origin ́s effects on brand equity dimensions. This research selected wine as the product category and data were collected from Portuguese and Canadian consumers. Our conceptual framework incorporates the influence of country of origin on brand equity dimensions, composed by brand loyalty, brand associations, brand awareness and perceived quality, as well as the brand equity subsequent effect on purchase intention. The hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results of the Portuguese sample indicate that the country of origin affects positively all the brand equity dimensions. The Canadian sample results show that country of origin affects brand loyalty and perceived quality, but there is no significant effect on brand associations and brand awareness dimensions.
{"title":"The Impact of Country of Origin on Brand Equity: An Analysis of The Wine Sector","authors":"Nádia Passagem, C. Crespo, N. Almeida","doi":"10.36253/WEB-8407","DOIUrl":"https://doi.org/10.36253/WEB-8407","url":null,"abstract":"The purpose of this study is to explore the country of origin ́s effects on brand equity dimensions. This research selected wine as the product category and data were collected from Portuguese and Canadian consumers. Our conceptual framework incorporates the influence of country of origin on brand equity dimensions, composed by brand loyalty, brand associations, brand awareness and perceived quality, as well as the brand equity subsequent effect on purchase intention. The hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results of the Portuguese sample indicate that the country of origin affects positively all the brand equity dimensions. The Canadian sample results show that country of origin affects brand loyalty and perceived quality, but there is no significant effect on brand associations and brand awareness dimensions.","PeriodicalId":38081,"journal":{"name":"Wine Economics and Policy","volume":"9 1","pages":"63-81"},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41318653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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