Using the tasting room experience to create loyal customersLinda I. Nowak; Sandra K. Newton
2006 International Journal of Wine Marketing
doi: 10.1108/09547540610704738
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.
Non‐linearity in the hedonic pricing of South African red winesD.A. Priilaid; P. van Rensburg
2006 International Journal of Wine Marketing
doi: 10.1108/09547540610704747
Purpose – Proceeding 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/approach – A 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. Findings – This 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/value – Allowing 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.
The demise of independent wine production in France: a marketing challenge?Warren Pike; T.C. Melewar
2006 International Journal of Wine Marketing
doi: 10.1108/09547540610704756
Purpose – Independent 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/approach – Literature 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. Findings – It 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/implications – It 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 implications – Foreign 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/value – A 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.
Wine retailing in Ireland: the diffusion of innovationAgnes Murray; David Demick
2006 International Journal of Wine Marketing
doi: 10.1108/09547540610704765
Purpose – The 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/approach – Semi‐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. Findings – The 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/implications – This 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 implications – The 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/value – The paper provides some insight into the distribution and marketing of wine in the grocery retail sector in Ireland.
Motivational factors of gender, income and age on selecting a bottle of wineNelson Barber; Barbara A. Almanza; Janis R. Donovan
2006 International Journal of Wine Marketing
doi: 10.1108/09547540610704774
Purpose – To 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/approach – To 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. Findings – Results 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/implications – The 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/value – This 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.