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Consumer Sensory Evaluations of Wine Quality: The Respective Influence of Price and Country of Origin
Abstract
The purpose of the study was to investigate the respective influences of price and country of origin as extrinsic cues on consumer evaluations of wine quality when all intrinsic cues are experienced through sensory perception. Taste testing experiments were conducted (N = 263) using Chardonnay as the test product in a 3 (country of origin, COO) × 3 (price) × 3 (acid level) conjoint analysis fractional factorial design. Price and COO were both found to be more important contributors to perception of wine quality than taste. Reliance on extrinsic cues was found to remain extremely robust even when all intrinsic cues were available through sensory experience for respondent evaluation. The research demonstrated that even when evaluating a product through consumption, consumer belief in the price/value schema dominates quality assessment. These findings mean that marketers cannot assume that intrinsic product attributes, even when experienced, will be weighted and interpreted accurately by consumers. The research significantly advances our understanding of consumers' use of extrinsic cues (price and COO specifically), and their respective influence in their determination of both expected and experienced quality. (JEL Classification: Q11, D12, M31)
... Another possible factor that might influence consumers' preference for foreign brands vs. local brands is the sensory experience they provide (Veale & Quester, 2008;2009;Dekhili et al., 2011;Bruwer & Buller, 2012). Foreign brand (UNIQLO) has both online and physical retail outlets in Taiwan, while local brand (Lativ) is only sold online. ...
... A large number of studies have investigated the effect of brand-COO on consumer behavior (Abdellah-Kilani & Zorai, 2019;Hamzaoui-Essoussi et al., 2011;Huang et al., 2010;Isa et al., 2016;Shu et al., 2013;Winit et al., 2014;Yang, 2019), but literature regarding brand-COO and sensory marketing is scarce. Extant studies have viewed brand-COO as an extrinsic cue through sensory perception (e.g., taste as an intrinsic cue) on consumer evaluations, especially for food and wine (Veale & Quester, 2008;2009;Dekhili et al., 2011;Bruwer & Buller, 2012). Little research, however, has examined the interaction of brand-COO and sensory perceptions within a fast fashion context. ...
... Applying their findings to the consumer domain, Veale and Quester (2008;2009) illustrated that the brand-COO effect is more important to perceptions of wine quality than sensory (taste) experience. However, in the fast fashion context, when consumers can actually feel the fabric and tailoring of garments, multi-sensory perceptions can be incorporated in the decision-making process. ...
The fast fashion phenomenon has revolutionized the apparel industry over the past decade. However, research focused on the implications of brand country-of-origin (brand-COO) and sensory perception for consumer behavior remains scarce. This study draws on construal-level theory and active traits theory to develop and test a framework to identify the boundary conditions of the relationships among brand-COO, sensory perception, and consumer personality characteristics on purchase intentions regarding fast fashion apparel. A 2 (sensory perception: single versus multi-sensory) × 2 (brand-COO: local brand versus foreign brand) between-subjects design was employed using 176 participants. The results demonstrate there are different and separate effects of perceived quality on purchase intentions when exposed to single-sensory versus multi-sensory stimuli, and the haptic perception is an important quality signal for fast fashion apparel, which increases consumers’ purchase intentions for local brands compared to foreign brands. Moreover, the results profile consumer segments based on personality traits for fast fashion retailers. Important managerial implications for fast fashion retailers are also discussed.
... Wine packaging elements such as closure type and information on the label usually comply with these extrinsic attributes of wine used to evaluate the wine and its quality. In line with the seminal studies of Charters and Pettigrew (2007), Veale and Quester (2008) and Hirche and Bruwer (2014) information on the origin, grape variety and price are considered to be the most important quality cues for wine consumers. In recent studies, the origin is further subdivided into dimensions consisting of the country where the wine is originated as the highest level of geographical information given and region or vineyard designation as lower dimensions of origin. ...
... Price influences the quality prediction of consumers like no other extrinsic cue (Veale, 2008). Price is stated to have an even stronger influence on expected and experienced quality perception of wine than intrinsic attributes such as taste (Veale and Quester, 2008). Wang and Spence (2018) even show price to be the only attribute correlating to quality. ...
... When the price is such an important quality cue, one could assume that there is also no difference in the willingness to pay for cork-compared to screw cap-closed wines. In this case, we can support the results of Veale and Quester (2008), who find that price is the strongest cue for quality predictions and "overpowers" all other quality indicators for wine. Austrian wine consumers A subsequent principal components analysis of the quality indicators used provides further support for this assumption. ...
Purpose
The purpose of this paper is to examine the influence of wine closure types on the quality perception of wine consumers in a traditional wine market, combined with the willingness to pay for red and white wines in bottles closed with screw caps compared with that for wines in bottles with a cork closure.
Design/methodology/approach
An online experiment with 436 Austrian wine consumers was conducted in a two-by-two between-groups design. To assess the quality of Austrian red and white wine, quality indicators such as origin, grape variety, awards, the content of residual sugar, vintage, geographical indication, ageing potential, organic certification, vineyard designation and brand (producer) have been applied. Furthermore, different involvement levels as well as willingness to pay were taken into consideration.
Findings
Contrary to earlier findings, results confirm that Austrian consumers do not generally perceive wines (both red and white) in a screw cap bottle to be lower or different in quality from those in a cork-closed bottle. However, consumers expect red and white wines in bottles with a cork closure to be higher in price than wines in bottles with a screw cap. Among established quality indicators, the present analysis shows that price is the strongest cue for quality when it comes to wines and indicates that wines in bottles closed with corks and bearing a higher price tag are considered to be of higher quality.
Research limitations/implications
This research comes with limitations, such as the absence of sensory differences. Moreover, the research design is based exclusively on the description of wines and a limited set of quality indicators and does not involve the actual tasting of wines.
Practical implications
Outcomes suggest that in the strategic positioning of wines, the difference in wine consumers’ quality perceptions between wine bottles with screw caps and cork closures plays a smaller role than anticipated. Findings are relevant for practitioners, particularly in old-world wine markets where cork is still seen as the closure of choice for higher-quality wines.
Originality/value
The results of this survey contribute to understanding consumers of an established old-world wine market and their attitudes towards alternative bottle closure types such as screw caps. It adds new insights to the research stream of the quality perception of wines.
... These include product characteristics that are not inherent in the product itself but are externally attributed, e.g. price, region of origin and awards (Lee et al., 2006;Charters and Pettigrew, 2007;Veale and Quester, 2008). Similarly, organic labelling communicates ecological aspects of a product to consumers (Sörqvist et al., 2013;Sörqvist et al., 2015;Wiedmann et al., 2014). ...
... sensory experiences, are available. Perception is then influenced by decision heuristics such as price/value inferences or when beliefs about an attribute influence the rating of another attribute (Beckwith et al., 1978;Veale and Quester, 2008;Plassmann et al., 2008). A prominent example is the systematic taste-preference bias for organic products, a halo effect, in which consumers are positively biased to prefer the taste of products that have been arbitrarily labelled organic to identical unlabelled alternatives (Sörqvist et al., 2013;Hemmerling et al., 2013;Wiedmann et al., 2014;Apaolaza et al., 2017). ...
... Second, following price/value inferences, consumers may draw conclusions about the quality of an organic wine from its price. Whilst higher price points can lead to positive value ascriptions (Veale and Quester, 2008;Plassmann et al., 2008), the perception that organic wines are generally less expensive than nonorganic wines can also result in inferior quality perception (Delmas and Grant, 2014;Delmas and Lessem, 2017). Third, memories of the enjoyableness and taste of a food are significant predictors of future liking and choice (Robinson et al., 2012). ...
Purpose: The mechanism by which organic labelling affects consumers’ willingness to pay (WTP) for wine is not yet fully understood. Organic labelling not only transports information about environmental benefits, but may also influence consumers’ perceptions of quality and taste. The purpose of this article is to separate the information effect from the perception effect of an organic label on WTP.
Design/methodology: Taste and quality perceptions of 110 German consumers and their WTP for white and red wines were collected in a second-price auction in conjunction with a blind tasting. Each measure was recorded under two experimental conditions: with and without organic labelling. Serial mediation analysis is used to identify the information and perception effect of an organic label on WTP. A moderating effect of commitment to organic consumption is considered.
Findings: Wines marketed as organic are perceived as tastier and of higher quality and value. The organic labelling effect is stronger for committed organic consumers. Mediation analysis confirms perceived better taste as a key driver for WTP, especially for less committed organic consumers. The findings highlight perceptions of wine quality as the main mediator through which organic labelling affects WTP for red wine and for committed organic consumers.
Originality/Value: This work adds to the literature by decomposing the signaling mechanism of organic labelling and by emphasizing the role of individual characteristics in determining its magnitude and pathways. Implications from a marketing and wine industry’s perspective are discussed.
... In purchase of wine, the aspect of consumers demand depends on the land and continent of origin, the so-called "new" or "old" wine countries (Chrea et al,. 2011;Goodman et al., 2007;Lockshin et al., 2009;Veale and Quester, 2008) since different social, historical and cultural surrounding creates behaviours toward wine consumption. Wines have certain attributes, in the literature described as extrinsic and intrinsic attributes, whereas extrinsic qualities are origin, grape variety, packaging, price, while intrinsic qualities have a value for reputation, expert opinions, tasting ratings, appellation, and sensory values. ...
... Classification of consumers in surveys holds to overall suggestions that price and grape variety have the strongest influence on consumers' choice and purchase, while packaging and labels were of less importance (Mueller Loose and Veale and Quester, 2008). Consumers tend to reflect the price to the level of quality (and are willing to pay higher price for wines from well known wine regions); ...
Wine tourists are a very heterogeneous segment of consumers with diverse socio demographic, psychographic features and different behaviour towards wine as a product and wine tourism as a selective form of tourism. This paper analyses the influence of socio-demographic features and the behaviour of wine tourists in Croatia. The survey showed that more winery visitors prefer dry wines compared to wine exhibition visitors. In both samples they spend up to € 20 per month, drink mostly dry white wines in 0.75 l bottles. Men and higher educated persons were the majority in both samples. Wine exhibition visitors were a bit younger than winery
visitors. Winery visitors spend more money on wine and showed fewer preferences toward dry wines compared to wine exhibition visitors which are more likely to drink wine in places other than home or restaurant. Wine tourism in Istria should hold to existing wine roads and wine quality enhancing the numbers of visitors and
volume of sales by implementing new attractive activities and events and by involving cultural, historical and natural resources in the wine destination in Istria.
... The influence of price has been studied as one of the most important cues used consistently by consumers to predict quality, across a wide range of products (Verdu Jover et al., 2004;Kardes et al., 2004;Veale and Quester, 2008;Mastrobuoni et al., 2014). This price/quality relationship reflects consumers' strongly held belief that 'you get what you pay for' (Lee and Lou, 1996). ...
This paper deals with the increase in needs for irrigation and their effects caused by
global warming that is said to be unavoidable nowadays by the experts. Floods, excess
surface waters and droughts occurring more and more frequently cause serious
damages not only socially but also in terms of agricultural production. These losses
could be avoided by increasing the efficiency of water management. Starting from the
above factors this paper puts the emphasis on irrigation that may be necessary even if
the precipitation is given, but its distribution is inappropriate. The research focuses on
whether there is any demand for irrigation in a wine-growing region at all. It examines
in details the effects of surplus precipitation on irrigated vineyards and specifically the
effect of increased water quantity on the sugar content in grapes. Among the methods, in
addition to reviewing the relevant scientific literature we have used descriptive
statistics, correlations and analysis of variance (ANOVA) using SPSS software package.
Keywords: irrigation, wine region, yield increasing effect, quality
... Moreover several scholars have focused on understanding the impact of several extrinsic cues on wine quality perception (e.g. Veale and Quester, 2008;Sáenz-Navajas et al., 2014). However few studies have dealt with consumer sensory expectations towards sustainable food. ...
In the past twenty years continuous change has transformed the face of rural Greece. The Euro- pean agricultural and rural development policies, other international developments, as well as the recent economic crisis have accelerated past and created new rural transformation processes. ‘De-agriculturalisation’ and rural restructuring have been accompanied by ‘rurbanization’ and socio-economic integration of rural population. These interrelated processes have internally transformed the rural areas, forming a ‘new rurality’ characterised by contraction of agriculture, expansion of tourism and construction, increased pluriactivity, increased employment of inter- national migrant labour and the reorganisation of farm operation and family labour division. In the environment of crisis, rural areas have been affected in diverse ways. On the one hand, they experience rising costs of production, falling incomes, increasing inequalities, contraction of public services and on the other, lower unemployment rates than urban areas, increased production and exports and a cowardly ‘back to the land’ movement in which agriculture’s role is enhanced.
The paper will identify and discuss the main elements and the dynamics of the changing physiognomy of rurality in Greece over the past twenty years. On the basis of evidence provided by available statistical data, it will also investigate the main features of the internal and external to rural areas’ mobilities in the context of the recent economic recession.
... Some experimental articles analyse consumer evaluation of wines and do not strictly stick to hedonic price analysis of secondary data, for exampleLange et al. (2002),Lecocq et al. (2005),Barber et al. (2006),Veale and Quester (2008),Hilger et al. (2011),Bazoche et al. (2013),Thiene et al. (2013), andGustafson et al. (2016b). ...
The objective of this paper is to present a descriptive review of all the studies published on wine price determinants. The selection process has been carefully designed to assure that we cover the complete literature of hedonic price functions and wine price determinants. Because of the heterogeneity among these studies, the objective was to classify all the determinants in clusters related to geographical and agricultural factors, time horizon, public information and, supply factors (production costs and volume of production).
For this review, we have identified a list of 117 papers published on price determinants over the period 1993 to 2018.
... According to Tempesta et al. (2010), the perception of the landscape feature of production is quite a complex phenomenon as it involves numerous components of the human mind, and it has an important emotional value. In fact, international literature (Tempesta et al. 2010;Veale and Quester 2008) has demonstrated that associating wine to an image with a greater visual impact can positively affect the perception of wine quality. ...
The interest in wine produced in an environmentally friendly manner is increasing in the global market among both consumers and producers. Moreover, numerous labelling and certification systems have been introduced to guarantee environmentally friendly production. Consumers can consider some environmental attributes in relation to their purchasing decisions as components of their ethical demands; such consumer behaviours can drive wine production to more sustainable models. This change depends on many factors, such as consumers’ willingness to pay for sustainable and ethical attributes and the effective communication of such attributes. Among consumers, young people belonging to the so-called millennial generation are the new wine consumers, and they represent an increasingly important segment of the
global wine market. This study uses a choice experiment to investigate Italian millennials’ preferences toward two ethical attributes of wine: ‘carbon footprint claim’ and ‘winescape aesthetic’.
The findings show considerable heterogeneity among respondents, the majority of whom seem to be interested in the carbon footprint claim, even if a group of them prefer to pay a premium price to consume high-quality wines. Our results indicate that winescape aesthetic does not appear to be an important attribute in guiding respondents’ preferences.
Keywords: Wine consumption, Carbon footprint, Winescape aesthetic, Choice experiment, Italian millennial generation
... The sample used in the study included only wine professionals, which is not representative of wine consumers overall, and this disconnect between hedonic and quality valuations is in line with the patterns identified by Lockshin and Rhodus [23]. Veale and Quester [25] use a three by three by three (country of origin by price by acid level) wine-tasting experiment and demonstrate that consumer reliance on extrinsic cues such as price remains extremely robust. In our paper, we remove the influence of individual wine-price/quality cues and instead elicit WTP by inviting participants to bid on wines, thus removing one potential confounding factor in the investigation of WTP and quality perceptions of organic wines. ...
Absence labels promote the absence of a particular ingredient or production practice. Consumers usually perceive organic labels as an umbrella absence label for a variety of ingredients and production practices. Such organic labels often use similar language but are based on different certification requirements. For example, both organic wine and wine made with organic grapes are available to U.S. consumers, but little is known about consumer preferences for such labeled products when information about the certification standards is available. Moreover, while absence labels, which advertise the absence of certain attributes or practices, are prevalent on the market, little is known about how information on conventional production practices impacts consumer behavior. Using an artefactual experiment with 128 adult non-student participants, we investigate consumer demand for conventional wine, organic wine, and wine made with organic grapes when information about production standards is provided to participants with and without details regarding conventional winemaking practices. We find that while both organic labels carry a significant and very similar willingness-to-pay (WTP) premium, information about certification standards and conventional wine making practices can reduce WTP for all wines. Providing information about the two organic certification standards reduces consumer WTP for both absence labeled and conventional wine categories. This effect largely disappears for organic wine, but not wine made with organic grapes, when information about conventional wine-making practices is also provided.
... Expected quality has been shown to be a good predicter of experienced quality (Acebrón et al., 2000) and prior experience are what inform these expectations (Veale et al., 2008). With this framework in place, this investigation allowed for respondents to indicate expected quality, expected price, and overall perception of luxury, without providing them a definition. ...
The goal of this research is to understand the influence of wine label visual sensory cues on the perceived sensory taste of wine. This five-phase research study uses consumer culture theory as a framework, which views consumers as identity seekers navigating opportunities in the marketplace that provide a message that embraces who they are based on their own experiences (Askegaard & Linnet, 2011). With increasing experience, wine drinkers create associations between verbal and visual cues on the label, that form expectations for how the wine should taste. This study refers to these variables as visual sensory cues, which become associated with sensory attributes and bias the sensory experience of wine. Visual sensory cues on a label help form the brand image of the wine that impacts purchase intent and appeal (Hoegg & Alba, 2007b). Brand image is measured using four categories; brand personality, design style, narratives, and conveyance of luxury. Willingness-to-pay is used as a measurement to assign value to visual sensory cues and determine if this results in a cross-modal sensory association that impacts the taste of the wine. This study uses the epistemological approach of pragmatism to mix methods from different paradigms on their basis of usefulness to addressing the research questions (Collins & Hussey, 2014). These methods include a quantitative online survey using seventeen uniquely classified wine labels. The survey reveals that wine drinkers anticipate a wine will taste better after seeing a label they identify with. An in-person taste shows that wine drinkers were unable to discriminate between two wines using only taste. A second in-person taste test using the same two wines and two uniquely visually classified labels demonstrates that when consumers identify with a label, they believe the wine tastes better. Follow-up in-depth interviews find wine drinkers look for a label that is “for someone like me” and this impacts the overall sensory experience of the wine. The results of this research reveal a cross-modal association that results when a wine label is identified with through visual sensory cues and this process influences the actual taste of the wine.
... In both papers, they estimate hedonic price functions for Bordeaux wine and found that regional indication such as government and industry classifications of Bordeaux wine have a large impact on consumer willingness to pay. Interestingly, Veale and Quester (2008) also find a statistically significant effect of country of origin on consumers' perception of wine quality. ...
The demand for wine could be considered within the context of the consumer's lifetime allocation process. Within this framework, demand is attributed to a person's desire to consume wine at the present period or to invest in wine for future consumption. The objective of the paper is to review the main factors and mechanisms that govern the price of wine. The survey reviews the determinants of the price of wine based three approaches: 1) the evaluation of properties or characteristics of wine t h a t give utility to consumers, i.e. referred to as hedonic pricing, 2) the supply factors that impact the price, and 3) the analysis of price dynamics, i.e. the role of the market and under what conditions it can explain the differences between the prices of different wines. We identify a list of 104 papers published on price determinants and 41 papers on the analysis of price dynamics in auction markets or financial markets.
... Sensory analysis has been an effective instrument for the quality control and acceptability of novel foods in investigations around the world such as: white strawberry [55], potato chips [56], soybean oil [57], fresh cheese [58], maracuya [59], corn tortilla [60], daily supplements [61], mandarin juice [62], sausages with orange peel flour [63], wine [64] and even in insects [65,66]. ...
Innovation in the agro-food system has become a strategy increasingly used by companies as a means to increase their competitiveness and position themselves in the market. In this context, the objective of this work is to identify the attitudes and sensory perceptions of consumers towards food technology through two scales (food technology neophobia and domain specific innovativeness) and hedonic tastings. For this, a new product was selected in the market: powder to prepare rice with milk. Most consumers have attitudes toward low neophobia to products with food technology, but there is also some caution, a situation that is corroborated by the moderate predisposition towards innovations. Color and flavor attributes can make the difference in positive perceptions. It should not be forgotten that there is a segment of innovative consumers that represent a key market.
... In the light of the above mentioned findings, it is not always possible to agree with some experts (Gergaud and Livat, 2007;Veale and Quester, 2008;Crouch and Quester, 2009) concerning the fact they claim that choosing high-quality wines guarantees consumers a better assurance of the purchasing decision. The results of the study point to the fact that this does not always have to be the case, although at the most expensive Californian and Tuscany wines the high price was consistent with high quality. ...
This study focuses on an examination of the competitiveness of Czech wine regions in comparison with foreign regions considering specific products, namely wines from these regions, their prices and quality. The data set consists of more than 1220 evaluated domestic and foreign wines. Based on normality data test a non-parametric method of Kruskal-Wallis test was designed followed by multiple comparisons for examining differences of price and quality of wines measured on 100-point quality scale. The difference in price and quality among wines from Czech wine regions and wines from foreign wine regions proved to be statistically significant. While comparing the competitiveness of the wine regions, it is necessary to use different approach for wines from Znojemsko, Velkopavlovicko and Mikulovsko when compared with wines from Slovácko. Slovácko is the most competitive Czech wine region because of high quality of wines together with very low price level. However, Slovácko was not able to compete Spanish Rioja, French Languedoc, some Slovak, Chilean and Argentinian regions in quality even though the price level was the same. In general, higher price of wine does not always mean higher quality, but it varies depending on the wine region. On that basis, the concept of terroir cannot be excluded, thus it is possible to coincide with the use of the concept of institutional quality for wines. When searching for the explanation of higher quality of wines from certain regions, the theory of learning regions or theory using impact of social construction on wine tasters can be used.
... Previous studies have found out that pricing is a critical factor for the determination of the quality wines (Gassler, Fronzeck, & Spiller, 2019). High-quality perception is ascribed with high pricing ascriptions (Plassmann, O'Doherty, Shiv, & Rangel, 2008;Veale & Quester, 2008) and wines that are less expensive conceive low-quality perception (Delmas & Grant, 2014;Delmas & Lessem, 2018). Here, numerous extrinsic and intrinsic factors play a significant role into consumer selection and purchase making decision process (Batt & Dean, 2000;Dowling, 1999;Higgins & Llanos, 2015;Lockshin & Hall, 2003). ...
This study purposes to find out the diverse perceptions related to risk and benefit about wine consumption and purchase in India. Using a structured questionnaire, on a sample of 352 wine consumers in 8 fine-dining restaurants serving wine in Delhi, it will also identify the factors that affect their behavioural intentions and alter their attitude towards wine consumption. Two benefit and four risk factors linked with wine consumption will be identified using exploratory factor analysis measured on a factor model framework incorporating 22 constructs. This two-phase approach will measure 17-factor items followed by a structural framework model. The linkages between the study variables will also be demonstrated using a conceptual framework model. Results will indicate the variations in attitude and wine purchase behaviour of wine consumers owing to their benefit and risk perceptions related to wine. The study also establishes that the patron’s attitudes towards wine can be positively influenced by curtailing the risk perceptions and amplifying the benefit perceptions that may help the stakeholders in India to adequately promote their wine products.
... For this reason many Apulian producers prefer to use the certification PGI for their top quality production in order to compete in national and international markets. The influence of the region of origin on price has been showed by Schamel [16], Schamel and Anderson [9] and Troncoso [22] and, particularly, some studies showed a strong relationship between Denomination of Origin certification and price [22,[30][31][32]. On the other hand, Nerlove [24] found that the origin of wine has low significant influence on price and Steiner [14] found a low valuation of French wines with geographical appellation in United Kingdom. ...
The choice of a bottle of wine is affected by the presence of attributes that are searched by consumers and can be evaluated before the purchase. The aim of the paper is to analyze the effect of some search attributes on wine price variability applying the Hedonic Price Model. It allows explaining how the price of wine varies depending on its main quality attributes. The analysis has been based on a sample of wines made in Puglia, Italian region characterized by a tradition in wine production and consumption. Data have been collected from a wine guidebook considering the years 2008–2013. The study provided a measure of the market value of some search attributes for wines produced in Puglia. Attributes as alcoholic content, age and score given by experts, influence price variability allowing wines to obtain a premium price, such as the most known Protected Designation of Origin (PDO) and some Protected Geographical Indication (PGI). The name of the variety seems not to have high influence with the exception of less known and locally grown varieties. Results may be of interest for marketers and policy makers of wine industry. Managerial implications could refer to the importance of differentiation strategies aimed to market segmentation and to the pricing strategy. Policymakers could also find interesting hints about the influence of the different appellations and the importance of minor autochthonous grape varieties.
... For example, Veale and Quester (2008) found that tasters' perceptions of quality were strongly correlated with price and country of origin, but not with intrinsic qualities related to taste. Similarly, Goldstein et al. (2008) found that when price information is withheld, non-expert tasters show no preference for more expensive wines and even show a slight preference for less expensive wines. ...
We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir — as proxied for by locational attributes — is not significant.
... The influence of price has been studied as one of the most important cues used consistently by consumers to predict quality, across a wide range of products (Verdú Jover et al., 2004;Kardes et al., 2004;Veale and Quester, 2008;Mastrobuoniu et al., 2014). This price/quality relationship reflects consumers' strongly held belief that "you get what you pay for" (Lee and Lou, 1996). ...
Purpose
The purpose of this paper is to examine the purchase decision of consumers when faced with a perceived risk related to a “corked” wine for different levels of price. It provides an example of a study of consumer behavior in the context of risk aversion and when a risk-reduction strategy is proposed. The empirical analysis examines the perceive risk as is a major determinant of the willingness to buy (WTB) and to pay (WTP) for corked bottles of wine.
Design/methodology/approach
The experimental investigation on consumer risk perception of corked bottles of wine is based on a choice-based questionnaire distributed to 310 graduate students in Bordeaux and Dijon in France. The context is the decision to purchase or not a bottle of wine at different price levels. Assuming the monotonicity of the demand function, the choice-based questionnaire is used to determine the maximum WTB and WTP for each participant.
Findings
Results demonstrate that when participants are asked simultaneously to reveal their perceived risk and purchase decision, the behavior significantly affects the WTB and WTP. At the same time, demand for risk-reduction devices (screw-caps in this study) also declines strongly with price and perceived risk.
Research limitations/implications
Although the experiment was replicated in a different region and students with a different profile, it cannot be generalized to other countries or region with a different wine culture.
Practical implications
The results have interesting behavior implications in the debate for screw-caps rather than corks. They confirm that screw-caps are associated with low quality, low value wines. Understanding the factors that influence consumers, wine purchase decisions are therefore important to wine producers, restaurant owners and retailers.
Originality/value
This is the first study that analyzes, in the context of risk taking when buying wine, the WTB and WTP for a bottle of wine when participants are required to reveal simultaneously their perceived risk and purchase decision.
... Despite the large number of contributions in the economics literature, the role of a wine's reputation in price formation is still widely debated (Panzone 2011;Costanigro et al. 2010;Goldstein et al. 2008;Tirole 1996;Shapiro 1983) and the effect that private and collective reputation have on price formation is still unclear. To illustrate this point, it has been observed that price allows better evaluation of wine quality than sensory attributes (Almenberg and Dreber 2011;Rao 2005;Rao and Monroe 1989;Monroe 1973), positively influencing the perception of expected quality and possibly contributing to the formation of the product's reputation (Veale and Quester 2008). For this reason, valuing the effect of private and collective reputation on price is far from straightforward. ...
Using a hedonic pricing model, this paper investigates the pricing implications of two broadly defined wine reputation strategies: private and collective. While the former consists of an individual quality differentiation strategy relying on an individual wine producer's own reputation, the latter mainly relies on the reputation of a group of wineries belonging to a particular geographic denomination. To this aim, wine purchases made by a nationally representative panel of Italian households were analyzed. Estimates based on quantile regression reveal that the effects of the two reputation strategies (private and collective) have a different weight according to the price segment of the wines in question. While private reputation plays a major role in both low and high priced wines, collective reputation in terms of geographical designations seems especially important for high priced wines.
... Perception of landscape feature of production is quite a complex phenomenon as it involves a number of components of the human mind, and has an important emotional value (Tempesta et al., 2010). While the international literature (Tempesta et al., 2010;Veale & Quester, 2008) has demonstrated that associating wine to an image of greater visual impact can positively affect the wine quality perception, the analysis of the premium price for landscape features of beekeeping has not yet been investigated. ...
Honey is becoming increasingly popular with consumers for its nutritional benefits as well as many other functions. The objective of this article is to determine which factors influence consumers' purchase intentions and to assess the importance of certain honey characteristics to enable identification of the constituents of an ideal honey profile. This information will lead to satisfaction of consumers' preferences and formulation of marketing strategies that support honey makers. We applied a choice experiment to the Italian honey market to define the preferences and the willingness to pay for key characteristics of the product. A face-to-face questionnaire survey was conducted in 2014 (January-July) among Italian consumers; it was completed by 427 respondents. A latent class model was estimated and four classes were identified, with different preferences, illustrating that respondents seem to be heterogeneous honey consumers. Results suggest the "organic" attribute was more important than others factors, such as the place where the honey was produced (landscape), but less important than the country of origin; local Italian honey was preferred to foreign honey. Respondents showed a higher willingness to pay (WTP) for honey from their country of origin versus the production method used. Our results suggest that while organic beekeeping might be an important strategy for diversification, if suitable communication is not taken into consideration, the added value of the production method might not be perceived by consumers.
... The influence of the source country of a product (Country of Origin or 'COO') on consumer perceptions of product quality has been studied extensively since the mid 1960's, across a wide range of product categories, contexts and locations (Schooler, 1965;Han, 1989;Han and Terpstra, 1988). As an extrinsic cue, COO has consistently been believed by consumers to be a credible predictor of quality for products and services alike (Harrison-Walker, 1985;Haubl, 1996;Phau and Chao, 2008;Veale, 2008;Veale and Quester, 2008;Veale and Quester 2009a;2009b). Just as consumers form brand images for products, they develop Country Images (CI) for individual countries. ...
Over the past few decades, the service sector has recorded the largest and fastest growth in the global economy. However, no research has attempted to isolate specific aspects of the Country of Origin construct in relation to service offerings. This study 'deconstructs' the COO construct for international services along country of origin of the brand (COB), country of origin of where the service is delivered (COSD), country of birth of the person providing the actual service (CPI) and the country of training/education of service provider (CTI). We propose a conceptual model as theoretical foundation for future empirical research.
... Studying domestically consumed Sicilian wines, Di Vita et al. (2015) indicate that Protected Designation of Origin or Geographical Indication certification is the main determinant in the wine price mechanisms. Interestingly, in experimental economics, Veale and Quester (2008) also find a statistically significant effect of country of origin on consumers' perception of wine quality. ...
The demand for wine could be considered within the context of the consumer's lifetime allocation process. Within this framework, demand is attributed to a person's desire to consume wine at the present period or to invest in wine for future consumption. The objective of the paper is to review the main factors and mechanisms that govern the price of wine. The survey reviews the determinants of the price of wine based three approaches: 1) the evaluation of properties or characteristics of wine t h a t give utility to consumers, i.e. referred to as hedonic pricing, 2) the supply factors that impact the price, and 3) the analysis of price dynamics, i.e. the role of the market and under what conditions it can explain the differences between the prices of different wines. We identify a list of 105 papers published on price determinants and 40 papers on the analysis of price dynamics in auction markets or financial markets.
... wine industry(Veale and Quester 2008, D'Alessandro andPecotich 2013; Sutanonpaiboon and Atkin 2012). Germany produces wine in thirteen regions that differ in various aspects such as production capacity, average yield, varietals, producer concentration, penetration by cooperatives, consumer preferences etc.. Our quality proxy as mean judgments for all regions and all years nominates Ahr, Mosel and Rheingau to qualify as the top quality regions. ...
Purpose
– Positioning via quality is key for German wineries. The aim of the study was to explore reputational variables (collective and firm reputation) the study as well as limits of reputational effects.
Design/methodology/approach
– A multi-dimensional approach, taking a supplier perspective, accessing multiple sources and evaluating Germany serves to explore exogenous factors on reputation. Descriptive and regression analyses examine individual and collective reputational effects for jury grades as proxy for quality and price as the dependent variables.
Findings
– For collective reputation, region and cooperative memberships strongly matter, whereby region can be a competitive disadvantage and membership shows superior impact. Being a private but managed winery and belonging to a closed quality circle maximizes quality reputation. Strategic grouping has a distinctive effect, not size. Germany specificities and illustration to the obstacles of free-ridership are delivered.
Practical implications
– Strategic management (including location) help to create a reputational profile. Growth should not be motivated by reputation. Different strategies for the wine guides to build reputation can be pursued, but conquering the top league is a challenge, especially in case of negative collective reputation.
Originality/value
– For academia, the value of the study consists mainly in the discovery of the dominance of membership in a quality circle and its impact on collective reputation, and the creative multi-dimensional and multi-source approach. Also, cross-guide analysis is new. Practitioners can tailor a specific strategy vis-Ã -vis guides on the basis of the created transparency.
... Existe una importancia significativa del origen de los productos como decisión de compra de los consumidores (Schnettler, Ruiz, y Sepúlveda, 2007;Orth y Firbasova, 2003;Veale y Quester, 2008;Sainz, 2000). En algunos casos, los consumidores de vino prefieren productos de origen extranjero por encima de los locales, considerando que la calidad de los vinos de otros países es mayor (Mzlendo y Jani, 2015). ...
as empresas realizan acciones de responsabilidad social, económica,
medioambiental, innovación y éxito competitivo de manera innata, por lo que,
permiten fortalecer la dinámica empresarial, con beneficios como: la valoración de
la sociedad, mantener la fidelidad del consumidor, atraer talentos, tener acceso a nuevos
mercados y financiamientos, con sustentabilidad, por lo que la finalidad de las propuestas es
que se refuerce el compromiso organizacional en materia de responsabilidad social, permitirá
encaminarse al éxito competitivo. Dado el complejo fenómeno de la globalización, la
creciente interdependencia entre países y el imparable crecimiento de la población mundial,
dan origen al nuevo contexto en el cual las empresas deben realizar importantes
transformaciones, ya que pasan de ser simples actores económicos a actores que participan
de manera determinante en el marco de las relaciones sociopolíticas.
La relación entre el desempeño de una organización con su entorno social y el impacto
ambiental que genera, es hoy en día una parte crítica de la medición global de su rendimiento
y su capacidad de operación continua y efectiva, lo que indica un creciente reconocimiento
de considerar la equidad social y el buen gobierno de las organizaciones además de la
necesidad de conservar los ecosistemas, pues en el largo plazo la empresa es dependiente de
los recursos naturales y a su vez queda sujetas a un creciente escrutinio por parte de la
sociedad (ISO, 2010). La producción de alimentos se ajusta a esta realidad y el sector
agroalimentario se ha venido adaptando a un contexto cambiante que exige cada vez más
regulaciones en el aprovechamiento de los recursos naturales y una mayor responsabilidad
con el entorno socioeconómico, un ejemplo de ello es la producción competitiva de leche en
Colombia que cambia de manera drástica a partir de la firma del Tratado de libre Comercio
con estados Unidos impulsando la competitividad del sector agroindustrial, reconocidos
como desarrollo institucional y empresarial, ciencia tecnología e innovación, infraestructura
y conectividad, internacionalización y desarrollo del talento humano.
Sin embargo, la competitividad de estas empresas radica en los recursos con que
cuentan de manera natural es decir de sus ventajas comparativas, transformándolas en
ventajas competitivas mediante la aplicación de varios factores, como los agentes
económicos de la cadena de valor que dan una mayor importancia a las relaciones con clientes
y proveedores que a la calidad y gestión ambiental, actualmente muy importantes en el
terreno de la competencia. Otro factor importante para alcanzar óptimos niveles de
competitividad, es el recurso humano, por los conocimientos, habilidades, actitudes que
poseen y cómo éstos trabajan; otros se relacionan con la capacidad directiva para gestionar
la empresa, la capacidad de marketing, su orientación al mercado, la innovación, los recursos
tecnológicos, los sistemas de información, la adecuada gestión financiera, valores culturales,
estructura organizativa y el know how (Cruz, Pérez, Hernández y Quiroz, 2012). Situación,
que en las medianas y pequeñas empresas se enfrentan a estos desafíos derivados del entorno
y de sus propias limitaciones en términos de gestión, estrategia y acceso a recurso, por lo que, idéntica en primera instancia los aspectos que pueden controlar para así impulsar su
competitividad.
A todo esto, se van sumando nuevos factores que aportan estrategias para mayores
competencias en las empresas, como el E-Marketing que es un campo multidisciplinario de
reciente creación en el que convergen distintas áreas de la organización, el comercio, la
información y las tecnologías de comunicación. Por lo que el uso de E-Marketing en PyMES
revela que el concepto a pesar de ser novedoso, es utilizado por las organizaciones de mayor
antigüedad y tamaño, así como por aquellas dirigidas por hombres. Lo anterior sustenta lo
señalado por investigadores al decir que este término requiere de un cambio cultural y de
comportamiento a nivel gerencial que soporte el uso de tecnología digital y medios
electrónicos alineados con los objetivos organizacionales para realizar el proceso de
marketing.
Por lo tanto, el contenido de este libro está integrado por temas que abordan de manera
completa los últimos hallazgos en cuanto a los temas ya mencionados, generando a través de
los resultados, términos y estrategias a implementar en cuanto a la Responsabilidad Social,
la mercadotecnia y la competitividad en los diferentes sectores económicos de carácter
empresarial; cabe mencionar, que los temas que se han presentado muestran los nuevos y
notables avances y cambios de la RSC, por lo que, se espera que este libro sea referencia y
consulta de la comunidad científica interesada en el avance del conocimiento en lo que
respecta a los motores de la competitividad como lo son la Responsabilidad Social y la
mercadotecnia.
... We measured taste perceptions using Likert scales, and we elicited valuation via a multiple price listing auction (Andersen et al., 2006). While a few studies have investigated the effect of expectations on taste perceptions (e.g., Wansink, Payne, and North, 2007;Veale and Quester, 2008), we are not aware of any such experiment conducted in a retail shopping environment and considering both taste perceptions and willingness to pay (WTP). ...
We conducted an in-store experiment to test the hypothesis that Colorado wines may suffer from reputational stigma. The context relates to marketing challenges faced by novel wine regions entering the competitive retail environment, even in a local context, and the possibility of being stuck in a “bad reputation trap.” Adopting a 2×2 design where we varied region of production (Colorado vs. California) and grape variety (familiar vs. unfamiliar), we administered a between-subject information treatment that revealed the origin of production to only half of the participants. We measured taste perceptions using Likert scales, and we elicited valuation via a multiple price listing. Our results are consistent with the presence of stigma against wines produced in Colorado. In the discussion, we draw from the literature on stigmatized markets to suggest plausible strategies to remove or avoid stigma. (JEL Classifications: L1, L15, Q1, Q13)
... A javakat a minőségükről rendelkezésre álló információ elérhetősége alapján csoportosítva három kategóriába sorolhatjuk. A borok a tapasztalati javak csoportjá-ba tartoznak -ebben az esetben a fogyasztó csak a termék elfogyasztása után alkothat képet annak minőségéről (Storchmann [2012]) -ugyanakkor nem teljesen elvethető a bizalmi termékek körébe való besorolás sem az érzékszervi tulajdonságok bizonytalan fogyasztói megítélése miatt (Veale-Quester [2008]). A tapasztalati termékek piacára vonatkozó elméletek klasszikusa Akerlof [1970] híres "tragacspiaci" példája. ...
... Therefore, the price can be an important cue when the product cannot be evaluated prior to purchase and when there some risk of making a wrong decision, such as while purchasing wine in the retail stores (Chrea, et al., 2011). Veale and Quester (2008) concluded that respondents perceived even poor quality wines as tasty, if they are expensive and with a reputable country of origin. ...
The unique and at the same time very complex nature of the wine requires a more thorough selection process compared to other consumer products. Wine consumers are faced with a number of brands, grape varieties, and regions of origin, diverse tastes and prices. Using discrete choice experiment this study explores the importance that consumers in Serbia attach to five attributes of the local wine brands. Respondents were asked to evaluate 10 choice tasks, each with three different wines, and to choose the one that they would like to have with friends or family. The sample results indicate the high importance of the wine brand, while the price proved to be the least important. However, preference-based segmentation identified three clusters that differ primarily in the type of wine they favor, but also whether they like or not sweet and sparkling wines. It turns out that the price is a moderately important attribute in all clusters.
... Often consumer perceptions of wines are strongly influenced by origin information, which impacts their purchasing behavior [9,[20][21][22][23]. Many studies demonstrate strong regional preferences [24][25][26], which are amplified if the region is the consumer's own [26] or a region known for wine [27]. Additionally, several studies show the positive correlation between wine sales and origin information [9]. ...
Quality assurance programs (QAPs) may add value to wines through reassuring consumers of wine quality prior to purchase and consumption. In Tennessee, the potential to use a wine QAP is being explored as a means to improve the industry’s economic sustainability. To date, several QAPs exist, but studies directly related to their impact on consumer behavior for wines from emerging areas are scarce. We used an online survey instrument to elicit consumer perceptions of QAPs importance on wine purchasing decisions and how the presence of a QAP may impact their purchasing behavior for a wine from an emerging area (e.g., Tennessee). Wine involvement, QAP perceptions, and familiarity were also measured. A mixed-process model was used to estimate the two ordered probit models for importance of QAPs and the influence of QAPs on Tennessee wine purchases, where QAP importance was treated as a latent variable influencing Tennessee wine purchases. Ordinal probit estimates suggest that greater on-site spending and greater perceived benefits of QAPs (as indicators of quality and standardization) resulted in a higher probability of perceived QAP importance when making wine purchasing decisions. Reduced form estimates of the model of Tennessee wine purchases indicated distance to wine producing areas, female gender, and familiarity with Tennessee wines each negatively influenced the potential impact of QAPs on Tennessee wine purchases. However, on-site spending at wineries and perceived benefits of a Tennessee QAP increased likelihood of Tennessee wine purchases.
... Hamlin and Leith (2006) found the four COO cues (New Zealand, Australia, Chile, and France) studied are used as a common evaluation heuristic for wine purchases. Also, Veale and Quester (2008) confirmed the key impact of COO and price as extrinsic cues on evaluations of wine quality by consumers, even when intrinsic cues are experienced through consumption. ...
There are currently about 68 different species of the genus Vitis, with a wide variety of morphological and physiological characteristics, however, all plants of this genus are lianas, woody or climbing vines. Grapevines are one of the most economically important crops in the world. Indeed, the growing consumer demand for healthy food with numerous nutritional and benefits and sustainably produced has grown the market for products obtained from the grapevine, such as table grapes, raisins, and infusions, besides, the use of its leaves in gastronomy. This chapter aims to review the biology and anatomy of the most important Vitis species, overview the recent innovations in Viti's products worldwide. Will be also taken into account the development of ideas related to the usage of grapes as well as how the evolution of awareness increased the ability of scientists to respond to the challenges that have emerged with the appearance of new consumer trends.
... Academic research into the criteria of wine buying and consumer preferences is extensive. There have been studies both in traditional producer countries (Martinez-Carrasco et al., 2006;Krystallis and Chrysochou, 2010;Bernab eu et al., 2012Bernab eu et al., , 2013Bernab eu et al., , 2016Chamorro-Mera et al., 2015), as well as in new world producer countries (Batt and Dean, 2000;Hollebeek et al., 2007;Veale and Quester, 2008). ...
Purpose
The aim of this study is to analyse the importance of bottle design in relation to other purchasing criteria, and also to understand which design elements are most attractive to consumers.
Design/methodology/approach
A survey of a sample of 437 wine drinkers was carried out in Portugal using non-probabilistic sampling. The technique used was conjoint analysis based on the SPSS conjoint module.
Findings
One of the key findings was the low importance of bottle design in shaping consumer preferences compared to other attributes (origin, price and category of wine). In terms of design elements, the label had the biggest influence on consumer choice, followed by the type of bottle, bottle seal and brand name, in that order. Differences in consumer choice were evident according to the level of knowledge of wine and frequency of consumption.
Practical implications
The findings of this study provide guidance for Portuguese wineries as regards the marketing and design decisions of their products and packaging.
Originality/value
This study sheds new light on the importance of wine bottle design on consumer preferences. Previous studies in the area have proved to be minimal and heterogeneous.
... Example. Companies like Starbucks or Dunkin Donuts use this strategy to create a pleasant and optimal environment to encourage public input (Veale, 2008) The use of the sense of smell has also been used in the management of commercial spaces, a practice that is known as Scent Marketing ( Gómez et al., 2014 ), which with the help of stimulation of aromas, can induce behavior in the consumer by unconsciously increasing their emotions and, therefore, influencing their purchasing decisions without their specific attention being on the smell H4: Sense of smell has a positive impact on customer satisfaction in cafes. ...
... Según Lockshin y Hall (2003), el precio es un atributo con un carácter más psicológico que económico, dado que, a mayor precio, mayor calidad percibida. El precio, durante la compra, es la expresión del valor percibido del vino por el consumidor, pues el vino es un producto que no puede ser probado previo a su elección y se considera que el precio estará ajustado a su calidad (Bernabeu et al., 2005;Bruwer, 2007;Veale & Quester, 2008;Ginon et al., 2014). Por ejemplo, ...
... The extent to which consumers can understand expert opinions is questionable. Focus group experiments (Veale and Quester, 2008) have shown that even the most sophisticated wine consumers do not know the organoleptic qualities of wines with certainty. Even those consumers cannot pair expert wine descriptions with the proper wines who otherwise successfully distinguish between two wines (Weil, 2007). ...
Wine is a highly differentiated product sold at a wide range of different prices. This article aims to provide a systematic review of the literature written on the determinants of wine prices globally. The article runs a search on the combination of keywords “wine”, “price”, “determinant” in the Web of Science, Scopus, JSTOR, ProQuest, and Science Direct databases. Based on a final set of 46 articles written between 1998 and 2018, results suggest that terroir and quality ratings are the most significant determinants of wine prices, while objective quality and label data also determines wine prices, though to a different extent and with a different sign in some cases. The hedonic pricing method was the most common way of analyzing the relationship between wines prices and their determinants, and results are similar for most regions and varieties. We believe that our results can be useful for researchers, stakeholders, and even for decision-makers in better understanding the factors lying behind wine prices. Journal of Economic Literature (JEL) codes: D12, D40 Q11
... Usage of the appropriate visual, olfactory or tactile cues can create a pleasant eating/drinking experience for customers (Wang et al., 2019). According to various studies, extrinsic cues can indirectly affect consumer taste perceptions (Veale and Quester, 2008;Veale and Quester, 2009;Wan et al., 2015;Machiels and Karnal, 2016;Spence, 2018). Studies on beverage perception have revealed that the colour (Gué guen and Jacob, 2014; Piqueras-Fiszman and Spence, 2012a), shape (Van Doorn et al., 2017;Russell et al., 2005) and weight (Maggioni et al., 2015;Pramudya and Seo, 2019) of a cup can affect the consumer's taste perception. ...
Purpose
Beverage serving affects consumers’ taste and price perceptions. Therefore, the correct selection of the presentation cues is essential when a consumer evaluates a product. This study aims to determine how haptic (weight) and visual (colour) cues of drinking vessels affect the taste and price perception of coffee.
Design/methodology/approach
The authors created three different experimental designs. Given that coffee is a popular drink among the younger population, the authors invited undergraduate students in the 18–24 age group into this study. The participants tasted the same coffee from cups differ in weight (heavy and normal) and colour (congruent, incongruent and neutral), after which their opinions about the taste and price were recorded.
Findings
According to the results, increasing the weight of the cup creates a more positive perception of the smell and density of the coffee. Moreover, coffee served in a heavy cup was perceived to be more expensive than in other cups. The authors also found that incongruent cups received a lower score in all evaluations regarding taste perception. In the final experiment, the authors used the weight and colour manipulations together. According to the participants, the most fragrant coffee was perceived from a heavy and congruent cup.
Research limitations/implications
Small sample is one of the limitations of this study. Future studies could be conducted with bigger and more diverse sample using different kinds of coffee beans.
Practical implications
It will be appropriate for coffee producers to design the cups in light of the said results.
Originality/value
The paucity in the existing literature of sensory marketing studies using hot drinks is remarkable, especially takeaway coffee, which is becoming more popular with an increasing number of coffee chains, and needs to be examined in detail.
In the new context of a polyfunctional viticulture capable of involving the various facets of the entire production spectrum, protection of the landscape is assuming a predominant role. In fact, among the oversight responsibilities that a modern cultivation of the vine should now take is without doubt the careful development and defence of natural resources, of which the external appearance of that environment (landscape) is among the top priorities. All such considerations, are part of the new objectives that a sustainable viticulture must set itself, conscious that wine is the ambassador of its growing area and as such contributes to develop and strengthen a successful marketing trajectory. For some years now, there has been an awareness of the urgency of linking the image of a wine to its terroir, and much energy has therefore been expended to make evident the synergies between soil, weather, grape and winegrower. The landscape can today function as the agent bonding these entities together and as the intimate link between the beautiful and the good, a consequence of the fact that wine needs specific places with which to identify, since its value is intimately bound up with the qualities of a growing area and in particular with its landscapes (Odysseus, for example, did not get Polyphemus drunk with just any wine, but a Thracian wine from Mount Ismara. Homer, The Odyssey, ch.9)
The market is a foundational concept in economic and political thought. However, the dominant definition of the market has stripped out the role of place in the marketplace, which has facilitated markets being seen everywhere while increasingly existing nowhere. With markets seen everywhere, a societal discourse has been crafted that only serves to distort visions of economic relations – the market discourse.
This paper makes the case that a more limited definition of the market – including the role of the centralisation that a place provides – is possible but must be tied with an explicit rejection of the market discourse. Such a rejection clears the ground for building alternative concepts – competition, business autonomy and strategy, fragmentary centralisation, and economic power – that can be used to more accurately capture economic reality. Overall, the case is made that because the market without the -place doesn’t work, can’t be fixed, and actively inhibits our understanding of the world then it is imperative that it is rejected on the strongest grounds and other concepts, some of which are sketched in this paper, are deployed in its place. As such, this paper argues, fuck the market.
http://www.paecon.net/PAEReview/issue97/Hathaway97.pdf
This article explores the question of what distinguishes novices from experts in wine evaluation. Is it experts’ superior sensory abilities related to taste and smell, their superior cognitive abilities related to knowledge and memory, or a combination of both—and if a combination, which of the two dimensions of expertise, sensory or cognitive, seems to be more important? I address these issues by considering what has been learned in the past 30+ years from research concerning the sensory and cognitive dimensions of expertise in wine evaluation. The research examines expert/novice differences at both the chemical component level (detecting, discriminating among, and describing wine-relevant chemical components) and the holistic level (hedonic evaluation of wine as an integrated manifestation of its components). (JEL Classification: C93)
This report focuses on the relationship between the prices of wines and quality measured on a 100-point quality scale. Only wines from the Czech Republic evaluated during the first round of the Prague Wine Trophy 2015 competition were included in this study. In total, 114 wine samples from five wine categories were examined. Two types of statistical methods were used to obtain results. Chi-square test of independence in contingency table did not show any statistically significant relationship between the commonly used price categories and the quality of wines expressed as medal awards obtained in the competition. Correlation coefficient was used to examine the relationship between price and quality within individual categories of wines. Medium correlation was found in the categories of white cuvée and sparkling wines, and moderate correlation was observed in the Blaufränkisch category. For the category with the highest value of correlation coefficient, regressive function was formed.
Wine is a complex product, which had moved from a nutritional food to a hedonic beverage in consumer representation. This fact has increased the demand of quality products in the market. In this context, it is of high interest for wine producers to understand the underlying indicators of consumers’ quality perception as well as the relative importance they attach to these cues when inferring quality in wine to reach the alignment of consumers’ expectations, needs and wants.
This chapter is aimed at giving an overview of the current state of knowledge of the indicators of wine quality perception from a sensory point of view. For this purpose, the factors driving perceived quality of wine as a product, the characteristics of the consumer and the consumption situation are firstly reported. Then, the methodologies most usually employed to evaluate hedonic perception of consumers are discussed. Finally, wine properties linked to quality perception are reviewed.
In the Old-World vineyards of Europe, a key concept that plays an important role in the production and appreciation of wines is terroir , which refers to the special characteristics of a place that impart unique qualities to the wine produced. We examine whether terroir matters in the New-World wines produced in California's Napa and Sonoma Counties by conducting a hedonic price analysis of vineyard sales over the period 1991 to 2007 to determine the relative effects on vineyard sales prices of designated appellations versus biophysical site attributes commonly associated with terroir , such as slope, aspect, elevation, and climate. Because vineyards that are sold are not necessarily representative of the universe of vineyards, we employ Heckman's two-stage econometric approach to control for possible sample-selection bias. We find that intrinsic site attributes and designated appellations influence vineyard prices, although our results are stronger and more consistent with regard to the influence of appellations. This finding indicates that terroir matters economically, even if the designated appellations have relatively less connection in reality with terroir . (JEL Classifications: C2, Q11)
We introduce asymmetric product differentiation in a model characterized by a linear demand system, endogenous markups and heterogeneous firms (as in Melitz-Ottaviano [2008]). In particular, a single industry is divided into a number of market segments, each characterized by a different degree of horizontal product differentiation. Such a setup allows us to explain, within a single theoretical framework, the non-linear relations between firm productivity, size and exporting behavior that have been documented by the empirical literature. The theoretical results are tested empirically by examining the performance of French wine producers operating in market segments characterized by different levels of horizontal product differentiation. Such segments are identified using the official classification of French wines based upon the controlled denomination of origin, i.e., the Appellation d'Origine Contrôlée (AOC) system.
Purpose
The consumption of wine is influenced by seemingly contradictory antecedents such as perceived authenticity and novelty. This paper aims to explore the influence novelty and authenticity have on wine consumption, in the context of the moderating variables of regionality (i.e. single and multi-region wines) and price (low and high). The research attempts to further understand wine consumption by establishing a conceptual model built on existing wine literature.
Design/methodology/approach
To address the hypotheses and research questions, a panel of 658 consumers who regularly purchased wines produced by the Australian wine industry were recruited. These participants completed a self-administered questionnaire containing stimuli to measure perceived authenticity, perceived novelty, perceived quality, attitudes and purchase intent towards a wine manipulated to have a low vs high price level, as well as single vs multi-regional label. To examine these variables, the study conducted a confirmatory factor analysis (CFA) to confirm the dimensionality of the constructs and structural equation modeling with both path and multi-group analyses to investigate the hypothesised relationships.
Findings
The findings revealed that both authenticity and novelty simultaneously influence perceived quality. Additionally, it was acknowledged that there is no significant difference in wine consumption between single and multi-regional wines; reinforcing current trends of collaboration within the wine industry. Finally, the results also showed that price does moderate wine consumption; revealing ideal prices for wine with particular regional branding strategies.
Originality/value
The current research is the first to show that authenticity and novelty simultaneously and positively influence consumer’s perceived quality of Australian wine. The findings are also the first to show that consumer evaluation of single and multi-origin wines was positive and yielded no significant difference, suggesting that branding wines with multi-origins or multi-region do not change consumers’ perception.
This study investigated the perceptions and preferences of Australian wine consumers towards different styles of sparkling wine, including French Champagne and Australian sparkling white, red and rosé wine, Moscato and Prosecco. An online survey of 1027 regular sparkling wine consumers captured demographic information, sparkling wine perceptions and preferences, and typical spending and consumption patterns. Consumers were segmented into three distinct clusters (‘No Frills’, ‘Aspirants’ and ‘Enthusiasts’) using the Fine Wine Instrument model. The majority of No Frills consumers were female and typically consumed sparkling wine once per month. Almost 55% of Aspirants were male with a household income of more than AU$75,000. Enthusiast consumers were also predominantly male and well educated, and 64% were under the age of 35 years. Sparkling white wine and Champagne were generally the preferred styles for each consumer group, followed by Moscato and sparkling rosé wine. Interestingly, Moscato scored favorably with both No Frills and Enthusiast segments. Almost 25% of respondents indicated that they were not familiar with Prosecco, while sparkling red wine was perceived similarly by male and female consumers. The findings from this study can be used by sparkling wine producers to better target their products and marketing to the specific needs and expectations of consumers within different segments of the Australian domestic market.
Purpose
This study aims to analyse the impact of the country of origin of wines on cognitive processing and preferences through brain responses for consumers from the perspective of gender and the level of involvement.
Design/methodology/approach
A wine tasting experiment was performed using electroencephalography (EEG). The sample consisted of 40 students from an important Brazilian university. In the first group, the participants tasted two glasses of wine with Brazilian then French origins. In the second group, the participants only tasted one glass of wine, without the origin information. The wine was the same in both groups and from Brazilian origin. Throughout the tasting process, participants had their brain responses recorded via the EEG.
Findings
The main findings suggest that the country of origin did not have a significant influence on cognitive processing or preferences for consumers in general, neither for women nor consumers of high involvement. For men, there was greater cognitive processing for Brazilian wines. However, there was no preference for men among the origins of wines. For consumers with low involvement, there was a difference in cognitive processing, presenting a greater value for Brazil and without origin information. Also, for low-involvement consumers, a greater preference for wine from France was seen.
Originality/value
This study presents a new contribution to the literature by analysing the cognitive processing and preferences through brain responses for consumers from the perspective of gender and the level of involvement.
The purpose of this article is to consider country of origin in terms of its association with brand heritage and its implications in fashion branding, thus providing a new perspective within the context of retail and wholesale brands. This qualitative study demonstrates how country of origin is widely used as a communicative tool by retail and wholesale brands, associated with brand heritage. However, the way country of origin is manifested and/or associated (e.g., brand name, color, etc.) varies depending on a brand's history, positioning, brand value, and the type of market sector that the retail and wholesale brands are targeting.
Health, financial, and social crises cause variations in the buying behaviour of food consumers as well as in the value they assign to food attributes and the place of purchase, leading to consumers with profiles that are more susceptible to these changes than others. Thus, it was observed that 61.4% of consumers modified their buying behaviour at the onset of the COVID-19 pandemic, with those who modified it the most being the people who stockpiled the most food and went panic buying more often. This has made it possible to establish the profile of different significant consumer segments, and as a response, food production/distribution companies can implement different innovative strategies aimed at decreasing the impact of stockpiling and, therefore, the shortage of food. The possible strategies that companies can put into effect are creating a stock of non-perishable foods, increasing production capabilities in a sustainable way and, especially in light of the results obtained, boost the online sale and distribution of foods, with the goal of decreasing the amount of people in shops (which decreases the spreading of the pandemic and favours health) and preventing consumers from observing possible circumstantial shortages that would only encourage stockpiling and panic buying, even among consumers who have not changed their buying behaviour.
Sustainable innovation in the agro-food system has become a strategy increasingly used by companies as a means to increase their competitiveness and position themselves in the market. In this context, the objective of this work is to identify the attitudes and sensory perceptions of consumers towards sustainable food technology through two scales (Food Technology Neophobia and Domain Specific Innovativeness) and hedonic tastings. For this, a new product was selected in the market: powder to prepare rice with milk. Most consumers have attitudes toward low neophobia to products with food technology, but there is also some caution, situation that is corroborated by the moderate predisposition towards innovations. Color and flavor attributes can make the difference in positive perceptions. It should not be forgotten that there is a segment of innovative sustainable consumers that represent a key market.
Purpose
This paper aims to investigate the wine consumption among young people belonging to the so-called millennial generation
Design/methodology/approach
This study uses a questionnaire and a choice experiment (CE) with a multinomial logit model (MNL), implementing a random parameter logit model (RPL), to investigate the attitudes of millennials towards wine consumption, their purchasing behaviours and their willingness to pay for attributes of the products; in particular regarding the follwing: region of origin, “winescape”, certification, carbon footprint claim and price.
Findings
Millennials appear to drink wine less frequently; they consume it more often in social on-premise settings, having a slightly higher willingness to pay and preferring carbon-neutral brands when choosing wine.
Research limitations/implications
The limitation of this research was the analysis of a simulated situation where consumers declared their intention to purchase and not the effective purchase behaviour in the market.Further research should investigate wider millennials groups, also using the new media communication tools that characterise the communication behaviour of Generation Y. In this way, it would be possible to interview a millennial group at the national or international level.
Practical implications
The research identifies some characteristics of millennials’ habits that can take into account the strategies of wine companies in order to develop a constructive relationship with Generation Y in Italy.
Social implications
This research contributes to knowledge regarding the wine consumption habits of Italian millennials.
Originality/value
This paper applies discrete choice models to consumption situations in order to analyse millennials' preference and their willingness to pay for some innovative attributes of wine, in particular the carbon footprint.
Purpose
The purpose of this paper is to verify the preferences for the purchase of rosé wine by Italian and French Millennials, with the aim of allowing Italian companies to acquire knowledge in improving the positioning of this product in both the Italian and French markets.
Design/methodology/approach
The study involved a descriptive survey conducted between December 2018 and January 2019 on Millennials residing in Italy and France, intercepted via Facebook. In total, 500 valid responses to a highly structured self-administered questionnaire were collected. Descriptive and multivariate analysis techniques were used to examine the responses.
Findings
The two groups of Millennials show different preferences in the purchase of rosé wine. French Millennials rarely buy the product, and perhaps only for reasonable prices. Their purchasing process involves no characteristics of particular importance. On the other hand, Italian Millennials buy the product with a higher frequency and show a greater propensity to spend. In general, they attribute greater importance (though not a great deal of importance) to the characteristics of the product, paying attention to both its intrinsic aspects and its territorial origin and the quality certifications.
Research limitations/implications
The main limitation of the research is the small sample size. Future insights into the consumption of rosé wine will be sought in other significant European markets.
Practical implications
This study is of value to academic researchers, wine industry practitioners and other members of the wine distribution channel, as it provides insights into consumer behavior differences.
Originality/value
This research is the first to compare rosé wine preferences of Millennials in France and Italy.
In this study, we explored surface-enhanced Raman spectroscopy (SERS) for analyzing red wine through several facile sample preparations. These approaches involved the direct analysis of red wine with Raman spectroscopy, the direct incubation of red wine with silver nanoparticles (i.e., AgNPs), and a reproducible SERS substrate, AgNPs mirror, previously developed by our group. However, as previously reported for red wine analysis, the signals obtained through these approaches were either interfered by the fluorescence contributed by pigments or mainly contributed from a DNA fraction, adenine. Therefore, an innovative approach was developed using solvent extraction to provide more characteristic information that is beneficial for wine chemical profiling and discrimination. Signature peaks in wine extract spectra were found to match condensed tannin, resveratrol, anthocyanins, gallic acid, and catechin, which suggested SERS combining with extraction to be an innovative method in profiling wine chemicals and to overcome well-known challenges in red wine analysis. Based on these approaches, we have successfully differentiated three red wines and demonstrated the possible relation between the overall intensity of wine spectra with the ratings. Since the wine chemical profile is closely related to the grape species, wine quality, and wine authentication, the SERS approaches to obtain rich spectral information from the red wine could advance the wine chemical analysis.
The main objective of this article is to estimate the causal effect of wine medals on producers' prices. Our data set combines information on transactions between wine producers and wholesale traders (these data are registered by a wine broker who acts as a middleman in this market), with records from eleven important wine competitions. Our identification strategy exploits a particularity in our data, namely that medals are not only awarded before transaction dates but sometimes also thereafter. Regressing price on dummies indicating past and future medals (plus controls) allows, under weak restrictions, to consistently estimate causal effects of medals by simply calculating differences in the two types of dummy estimates. In addition, the estimates of future medal coefficients can be interpreted as partial correlations between unobserved quality and medal indicators. Our preferred estimate indicates that producers having earned a medal at a competition can increase their price by 13%. The impact for gold is much larger than for silver and bronze, but we cannot reject that the correlation with quality is the same across the three colors. We then calculate expected profits obtained by producers from participating in competitions and find that the incentives to participate are high. Finally, we investigate the efficiency of contests by measuring to what extent attributed awards are good quality indicators: only a minority of competitions attribute medals that are significantly correlated with quality (primarily the ones founded a long time ago, and whose judges are required to evaluate relatively few wines per day).
This study examines the extent to which the country of origin for parts, assembly, and design may moderate country-of-origin effects on attitudes and purchase intentions. The results show that respondents' attitudes are more positive when the product is assembled in the United States if U.S. parts are also used than if Mexican parts are used. Similarly, purchase intention is higher when the product is assembled in the United States and U.S. parts are used than if Mexican parts are used. Televisions and stereos are used as the products in this study. The results lend partial support to the congruity principle. Theoretical and public policy implications are discussed, as are limitations and suggestions for further research.
In recent years, consumers worldwide have been having increased access to a wide variety of products and services from other countries. Furthermore, with advances in satellite communication, travel, television outreach and Internet access as well as increased education, consumers all over the world are becoming more aware of the products/services available throughout the world. As a result, the significance of products’ county-of-origin images in influencing consumer behavior is increasing rapidly. An understanding of the role of COO images for imported products as against domestic ones would aid in the formulation of better marketing plans, strategies and policies by companies of both domestic and international origin. The purpose of this empirical research study is to examine Bangladeshi consumers’ quality perceptions of products outsourced from nine foreign countries from where the country sources most of its product needs and compare them with their perceptions of domestic products. Study findings indicated that Bangladeshi consumers overwhelmingly preferred western made products, though there were differences in their perceptions across product classes as well as degree of suitability of sourcing countries.
The study investigates the impact of product-related factors on perceived product safety. The factors examined include price, brand name, country of origin, store name, source credibility, product testing, promotion channels, discount offered and packaging. Results indicate that the perceived product safety is significantly affected by all of the mentioned factors. Implications are discussed and recommendations are offered to practitioners for attracting the large and growing market of safety-conscious consumers.
Due to increasing global competition, the issue of
country-of-origin has received a great deal of attention recently.
Examines country-of-origin image stereotyping by businesspeople in the
Gulf States of the Middle East. Assesses the attitude of businesspeople
toward various products of seven countries: the USA, Japan, Germany,
England, France, Italy and Taiwan, that are the most active in the Gulf
States. To develop effective global marketing strategies, firms require
decisionmaking support in the form of information about the perception
of their products in the international markets. The study found that
country-of-origin stereotyping is present in the Gulf States market. The
study provided evidence that “Made in the USA, Japan, and
Germany” clearly emerged as most favoured countries of origin. In
addition, the image of English products trailed behind products from
other European countries except Italy. Profile differences were analyzed
statistically. Age, education, sex, and income level were variously
related to consumers' attitudes to products made in different countries.
This paper provides a comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services. Results reveal that consumer perceptions differ significantly on the basis of product/service and country of origin. The country of origin may be an important element in the perceptions consumers have of products and services especially where little other information is known. However, the question of how much influence the country of origin provides in product and service evaluations remains unanswered and a number of other major issues have yet to be resolved. Directions for future research are developed.
A dynamic process of structural change is currently under way in
the global wine industry. Historically, the wine industry has been
dominated by the traditional wine-producing countries of Europe.
However, forces of change in the commercial environment have encouraged
an influx of wines from countries such as California, Chile, Australia
and New Zealand, to name but a few. As the portfolio of wines on the
market continues to expand, the challenge for survival of both new and
traditional wine-producing countries is intensified. This study of the
Northern Ireland wine market is based on the results of a questionnaire
which was distributed through off-licences in Northern Ireland. Two
hundred and ten questionnaires were distributed with a response rate of
57 per cent. Key findings included: country of origin is the most
important factor when customers are selecting wine; word of mouth
recommendation is most likely to influence the type of wine chosen; most
of those surveyed usually spend between £3.50 and £4.49 on a
bottle of wine; French wines are popular with those surveyed but
Liebfraumilch is the favourite wine.
Perceived value is an extremely important concept in marketing and many authors have dealt with it in recent years. In Slovenia perceived value of product is a rather neglected aspect of the research. Moreover, nobody has empirically researched the impact of individual factors on perceived value of a product. The researched target group was students – the fastest growing segment among the users of mobile phones in Slovenia. In their research the authors focused on two of the perceived value impact factors: perceived product quality and perceived risk. Based on literature and our own findings, their main researched objective was to design the model of relationships among perceived value, perceived quality and perceived risk. After the model had been tested with the method of structural equation modeling (LISREL 8.0), the authors found that statistically significant relationships (positive and negative, direct and indirect) among the concepts researched exist.
A model for analysis of consumer behaviour towards food is developed. This model is intended to bridge the gap between the objective quality approach pursued in food sciences, the product characteristics approach, and the subjectively perceived quality approach, the product attribute approach as pursued in the consumer behaviour literature. The focus is on the information processing by the consumer. Information on the product quality is supplied to the consumer in the form of cues received while shopping or consuming. A distinction is made between extrinsic and intrinsic cues, and between search-, experience-, and credence-quality attributes. Within the credence attributes, three categories are distinguished: food safety, health, and all other credence quality attributes. It is demonstrated that public policy should use minimum standards for regulating food safety, information and consumer education on health issues and definitional standards to regulate the other credence qualities. In the case of search quality, no public intervention is needed. In the case of experience quality, reputation is a means of reducing the quality erosion inherent for experience quality attributes. In the case of those foods which are not sold prepacked over the counter, these means are restricted. Here the public regulators could consider backing up the private quality policy efforts on labelling by implementing traceability schemes and defining the requirements for specific label claims.
Evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value. Propositions about the concepts and their relationships are presented, then supported with evidence from the literature. Discussion centers on directions for research and implications for managing price, quality, and value.
This paper examines how widely held country images affect attitudes towards a country's products and services and ability to attract investment, businesses and tourists. It assesses the role of strategic marketing management in promoting the country's image, attractiveness and products.Journal of Brand Management (2002) 9, 249-261; doi:10.1057/palgrave.bm.2540076
Researchers have investigated the effects of country image on consumers' product evaluations for over three decades. These studies, however, concentrate mainly on manufactured products, disregarding services. To fill gaps in the literature, this paper proposes the conceptual model of country image effects on international tertiary education. Five research propositions are developed around the proposed conceptual model, and implications for future research are presented.Journal of Brand Management (2002) 10, 139-146; doi:10.1057/palgrave.bm.2540111
Product choice and ratings of quality and value were employed as dependent variables in a multi-cue experiment. Real products, varying in intrinsic properties, were presented to Dutch consumers for choice and rating, and extrinsic information cues were made available via a computerized information display board. The product categories used were men's shirts, smoke detectors, and pickles. Duth consumres appear to be heterogeneous in their tests and preferences for products, and rely little on extrinsic information cues to guide their choices, trusting instead, their ability to evaluate the products themselves. They appear to place little importance on country-of-origin as a cue choice. Finally models with product choice as the dependent variable achieved better levels of explanation than models using ratings of product quality or value as dependent variables.
[enter Abstract Body]This research investigates the effects of the amount of information presented, information organization, and concern about closure on selective information processing and on the degree to which consumers use price as a basis for inferring quality. Consumers are found to be less likely to neglect belief-inconsistent information and their quality inferences less influenced by price when concern about closure is low (vs. high) and information is presented randomly (vs. ordered) or asmall amount of information is presented. Results provide a picture of a resource-constrained consumer decision maker who processes belief-inconsistent information only when there is motivation and opportunity.
This research investigates the role that food color plays in conferring identity, meaning and liking to those foods and beverages that assume many flavor varieties. In a taste test experiment manipulating food color and label information, 389 undergraduates at a public university (53% male and 47% female; 79% between 18 and 21 years of age) were assigned the task of evaluating a successful brand of powdered fruit drink. Results from this study indicate that food color affects the consumer’s ability to correctly identify flavor, to form distinct flavor profiles and preferences, and dominates other flavor information sources, including labeling and taste. Strategic alternatives for the effective deployment of food color for promotional purposes at the point of purchase are recommended.
The author examines the role of country image in consumer evaluations of television sets and automobiles. Specifically, two alternative causal models are developed and tested: (1) the halo model hypothesizing that country image serves as a halo in product evaluation and (2) the summary construct model hypothesizing that country image functions as a summary construct. The test results indicate that when consumers are not familiar with a country's products, country image may serve as a halo from which consumers infer a brand's product attributes and which affects their attitude toward the brand indirectly through product attribute rating. In contrast, as consumers become familiar with a country's products, country image may become a construct that summarizes consumers' beliefs about product attributes and directly affects their attitude toward the brand.
Reliability and stability of preference patterns obtained through conjoint measurement are examined by perturbing the stimulus structure and by repeating measurements after the passage of time. Conjoint measurement appears to be very robust to perturbation and reasonably stable over time.
Sensory analysis has traditionally played a prominent role in quality control for food products. More and more principles from sensory analysis are also applied in the area of food product development, bringing sensory analysis more closely into the domain of marketing. Unfortunately, in practice integration between sensory and marketing practices is far from optimal. Differences in basic orientations between sensory and marketing are a major source contributing to this defective cooperation.
Sensory analysis has traditionally been product oriented with an emphasis on internal validity of the test results. Implicitly or explicitly this approach emphasizes the relationships between sensory evaluation and characteristics of the product. Marketing, on the other hand, stresses the external validity of test results: the extent to which test results can be generalized to market behavior. Emphasis on external validity requires an approach to sensory analysis that is fundamentally different from current sensory practice in terms of type of respondents, type of stimuli, scaling procedures adopted and test circumstances.
Closer integration between the product and consumer oriented approach to sensory analysis may contribute to the success of product development in the food industry. The literature suggests several factors that may contribute to a more fruitful cooperation between the two approaches to sensory analysis. The company's senior management plays a central role in the achievement of this integration by providing an infrastructure (in terms of personnel, organizational structure and financial resources) that paves the way for closer cooperation.
Discusses the role appearance plays in influencing consumer perception and subsequent acceptance of a food product. Texture and flavour have long since been known to exert an effect on consumer perception. However, the “first taste is almost always with the eye”. This is especially the case where a food product is sold through its appearance, rather than through its packaging. In addition, appearance can have a halo effect which modifies subsequent flavour perception and food acceptability. The article also briefly discusses the many factors that affect the perception process and the significance of food product development in the food industry.
Functional measurement methodology is used to examine the simultaneous effects of country-of-manufacture and price information on judgments about product quality and overall product evaluation The results suggest that a simple (constant weight) averaging model adequately accounts for the cognitive algebra used by consumers to integrate country image and price cues Also, the derived scale values for country image and price suggest that these variables produce roughly equivalent (and strong) effects on product Judgments Implications of these results for future research on country-of-origin effects are discussed.
Examines how perceived product safety may be affected by such product-related factors as price, brand name, store name, promotion channels, source credibility, country of origin, nature of product testing authority and warranty. Shows that perceived product safety was significantly affected by all of the variables mentioned above. Implies that, by carefully manipulating these variables in formulating marketing strategies, managers can attract the large and growing market of safety-conscious consumers and gain a competitive edge that cannot possibly be ignored.
The country-of-origin effect and product consumption conspicuousness are examined. This study strengthens our understanding of the importance of the COO effect as it is investigated with respect to consumers’ purchasing intentions of public vs. private and luxury vs. necessity products. For instance, does the COO effect differ in its importance in the purchasing decision of conspicuous vs. inconspicuous products? A product’s country of origin has a stronger effect when considering luxury products. The conspicuous aspect of the consumption comes second.
Concentrates on the elements of creating commercially successful wine brands through focusing on the three major areas for international wine and spirits companies - the UK, the USA and Canada. Believes that the greatest body of consumer research has been undertaken in the UK and that in the absence of any other research from these markets the UK experience for the basis of this summary. Delves into the current wine market and consumer behaviour, segmenting this into a series of ways and types and categorisations. Investigates country of origin regarding wines and lists these giving a breakdown on each.
This paper summarises the results of the consumer survey, which had been carried out in six European countries in order to obtain comparable information about consumer behaviour towards meat and perception of fresh meat quality. Quality evaluation of fresh meat in this study is supposed to consist of two phases: a stage previous to the actual purchase and a stage after the purchase while eating the meat. Concerning the first stage, it becomes obvious that for beef and pork the place of purchase plays a major role as quality indicator, while the price was distinctly considered to be least helpful. “Colour” is the most important intrinsic quality cue for all three meats. In the second phase of quality evaluation after purchase, “flavour” is one of the most significant quality characteristics. Concerning the safety of beef, pork and chicken, “freshness” was shown to be the most important indicator. Consequently, it would be advisable for producers and retailers to use appropriate signals in order to communicate “freshness” to the consumers. Concerns about meat are rated very highly in each of the countries. Trustworthy signals of meat safety are required, which are able to reduce the risk felt by consumers.
A novel method for evaluating the benefits of a potential brand association is presented. The uniqueness of the method is considering brand association as just another product attribute, subject to the usual analysis used to determine the attributes desired by consumers in a new product. The method was illustrated using automobile tires as the product, and designation of the tire as the “Official” tire of NASCAR as the brand association. A set of tire profiles was created, describing hypothetical tires as combinations of levels of five attributes. Subjects ranked these profiles for preference, and this preference was decomposed through conjoint analysis to yield part-worths for each attribute level for each subject. Association with NASCAR had an average impact of 14.8 percent on consumer preference, comparable with that of speed rating (13.8 percent), and not much below that of brand (20.5 percent). Rudimentary market simulation suggested that associating the underdog tire brand with NASCAR would result in dramatically improved market share. Evaluating potential brand associations by their simulated effects on market share may be a useful managerial tool.
The authors update and extend their 1978 review of conjoint analysis. In addition to discussing several new developments, they consider alternative approaches for measuring preference structures in the presence of a large number of attributes. They also discuss other topics such as reliability, validity, and choice simulators.
This paper examines the differential effects of country-of-manufacture information on product beliefs and attitudes for brands with different levels of brand equity. Results show that when there is congruence between brand origin and country of manufacture (e.g. a Sony television that is made in Japan), the latter information has no significant effect on product beliefs and global product attitude. When country-of-manufacture information indicates that a branded product is made in a country with a less reputable image than that of the brand origin (e.g. a Sony television that is made in Mexico), the information produces more negative effects on product evaluations for low equity brands than high equity brands. These results can be attributed to two different perceptual processes through which incongruent country-of-manufacture information affects product evaluations for brands with different levels of brand equity.
This paper develops a conceptual framework, based on quality attributes and quality cues, to demonstrate the necessary requirements for effective communication of quality cues to customers in the supply chain and consumers at place of purchase. The “perceived quality” approach to product quality is adopted and the links between intrinsic/extrinsic cues and experience/credence attributes of a product are developed. The framework is applied to the UK meat sector by considering which attributes/cues are altered by farm assurance schemes and, hence, which type of cue is needed to signal these attributes, and what elements are necessary for effective signalling of this type of cue. It is shown that the necessary requirements for effective communication of each type of cue (intrinsic and extrinsic) vary considerably. Farm assurance schemes are shown to affect credence attributes; hence extrinsic cues must be used to signal these standards. It is concluded that the credibility of scheme standards and inspections to those standards is of crucial importance for the assurance scheme extrinsic cue (certificate/label) to be effective in predicting these credence attributes.
The role of country image in consumer choice behaviour is examined.
Based on a previous view of country image as a “halo”, four
hypotheses are developed and tested as to (1) the role of country image
in consumers' attitudes towards a brand, (2) its role in purchase
intentions, (3) its role in product attribute ratings, and (4) the role
of country image for a product category in other categories from the
same country. The test results are mixed, supporting only the second and
third hypotheses. Finally, theoretical and marketing implications of the
findings are addressed.
This article reports on a study of Hungarian consumer attitudes
towards foreign and domestic products and their origin countries. Factor
analysis of the findings indicates some consistency in the way consumers
structure their assessment of foreign origins. The structure differs
somewhat when respondents evaluate their own country and products.
Implications for marketing and research are drawn.
To help further our understanding of how keymethodological issues in conjoint analysis influence outcomes, a choice-based conjoint study measuring consumer preferences for pre-packed apple selection packs was conducted. The role of stimuli presentation format was considered by comparing the performance of physical prototype stimuli and realistic pictorial representations. This indicated no substantial differences in the choice decisions made using the two presentation formats and suggested that photographic images may be used instead of prototype stimuli. A second issue pertained to the need for training and warm-up exercises prior to the actual conjoint choice task. While this indicated some differences in choice strategies, a significant improvement in internal validity of choice decisions made with and without training was not achieved. One possible explanation for this finding may be that respondents made choices between apple products, a product category for which decision strategies are likely to be stable and well-developed.
States that few studies have attempted to measure the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products. Suggests a methodology for defining product value by consumers’ perception of brand and country image dimensions when sourced internationally. Brand-country image profiles were factor analysed to provide dimensions of each brand-country combination. Shows that consumer perception of product value changes, evidenced by brand-country dimensions, as production is sourced internationally, and suggests a modified marketing strategy.
This article advances the country of origin research stream by
addressing some of the theoretical and methodological issues given as
limitations in past studies. A conceptual model based on the cue
paradigm was developed to investigate the relative impact of country of
origin as a quality indicator in a causal framework. Results indicate
that the country of origin cue is indeed a significant indicator of
product quality; however, its relative effect varies by product category
as well as by certain individual and product variables.
The purpose of this study was to determine the effect of expertise on prechoice decision processes and final outcomes. By decomposing verbal protocols collected from 90 individuals who made one complex, mortgage loan decision, we could compare the frequency and type of elementary information processes evoked. We found that experts, relative to less knowledgeable decision makers, made a greater number of problem framing statements; made more references to why an option was being retained for further consideration; and used more compensatory decision rules. In addition, we found that misunderstanding externally provided information mediates the expertise-choice relationship. Novices were significantly more likely to misunderstand information than were more knowledgeable decision makers. As a result, there was greater variance in novices’ final choices than was the case with experts’. The deleterious effect of mis-understandings is disconcerting because consumers frequently miscomprehend print communications.
Uses conjoint analysis to investigate the relative importance of the
country of origin of a product to consumers in the United States,
Canada, Germany and The Netherlands. It was found that the country of
origin of a product was one of the two or three most important
attributes in preference evaluation. Across the four countries and the
two product categories studied, the importance weight assigned to the
country-of-origin factor ranged from 18 to 29 per cent, a level of
importance that was often equal to or greater than that assigned to the
brand name, price and other intrinsic and extrinsic attributes.
Respondents in each country preferred domestically-made products
foremost, followed by products made in other developed countries and,
lastly, products made in developing countries.
Many on-farm-processed products frequently command a premium price, characterised as they are by unique sensory properties and image. Examines the nature of consumer judgements about product quality for farmhouse Cheddar cheeses based on utilities derived from the product attributes, and the trade-off against price. Determines key Cheddar cheese attributes through in-depth interviews with specialist cheese consumers and employs conjoint analysis to estimate the utilities associated with these attributes based on a wider choice-experiment survey of farmhouse Cheddar consumers. A “price sensitivity meter” technique was used to establish acceptable price ranges as perceived by the latter group. Results from market simulations suggest that the consumer price sensitivity for farmhouse cheese is likely to be low. The analysis also revealed that those attributes associated with the traditional characteristics of farmhouse Cheddar have the highest utilities and that any characteristics similar to industrial Cheddar were largely unattractive to the consumers of farmhouse cheese.
Reports on a study in which 265 consumers were asked to assign price and
quality estimates to women’s sweaters. Uses a 4 x 3 factorial design
which incorporates four country cues – the USA, Italy, Japan and Taiwan
– and three groups relating to store prestige, which were manipulated.
Found that country of origin significantly influenced Taiwanese consumer
perceptions of sweater quality. The sweater labelled “Made in
Japan” received the highest evaluation and the sweater labelled “Made in
Taiwan” the lowest. The cue of store prestige was not significantly
related to price estimates and quality evaluations of sweaters. Neither
of origin nor store prestige was found to have an effect on price
estimates.
A conjoint analysis study of consumers’ choice of a popular product examined whether consumption situation and involvement influenced significantly the importance allocated by consumers to a number of key attributes determined by a sample of experts and product users. A large sample drawn from diverse wine retail outlets was asked to rank ten hypothetical wine products, the purchase of which related to three different consumption situations. While price remained the most important factor overall, all three other attributes were ranked differently depending upon the intended usage situation and the level of product involvement exhibited by respondents.
The chosen marketing strategy (including the branding as its integral parts) is highly important in this process. Nowadays, the brand becomes one of the basic motives for the consumers’ choice of a particular food product. The importance of the product brand shall be seen primarily in its impact on consumers’ choice and their loyalty through identifying and differentiating quality and origin, as well as creating additional values. The aim of this paper is to research the extent to which the consumer perceives the brand and how much it affects the evaluation of the functional characteristics of the product, primarily product quality. This paper analyzes the sales of tin cans (patés) as well as explores the effect of the product brand on sales. The main conclusions of the paper are that consumers do not value products based exclusively on their physical characteristics and that in the process of making a purchasing decision when choosing an alternative, consumers will first perceive the brand as “a sign of quality” and then other evaluation criteria (physical appearance and packaging, price, the reputation of the retail network).
Among the many tools available for measurement of human perceptions of product and service quality, sensory evaluation methods have been found to be most useful, particularly for food and related products. In fact, sensory evaluation has been defined as a “scientific discipline used to evoke, measure, analyze and interpret sensations as they are perceived by the senses of sight, smell, taste, touch and hearing”. The practice was elevated to the realm of science largely because its practice can be made as precise as an instrument giving results which are consistent, reliable and valid. Some examples of sensory evaluation methods useful for food and non-food products include product profiling through quantitative descriptive analysis, ranking for preference, triangle test for difference and hedonic rating scale for product acceptability measurement. The design for each of these “sensory measuring instruments” and the selection and preparation of samples for assessment are statistically-based. Likewise, the methods of analysis and interpretation of results utilize tests of hypothesis and other statistical approaches.
Most commodities consist of hidden qualities that consumers cannot detect by pre-purchase or through normal use. Hence, given that consumers demand such qualities, information has to be communicated to the consumer by some trustworthy party to avoid a “lemons” effect. With respect to food, such qualities can be, for example, animal welfare process standards or long-term health hazards. Previous research has concluded that extrinsic cues such as country of origin (COO) are important in the consumer evaluation process. The paper examines the Swedish market for fresh meat, where COO has been heavily promoted during the 1990s. Swedish consumers have been found to perceive country of origin as an important quality cue. This study examines what factors contribute to whether consumers perceive COO as an important quality cue. Data were collected using random-digit dialling procedures. Interviews were made with the main shopper in households consuming meat. The results indicate that women and consumers with low incomes tend to use COO more extensively than men and consumers with higher incomes. Furthermore, consumers that emphasise the