International Journal of Wine Business Research

Forecasting the development of wine tourism: a case study in Chile : Table of Contents

Martin H. Kunc — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The number of wine tourists in Chile is still small even though investment in infrastructure, like cellars and wine routes, has been made in the last five years. A question is important to be answered at this point: is there a market for wine tourism in Chile, did the industry overestimate its potential? The lack of historical data impedes an evaluation of these questions. The purpose of this paper is to forecast the size of the local wine tourists market in Chile and provide with recommendations to its development. Design/methodology/approach – The paper consists of the application of a diffusion model to forecast development paths for Chilean wine tourism market. The model is populated with information obtained through surveys to those demographic segments identified as more closely involved with wine tourism based in Charters and Ali-Knight. Findings – Chilean wine industry has been developing its infrastructure in wine tourism for a number of years, but the number of wine tourists is still very low. Behavioral factors like local consumers' behavior, especially the high level of forgetting (an average wine visitor will perform only one visit to a winery) that reduces the effect of word-of-mouth, hinders the development of wine tourists. Wineries should aim to maintain a constant level of awareness among wine tourists in order to obtain repeated visits and encourage word-of-mouth as suggested in Dodd. Research limitations/implications – Forecasting models depend on the variables employed. Consequently the results are affected by the certainty of the values of the variables, as well as their level of exactness. Even though surveys are employed to obtain the values of the variables for the model, there are no historical data to validate the results. Originality/value – The paper presents a forecasting model to identify the development of wine tourism instead of only reporting actual or past results. Therefore, the paper adopts a forward-looking perspective for analyzing wine tourism market size differently than previous approaches (see Mitchell and Hall for a review). The model also supports policy recommendations.

Wine service marketing, value co-creation and involvement: research issues : Table of Contents

Linda D. Hollebeek, Roderick J. Brodie — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to develop a conceptual model that examines wine channels typified by differing levels of service orientation, and resulting branding implications based on consumer involvement and value co-creation properties. Examples of channels characterised by relatively low levels of organisational service provision include supermarket retailing, while higher levels of service orientation are found in channels such as restaurants and wine tourism. The model thus provides a framework for analysis of wine branding across distribution channels characterised by differing levels of service orientation. Design/methodology/approach – A literature review addressing service provision in wine marketing, consumer involvement and needs, value co-creation and branding is proposed in the paper. Findings – An integrative conceptual model and associated research issues are derived from a review of relevant literature. Research implications – The paper provides a research agenda for involvement-based wine branding across more traditional, external marketing-oriented channels (e.g. supermarket retailing) and emerging, more interactive/relational wine marketing service sectors (e.g. restaurateurs, tourism). Originality/value – The paper provides a deeper understanding of wine marketing in growing forms of service-based wine channels.

Boozing or branding? Measuring the effects of free wine tastings at wine shops : Table of Contents

Larry Lockshin, David Knott — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to focus on both the sales effects of free wine tastings and the effects on attitudes towards future purchases four weeks after the tastings. Design/methodology/approach – Store scanner data for the four weeks before and after each of ten wine tastings are used to measure the effect tastings had on sales. A total of 170 consumers, who attended a free tasting in wine shops across 4 cities, are interviewed as they leave the store and 37 of these consumers respond to a call back survey one month after the free tasting. Findings – Scanner data shows a 400 per cent increase in sales of the wines tasted on the day of tasting, and a small but significant effect on sales during the four weeks afterwards. The survey shows that there is no difference in purchasing between those attending a tasting with the intention to purchase and those just stopping by. Both groups purchase at about the same rate. Only about 33 per cent of the attendees purchase; the other two-thirds are boozing. Research limitations/implications – Free tastings boost immediate sales just like most price promotions, but the effect on the intention to purchase is stronger for those who made a purchase. The study is conducted in one country among a small number of buyers, which limits its generalisability. Practical implications – The results and implications of this research can be used by retailers and wine companies to make more informed decisions about free tastings. From this small study, attracting the maximum number of tasters to increase sales and long-term purchasing intentions would be recommended.

A model of demand in a repeated purchase situation: A simulation of the Champagne wine market : Table of Contents

Daniel Steichen, Christophe Terrien — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to propose a model for consumer demand for vertically differentiated products. The approach is resolutely dynamic. Consumers are especially placed in situations of repeated purchases. They may reflect their past purchases in their decision. The suppliers adapt to the demand by amending their offer price. A simulation of the model of consumer behavior is made on the Champagne wine market. It results in a stable market that validates the theoretical choices. Design/methodology/approach – The methodology used is multi-agent simulation. It is little used compared to cross-cutting approaches such as multiple regression, joint analysis and constrained optimization. The multi-agent simulation is a metaphor of the real world that makes virtual agents (consumers and suppliers) compete; these agents are provided with features that can vary over time and with predetermined behavior. This longitudinal approach allows in particular the capture of the effects of time on the choices observed in the habit phenomena, and also allows a description of nonlinear relationships. Findings – The use of a variable personal capital leads to the creation of a simple dynamic model of consumer behavior and fulfils the simulation of the demand in a market of vertically differentiated products. Originality/value – The originality of this work is based both on the formalization of the dynamic decision process and the methodology used, based on multi-agent simulation. It helps to explore the evolution of the behavior of agents in the long term by taking into account past experiences. The simulation allows us to show that, in situations of repeated purchase, habits and involvement put into perspective the impact of salient cues of choice (reputation, price).

Pride and prejudice in the evaluation of wine? : Table of Contents

Julie Anna Guidry, Barry J. Babin, William G. Graziano, W. Joel Schneider — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The region where a wine is produced is a factor that influences consumers' preferences and price perceptions. For most consumers, a wine from an established place like France would be preferred over a wine from less established place, like Texas. However, a consumer's identity with their home area (not well known for wine) may override such an effect. Thus, the purpose of this paper is to determine whether a wine's geographic origin influences wine preference and price perceptions and, if so, whether identity with a place and/or wine expertise moderate this relationship. Design/methodology/approach – A total of 257 students from a Texas university sample and rate two identical wines – yet one is labeled as from France and the other as from Texas. Their identification with Texas and their wine expertise are also measured. Paired sample t-tests and repeated measures MANOCA are used to analyze the data. Findings – The paper finds that a wine's country of origin has a strong effect on consumers' preferences and price perceptions. Specifically, consumers prefer the French wine over Texas wine and are willing to pay more for the French wine. Consumers' identification with Texas does not significantly mitigate the effects of country of origin; those who score low on Texas identity as well as those who score high had similar ratings for the wines. Similarly, no moderating effects for wine expertise are found. Originality/value – This research shows the strong effect of county of origin even when participants actually sample the (identical) wines. It offers value by showing that the identity with a region provides little help in overcoming this effect and that wine producers and regions should consider strategies other than appealing to a consumer's identity with the region.