Segmentation of wine tourism experience in Mexican wine regions using netnography

Purpose This paper aims to offer an experiential segmentation based on the analysis of comments from wine tourists from different Mexican wine regions, using netnography as a data collection and analysis tool. Design/methodology/approach The netnography methodology was applied in three steps: first, collecting consumer opinions (TripAdvisor 1,240 opinions, 2017–2019) from their visits to 20 wineries in four Mexican wine regions. Second, organizing of the data by classifying the various experiences. Third, by the application of multiple correspondence and cluster analysis to consolidate four segments taking as reference the 4Es Model. Findings The results show that of the four Mexican wine regions, Baja California is divided between the aesthetic and wine focus segments, Coahuila is more associated to the educational segment, while tourist who visit Queretaro tend to relate to the activities of the entertainment segment. Research limitations/implications The scarce literature that exists regarding wine tourism in Mexico made certain comparisons and relationships to the results difficult to establish. Practical implications The results provide stakeholders (wineries, state tourism departments, wine tourism marketers and wine tourism researchers) a segmentation proposal focused on tourist experiences to improve marketing programs and wine tourism offerings. Originality/value The use of netnography as a tool for wine tourism research in Mexico is one that has not been previously explored. In addition, this study considers different Mexican wine regions, which allows for comparisons and relationships between them that can contribute to greater market differentiation.

Wine market segmentation by age generations in the Western US: expectations after the COVID-19 pandemic

Purpose The purpose of this paper is to investigate if differences exist between the four wine-consuming generations in wine purchasing behavior, the desirability of wine attributes when making a purchase decision and information sources used. It examines if generational market segmentation is an actionable and valuable strategy for the wine industry. Generation Z, Millennials, Generation X and Baby-Boomers are the four generations examined. This research also investigates if the generations behaved differently concerning wine consumption during the COVID-19 pandemic. Further, expectations concerning future wine purchasing behavior are examined. Design/methodology/approach An online survey was conducted between April 29, 2020 and May 7, 2020, with a sample size of 944 consumers from Western US States (California, Washington, Idaho, Oregon and Nevada). One-way analysis of variance technique and Chi-square tests were used to examine differences. Findings Segmentation by generation is appropriate when creating products, pricing, determining channels of distribution and creating messaging for a specific wine brand. The COVID-19 pandemic caused channel shifting that is expected to continue after the pandemic. Originality/value This is the second academic paper that examines differences in wine purchasing behavior between generations including Generation Z and the only study that examines the purchasing behavior changes and expectations for the future by generation concerning the COVID-19 pandemic. Research limitations/implications A national survey should be conducted to confirm that the results from the sample that was mostly from California and neighboring states reflect the national wine consumer in the USA. Practical implications The research identifies the products, prices, channels of distribution and messaging that are appropriate to target each generation.

A time series projection model of online seasonal demand for American wine and potential disruption in the supply channels due to COVID-19

Purpose This study statistically examines the shifting distribution channels in the American wine industry based on the growth trajectory of sales, seasonality and disruption due to consumers switching to online platforms. The purpose of this paper is to design a model that will have general applicability beyond the wine industry. Design/methodology/approach The research uses regression-based additive decomposition of time series data to predict the trajectory of the market share for the digital distribution channel. The study develops a statistical prediction model using time series data between 2007 and 2020, inclusive, sourced from US Annual Wine Reports and Bureau of Alcohol, Tobacco and Firearms databases. Findings The results show an increasing trajectory of wine sales through the online distribution channel with predictable seasonality. The disruptive effects of consumer switching behavior point to a steady increase in sales due both to increasing demand and accelerating switching. Nevertheless, the model shows that bricks and mortar purchases will remain strong and continue to account for the bulk of wine sales. COVID-19 has caused a step function increase in online sales but this should moderate after the crisis subsides and can be tested further. Originality/value This study is original in developing a model for an industry where bricks and mortar sales are growing and are expected to remain strong while there is still identifiable switching to online sales. The wine industry presents a classic case of accelerating switching behavior where there is still a strong franchise for in-store purchases. The model should have general applicability to distribution channels beyond the wine industry where steady growth, marked seasonality and disruptive consumer switching are in evidence.

Changes in sustainability in the global wine industry

Purpose The wine industry is the one that is tightly linked to sustainability as its processes both impact and are impacted by the environment, society and companies’ financial well-being. However, data show that this may not be recognized in practice. Thus, this research paper aims to examine what has changed with respect to sustainability practices over the past 10–15 years in this industry. Design/methodology/approach A development-based multi-method approach was used to examine the purpose. In Phase 1, a grounded theory study conducted between 2009 and 2015 from wine businesses in 12 different global regions brought to light a potential disconnect between theory and practice in the importance of sustainability. In Phase 2, a comprehensive literature review and analysis of updated online content from the Phase 1 companies was conducted to paint a picture of the progression of sustainability focus and its implementation in company processes. Findings Using legitimacy theory as a foundation, it was found that the choice to pursue sustainability in this industry generally begins with a focus on environmental practices followed by financial sustainability and more recently social sustainability. Producers are also starting to emphasize overall sustainability often encompassing all three dimensions. The industry has also progressed through “levels of sophistication” in the different major supply chain processes (supply, production and distribution) over the years with their environmental efforts. Originality/value A framework of sustainability growth in the industry through a matrix of process sophistication is developed from the data. The results offer implications for theory, practice and industry policy and informs the future trajectory of sustainability within global business.

High-end luxury wine demand and income inequality

Purpose The purpose of this study is to explore the relationship between income inequality and the demand for high-end luxury wine. The consumption of luxury goods has experienced dramatic growth since 2000 but inequality has been neglected by scholars working on luxury consumption. The exploratory research focuses on wine demand between 2000 and 2019 and analyzes the impact of income inequality among other factors, including gross domestic product (GDP) per capita and GDP growth. The authors want to discern whether highly unequal countries import more expensive wine when compared to countries with lower inequality. Design/methodology/approach The authors prepared different data sets based on the year and the trade value of each country to compare the differences and commonalities. The regression models incorporate particular foreign trade statistics (average unit price of wine) as an objective variable and the Gini coefficients to measure the relation between the demand for high-end luxury wines and inequality as an explanatory variable. The models also incorporate other control variables such as economic and institutional conditions. Findings The analysis demonstrates a positive relationship between the unit price of imported wine and the level of income inequality of the importers. This research suggests that conspicuous consumption, as a means of social distinction, is a major driver of the luxury wine market. Other significant factors include GDP per capita and geographic proximity. However, countries with a high power distance and bad governance do not purchase more luxury wines than others. Hence, rather than the social acceptation of wealth and corruption, the consumption of luxury wines is driven by the levels of economic development and inequality. Originality/value This paper is exploratory research that discusses an underexplored issue: the impact of income inequality on the consumption of luxury goods such as high-end luxury wines. It contributes to the literature on wine consumption, luxury business and income and wealth inequalities. These fields are rarely approached together and the research emphasizes the potential offered by such a perspective.

What is rogue marketing? An exploration of how hard seltzer sparked a social media phenomenon

Purpose This study aims to introduce, explicate, offer a framework and provide future research directions for a phenomenon herein named rogue marketing. Rogue marketing is explored vis-à-vis a phenomenon that occurred over the summer of 2019 with a new product category, hard seltzers. It is proposed that rogue marketing occurs when an unaffiliated individual creates and posts an informal message about a brand on social media that becomes viral. Although the post is not funded or endorsed by the company that owns the brand, reaching viral status results in free and unexpected advertising (positive or negative). Design/methodology/approach Rogue marketing is first explored through a comparative analysis with company produced advertisements. Then, the company’s response to rogue marketing is gauged through both qualitative and quantitative data. The sample of 210 respondents was recruited from students enrolled in college hospitality courses and through posts made on social media. Findings Rogue marketing is found to be somewhat more compelling than company produced advertisements and those who found the rogue marketing message more compelling had stronger sentiments regarding the company’s response. Research limitations/implications This exploratory study of rogue marketing provides a conceptualization and starting framework for future research concerning this phenomenon. Originality/value Rogue marketing is a new phenomenon and is distinct from influencer marketing and viral marketing in its characteristics. Additionally, the company’s response to rogue marketing messages may influence behavioral outcomes.

Craft beer – a systematic literature review and research agenda

Purpose In recent years, the craft beer (CB) industry has gained impetus and has experienced significant growth in scientific publications. This study aims to present a systematic review of the literature on CB in areas related to economic and business sciences. Design/methodology/approach Based on the data from Scopus, Web of Science and a set of articles not indexed to these databases until June 2021, a total of 132 articles were included for analysis, using bibliometric and content analysis techniques. Findings The study allowed us to identify that CB has four main clusters/themes of research, namely, CB industry and market, marketing and branding, consumer behavior and sustainability. Detailed information on the clusters is provided. In addition, the results showed that publications addressing CB have grown significantly from 2015 onwards and are dispersed across many journals, with none assuming a clear leadership. Quantitative approaches account for more than half of publications. Research limitations/implications This study is a useful guide for academics intending to develop studies with CB. It provides a framework to structure future research by identifying existing literature clusters and proposes several research propositions. Practical implications The findings from this study are useful for CB companies to get an overview of the main issues affecting the CB industry and market to be able to adapt their strategies and stay aligned with market tendencies in the four main clusters identified. Originality/value This is the first systematic review of CB. Therefore, it provides a significant contribution to frame and strengthening the literature on CB and serves as a reference for future research. Based on the content analysis and cluster identification, the findings portray the status of current research. Accordingly, a set of research opportunities are offered.

The cost of ignorance: reputational mark-up in the market for Tuscan red wines

Purpose This work argues for and provides an empirical investigation of the idea that imperfectly informed consumers use simple signals to identify the characteristics of wine, for example, the geographical denomination. The reputation of a denomination will thus be an important guide for consumers when assessing individual wines. Design/methodology/approach The price–quality relationship is studied in a fairly homogenous geographical area where a large number of wine types is present. This is done by using a simple OLS analysis on a database of more than 2,000 different red wines produced in a period of just four years in only one Italian region. Findings The results show that some denominations have a lower average quality score and that price differentials between denominations are linked to differences in average quality, although consumers tend to exaggerate the quality gap between prestigious denominations and others. Research limitations/implications A producer in a prestigious denomination benefits from a substantial mark-up relative to an equally good producer from another denomination. Furthermore, denomination neutral wines have a stronger price–quality relationship than denomination specific wines. Practical implications Consumers should not be misled by what is on the bottle, but should rather consult wine guides to become better informed before purchasing. Social implications The fact that quality and sensory characteristics often play a minor role in determining the price of a commodity is not immediately compatible with the postulate that consumers are well informed. Originality/value Unlike previous work, this paper investigates a limited area (Tuscany) and only red wines, thus making it possible implicitly to control for many other factors which might otherwise confound the price–quality relationship.

Coopetition as improvisation: an exploratory comparative case study investigation into Spain’s natural wine industry

Purpose This paper aims to develop an understanding of cooperation and collaboration in the natural wine industry in Spain as well as a deeper understanding of the challenges facing natural wine producers in the 21st century. Design/methodology/approach Field interviews using a structured questionnaire were conducted with five Spanish producers of natural wine in five different regions during fall 2018 and late spring 2019. Interviewers prompted respondents to expound upon the potential of incorporating cooperative relationships to help producers grow their businesses, share production and marketing techniques and explain how they educate consumers about natural wines. Findings Content analysis among five field-researched case studies reveals common goals and challenges, but Spanish natural wine producers have not reached a consensus on the benefits of cooperative relationships. Respondents acknowledge that their indecisiveness and consumer confusion about natural wines are barriers to working together. Research limitations/implications Generalizations from a sample comprised five companies cannot be made, nor can we claim that respondents were unbiased. Respondents were reluctant to release financial and production data; thus, the outcomes of coopetition strategies were indeterminate. It may be that a coopetition strategy is only positive up to a fixed point, upon which a diminishing-returns effect is manifested. Observations were made during a period when the Spanish wine industry was contracting, as political uncertainty in that country and post-Brexit clouded the future of tourism in and exports from certain Spanish wine regions. Practical implications Collaboration and cooperation would afford Spanish natural wine access to shared resources, networks and farming technology and knowhow to enhance the image and reputation of natural wine in Spain and internationally. Social implications To explore how cooperative and collaborative relationships might be achieved, five case studies of natural wine producers in Spain illuminate their real-life challenges and goals. Cooperative relationships among these producers have the potential to contribute to industry growth and value creation, while creating shared competitive advantages. As these niche producers weigh how to come to a consensus about pooling resources and working together to educate the prospective natural wine consumer, doing so may well lead the next wave of entrepreneurial, innovative activity in an industry that is ripe for change. Originality/value To explore how natural wine producers face the challenge to increase transparency in its production and to help consumer to know what natural wine is. In the Old World, the French Fraud Control Office recognized the category “vin méthode nature” (wine nature method) as a special wine. It was the first step towards helping consumers to reduce the information asymmetries existing between the productive and consumption fields, increasing transparency in natural wines production.

The symbolic value of wine, moderating and mediating factors and their relationship to consumer purchase intention

Purpose The symbolic value of wine is a relevant research topic and raises the interest in studies in both the enological and market areas. In this context, this study aims to understand the role of the symbolic value of wine and its relationship to the product purchase intention. Design/methodology/approach The study is based on a survey of 269 wine consumers from Brazil. The basic theoretical framework includes three latent constructs (symbolic value, consumer attitude and product-norm experience) and three moderators (consumer involvement, willingness to pay and consumer preference). Relations between these are analyzed using the confirmatory factor analysis (CFA) and the moderated mediation analyses using Haye’s process. Findings This research identified that the symbolic value is totally mediated by consumers’ attitudes and product-norm experiences. However, such a relationship occurs directly for consumers with higher involvement with the product, higher willingness to pay, and who assume that wine is their preferred alcoholic beverage. Originality/value One of the contributions is to emphasize the symbolic value of wine and highlight how the relationship with different factors can interfere and explain consumer purchase intention and can influence the strategies, actions and investments of companies in the sector.