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The Loyalty Structure of Sparkling Wine Brands in Italy

Author

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  • Rossetto, Luca
  • Gastaldello, Giulia

Abstract

This article analyzes consumer loyalty in the Italian market for Prosecco sparkling wines. In particular, we examine the relationship among wine appellation, price, and consumer loyalty. To that effect, we run a Dirichlet model on Nielsen scan data to estimate brand performance measures and study purchase patterns in the sparkling wine market. We find that Prosecco wines benefit from high-consumer loyalty, and that this loyalty can be explained by both the appeal of the Prosecco appellation and its upper-tier price point. We conclude that promotion strategies with deep discounts, as they affect the appellation's image, might hurt consumer loyalty in the long run. (JEL Classifications: D12, L11, L66, M31)

Suggested Citation

  • Rossetto, Luca & Gastaldello, Giulia, 2018. "The Loyalty Structure of Sparkling Wine Brands in Italy," Journal of Wine Economics, Cambridge University Press, vol. 13(4), pages 409-418, November.
    • Handle: RePEc:cup:jwecon:v:13:y:2018:i:04:p:409-418_00
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    Citations

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    Cited by:

    1. Francesca Bassi & Fulvia Pennoni & Luca Rossetto, 2020. "The Italian market of sparkling wines: Latent variable models for brand positioning, customer loyalty, and transitions across brands' preferences," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 542-567, October.
    2. Nicola Casolani & Andrea Ciccarelli & Maria Angela Perito & Emilio Chiodo, 2024. "The Importance of Region of Origin in Sparkling Wines: An International Analysis of Consumers’ Perception," Sustainability, MDPI, vol. 16(1), pages 1-16, January.
    3. Svetlana Ignjatijević & Jelena Vapa Tankosić & Nemanja Lekić & Duško Petrović & Sandra Brkanlić & Bojan Vapa & Vladimir Tomašević & Nikola Puvača & Radivoj Prodanović & Irena Milojević, 2022. "Agro-Environmental Practices and Business Performance in the Wine Sector," Agriculture, MDPI, vol. 12(2), pages 1-21, February.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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