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Consumer Sensory Evaluations of Wine Quality: The Respective Influence of Price and Country of Origin

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  • Veale, Roberta
  • Quester, Pascale

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)

Suggested Citation

  • Veale, Roberta & Quester, Pascale, 2008. "Consumer Sensory Evaluations of Wine Quality: The Respective Influence of Price and Country of Origin," Journal of Wine Economics, Cambridge University Press, vol. 3(1), pages 10-29, April.
  • Handle: RePEc:cup:jwecon:v:3:y:2008:i:01:p:10-29_00
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    Citations

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    Cited by:

    1. Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    2. Carlo Altomonte & Italo Colantone & Enrico Pennings, 2016. "Heterogeneous Firms and Asymmetric Product Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 64(4), pages 835-874, December.
    3. Alicia L. Rihn & Kimberly L. Jensen & David W. Hughes, 2022. "Consumer Perceptions of Wine Quality Assurance Programs: An Opportunity for Emerging Wine Markets," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    4. Raj Chandra & Gabriel E. Lade & GianCarlo Moschini, 2021. "Geographical Indications and Welfare: Evidence from the US Wine Market," Center for Agricultural and Rural Development (CARD) Publications 21-wp628, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Lizbeth Salgado-Beltrán & Luis F. Beltrán-Morales & Alma T. Velarde-Mendivil & María E. Robles-Baldenegro, 2018. "Attitudes and Sensory Perceptions of Food Consumers towards Technological Innovation in Mexico: A Case-Study on Rice-Based Dessert," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    6. Gianluigi Gallenti & Stefania Troiano & Francesco Marangon & Paolo Bogoni & Barbara Campisi & Marta Cosmina, 2019. "Environmentally sustainable versus aesthetic values motivating millennials’ preferences for wine purchasing: evidence from an experimental analysis in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-16, December.
    7. Cross, Robin & Plantinga, Andrew J. & Stavins, Robert N., 2011. "The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices," Journal of Wine Economics, Cambridge University Press, vol. 6(1), pages 1-14, January.
    8. Jean Desrochers & J. Francois Outreville, 2013. "Uncertainty, Ambiguity and Risk Taking: an experimental investigation of consumer behavior and demand for insurance," ICER Working Papers 10-2013, ICER - International Centre for Economic Research.
    9. Robin Cross & Andrew J. Plantinga & Robert N. Stavins, 2011. "What Is the Value of Terroir?," American Economic Review, American Economic Association, vol. 101(3), pages 152-156, May.
    10. Nadia A Streletskaya & Jura Liaukonyte & Harry M Kaiser, 2019. "Absence labels: How does information about production practices impact consumer demand?," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-18, June.
    11. Rihn, Alicia L. & Jensen, Kimberly & Hughes, David W., 2022. "Tennessee's Wine Industry: Consumer Perceptions, Quality Assurance Programs and Marketing Strategies," Extension Reports 319853, University of Tennessee, Department of Agricultural and Resource Economics.
    12. Emmanuel Paroissien & Michael Visser, 2020. "The Causal Impact of Medals on Wine Producers' Prices and the Gains from Participating in Contests," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1135-1153, August.

    More about this item

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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