IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i14p8001-d596276.html
   My bibliography  Save this article

Effect of Online Collective Intelligence in Wine Industry: Focus on Correlation between Wine Quality Ratings and On-Premise Prices

Author

Listed:
  • Young-Sik Kwak

    (Department of Business, Gyeongsang National University, Jinju 52725, Korea)

  • Yoon-Jung Nam

    (Vino Consulting, Seoul 06018, Korea)

  • Jae-Won Hong

    (Department of Global Trade, Gyeongsang National University, Jinju 52725, Korea)

Abstract

This study aims to explore whether wine CI (Collective Intelligence) platforms, such as Wine Spectator and Wine Enthusiast, can provide a wine rating effect on price, as Robert Parker’s does in the Korean wine market. To achieve the purpose of the study, we collected information with wine evaluation ratings and on-premise prices from three wine evaluation sites and seven restaurants in South Korea. The researchers calculated the Pearson’s rho between the wine evaluation ratings and on-premise prices based on country, region, vintage, and type of wine. Based on the results of the study, the CI of wine ratings shows statistically the same association degree to price as wine guru Robert Parker’s score. This study can academically extend the research of CI’s application in the wine industry and provide strong support for a sustainable e-business model and pricing tactics in the wine industry.

Suggested Citation

  • Young-Sik Kwak & Yoon-Jung Nam & Jae-Won Hong, 2021. "Effect of Online Collective Intelligence in Wine Industry: Focus on Correlation between Wine Quality Ratings and On-Premise Prices," Sustainability, MDPI, vol. 13(14), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:8001-:d:596276
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/14/8001/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/14/8001/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ali, Héla Hadj & Lecocq, Sébastien & Visser, Michael, 2010. "The Impact of Gurus: Parker Grades and en primeur Wine Prices," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 22-39, April.
    2. Žaneta Piligrimienė & Andželika Žukauskaitė & Hubert Korzilius & Jūratė Banytė & Aistė Dovalienė, 2020. "Internal and External Determinants of Consumer Engagement in Sustainable Consumption," Sustainability, MDPI, vol. 12(4), pages 1-20, February.
    3. Edward Oczkowski & Hristos Doucouliagos, 2015. "Wine Prices and Quality Ratings: A Meta-regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 103-121.
    4. Oleksy, Paweł & Czupryna, Marcin & Jakubczyk, Michał, 2021. "On Fine Wine Pricing across Different Trading Venues," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 189-209, May.
    5. Batat, Wided & Peter, Paula C. & Moscato, Emily M. & Castro, Iana A. & Chan, Steven & Chugani, Sunaina & Muldrow, Adrienne, 2019. "The experiential pleasure of food: A savoring journey to food well-being," Journal of Business Research, Elsevier, vol. 100(C), pages 392-399.
    6. Besiki Stvilia & Michael B. Twidale & Les Gasser & Linda C. Smith, 2005. "Information Quality In A Community-Based Encyclopedia," World Scientific Book Chapters, in: Suliman Hawamdeh (ed.), Knowledge Management Nurturing Culture, Innovation, and Technology, chapter 9, pages 101-113, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Clarissa Laura Maria Spiess Bru, 2023. "Does the Tasting Note Matter? Language Categories and Their Impact on Professional Ratings and Prices," Working Papers Dissertations 105, Paderborn University, Faculty of Business Administration and Economics.
    2. Stephen Bazen & Jean Marie Cardebat & Magalie Dubois, 2022. "From Gurus to Geeks? The Role of Customer and Expert Ratings in a Hedonic Analysis of French Red Wine Prices," Working Papers hal-03891458, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oczkowski, Edward, 2019. "The relation between Australian wine show results and prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), July.
    2. Stephen Bazen & Jean Marie Cardebat & Magalie Dubois, 2022. "From Gurus to Geeks? The Role of Customer and Expert Ratings in a Hedonic Analysis of French Red Wine Prices," Working Papers hal-03891458, HAL.
    3. Olivier Bargain & Jean‐Marie Cardebat & Raphaël Chiappini, 2023. "Trade uncorked: Genetic distance and taste‐related barriers in wine trade," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 674-708, March.
    4. Philippe Masset & Jean‐Philippe Weisskopf, 2022. "At what price should Bordeaux wines be released?," Economic Inquiry, Western Economic Association International, vol. 60(1), pages 392-412, January.
    5. Clarissa Laura Maria Spiess Bru, 2023. "Does the Tasting Note Matter? Language Categories and Their Impact on Professional Ratings and Prices," Working Papers Dissertations 105, Paderborn University, Faculty of Business Administration and Economics.
    6. Villas-Boas, Sofia B, 2020. "Reduced Form Evidence on Belief Updating Under Asymmetric Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt08c456vk, Department of Agricultural & Resource Economics, UC Berkeley.
    7. Peng, Yue & Wang, Wei & Zhen, Shangsong & Liu, Yunqiang, 2024. "Does digitalization help green consumption? Empirical test based on the perspective of supply and demand of green products," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    8. Christopher R. Gustafson & Travis J. Lybbert & Daniel A. Sumner, 2016. "Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 91-103, January.
    9. Ana Salomé García-Muñiz & María Rosalía Vicente, 2021. "The Effects of Informational Feedback on the Energy Consumption of Online Services: Some Evidence for the European Union," Energies, MDPI, vol. 14(10), pages 1-14, May.
    10. Robert Bumbac, 2019. "The European Food Market €“ Increased Consumer Preference Towards Convenience And Healthy Food," Junior Scientific Researcher, SC Research Publishing SRL, vol. 5(2), pages 53-61, November.
    11. Bonnet, Céline & Hilger, James & Villas-Boas, Sofia B., 2017. "Reduced Form Evidence on Belief Updating under Asymmetric Information - The Case of Wine Expert Opinions," TSE Working Papers 17-834, Toulouse School of Economics (TSE), revised May 2019.
    12. Mérel, Pierre & Ortiz-Bobea, Ariel & Paroissien, Emmanuel, 2021. "How big is the “lemons” problem? Historical evidence from French wines," European Economic Review, Elsevier, vol. 138(C).
    13. Barberà, Salvador & Bossert, Walter & Moreno-Ternero, Juan D., 2023. "Wine rankings and the Borda method," Journal of Wine Economics, Cambridge University Press, vol. 18(2), pages 122-138, May.
    14. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    15. Woods, Timothy A. & Deng, Xueting & Nogueira, Lia & Yang, Shang-Ho, 2015. "Local Wine Expenditure Determinants in the Northern Appalachian States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(2), pages 1-21, July.
    16. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    17. Erin Percival Carter & Stephanie Welcomer, 2021. "Designing and Distinguishing Meaningful Artisan Food Experiences," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    18. Ashenfelter, Orley, 2010. "Predicting the Quality and Prices of Bordeaux Wine," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 40-52, April.
    19. Ginsburgh, Victor & Radermecker, Anne-Sophie & Tommasi, Denni, 2019. "The effect of experts’ opinion on prices of art works: The case of Peter Brueghel the Younger," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 36-50.
    20. Michela Ponzo & Vincenzo Scoppa, 2015. "Experts’ awards and economic success: evidence from an Italian literary prize," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(4), pages 341-367, November.
    21. Mastrobuoni, Giovanni & Peracchi, Franco & Tetenov, Aleksey, 2014. "Price as a Signal of Product Quality: Some Experimental Evidence," Journal of Wine Economics, Cambridge University Press, vol. 9(2), pages 135-152, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:8001-:d:596276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.