IDEAS home Printed from https://ideas.repec.org/a/ods/journl/v8y2019i2p88-106.html
   My bibliography  Save this article

Alternative View on Wine Value and Its Measurement

Author

Listed:
  • Goncharuk, A. G.

    (International Humanitarian University, Ukraine)

Abstract

This paper aims to find an alternative to monetary measures of wine value. The author suggests measuring wine value using energy spent at all stages of its creation, promotion and then transferred to the consumer in a transformed form. It is introduced a new indicator of wine energy value ratio that reflects the ability of a wine to give out energy to consumer more than it was absorbed. Analysing the basic motives of the person who consumes wine, the author distinguishes five basic illusions that wine consumers try to satisfy: health promotion; fun and enjoyment; image supporting; stress relieving and overcoming psychological barriers. Studying the illusion of success we tested the hypothesis about the positive influence of wine age on the wine value (older wine, higher price). The high negative non-linear relationship was determined within a single brand line (Cabernet Sauvignon). The author found that the age of wine plays an important, but not the only, role that determines its value. Besides, it was found that the effect of wine drinking in order to relieve stress and overcome psychological barriers is in fact little different from other alcoholic beverages, so its value in such cases can be measured in comparison with the other alcohol drinks. The author also found that in any case, the value of the wine is determined by the motives and psychological state of the person who buys and consumes it. Motives can be explicit or illusory. Some of them are amenable to absolute measurement or can only be relatively measured, the rest are difficultly measurable or immeasurable. Hence we can talk about the absolute, relative and complex value of wine for the consumer.

Suggested Citation

  • Goncharuk, A. G., 2019. "Alternative View on Wine Value and Its Measurement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(2), pages 88-106, May.
    • Handle: RePEc:ods:journl:v:8:y:2019:i:2:p:88-106
    as

    Download full text from publisher

    File URL: http://www.jami.org.ua/Papers/JAMI_8_2_2019_88-106.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anatoliy G. Goncharuk, 2017. "Wine Value Chains: Challenges and Prospects," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 11-27, February.
    2. Natalia O. Lazareva, 2015. "Evaluating the Efficiency of Wineries in Ukraine: A Three-Criteria Approach," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(4), pages 239-242, November.
    3. Alexander Belyakov, 2015. "From Chernobyl to Fukushima: an interdisciplinary framework for managing and communicating food security risks after nuclear plant accidents," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 5(3), pages 404-417, September.
    4. Jon H. Hanf, 2016. "Vertical Integration in the Azerbaijani Wine Business," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 92-99, May.
    5. Quintal, Vanessa Ann & Thomas, Ben & Phau, Ian, 2015. "Incorporating the winescape into the theory of planned behaviour: Examining ‘new world’ wineries," Tourism Management, Elsevier, vol. 46(C), pages 596-609.
    6. Miller, Karen W. & Mills, Michael K., 2012. "Contributing clarity by examining brand luxury in the fashion market," Journal of Business Research, Elsevier, vol. 65(10), pages 1471-1479.
    7. Anatoliy G. Goncharuk & Ricardo Sellers-Rubio, 2018. "West vs East: How Different Is Performance in European Winemaking," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 185-200, November.
    8. Anatoliy G. Goncharuk, 2017. "The Challenges of Wine Business in Research," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(4), pages 253-259, November.
    9. Carlsson-Kanyama, Annika & Ekstrom, Marianne Pipping & Shanahan, Helena, 2003. "Food and life cycle energy inputs: consequences of diet and ways to increase efficiency," Ecological Economics, Elsevier, vol. 44(2-3), pages 293-307, March.
    Full references (including those not matched with items on IDEAS)

    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. Anatoliy G. Goncharuk, 2017. "The Challenges of Wine Business in Research," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(4), pages 253-259, November.
    2. Anatoliy G. Goncharuk, 2017. "Wine Value Chains: Challenges and Prospects," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 11-27, February.
    3. Tamara A. Horobets, 2020. "Measuring Performance of the SMEs: A Case of Ukraine," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(4), pages 162-168, December.
    4. Horobets, T. A., 2019. "Value-Added Approach to the SMEs' Performance Measurement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(4), pages 182-188, December.
    5. Anatoliy G. Goncharuk & Ricardo Sellers-Rubio, 2018. "West vs East: How Different Is Performance in European Winemaking," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 185-200, November.
    6. Martina Schäfer & Melanie Jaeger-Erben & Aguinaldo Santos, 2011. "Leapfrogging to Sustainable Consumption? An Explorative Survey of Consumption Habits and Orientations in Southern Brazil," Journal of Consumer Policy, Springer, vol. 34(1), pages 175-196, March.
    7. Bachev, Hrabrin & Ito, Fusao, 2017. "Agricultural impacts of the Great East Japan Earthquake - six years later," MPRA Paper 79469, University Library of Munich, Germany.
    8. Sovacool, Benjamin K. & Bazilian, Morgan & Griffiths, Steve & Kim, Jinsoo & Foley, Aoife & Rooney, David, 2021. "Decarbonizing the food and beverages industry: A critical and systematic review of developments, sociotechnical systems and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    9. Gian Luca Gregori & Silvia Cardinali & Meri Travaglini, 2013. "Imprese calzaturiere e competitivit? nel mercato mondiale: il caso di una media luxury brand company," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(3), pages 151-168.
    10. Anatoliy G. Goncharuk, 2017. "Socioeconomic Criteria of Healthcare Efficiency: An International Comparison," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(2), pages 89-95, May.
    11. Jane Dixon, 2009. "From the imperial to the empty calorie: how nutrition relations underpin food regime transitions," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(4), pages 321-333, December.
    12. Anatoliy G. Goncharuk, 2018. "Efficiency vs Effectiveness: Alternative Metrics for Research Performance," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(1), pages 24-37, February.
    13. Bachev, Hrabrin, 2019. "Assessments of preparedness, agri-food impacts and implications for disaster risk management of Fukushima nuclear disaster," MPRA Paper 96917, University Library of Munich, Germany.
    14. Risku-Norja, Helmi & Maenpaa, Ilmo, 2007. "MFA model to assess economic and environmental consequences of food production and consumption," Ecological Economics, Elsevier, vol. 60(4), pages 700-711, February.
    15. Dahan, Momi & Sayag, Doron, 2024. "Scarcity and consumption priorities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    16. Ari Paloviita, 2010. "Consumers’ Sustainability Perceptions of the Supply Chain of Locally Produced Food," Sustainability, MDPI, vol. 2(6), pages 1-18, June.
    17. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    18. Hanna Valerie Wolf & Tanja Perko & Peter Thijssen, 2020. "How to Communicate Food Safety after Radiological Contamination: The Effectiveness of Numerical and Narrative News Messages," IJERPH, MDPI, vol. 17(12), pages 1-19, June.
    19. Arto O. Salonen & Jani Siirilä & Mikko Valtonen, 2018. "Sustainable Living in Finland: Combating Climate Change in Everyday Life," Sustainability, MDPI, vol. 10(1), pages 1-16, January.
    20. David Doloreux & Richard Shearmur & Igone Porto‐Gomez & Jon Mikel Zabala‐Iturriagagoitia, 2020. "DUI and STI innovation modes in the Canadian wine industry: The geography of interaction modes," Growth and Change, Wiley Blackwell, vol. 51(3), pages 890-909, September.

    More about this item

    Keywords

    wine value; wine energy; wine’s impact; illusions; motives;
    All these keywords.

    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

    Statistics

    Access and download statistics

    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:ods:journl:v:8:y:2019:i:2:p:88-106. 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: Anatoliy G. Goncharuk (email available below). General contact details of provider: https://edirc.repec.org/data/dmonaua.html .

    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.