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Resistant grape varieties and market acceptance:an evaluation based on experimental economics

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  • Alejandro Fuentes Espinoza
  • Anne Hubert
  • Yann Raineau
  • Céline Franc
  • Eric Giraud-Héraud

Abstract

We analyze consumers’ evaluations of white wines from resistant varieties, produced in the Languedoc winegrowing region of France (2016 vintage). We use the results from a laboratory experiment performed in Paris in June 2017, where a panel of more than one hundred and sixty consumers, regular buyers of this type of wine, were asked to evaluate a wine of the Bouquet 3159 grape variety (monogenic variety resistant to mildew and powdery mildew and optimized for quality) and compare it with two conventional wines of different quality levels, and with a certified organic wine of similar type and price. The environmental and health performances and the production methods of the different wines were quantified according to several indicators: treatment frequency indicator (TFI) and pesticide residue analysis.\r\nThe consumers first evaluated the wines after tasting, having been given only a minimum amount of information about the region of origin and the vintage, then again after receiving information on production methods and the levels of our indicators. The method used to lend credibility to individual valuations used experimental economics, via a mechanism based on direct disclosure of their willingness to pay (maximum purchase price for a bottle of wine according to available information). The results showed that, on a purely sensory level, consumers had difficulty in accepting wine from a resistant variety. We were then able to see that communication focusing on environmental and health performances very much improved the position of the resistant variety of wine, putting it ultimately at the top of the average qualitative evaluations. In economic terms, we show that this promotion results in high market share, gained from conventional wines. Market share losses were lower, however, for the premium conventional wine, suggesting that the higher quality wines would be less directly challenged by wines produced from resistant varieties.

Suggested Citation

  • Alejandro Fuentes Espinoza & Anne Hubert & Yann Raineau & Céline Franc & Eric Giraud-Héraud, 2018. "Resistant grape varieties and market acceptance:an evaluation based on experimental economics," Cahiers du GREThA (2007-2019) 2018-22, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2018-22
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2018/2018-22.pdf
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    References listed on IDEAS

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    1. Loureiro, Maria L., 2003. "Rethinking new wines: implications of local and environmentally friendly labels," Food Policy, Elsevier, vol. 28(5-6), pages 547-560.
    2. Fuller, Kate B. & Alston, Julian M. & Sambucci, Olena, 2014. "The Value of Powdery Mildew Resistance in Grapes: Evidence from California," Working Papers 162528, Robert Mondavi Institute Center for Wine Economics.
    3. Lybbert, Travis J. & Magnan, Nicholas & Gubler, W. Douglas, 2012. "Multi-Dimensional Responses to Risk Information: How do Winegrape Growers Respond to Disease Forecasts and to What Environmental Effect?," Working Papers 162521, Robert Mondavi Institute Center for Wine Economics.
    4. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521855167, September.
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    Cited by:

    1. Christoph Kiefer & Gergely Szolnoki, 2023. "Consumer Acceptance of Fungus-Resistant Grape Varieties—An Exploratory Study Using Sensory Evaluation Tests among Consumers in Germany," Sustainability, MDPI, vol. 15(13), pages 1-16, July.
    2. Raineau, Yann & Giraud-Héraud, Éric & Lecocq, Sébastien & Pérès, Stéphanie & Pons, Alexandre & Tempère, Sophie, 2023. "When health-related claims impact environmental demand: Results of experimental auctions with Bordeaux wine consumers," Ecological Economics, Elsevier, vol. 204(PA).
    3. Sandro Sillani & Francesco Marangon & Gianluigi Gallenti & Stefania Troiano & Federico Nassivera & Matteo Carzedda, 2022. "Designation and Certification Strategies for Fungus-Resistant Grape Wines: An Exploratory Study in Italy," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    4. Robert Finger & Lucca Zachmann & Chloe McCallum, 2023. "Short supply chains and the adoption of fungus‐resistant grapevine varieties," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1753-1775, September.
    5. Marc Dressler, 2023. "Sustainable Business Model Design: A Multi-Case Approach Exploring Generic Strategies and Dynamic Capabilities on the Example of German Wine Estates," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    6. Yann Raineau & Éric GIRAUD-HÉRAUD, 2021. "Why do Social Nudges Actually Work? Theoretical and Experimental Elements from a Randomized Controlled Trial with Bordeaux Winegrowers," Bordeaux Economics Working Papers 2021-22, Bordeaux School of Economics (BSE).

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    More about this item

    Keywords

    Wine; Resistant varieties; Treatment frequency indicator; Pesticide residue analysis; Willingness to pay; Experimental economics.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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