Revealed preference analysis of red wine attributes using polarisation

Abstract

2009),"Region of origin and its importance among choice factors in the wine-buying decision makingIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The usual method of analysis of product attributes in marketing is to fit a multinomial logit model within a stated choice experiment, to determine the impact of attributes on the choice probability, which is equivalent to market share. The market share is intuitive and is based on each single choice in the study. However, revealed preference allows for a study into repeat purchase and loyalty, which can also be rich constructs for determining consumer preference. Design/methodology/approach -The authors introduce a loyalty measure, polarisation, and show results based on a wine data set of revealed preference. Polarisation is a function of the beta binomial distribution (BBD) and can also be a function of the Dirichlet multinomial distribution (DMD). The DMD provides a standardised or average loyalty effect for each attribute (such as wine variety), and the BBD an individual effect for each attribute level (such as cabernet) within the attribute. While the DMD results provide a rich ''first-pass'' of the data, it is the individual results which can classify levels as reinforcing, niche, or change-of-pace in nature, with subsequent different marketing implications. These implications are drawn out in this study. Findings -Specifically, the DMD results show higher loyalty towards price and variety rather than to region and brand. The BBD results show that segmented preferences in the wine market are influenced more by the price attribute levels and that the two key single varietals in the red wine category tend to behave as reinforcing attribute levels with important marketing implications for small and large wine brands. Originality/value -The authors extend the work of stated choice experiments into the realm of actual consumer purchase behaviour for wine. They also find that consumers' repeat purchasing is based on attributes other than brand. This provides a useful platform for both researchers to further investigate loyalty/repurchasing using attributes as well as for marketing practitioners to better position their products to consumers.

Quality assurance labels as drivers of customer loyalty in the case of traditional food products

“…Empirical evidence supports such hypothesis (e.g. Jarvis, Rungie, Goodman, & Lockshin, 2006;Jarvis, Rungie, & Lockshin, 2007a, 2007bKrystallis & Chrysochou, 2010, 2011Singh, Ehrenberg, & Goodhardt, 2008).…”

“…those with small market shares) to have lower repeat purchase probabilities (Ehrenberg & Goodhardt, 1970;McPhee, 1963). This suggests that loyalty, as an outcome of repeat purchase behaviour, is related to a brand's size and not to any specific characteristics related to its positioning (Jarvis et al, 2007b).…”

“…country of origin, price, quality label), which can drive loyalty on wine more than the brand name. For example, Jarvis et al (2007b) investigate Australian consumers' loyalty to wine attributes such as brand, region, variety and price. Their findings suggest that consumers exhibit higher loyalty toward price and variety in comparison to region and brand.…”

Wine consumers’ preferences in Spain: an analysis using the best-worst scaling approach

“…However, grape variety, country of origin, "someone recommended it" and "I tasted the wine previously" are the most relevant and preferred wine attributes by consumers from New World countries such as Australia, New Zealand and the United States (Hall et al, 2001;Loureiro, 2003;Schamel & Anderson, 2003;Charter & Pettigrew, 2006;Lockshin et al, 2006;Boudreaux & Palmer, 2007;Jarvis et al, 2007;Johnson & Bruwer, 2007;Hollebeek et al, 2007;Veale, 2008;Kolyensikova et al, 2008;Cohen, 2009;Cohen et al, 2009;Goodman, 2009). Finally, some studies have found that brand name, label design, price and "it won a medal/award" had a similar perceived relevance by Old World and New World wine consumers (Angulo et al, 2000;Hall et al, 2001;Skuras & Vakrou, 2002;Thomas & Pickering, 2003;Lockshin et al, 2006;Martinez-Carrasco et al, 2006;Mtimet & Albisu, 2006;Perrouty et al, 2006;Boudreaux & Palmer, 2007;d'Hauteville et al, 2007;Jarvis et al, 2007;Johnson & Brower, 2007;Barreiro et al, 2008;Bernabèu et al, 2008;Hertzberg & Malorgio, 2008;Kolyesnikova et al, 2008Casini & Corsi, 2009Cohen, 2009;Cohen et al, 2009;Goodman, 2009). …”

Branded Versus Non-Branded: Differences in Consumer Preferences

“…Seen from this perspective, any product category comprises subcategories formed around product attributes, and that each of these subcategories performs differently in terms of loyalty, obtaining its own attribute-based loyalty level (Krystallis & Chrysochou, 2010). In this respect, managing customer loyalty involves working with a bundle of attributes, with the brand name being only one of them (Jarvis et al, 2007). Some studies have tried to explain the relationship of consumption based on the attributes of the product (Ubilava et al, 2011;Jegethesan et al, 2012;Krystallis, 2013;Hahnel et al, 2014;Schuitema & De Groot, 2015).…”