The Influence of Wine Expert’s On-Line Ratings on Retail Price of On-Premise Market in Korea

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

“…The researchers of this study aimed to explore the difference in correlation between on-premise price and wine quality ratings from online wine quality evaluation-providing sources: wine Collective Intelligence (CI) platforms vs. an individual wine professional, Robert Parker. In the wine industry, Parker's wine quality evaluation, Parker's point, traditionally has had power in setting the price of wine, and it has been studied and proven by various researchers [12][13][14][15][16].…”

“…Most wine studies with a quality evaluation with price information have used the correlation analysis to investigate the phenomenon. [12][13][14][15][16] The number of rho from Robert Parker's point and the on-premise prices of wines with vintage 1975 to 2008 is 93 from 8 countries, 23 regions, and 4 types of wine.…”

“…Wine Spectator, Wine Enthusiast and Decanter.com, which are considered as CI platforms in this study, are categorized as subjective quality evaluations performed by groups of expert panels. On the other hand, vivino.com is located at the subjective quality with rating performed by public people/individual quadrant [14,15].…”

“…Hay [12] has reported the impact of Parker's points on the process of price formation through a comparison of the 2005 and 2008 En Primeur campaigns. Nam and Kwak [15] and Nam et al [16] investigated whether Parker's points affect the on-premise wine prices in Korea based on the region and vintage of wine production. Thus, the study on any possible relationship between Robert Parker's points and off-premise wine prices remains undone from academicians' perspectives.…”

“…However, in the wine industry, traditionally and absolutely, many practitioners and academicians believed and reported that professional wine critics' wine grades, namely Robert Parker's wine scores, affect the market's wine prices and consumers' wine choices. Robert Parker's ratings effect on price and customer purchase behaviors are well documented in this industry [12][13][14][15][16][17]. In this regard, in the wine industry, we cannot insist that Collective Intelligence has overpowered wine critics in respect to knowledge and power for wine evaluation and price effect.…”