Building Strategic Partnerships in Wine Marketing

Abstract

This study examines the relationship between U.S. wine distributors and wineries. Specifically, it identifies the factors distributors believe contribute to successful winery-distributor relationships. Web-based survey research was conducted with 81 usable responses received. Results indicate that wine quality, dependability of the producer, price, and personal relationship between the winery and distributor are the most important factors in determining whether a distributor will carry a specific wine in their sales portfolio.     

Wine tourism: Chilean wine regions and routes

Wine tourism is an important activity in several wine-producing countries. Yet the roles wine tourism plays within winery strategies remain unclear. This exploratory study investigates and differentiates the roles wine tourism plays within winery strategies in Chile. A generic literature review suggests that many questions remain unanswered within the wine tourism debate, substantial differences exist from country to country, and little of what researchers have uncovered seems to apply to Chile. The paper uses empirical data to systematically examine the various wine regions and routes in Chile, highlighting heterogeneities in demand and supply. One can classify winery business models into two broad strategies. The first is wineries that see wine tourism as a link in a long-distance, possibly inter-continental relationship marketing (RM) chain. The second is wineries that see wine tourism as their best hope of survival. The paper considers the implications of each strategy, both to Chile and to other wine-producing countries.     

Promotional efforts of muscadine wines and muscadine‐related products: the case of southern United States wineries

Muscadine grapes are native to the southern United States, where they have been grown and consumed for generations. Apart from extensive coverage provided in scientific research concerning their healthy properties, to date very little has been researched about other areas of the muscadine grapes, muscadine wines and related products. For example, in an era when the ‘local’ aspect of foods can have a strong impact on both consumers and food growers, very little has been researched from an entrepreneurial, marketing and (wine) tourism perspective. In this context, academic literature investigating winery operators' efforts in promoting and selling muscadine products through the cellar door is almost inexistent. The present study examines this area from the perspective of 31 operators of family‐run wineries located in several southern states. The findings demonstrate agreement among respondents about the critical need to promote the ‘local’ aspect of muscadine wines, as well as other value‐added muscadine products. Some operators refer to the need to support local/state farmers following ‘buy local’ slogans, while others are reacting at consumers' demands for local products. Arguably, as more muscadine wineries are established in some of the southern states, muscadine wines may become more popular and more accepted by mainstream consumers. However, muscadine winery operators are confronted by several challenges such as the lack of resources and support to invest in or expand their promotional efforts; in some cases, state legislation prevents operators from distributing their products outside the cellar door. With so many wines and other beverages consumers can find in retail stores and in the hospitality industry today, the strengthening of current promotional efforts at the cellar door and introducing consumers to a relatively unknown local product (as compared with Vitis vinifera wines) become critical for southern winery operators.     

Trump’s Trade Policy Agenda

President Donald Trump espouses “America First” positions which are commonly interpreted as protectionist. However, a closer reading of Donald Trump’s business interests, of his administration’s published trade agenda and of US trade negotiation history calls into question whether “America First” means protectionism. Trump will use large trade deficits to pressure trading partners to further open up their markets. Companies that are successful in exporting to the US market from those countries will be alarmed by protectionist announcements and will therefore most likely pressure their governments to give in to the demands of the Trump administration.     

Label design of wines sold online: Effects of perceived authenticity on purchase intentions

This article aims at exploring the relation between customers' perception of the authenticity of wines and their purchase intentions in online retailing. We investigate if perceived pleasure plays a mediating role and whether the relation between perceived authenticity and perceived pleasure is moderated by the color type (heraldic vs. vivid colors), presence or absence of a château (icon), and visual complexity (high vs. low) with respect to label design. For this purpose, we conduct an exploratory study followed by an experiment (n = 215). The results reveal that perceived authenticity has a positive effect on both pleasure and purchase intent. Labels showing heraldic colors and low visual complexity lead to a stronger effect of authenticity on pleasure in comparison to labels with vivid colors and high visual complexity. The presence or absence of a château does not have a significant moderating effect. Therefore, wine marketers selling wines on the Internet are advised to design wine labels which tend to show heraldic colors and low visual complexity to enhance customers’ perception of wine authenticity.     

EVALUATING THE RELATIONSHIP BETWEEN QUESTIONABLE BUSINESS PRACTICES AND THE STRENGTH OF SUPPLY CHAIN RELATIONSHIPS

While strong relationships are consistently identified as a critical component of successful supply chain collaboration, many firms still engage in questionable business practices that threaten the trust and commitment that exists among trading partners. Survey results from logistics managers at manufacturing firms found that low to moderate levels of questionable business practices occur in relationships with customers and that the occurrence of these practices are related to lower reported levels of trust and commitment between trading partners. The results suggest that reducing questionable behaviors will increase trust and commitment, which should lead to stronger relationships and increased supply chain performance.     

International effects of German unification

The merger of the two German states brings together countries with divergent economic systems, different trade orientations and a rift in terms of wealth. Transforming the East German system into a social market economy raises enormous internal and external adjustment problems in a period in which West Germany already faces the challenges of the EC 1992 project and European Monetary Union. German unification reinforces concentration tendencies and protectionist tendencies that will contribute to imperfect competition processes in Europe and the global economy.     

Who Supplied My Cheese? Supply Chain Management in the Global Economy

Today, with an Internet connection and some specialized skills, individuals and companies located in the remotest ends of the earth can compete and collaborate globally. This paradigm shift has occurred as technological forces, the fracturing of political barriers, and a relentless drive for greater efficiencies changed how we work and where we work, ushering in the age of globalization in ways never imagined previously. While many factors can influence macroeconomic variables—including better monetary and fiscal policies, freer trade, and fewer economic shocks—evidence is presented here that better global supply chain management and a more global economy should not be overlooked. On the one hand, these new practices have likely helped to keep inflation lower, reduce economic volatility, strengthen productivity growth, and improve living standards. On the other hand, these new practices cause greater uncertainties and calls for protectionist policies, as outsourcing and offshoring move work to lower cost providers with little regard for geopolitical boundaries. JEL Classification F110, F020     

Trade Policy and the Obama Administration

During his primary campaign, President Obama took an aggressive stance on trade, suggesting a protectionist drift in U.S. trade policy. However, it seems more likely that policy will focus more on enforcement of existing rights than on protectionist initiatives. The major influences on trade policy are likely to be multilateral approaches to trade problems, broad foreign policy concerns, the impact of trade policy on recovery from the current recession, and global climate change initiatives. Holdover initiatives on the World Trade Organization's Doha round and bilateral agreements will be joined by global climate change as the principal policy issues for the next few years.     

Sensory expectations generated by colours of red wine labels

Since there is usually no sales assistance available in supermarkets, wine labels represent the pivotal source of information for consumers at the point of purchase. In particular, it is the colour of the label which largely influences consumers’ wine choice. The purpose of our study was to reveal customers’ sensory expectations in relation to the flavour of red wines based on their label colours. Moreover, our goal was to examine whether there are any differences in the consumers’ expectations according to their frequency of wine purchase and gender. A survey was carried out among respondents who were intercepted in the wine aisles of two stores of an Austrian supermarket chain. The results indicate that label colours have a strong influence on flavour expectations. While, for example, red and black are most likely to create tangy flavour expectations, red and orange are most associated with fruity and flowery flavours. In addition, it appears that frequent buyers have stronger expectations than infrequent buyers with respect to most of the colours analysed. Finally, the customers’ gender seems to have little influence on flavour expectations. The results may be considered by wine producers in their label design to create sensory expectations in accordance with the actual flavour of their wine and, hence, avoid any disconfirmation of consumers’ expectations when they taste the wine. This is of particular importance when wine is sold in retail stores and consumers cannot rely on their taste experience prior to their purchase.     

Mindset drives success: Selling beneficial products at the base of the pyramid

Why are so few organizations selling beneficial products at the base of the pyramid (BoP) successful? This is not simply a story of companies failing, and it is one with a dramatic consequence as low-income people do not benefit from products that can improve their way of life. Instead, they continue to drink unsafe water, cook on stoves that emit fumes that kill over 1 million people per year, light their homes with dangerous kerosene lamps, and fall ill from a mosquito bite. Based on a multiyear field research program conducted in 25 countries, we argue that having a specific mindset about BoP customers is consequential to an organization’s success. Many organizations start with the assumption that BoP customers lack money, knowledge, and jobs. By contrast, successful organizations start from the assumption that customers can and will pay if they are provided with a satisfactory solution to their needs and are reassured about the level of risk involved. We detail the different practices that follow from this mindset change in the areas of value proposition, communication, and distribution and show how these practices can make or break the organization’s financial sustainability.     

Red obsession: The ascent of fine wine in China

This article uses hammer prices from five global auction houses to analyse the price premium Bordeaux fine wine yielded at Hong Kong wine auctions. We find that fine wine was on average sold at a 19% premium in Hong Kong. We further observe that the Hong Kong premium is not uniform and most pronounced for wines with perfect Parker scores and the most powerful brands. The premium has declined throughout the sample period from 60% in 2008 to a level of 15% since 2012. This can be attributed to the increase in knowledge on fine wine by Chinese customers.     

Insurance Sales Agents and the Internet: The Relationship Between Opinion Leadership,Subjective Knowledge,and Internet Attitudes

The Internet offers a number of opportunities and threats for insurance sales agents. On the one hand, the Internet provides opportunities to communicate with and reach customers. However, it also introduces the risk of losing business to insurance providers or competitors. These opportunities and threats create a need to understand the characteristics that may affect the views of insurance agents regarding the Internet and its impact on their business. This paper compares insurance sales agents' scores on an opinion leadership scale (Flynn, Goldsmith, and Eastman 1996) and subjective knowledge scale (Flynn and Goldsmith 1999) with their attitudes toward the Internet. The results suggest that those insurance sales agents with a higher level of subjective knowledge about the Internet are more likely to be opinion leaders about the Internet. Both opinion leaders and those with higher levels of subjective knowledge have a more positive attitude about the Internet, but only the relationship with opinion leadership is significant. In addition, those insurance sales agents who are younger (than the approximate mean age of 46 years old) are more likely to be opinion leaders and have a higher level of subjective knowledge of the Internet. The results suggest that perceived knowledge and the willingness to discuss the Internet with others impact one's attitude of it, and that the younger insurance agents will play a leading role in how the Internet will be used.     

Determinants of Online Shopping Influencing Thai Consumer’s Buying Choices

With the ease and availability of high-speed Internet service, online shopping is increasing rapidly. Consumers are moving to more intensive use of the Internet as the technology becomes more accessible, the availability of information increases, and the ability to interact through the Internet evolves. The success of online businesses relies heavily upon its ability to attract customers to complete purchase transactions on their websites. Even though the number of people who use the Internet every day and visit various shopping sites increases daily, it is interesting to note that quite a few of them still hesitate to purchase online. This study intends to examine what factors play a crucial role in encouraging or discouraging consumers in Thailand from shopping online. The findings from this study should help online businesses better understand the mindset of Thai consumers and find ways to improve websites in order to attract more customers.     

Factors Influencing Web Customers’ Willingness to Engage in Online Shopping with an Internet Retailer

This study is an effort to identify and analyze the factors that could potentially influence web customers’ willingness to engage in online shopping with an Internet retailer. Using the primary data collected from a large sample of a web-based consumer survey, researchers developed a structural Equation model that embodied those factors that potentially influenced web customers’ willingness to engage in online shopping with an Internet retailer. Seven constructs were considered to study the effects of those factors on the web customers’ willingness to engage in online shopping with an Internet retailer, including quality of service, inertia to change, economic value, stress reduction, enjoyment in doing business, comfort level with website, and aesthetic appeal. The proposed model is largely supported and validated by several statistical measures and tests.     

Free trade as ideology: fair trade as goal problems of an ideological approach in U.S. trade policy

Increased protectionist practices among the major industrialized countries present serious challenges to a free trade doctrine. Contradictions between theory and practice make the defense of a pure trade system increasingly untenable. Yet U.S. trade policy continues to be driven by an ideological commitment to such a system. Changing international economic and political conditions suggest that a new “fair trade” paradigm may be in the making. However, replacement of a “free” trade regime by a “fair” one will depend on how well the weaknesses of a free trade ideology can be overcome. These weaknesses are discussed and some suggestions are offered for clarifying policy thinking about free trade under contemporary conditions.     

Escaping a protectionist rut: Policy mechanisms for trade reform in a democracy

This paper analyzes the dynamics of trade policy reform under democracy. In an overlapping generations model, heterogeneous agents may acquire skills when young thereby determining the skill composition of their cohort. Current and anticipated trade policies influence education decisions and thus voters' trade policy preferences. We show that there may exist two political steady states: one protectionist and one liberal. Transition from the former to the latter can be achieved by government announcements, temporary educational subsidies, or tariff liberalization by trading partners, but generally not by transfer payments to adversely affected workers. We find additionally that reform is politically feasible only if the proposed liberalization is sufficiently large, suggesting that radical reform may be necessary for escaping a protectionist political rut.     

New opportunities in social media for ad-restricted alcohol products: The case of ‘Yeni Rakı’

The rapid diffusion and technological evolution experienced in the new format of the Internet, particularly social media, have forced many brands to keep pace with this ongoing process in order to engage with their customers. Social media utilize multiple Internet-based communication platforms, including, but not limited to, blogs and social networking sites. This paper aims to examine how social media can be used to interact with consumers in the case of ad-restricted alcohol products, providing a case study from Turkey. The explored case provides an example of a well-planned, creative campaign that successfully exploits the opportunities provided by interactivity. The analysis of an alcohol product is critical due to the fact that such products face many restrictions, thus calling for a more creative and efficient approach to the design and implementation of social media practices, and their integration into integrated marketing communication (IMC) campaigns. This case will contribute to the articulation of the best ways to shape both business-to-consumer and consumer-to-consumer dialogue and fruitful applications of this new IMC tool.     

Personal Selling and Sales Management in the Internet Environment: Lessons Learned

Researchers have suggested that businesses are undergoing a paradigm shift due to the emergence of Internet; a ubiquitous information platform. There is no doubt that its emergence has had and will continue to have considerable impact on business processes and practices. In this special issue of the JMM we address Internet's impact upon the personal selling and sales management processes and practices of contemporary firms. As co-editors of this special issue, we have had a chance to only publish a small set of papers. Therefore, in this editorial we attempt to explicate the lessons learned from the development of the Internet and associated information platforms, with the aim to address the broader issues that have emerged in this area. We specifically divide our discussion into Business to Consumer (B2C), Peer to Peer (P2P), and Business to Business (B2B) lesson. We first review learning from existing practices in the B2C, P2P, and B2B domains. This is followed by a discussion on the impact of the Internet on personal selling and sales management practices. At the end of this editorial, papers in this special issue are discussed with respect to their learning and positioning.     

The reality and the rhetoric of free trade in services

The rapid globalisation of the information economy has unleashed new pressures for increasing the tradabity of information services. There exists a large gap, however, between the rhetoric of the advocates of free trade in services and their protectionist practices.