MODELING PERCEPTIONS OF LOCALLY PRODUCED WINE AMONG RESTAURATEURS IN NEW YORK CITY

Trent L. Preszler and Todd Schmit

No 45503, Working Papers from American Association of Wine Economists

Abstract: Poor perceived product quality, an inadequate sales force, and intense competition from wines produced elsewhere are common reasons cited for why New York wines have not achieved broad acceptance in the New York City (NYC) market. NYC restaurant owners, sommeliers, and chefs were surveyed regarding their perceptions and purchasing decisions of wines grown and bottled in New York State. Factor analysis was applied to examine the structure of interrelationships among key indicators of product perception, and an ordinal logistic regression model was used to identify the characteristics of restaurants that show a strong propensity to adopt local wines. The results indicate that a NYC restaurant’s type of cuisine does not affect its propensity to adopt local wine, nor does a restaurant’s desire to offer a large, geographically diverse wine list. The perceived collective reputation for a wine region’s excellence in one particular grape varietal was found to be the most significant factor in the probability of adoption of local wines in NYC. An important implication of these results is that being local is not enough, and New York winery stakeholders could establish a more prominent presence in NYC by emphasizing their collective reputation for particular grape varietals.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 28
Date: 2008-11
New Economics Papers: this item is included in nep-cul and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aawewp:45503

DOI: 10.22004/ag.econ.45503

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