Portuguese quality wine and the region-of-origin effect: consumers' and retailers' perceptions

José Cadima Ribeiro (jcadima@eeg.uminho.pt) and José de Freitas Santos (jfsantos@iscap.ipp.pt)
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José Cadima Ribeiro: Universidade do Minho - NIPE, http://www1.eeg.uminho.pt/economia/jcadima/
José de Freitas Santos: ISCAP - IPP and NIPE-UM

No 11/2008, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: This study investigates the relative importance of region of origin associated with extrinsic (price, brand, promotion) and intrinsic (grape, type of wine, colour, age, special references) cues in the decisions of final consumers and small retailers to buy Portuguese quality wine. In order to attain this goal we conducted a survey through face-to-face interviews in the Minho region. The results show that the dominant factor of influence in the acquisition of wine is the region of origin, both for final consumers and small retailers. Despite its importance, brand was not the principal variable to influence consumers’ wine choice, while price has been regarded as a less important extrinsic quality cue. One interesting result is the type of wine (“maduro” or “verde”) which seems to be the most preferred intrinsic cue for final consumers and small retailers. The findings also indicate that the regions of Alentejo, Douro and Verde are clearly the leaders in terms of customer acceptance.

Date: 2008
New Economics Papers: this item is included in nep-agr and nep-mkt
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