Sounds Better? Potential Implications of Obscure American Viticultural Areas to Consumers

Kar Ho Lim ()

Journal of Agricultural and Applied Economics, 2021, vol. 53, issue 1, 37-54

Abstract: The American Viticultural Area (AVA) allows designated wine regions to be created, marketed, and protected. But many of the now 248 AVAs may be meaningless to consumers. Are AVAs thus meritless? Can AVAs affect consumers despite low recognition? A choice experiment examines three appellations that are applicable to the same wine: New Jersey, USA; Pilesgrove, New Jersey; and Outer Coastal Plain (OCP)—a New Jersey AVA. The results show that consumers prefer OCP wines over the former alternatives, affirming the marketing potential of AVAs that omit state names. Nevertheless, AVA may have exploited consumers’ lack of information.

Date: 2021
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