The determinants of winery visitors for local wine and non-wine products in the Northern Appalachian states

Shang-Ho Yang, Kiyokazu Ujiie, Timothy Woods and Shuay-Tsyr Ho

Journal of Wine Economics, 2023, vol. 18, issue 4, 341-358

Abstract: The development and expansion of wineries in Appalachian states in the United States over the past 20 years has received attention, while the study of non-wine product consumption in wineries has been very limited. Wineries increasingly include these non-wine products as complementary products in their marketing portfolio. This study analyzes the determinants of wine and non-wine spending among winery visitors in selected Northern Appalachian states, including Pennsylvania, Ohio, Kentucky, and Tennessee. We develop a market segmentation model and a random utility theory with an interval regression model. Results from 1,609 participants show that wine knowledge has a positive effect on local wine spending, and spending on non-wine products should not be underestimated for its overall contribution to the winery business. Our results suggest that wineries have the potential to boost store sales associated with non-wine products. Diversifying the product lines in wineries to include more non-wine products would be a useful marketing strategy.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jwecon:v:18:y:2023:i:4:p:341-358_7

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