Consumer Perceptions of Wine Quality Assurance Programs: An Opportunity for Emerging Wine Markets

Alicia Rihn, Kimberly L. Jensen and David Hughes
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Kimberly L. Jensen: Department of Agricultural and Resource Economics, University of Tennessee, Knoxville, TN 37996-4500, USA

Sustainability, 2022, vol. 14, issue 4, 1-16

Abstract: Quality assurance programs (QAPs) may add value to wines through reassuring consumers of wine quality prior to purchase and consumption. In Tennessee, the potential to use a wine QAP is being explored as a means to improve the industry’s economic sustainability. To date, several QAPs exist, but studies directly related to their impact on consumer behavior for wines from emerging areas are scarce. We used an online survey instrument to elicit consumer perceptions of QAPs importance on wine purchasing decisions and how the presence of a QAP may impact their purchasing behavior for a wine from an emerging area (e.g., Tennessee). Wine involvement, QAP perceptions, and familiarity were also measured. A mixed-process model was used to estimate the two ordered probit models for importance of QAPs and the influence of QAPs on Tennessee wine purchases, where QAP importance was treated as a latent variable influencing Tennessee wine purchases. Ordinal probit estimates suggest that greater on-site spending and greater perceived benefits of QAPs (as indicators of quality and standardization) resulted in a higher probability of perceived QAP importance when making wine purchasing decisions. Reduced form estimates of the model of Tennessee wine purchases indicated distance to wine producing areas, female gender, and familiarity with Tennessee wines each negatively influenced the potential impact of QAPs on Tennessee wine purchases. However, on-site spending at wineries and perceived benefits of a Tennessee QAP increased likelihood of Tennessee wine purchases.

Keywords: familiarity; mixed-process model; ordered probit; purchase likelihood; Tennessee wine; wine involvement (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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