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Alternative View on Wine Value and Its Measurement

Anatoliy Goncharuk ()

Journal of Applied Management and Investments, 2019, vol. 8, issue 2, 88-106

Abstract: This paper aims to find an alternative to monetary measures of wine value. The author suggests measuring wine value using energy spent at all stages of its creation, promotion and then transferred to the consumer in a transformed form. It is introduced a new indicator of wine energy value ratio that reflects the ability of a wine to give out energy to consumer more than it was absorbed. Analysing the basic motives of the person who consumes wine, the author distinguishes five basic illusions that wine consumers try to satisfy: health promotion; fun and enjoyment; image supporting; stress relieving and overcoming psychological barriers. Studying the illusion of success we tested the hypothesis about the positive influence of wine age on the wine value (older wine, higher price). The high negative non-linear relationship was determined within a single brand line (Cabernet Sauvignon). The author found that the age of wine plays an important, but not the only, role that determines its value. Besides, it was found that the effect of wine drinking in order to relieve stress and overcome psychological barriers is in fact little different from other alcoholic beverages, so its value in such cases can be measured in comparison with the other alcohol drinks. The author also found that in any case, the value of the wine is determined by the motives and psychological state of the person who buys and consumes it. Motives can be explicit or illusory. Some of them are amenable to absolute measurement or can only be relatively measured, the rest are difficultly measurable or immeasurable. Hence we can talk about the absolute, relative and complex value of wine for the consumer.

Keywords: wine value; wine energy; wine’s impact; illusions; motives (search for similar items in EconPapers)
JEL-codes: D46 L66 C21 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:ods:journl:v:8:y:2019:i:2:p:88-106