EconPapers    
Economics at your fingertips  
 

The Costs and Benefits of Collective Reputation: Who gains and who loses from generic promotion programs?

Olivier Gergaud, Florine Livat, Bradley Rickard and Frédéric Warzynski

No 231135, Working Papers from American Association of Wine Economists

Abstract: In this paper we develop an original approach to evaluate the costs and benefits associated to a generic promotion program using an application to Bordeaux wines. The benefit is computed from the marginal impact of the collective reputation of the program on the individual reputation of its members. These different marginal impacts are estimated using detailed survey data about the image of Bordeaux wines in seven European countries. We find positive and significant spillover effects from the umbrella reputation (Bordeaux) that moreover increase with the individual reputation level of the wine. Controlling for the natural endogeneity of the collective reputation in this setup, we capture the important fact that this relationship is faced with marginal diminishing returns. These spillover effects, when significantly positive, vary from a minimum of 5% to a maximum of 15% of additional favorable quality opinions. We then show that some subregions are more likely to benefit from generic promotion programs, suggesting that fees should be established on a benefit-cost basis.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 25
Date: 2016-01
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/231135/files/AAWE_WP189.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aawewp:231135

DOI: 10.22004/ag.econ.231135

Access Statistics for this paper

More papers in Working Papers from American Association of Wine Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2025-03-24
Handle: RePEc:ags:aawewp:231135