Wine Price and Quality: In Search of a Signaling Equilibrium in 2001 California Cabernet Sauvignon

Miller, Jason R.; Genç, İsmail H.; Driscoll, A

doi:10.1080/09571260701526899

Cited by 13 publications

(8 citation statements)

References 24 publications

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“…Marketing provides many ways to signal branded qualities to consumers. Common signals that consumers find useful in evaluating goods include, but are not limited to, guarantees, warranties, pricing, firm reputation and country of origin (Dressler, 2016; Babin and Krey, 2015; Miller et al , 2007). Consumers often evaluate signals differently, based on factors associated with the specific purchase decision.…”

Section: Literature Reviewmentioning

confidence: 99%

Third-party ratings and the US wine market

Babin

Bushardt

2019

IJWBR

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Purpose This paper aims to provide insight into the three most prevalent expert wine rater sources and how they separately affect retail prices post-release across a sample of French and US wines from the 2012 vintage. Design/methodology/approach Empirical research using regression models built on data scraped from Web sources provides the source for the substance of the paper. Findings The findings suggest that all rating sources affect release price (approximately $3-4 per point), but more indicative of market performance, only Wine Advocate ratings significantly influence price change in the market post-release. Other results suggest some, but far from complete, consistency among raters. Red wines and French wines typically fetch better scores from the raters, and they are less subject to price drops in the marketplace. Research limitations/implications The nature of the data does not allow for consumers’ individual difference characteristics, such as wine knowledge, among others, to be included as potential factors explaining why and when expert ratings influence consumers. Practical implications Third-party wine ratings do indeed matter both in terms of release price and post-release price performance. In particular, following release, Wine Advocate ratings provide the most influential quality signal in the marketplace. Social implications Scrutiny on the manner in which ratings information is used by retailers is appropriate, given the influence such ratings have on consumers as demonstrated by their effects on market behaviors. Originality/value The research examines the top three US expert ratings and considers their consistency and impact, not just on release price but also on price following release, as a direct indicator of product performance in the marketplace.

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Section: Literature Reviewmentioning

confidence: 99%

Third-party ratings and the US wine market

Babin

Bushardt

2019

IJWBR

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“…The data were obtained from the magazine Wine Spectator (2012), which offers a database that has been widely used in other studies (Troncoso & Aguirre, 2006;Miller et al, 2007;San Martín et al, 2008;Cuellar & Claps, 2013;Lee & Sumner, 2013). The digital edition of Wine Spectator includes more than 290,000 wine ratings covering all the main wineproducing countries, and including 12,500 Spanish wines.…”

Section: Methodsmentioning

confidence: 99%

Spanish wines in the US market: What attributes do US consumers look for in Spanish wines?

Areta¹,

Azcaráte

Apezteguía

2018

Span. j. agric. res.

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This paper analysed the impact of different attributes in Spanish quality wines on United States (US) demand behaviour. A hedonic price model was estimated in order to assess the values that US consumers give Spanish wines. The main results showed that the most influential factor on sale price was aging, which had a positive impact. US consumers valued the quality ratings provided by experts, especially in the upper price categories. The year of vintage and size of the winery were considered medium importance factors in decision-making, with the latest vintages and the smallest wineries receiving the highest ratings. Geographical origin (appellation) helped to explain consumer preferences. Although colour was the least important attribute in consumers' purchase decisions, red wines were the most highly rated in this attribute.

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“…If the ratings of wine critics truly measure wine quality, in terms of being consistent with the preferences of wine buyers, then consumers benefit by getting the most preferable wines they can afford. There is evidence in the literature that expert ratings are positively related to wine prices (e.g., Ali et al, 2008; Miller et al, 2007). However, a large and growing literature has shown that consumers do not prefer more expensive and “reserve” wines in blind tastings (Ashton, 2014; Goldstein et al, 2008; Weil, 2005) and that there is a high degree of inconsistency in wine competitions, both between judges in a particular competition and, especially, between competitions (e.g., Hodgson, 2009a).…”

Section: Introductionmentioning

confidence: 99%

An Analysis of Wine Critic Consensus: A Study of Washington and California Wines

2015

Self Cite

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We examine the degree of consensus in quality ratings of prominent U.S. wine publications. For the purposes of wine consumption and research, are ratings on the ubiquitous 100-point scale reliable measures of quality? The value of expert judgment has been called into question by a number of studies, especially in the context of wine competitions and tasting events. Using data on 853 wines, we find a moderately high level of consensus, measured by the correlation coefficient, between most pairs of publications, similar to the level found by Ashton (2013). Rank and intraclass correlations are similar. Consensus is not found to be related to the blinding policies (or lack thereof) of the critical publications. (JEL Classifications: C93, D46)

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Wine Price and Quality: In Search of a Signaling Equilibrium in 2001 California Cabernet Sauvignon

Cited by 13 publications

References 24 publications

Third-party ratings and the US wine market

Third-party ratings and the US wine market

Spanish wines in the US market: What attributes do US consumers look for in Spanish wines?

An Analysis of Wine Critic Consensus: A Study of Washington and California Wines

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