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The Loyalty Structure of Sparkling Wine Brands in Italy

Published online by Cambridge University Press:  18 December 2018

Luca Rossetto  and
Giulia Gastaldello
Luca Rossetto*
Affiliation:
Department of Land, Environment, Agriculture and Forestry (Tesaf), University of Padova, via Università 16, 35020 Legnaro (PD), Italy
Giulia Gastaldello
Affiliation:
Department of Land, Environment, Agriculture and Forestry (Tesaf), University of Padova, via Università 16, 35020 Legnaro (PD), Italy; e-mail: [email protected].
*
e-mail: [email protected] (corresponding author).
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Abstract

This article analyzes consumer loyalty in the Italian market for Prosecco sparkling wines. In particular, we examine the relationship among wine appellation, price, and consumer loyalty. To that effect, we run a Dirichlet model on Nielsen scan data to estimate brand performance measures and study purchase patterns in the sparkling wine market. We find that Prosecco wines benefit from high-consumer loyalty, and that this loyalty can be explained by both the appeal of the Prosecco appellation and its upper-tier price point. We conclude that promotion strategies with deep discounts, as they affect the appellation's image, might hurt consumer loyalty in the long run. (JEL Classifications: D12, L11, L66, M31)

Keywords

appellationbehavioral loyaltybrand performance measuresDirichlet modelProseccoSparkling wine
Type
Articles
Information
Journal of Wine Economics , Volume 13 , Issue 4 , November 2018 , pp. 409 - 418
Copyright
Copyright © American Association of Wine Economists 2018 

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Footnotes

This paper was presented at the 12th Annual AAWE Conference in Ithaca, USA, June 10–14, 2018. The authors kindly thank the JWE editor and reviewers for their helpful comments and suggestions. We also thank the Research Center for Viticulture and Oenology at University of Padova for making research data available.

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