Factors affecting the positioning of wineries based on the value added by the DO certification

Abstract

The Designation of Origin (DO) conveys an array of dimensions, such as recognition, quality, reputation and loyalty which constitutes a worthy asset to the agri-businesses. In the region where this study is based (Aragón-Spain) there are four DOs for wine and 6 recently created geographic identifications. The wine industry in the region is not homogeneous. The firms differ in terms of structure, market orientation, diversification, marketing policies, and, in particular, in the use of the certification schemes and bottling. The latter two variables are viewed as proxies of a latent successful policy that leads the firm to add value to its product and accordingly, to a good positioning in the market. The objective of this paper is to identify the characteristics of the firms which pursue such a strategy. The study is based on data collected through a questionnaire addressed to the wineries in the region. To reach the objective proposed, we first classify the wineries according to the weight of certified and bottled wine by means of cluster analysis. Then, we estimate a logit model to find out which are the most relevant factors that influence the success of the firm positioning.

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