Articlegold2010

Symbolic and functional brand effects in the hedonic assessment of South African wines

10 citations0/0 files storedSouth African Journal of Business Management

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Wine Industry and Tourism Consumer Market Behavior and Pricing Consumer Behavior in Brand Consumption and Identification

Abstract

Proceeding from work that identifies price as an extrinsic cue that can mediate between a wine’s perceived and intrinsic merit, the brand construct is presented as an additional potential mediator. Here we define (1) “functional” brands as representations of intrinsic (blind-tasted) quality, and (2) “symbolic” brands (as proxied by the difference between a wine’s intrinsic and extrinsic (sighted-tasted) evaluations) as placebos. Using a database of 8225 paired tastings (sighted and blind) of popular South African cultivars sampled over an eight year period, we control for contending price and vintage cues to identify the scale, character and distribution of a given set of functional and symbolic brand effects. Respectively these are identified as occurring in the frequency of roughly two-to-one. The 30 strongest of each are tabled. A subset of brands that present simultaneously as both functional and symbolic is further scrutinised. This set decomposes into two distinctive clusters located approximately one standard deviation left and right of the broader intrinsic mean. The smaller Zone of Symbolic Values is characterised by weak intrinsics and strong positive placebos. The second, larger Zone of Functional Values presents the opposite: negative placebos and strong functional intrinsics. Through the calibration and scaling of these brand-effects, wine producers can better understand what proportion of their product’s sight-driven appeal can ably be ascribed to a brand’s placebo as opposed to the underlying quality. Consequently their marketers may now more knowledgably amplify (or, where appropriate, down-play) the label-cue and adjust their wine marketing communication accordingly.

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References

1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity 2010Satisfaction: a behavioral perspective on the consumer 1999The Role of Emotions in Marketing 2014Satisfaction: A Behavioral Perspective on the Consumer 1998Brand Equity as a Signaling Phenomenon 2004Neural Correlates of Behavioral Preference for Culturally Familiar Drinks 2004Blue ocean strategy.2008Delight by Design: The Role of Hedonic Versus Utilitarian Benefits

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2013How price demeans sighted assessments across user profiles 2012Nonlinear hedonic pricing: a confirmatory study of South African wines 2012ACCEPTANCE OF NATIONAL AND STORE BRANDS OF WINE BY SUPERMARKET CONSUMERS IN THE SOUTH OF CHILE 2012The hedonic valuation of South African wine brands 2013Flies in amber: Capturing brand equity-effects in South African rosé wines

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