An exploration of loyalty determinants in Greek wine varieties

Abstract

Purpose: This paper aims to provide a deeper understanding of the market structure of red and white wines from Greek wine varieties and measure loyalty behaviour of frequent wine buyers in Greece. Design/methodology: The study concerned measuring brand performance and loyalty of 4 different Greek wine varieties. Based on stated preference data, basic brand performance measures are estimated through Juster purchase probabilities of brand choice. To measure loyalty behaviour, the polarisation index φ (phi) is used as a measure to model loyalty both at the brand name and specific wine attributes and attribute-levels. Findings: The findings of the present study point to the conclusion that each one of the four Greek wine varieties under examination exhibits its own market structure and loyalty profile, whereas price, quality certification and winemaker’s size seem to function as loyalty stimulators more effectively for white wines. Moreover, it is also clear that the origin or type of the wine variety per se does not constitute a particularly important loyalty component in the wines’ marketing mix. Research limitations/implications: The wine category has always been one of the most challenging product categories to investigate. Many attributes contribute to building loyalty that is often hard to delineate and take into account each. Moreover, the present methodology is based on stated preference data, whereas revealed preference data could be the ideal for applying the specific methodology. Originality/value: Few studies, if any, have explored the issue of loyalty using the present methodological approach in the case of wine.