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Word-Of-Mouth Versus Experts And Reputation In The Individual Dynamics Of Wine Purchasing

Author

Listed:
  • TATIANA BOUZDINE-CHAMEEVA

    (BEM Bordeaux Management School, France)

  • SERGE GALAM

    (Centre de Recherche en Épistémologie Appliquée, École Polytechnique and CNRS, Boulevard Victor, 32, 75015 Paris, France)

Abstract

The dynamics of wine purchasing behavior is studied focusing on the respective impacts of the word-to-mouth versus wine expert judgements and reputations. To investigate the problem we apply the Galam model of opinion dynamics to agents who have to select a preference about which type of wine to buy given expert judgements, individual preferences and wine reputations. It could be, for instance, a preference between Bordeaux and Burgundy. The main novelty of the work is not about the building of a new model but indeed the construction of a scheme to confront the Galam model to a specific problem of the real world. Accordingly we design a commercial strategy to hold on to a share of the wine market. It provides a novel understanding on how, given some established reputation, the competitive interplay between social interactions and expert judgments affects the market shares distribution. The financial implications of the practical implementation of these results are discussed. In particular it is found that sample distribution of bottles could be drastically reduced from the usual levels practiced by producers. We hope our results will convince some wine producers to test our predictions.

Suggested Citation

  • Tatiana Bouzdine-Chameeva & Serge Galam, 2011. "Word-Of-Mouth Versus Experts And Reputation In The Individual Dynamics Of Wine Purchasing," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 871-885.
    • Handle: RePEc:wsi:acsxxx:v:14:y:2011:i:06:n:s0219525911003475
    DOI: 10.1142/S0219525911003475
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    Citations

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    Cited by:

    1. Luo, Gui-Xun & Liu, Yun & Zeng, Qing-An & Diao, Su-Meng & Xiong, Fei, 2014. "A dynamic evolution model of human opinion as affected by advertising," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 414(C), pages 254-262.
    2. Sebastian Goncalves & M. F. Laguna & J. R. Iglesias, 2012. "Why, when, and how fast innovations are adopted," Papers 1208.2589, arXiv.org.
    3. Piotr Przybyła & Katarzyna Sznajd-Weron & Rafał Weron, 2014. "Diffusion Of Innovation Within An Agent-Based Model: Spinsons, Independence And Advertising," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-22.
    4. Rafał Apriasz & Tyll Krueger & Grzegorz Marcjasz & Katarzyna Sznajd-Weron, 2016. "The Hunt Opinion Model—An Agent Based Approach to Recurring Fashion Cycles," PLOS ONE, Public Library of Science, vol. 11(11), pages 1-19, November.
    5. Andrea Ellero & Annamaria Sorato & Giovanni Fasano, 2011. "A new model for estimating the probability of information spreading with opinion leaders," Working Papers 13, Department of Management, Università Ca' Foscari Venezia.
    6. Fan, Kangqi & Pedrycz, Witold, 2016. "Opinion evolution influenced by informed agents," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 431-441.

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