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Modeling Perceptions Of Locally Produced Wine Among Restaurateurs In New York City

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  • Preszler, Trent L.
  • Schmit, Todd M.

Abstract

Poor perceived product quality, an inadequate sales force, and intense competition from wines produced elsewhere are common reasons cited for why New York wines have not achieved broad acceptance in the New York City (NYC) market. NYC restaurant owners, sommeliers, and chefs were surveyed regarding their perceptions and purchasing decisions of wines grown and bottled in New York State. Factor analysis was applied to examine the structure of interrelationships among key indicators of product perception, and an ordinal logistic regression model was used to identify the characteristics of restaurants that show a strong propensity to adopt local wines. The results indicate that a NYC restaurant’s type of cuisine does not affect its propensity to adopt local wine, nor does a restaurant’s desire to offer a large, geographically diverse wine list. The perceived collective reputation for a wine region’s excellence in one particular grape varietal was found to be the most significant factor in the probability of adoption of local wines in NYC. An important implication of these results is that being local is not enough, and New York winery stakeholders could establish a more prominent presence in NYC by emphasizing their collective reputation for particular grape varietals.

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Bibliographic Info

Paper provided by American Association of Wine Economists in its series Working Papers with number 45503.

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Date of creation: Nov 2008
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Handle: RePEc:ags:aawewp:45503

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Web page: http://www.wine-economics.org
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Related research

Keywords: product perception; restaurant; wine; sommeliers; local; collective reputation; New York; New York City; Demand and Price Analysis; Marketing;

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  1. Tomek, William G. & Kaiser, Harry M., 1999. "On Improving Econometric Analyses Of Generic Advertising Impacts," Working Papers 14755, Cornell University, Department of Applied Economics and Management.
  2. Landon, Stuart & Smith, Constance, 1997. "The Use of Quality and Reputation Indicators by Consumers: The Case of Bordeaux Wine," MPRA Paper 9283, University Library of Munich, Germany.
  3. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
  4. Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide 125877, Australian Agricultural and Resource Economics Society.
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