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Effect of Online Collective Intelligence in Wine Industry: Focus on Correlation between Wine Quality Ratings and On-Premise Prices

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  • Young-Sik Kwak

    (Department of Business, Gyeongsang National University, Jinju 52725, Korea)

  • Yoon-Jung Nam

    (Vino Consulting, Seoul 06018, Korea)

  • Jae-Won Hong

    (Department of Global Trade, Gyeongsang National University, Jinju 52725, Korea)

Abstract

This study aims to explore whether wine CI (Collective Intelligence) platforms, such as Wine Spectator and Wine Enthusiast, can provide a wine rating effect on price, as Robert Parker’s does in the Korean wine market. To achieve the purpose of the study, we collected information with wine evaluation ratings and on-premise prices from three wine evaluation sites and seven restaurants in South Korea. The researchers calculated the Pearson’s rho between the wine evaluation ratings and on-premise prices based on country, region, vintage, and type of wine. Based on the results of the study, the CI of wine ratings shows statistically the same association degree to price as wine guru Robert Parker’s score. This study can academically extend the research of CI’s application in the wine industry and provide strong support for a sustainable e-business model and pricing tactics in the wine industry.

Suggested Citation

  • Young-Sik Kwak & Yoon-Jung Nam & Jae-Won Hong, 2021. "Effect of Online Collective Intelligence in Wine Industry: Focus on Correlation between Wine Quality Ratings and On-Premise Prices," Sustainability, MDPI, vol. 13(14), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:8001-:d:596276
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    References listed on IDEAS

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    1. Ali, Héla Hadj & Lecocq, Sébastien & Visser, Michael, 2010. "The Impact of Gurus: Parker Grades and en primeur Wine Prices," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 22-39, April.
    2. Besiki Stvilia & Michael B. Twidale & Les Gasser & Linda C. Smith, 2005. "Information Quality In A Community-Based Encyclopedia," World Scientific Book Chapters, in: Suliman Hawamdeh (ed.), Knowledge Management Nurturing Culture, Innovation, and Technology, chapter 9, pages 101-113, World Scientific Publishing Co. Pte. Ltd..
    3. Žaneta Piligrimienė & Andželika Žukauskaitė & Hubert Korzilius & Jūratė Banytė & Aistė Dovalienė, 2020. "Internal and External Determinants of Consumer Engagement in Sustainable Consumption," Sustainability, MDPI, vol. 12(4), pages 1-20, February.
    4. Oleksy, Paweł & Czupryna, Marcin & Jakubczyk, Michał, 2021. "On Fine Wine Pricing across Different Trading Venues," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 189-209, May.
    5. Batat, Wided & Peter, Paula C. & Moscato, Emily M. & Castro, Iana A. & Chan, Steven & Chugani, Sunaina & Muldrow, Adrienne, 2019. "The experiential pleasure of food: A savoring journey to food well-being," Journal of Business Research, Elsevier, vol. 100(C), pages 392-399.
    6. Edward Oczkowski & Hristos Doucouliagos, 2015. "Wine Prices and Quality Ratings: A Meta-regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 103-121.
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    Cited by:

    1. Clarissa Laura Maria Spiess Bru, 2023. "Does the Tasting Note Matter? Language Categories and Their Impact on Professional Ratings and Prices," Working Papers Dissertations 105, Paderborn University, Faculty of Business Administration and Economics.
    2. Stephen Bazen & Jean-Marie Cardebat & Magalie Dubois, 2024. "The role of customer and expert ratings in a hedonic analysis of French red wine prices: from gurus to geeks?," Applied Economics, Taylor & Francis Journals, vol. 56(46), pages 5513-5529, October.
    3. Stephen Bazen & Jean Marie Cardebat & Magalie Dubois, 2022. "From Gurus to Geeks? The Role of Customer and Expert Ratings in a Hedonic Analysis of French Red Wine Prices," Working Papers hal-03891458, HAL.

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