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Alternative View on Wine Value and Its Measurement

Author

Listed:
  • Goncharuk, A. G.

    (International Humanitarian University, Ukraine)

Abstract

This paper aims to find an alternative to monetary measures of wine value. The author suggests measuring wine value using energy spent at all stages of its creation, promotion and then transferred to the consumer in a transformed form. It is introduced a new indicator of wine energy value ratio that reflects the ability of a wine to give out energy to consumer more than it was absorbed. Analysing the basic motives of the person who consumes wine, the author distinguishes five basic illusions that wine consumers try to satisfy: health promotion; fun and enjoyment; image supporting; stress relieving and overcoming psychological barriers. Studying the illusion of success we tested the hypothesis about the positive influence of wine age on the wine value (older wine, higher price). The high negative non-linear relationship was determined within a single brand line (Cabernet Sauvignon). The author found that the age of wine plays an important, but not the only, role that determines its value. Besides, it was found that the effect of wine drinking in order to relieve stress and overcome psychological barriers is in fact little different from other alcoholic beverages, so its value in such cases can be measured in comparison with the other alcohol drinks. The author also found that in any case, the value of the wine is determined by the motives and psychological state of the person who buys and consumes it. Motives can be explicit or illusory. Some of them are amenable to absolute measurement or can only be relatively measured, the rest are difficultly measurable or immeasurable. Hence we can talk about the absolute, relative and complex value of wine for the consumer.

Suggested Citation

  • Goncharuk, A. G., 2019. "Alternative View on Wine Value and Its Measurement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(2), pages 88-106, May.
    • Handle: RePEc:ods:journl:v:8:y:2019:i:2:p:88-106
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    References listed on IDEAS

    as
    1. Anatoliy G. Goncharuk, 2017. "Wine Value Chains: Challenges and Prospects," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 11-27, February.
    2. Natalia O. Lazareva, 2015. "Evaluating the Efficiency of Wineries in Ukraine: A Three-Criteria Approach," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(4), pages 239-242, November.
    3. Alexander Belyakov, 2015. "From Chernobyl to Fukushima: an interdisciplinary framework for managing and communicating food security risks after nuclear plant accidents," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 5(3), pages 404-417, September.
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    5. Quintal, Vanessa Ann & Thomas, Ben & Phau, Ian, 2015. "Incorporating the winescape into the theory of planned behaviour: Examining ‘new world’ wineries," Tourism Management, Elsevier, vol. 46(C), pages 596-609.
    6. Miller, Karen W. & Mills, Michael K., 2012. "Contributing clarity by examining brand luxury in the fashion market," Journal of Business Research, Elsevier, vol. 65(10), pages 1471-1479.
    7. Anatoliy G. Goncharuk & Ricardo Sellers-Rubio, 2018. "West vs East: How Different Is Performance in European Winemaking," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 185-200, November.
    8. Anatoliy G. Goncharuk, 2017. "The Challenges of Wine Business in Research," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(4), pages 253-259, November.
    9. Carlsson-Kanyama, Annika & Ekstrom, Marianne Pipping & Shanahan, Helena, 2003. "Food and life cycle energy inputs: consequences of diet and ways to increase efficiency," Ecological Economics, Elsevier, vol. 44(2-3), pages 293-307, March.
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    More about this item

    Keywords

    wine value; wine energy; wine’s impact; illusions; motives;
    All these keywords.

    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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