Abstract
Quality assurance programs (QAPs) may add value to wines through reassuring consumers of wine quality prior to purchase and consumption. In Tennessee, the potential to use a wine QAP is being explored as a means to improve the industry’s economic sustainability. To date, several QAPs exist, but studies directly related to their impact on consumer behavior for wines from emerging areas are scarce. We used an online survey instrument to elicit consumer perceptions of QAPs importance on wine purchasing decisions and how the presence of a QAP may impact their purchasing behavior for a wine from an emerging area (e.g., Tennessee). Wine involvement, QAP perceptions, and familiarity were also measured. A mixed-process model was used to estimate the two ordered probit models for importance of QAPs and the influence of QAPs on Tennessee wine purchases, where QAP importance was treated as a latent variable influencing Tennessee wine purchases. Ordinal probit estimates suggest that greater on-site spending and greater perceived benefits of QAPs (as indicators of quality and standardization) resulted in a higher probability of perceived QAP importance when making wine purchasing decisions. Reduced form estimates of the model of Tennessee wine purchases indicated distance to wine producing areas, female gender, and familiarity with Tennessee wines each negatively influenced the potential impact of QAPs on Tennessee wine purchases. However, on-site spending at wineries and perceived benefits of a Tennessee QAP increased likelihood of Tennessee wine purchases.
Highlights
Received: 14 January 2022In recent years, Tennessee’s grape and wine industries have experienced substantial growth
Little research exists on how Quality assurance programs (QAPs) may influence consumer preferences for local wine produced in lesser-known regions
The results from this study suggest that the perceived benefits from QAPs influence the importance of QAPs to wine consumers
Summary
Received: 14 January 2022In recent years, Tennessee’s grape and wine industries have experienced substantial growth. In 2017, Tennessee had 462 grape farms with a cumulative 959 acres and 747 bearing acres, which is twice the 2007 acreage [1]. The majority of those farms supply grapes to Tennessee’s 68 wineries. The growth in Tennessee’s wine and grape industry is of particular importance given that approximately 60% of the industry is in rural areas [2], meaning the industry has potential to aid sustainability in rural communities through increased job opportunities and economic resources. Greater consumer interest in Tennessee wines could benefit the industry through enhanced economic sustainability and rural communities through direct and indirect job and revenue generation, additional business activity, and increased agritourism visits.
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