The adoption of smart industry 4.0 app technology and harnessing e-WOM in the wine industry caused by a global pandemic: a case study of the Yarra Valley in Australia

Abstract

PurposeThis exploratory study aims to examine how wine stakeholders' are adopting innovative advancements in smart industry 4.0 application technology (SI4.0AT) coupled with electronic word-of-mouth (e-WOM) techniques to increase winery visitation and wine sales, prior to and during a global pandemic in the Yarra Valley in Victoria, Australia.Design/methodology/approachA qualitative interpretivist geographical bounded case study approach was used to collect data from fifteen Victorian wine stakeholder's prior to and during the global pandemic COVID-19. A thematic analysis was applied to interpret participant responses and how they viewed, reacted to and harnessed S14.0AT and e-WOM to continue and increase wine sales.FindingsThe findings suggest few wine stakeholders' were actively implementing SI4.0AT prior to the global pandemic, COVID -19. With the forced closure of wineries to visitors across Australia, most small to medium-sized wineries immediately changed their business models to concentrate on domestic e-commerce wine sales and home delivery. To support these new business models, e-WOM techniques were quickly adopted or increased whereas other S14.0AT technologies were not, due to financial restraints.Research limitations/implicationsThe number of participants used in this study is a limitation, however, this can be overcome by replicating this study in other wine regions. This research focused on the wine stakeholders' viewpoint only and may not be easily generalised. Future studies may examine the “what” aspect of SI4.0AT is being used and e-WOM content such as investigating what consumers are saying about these wineries, the method of communication and the motivations for consumers to engage with a winery.Practical implicationsThe implications for the wine industry and overall results offer insight into the wine stakeholders' perceptions of SI4.0AT and e-WOM and consequent marketing strategy of wineries in the Yarra Valley, Victoria, both pre- and during forced face-to-face winery closures due to a global pandemic. Wineries need to continue to harness and leverage the benefits of e-WOM wine marketing in their marketing strategies and continue to explore the affordability of 4.0 app technology and Tourism 4.0 options.Originality/valueThis study is the first attempt at investigating how wine stakeholders' view; react to and harness SI4.0AT and e-WOM through formalised online marketing strategies which should continue to be investigated in the future.