The effect of environmental status signaling on Organically-produced wine purchase intentions

Abstract

ABSTRACT This study examined the effect of environmental status signaling (ESS) on organically produced wine purchase intentions (PI) of US wine consumers. Through two experimental studies employing validated scenarios followed by a brief survey, the prevalence of ESS is examined with respect to social status and consumption settings (private vs. public) using a sample of 764 U.S. wine consumers. Irrespective of status activation, PI for organically produced wines was significantly higher than that of the better-rated conventional wines. However, when consumption setting was manipulated as public through a Facebook post, the difference in PI between organically produced and higher rated conventional wines became insignificant, showing that consumers are reluctant to purchase organically produced wines publicly. Although consumers believe organically produced wines are beneficial to the environment, healthier, and superior in quality, it seems they are concerned that others might perceive such wines as poor-quality products. Marketing of organically produced wines should therefore focus on benefits on the environment, freshness, and health-related cues, instead of environmental status-driven signals. Making the consumption experience public through social media engagements might not be a fruitful marketing strategy also, as suggested by the findings of this study.