Consumers’ willingness to pay for local muscadine wine
International Journal of Wine Business Research
ISSN: 1751-1062
Article publication date: 12 March 2018
Abstract
Purpose
This paper aims to identify factors influencing the likelihood of consumers trying muscadine wines and among those who have tried them, willingness to pay (WTP) for an in-state produced muscadine wine.
Design/methodology/approach
The study uses a 2015 survey of wine consumers residing in Tennessee (TN). The survey presented respondents with a referendum choice experiment between a ‘base’ wine (represented by a North Carolina (NC) muscadine wine) and a TN muscadine wine. The study uses probit regressions to estimate factors influencing the probability of trying muscadine, and those influencing TN muscadine wine choice. Estimates of WTP for TN muscadine wine are derived from the model coefficients.
Findings
Older age, living in non-metro households being a weekly wine consumer, preferring red wines, and having visited a winery in the past year positively influence trying muscadines. Older age, liking muscadines and lower product price positively influence TN muscadine choice. Greater importance of wines being local and premiums paid for local foods have positive influences on trying muscadines and WTP for TN muscadine wine. A premium WTP for a TN muscadine over a NC muscadine exists among TN consumers. Among the most influential reasons why consumers chose the TN muscadine were beliefs that purchasing local wines helps local wine grape growers and local economies.
Originality/value
This study provides the muscadine wine industry with estimates of WTP for locally produced muscadines and demonstrates that attitudes toward local wines and premium paid for local foods positively influence trying muscadine wine and WTP for locally produced muscadine.
Keywords
Acknowledgements
Support for the research presented in this document was provided by the Tennessee Farm Winegrowers Alliance, the Tennessee Office of the US Department of Agriculture Rural Development and the Tennessee Department of Agriculture.
Citation
Everett, C., Jensen, K., Boyer, C. and Hughes, D. (2018), "Consumers’ willingness to pay for local muscadine wine", International Journal of Wine Business Research, Vol. 30 No. 1, pp. 58-73. https://doi.org/10.1108/IJWBR-11-2016-0038
Publisher
:Emerald Publishing Limited
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