Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine

Birgit Gassler; Carina Fronzeck; Achim Spiller

doi:10.1108/ijwbr-09-2017-0062

journal article Jun 17, 2019

Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine

Birgit Gassler Carina Fronzeck Achim Spiller

International Journal of Wine Business Research Vol. 31 No. 2 pp. 221-242 · Emerald

View at Publisher Save 10.1108/ijwbr-09-2017-0062

Abstract

Purpose
The mechanism by which organic labelling affects consumers’ willingness to pay (WTP) for wine is not yet fully understood. Organic labelling not only transports information about environmental benefits, but may also influence consumers’ perceptions of quality and taste. The purpose of this paper is to separate the information effect from the perception effect of an organic label on WTP.

Design/methodology/approach
Taste and quality perceptions of 110 German consumers and their WTP for white and red wines were collected in a second-price auction in conjunction with a blind tasting. Each measure was recorded under two experimental conditions: with and without organic labelling. Serial mediation analysis is used to identify the information and perception effect of an organic label on WTP. A moderating effect of commitment to organic consumption is considered.

Findings
Wines marketed as organic are perceived as tastier and of higher quality and value. The organic labelling effect is stronger for committed organic consumers. Mediation analysis confirms perceived better taste as a key driver for WTP, especially for less committed organic consumers. The findings highlight perceptions of wine quality as the main mediator through which organic labelling affects WTP for red wine and for committed organic consumers.

Originality/value
This paper adds to the literature by decomposing the signalling mechanism of organic labelling and by emphasising the role of individual characteristics in determining its magnitude and pathways. Implications from a marketing and wine industry’s perspective are discussed.

Topics

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Details

Published: Jun 17, 2019
Vol/Issue: 31(2)
Pages: 221-242
License: View

Authors

Marketing for Food and Agricultural Products, Department of Agricultural Economics and Rural Development, University of Göttingen, Platz der Göttinger Sieben 5, 37073 Göttingen, Germany

Cite This Article

Birgit Gassler, Carina Fronzeck, Achim Spiller (2019). Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine. International Journal of Wine Business Research, 31(2), 221-242. https://doi.org/10.1108/ijwbr-09-2017-0062

Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine

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