Abstract
The development and expansion of wineries in Appalachian states in the United States over the past 20 years has received attention, while the study of non-wine product consumption in wineries has been very limited. Wineries increasingly include these non-wine products as complementary products in their marketing portfolio. This study analyzes the determinants of wine and non-wine spending among winery visitors in selected Northern Appalachian states, including Pennsylvania, Ohio, Kentucky, and Tennessee. We develop a market segmentation model and a random utility theory with an interval regression model. Results from 1,609 participants show that wine knowledge has a positive effect on local wine spending, and spending on non-wine products should not be underestimated for its overall contribution to the winery business. Our results suggest that wineries have the potential to boost store sales associated with non-wine products. Diversifying the product lines in wineries to include more non-wine products would be a useful marketing strategy.
| Original language | English |
|---|---|
| Pages (from-to) | 341-358 |
| Number of pages | 18 |
| Journal | Journal of Wine Economics |
| Volume | 18 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 4 2023 |
Bibliographical note
Publisher Copyright:© The Author(s), 2023.
Funding
The authors are extremely grateful to the editor and an anonymous referee for their valuable comments and suggestions, which have helped improve the quality of the paper. This research is funded by the Risk Management Agency, U.S. Department of Agriculture; grant number: RME-M3G04673. 1
| Funders | Funder number |
|---|---|
| U.S. Department of Agriculture | RME-M3G04673 |
| Risk Management Agency |
Keywords
- estimated consumer spending
- non-wine products
- purchasing behavior
- winery
ASJC Scopus subject areas
- Food Science
- General Business, Management and Accounting
- Horticulture