Factors influencing wine ratings in an online wine community: The case of Trentino–Alto Adige

Abstract

AbstractConsumers often struggle to make their choice in the highly diversified wine market. With wine being an experience good, consumers must rely on extrinsic characteristics, e.g., information on the label. Thus, easily available quality signals like consumer ratings have become an increasingly useful and widespread tool. Vivino is one of the largest online wine communities with over 60 million users, which have more than doubled since 2018. Hence, users have easy access to peer ratings, while established wine expert ratings are being challenged. This study analyzes data from Vivino to explore factors affecting consumer ratings at different price points, considering several wine attributes like geographical indications, brand, and the so-called “community effect.” We show that there is a small but significant community effect on wine's perceived quality related to its popularity among users of the Vivino community, as well as effects from specific wine attributes. Moreover, we estimate a hedonic quantile model on similar price ranges to compare the effect of the same regressors on wine prices. Results contribute to a better understanding of how different factors affect consumers’ wine evaluations, allowing to compare their effect on the “pure” consumer preference (i.e., consumer ratings) and market value.