Region-of-origin (ROO) certification as marketing strategy in the South African wine market

Abstract

Purpose – This purpose of the study was to examine the relevance of the presence of geographical information, specifically the certification of region of origin (ROO) on the wine label, in the consumer’s wine purchase decision. In addition, the research investigated how the relevance of ROO varies across demographic and behavioural market segments. Design/methodology/approach – The data gathered via an online questionnaire from 434 South African wine consumers were analysed by employing both descriptive and inferential statistical methods. Findings – The ROO of wine plays a secondary role in influencing consumers when faced with a purchasing decision on its own. However, as part of the composite regional variable, namely, grape variety, region and wine style, it plays a major role in influencing consumers. The specific wine grape variety emerged as the most important factor influencing consumers. It was also found that consumers with a high involvement and interest in wine assign a higher degree of relevance to certification of origin of wine than consumers with a low involvement. Practical implications – Wine producers should strive to create a “lighthouse” identity in the minds of consumers. This can only be achieved if most, if not all, the wine producers in a specific geographical area consistently and authentically communicate the same message and offer products with a lighthouse identity to wine consumers. Originality/value – This is the first study that examines the impact of ROO as an information cue on consumers’ wine purchase decision-making in South Africa. It is of value to academic researchers, wine marketing professionals and generic marketing organisations such as wine route organisations.