Price Quality Cues in Organic Wine Market: Is There a Veblen Effect?

Abstract

Italian wine consumers show a progressive shift in favor of organic wine. Sustainability is an important driver for the emerging consumers who tend to adopt eco-friendly behaviors, avoiding food waste and respecting the environment. In this scenario, it is of interest to understand the profile of organic wine consumer, the cues that are used in the process and their impact on purchasing choice. The results from a regression on data from a sample survey showed that price is an important factor driving perceptions of organic wine quality. We found an asymmetry in the impact of price as a quality cue: while high prices may be in fact able to elicit a positive perception, low prices do not lead to non-positive perception necessarily. In addition, consumers who value sustainable consumption, have a vegan lifestyle, purchase their wine directly from wineries are more likely to have a positive perception of organic wine. Similarly, elder, educated consumers could have a higher probability to exhibit a positive perception of organic wine. This research shows that the Veblen effect can also exists for food markets in particular with the product with the greatest evocative charge, such as in the wine market.