Wine Perceptions Kelly Reineke Ashley Benick Rachel Meister Courtney Brusoe Bethany VandenLangenberg Introduction: Walking into the wine section of a liquor store, there are many different brands, types, and countries to choose from, so much that it can be overwhelming. Over 47 million Americans drink wine, so it’s important to have an understanding of what they want when shopping for wines (Graham, 2010). This leads to the question of what factors play a role when consumers are choosing a wine. One big aspect that distinguishes wine is the packaging it comes in. There are different shapes of bottles and different labels that set apart the different brands. Wine is becoming more and more popular among younger drinkers, so it’s an interesting new target market for wine companies to go after. The purpose of this research was to gain an understanding on consumers’ view of wine packaging by answering the question: How does the packaging of wine affect the perceptions of quality? Three hypotheses were formed and tested: Overall packaging will have an effect of perception; more traditional packaging will increase perception of quality; more generic packaging will decrease perception of quality. These were tested by conducting a focus group along with an online survey and using the results of each to see how students would respond to questions regarding the wines. Quality was measured by taste, price and overall quality category that respondents were asked to judge. The following paper discusses past research that helped form the hypotheses, methodology describing how the experiment was performed, results of the focus group and survey, and a discussion with implications and limitations. Literature Review: In a previous study by Michael Siegrist, an experiment was conducted that gathered information about how information about a product may shape a consumers’ taste experience. In the wine tasting experiment, participants received both positive and negative information about the wine both prior and after tasting the wine. When the information was given prior to the tasting, negative information about the wine resulted in lower ratings compared to the group that received positive information. “No such effect was observed when participants received the information after the tasting but before they evaluated the wine. Results suggest that the information about the wine affected the experience itself and not only participants’ overall assessment of the wine after the tasting” (Siegrist, 2008). This information was used in the following study and research on perceptions of wine. Dr. Mueller and Professor Lackshin study the relative importance of indirect visual attributes versus direct visual attributes of wine packaging. To measure direct visual attributes, they focused on the consumers direct responds to them. They asked consumers in a survey to rate attributes from most important to least important. Attributes tested ranged from brand, label style, shape of the bottle, bottle color, price, and etc. Indirect attributes were measured by combining attributes on the survey into “bundles”. Consumers were now required to rate which bottle they would more likely buy off the shelf. They found that brand, price, and origin of wine were the most important direct attributes while bottle color and shape were least important. The indirect study showed how sub groups found attributes to rate at different levels of importance. For example, Class 1 wanted a low price wine, and focused on attributes such as brand name, and label color, where as Class 4 was not as concerned with price but much more concerned with label styles and then labels color and brand. The information from this study was used to create a survey that focused on how much influence attributes may or may not have on a person depending on their demographics. This experiment separated relative importance between the consumers rate of consumption. The experiment hoped to find whether or not packaging had a larger impact on less frequent buyers versus more frequent buyers or vise versa. The last study that was researched was one was entitled “Regional brand image and perceived wine quality: The consumer perspective.” What happened in this study was that the persons of interest wanted to test the consumer perception of wine labels when the label read that it was from the California wine regions and see if having that on the label would make a difference in people’s quality perceptions. They did this by collecting data over a time period of two weeks through an online survey given to male and female wine consumers. These participants were limited to two groups of wine consumers who were the recipients of monthly or quarterly wine newsletters. They found that “the perceived quality of a wine region raises the quality expectation of the of the sub-regions or appellations within the region.” This was especially true in the case of Sonoma County. Overall, the research that was found helped the following wine experiment tremendously. The researchers used aspects from all three past research projects and formed a hypothesis accordingly. Since the study by Dr. Mueller found that the shape, size, and look of the bottle had an effect on the perception of the wine, it will be assumed that the wine bottles that the researchers chose will also affect how the participants viewed the quality of the wine. In this research project, wine was chosen from Germany, Alabama, and Washington. According to the research by Stefanie Beninger, people had higher expectations of wine based on where the wine was from. It was hypothesized that the wine from Washington and Germany would be viewed as higher quality than the wine from Alabama because of both the packaging and the area from which they are from. Methodology: For this experiment two groups were presented with wine bottles/labels and asked to judge the taste, price, appearance and quality of the wine. One group consisted of 10 individuals over 21 years of age, four male and six female. The other group consisted of eleven individuals over 21, six female and five male. This was the control group. Groups were made up using a convenience sample. The groups each sampled three different brands of Riesling to make the wines more comparable. The three brands were Chateau Ste. Michelle, Funf, and FlipFlop (Appendix B). For one control group, the correct wine was matched with the correct label. For the second group, the wines had mismatch bottles during the tasting to see how it would affect their perceptions. Each group answered questions (Appendix D) regarding demographics, as well as rated their perceptions of each wine. The demographic questions helped get an understanding of how experienced of wine drinkers respondents were and what kind of wines they usually like to drink. The groups were asked questions regarding their views of the packaging prior to tasting each wine. Each wine was then be rated by taste, on a scale of 1-5 with one being the worst, as well as overall quality and packaging on the same scale. In the end both groups’ responses were compared from the handouts to see if their perceptions of the packaging affected their perceptions of the quality of wine. An online survey was also sent out to have people answer questions that test their perceptions of wine based on only the labels. The questions were about the same three brands of Riesling used in the experiment and are similar to those asked of participants before the taste test. The survey was sent out to a randomly selected group of 509 University of Wisconsin La Crosse students and 125 students responded. Only students over the age of 21 were able to answer the questions regarding wine. The survey combined with the experiment helped obtain an understanding of how the packaging looks affects perceptions of price and willingness to buy. Results: Survey To start out the survey respondents were asked some basic demographic questions and questions regarding their current wine drinking habits. When asked if the respondents liked drinking wine, 78% answered yes. Of those 52 were female and 22 were male. A greater number of males, compared to females, said they did not like drinking wine. Respondents were also asked how much they would typically pay for a bottle of wine. Almost all who were under the age of 23 for both male and female said they would spend between $0-$20 with 32 saying they would pay $0-10 and 44 between $11-20. The highest a respondent said they would pay was between $31-40 and they were between the ages of 24-26. Overall most respondents regardless of age and gender said they would spend between $11-20. For each wine, a question was asked after they saw a picture of the wine: how much would you pay for this wine? The Chateau Ste Michelle had responses with the highest prices. 51% of respondents said they would pay between $11-20 and 2 people said they would pay between $31-40. It was the only wine that anyone said they would pay between $31-40. Both Funf and FlipFlop had the vast majority of respondents say they would pay between $0-10 (66% of Funf and 84% of FlipFlop). Funf had 29% of respondents who would pay between $11-20, while FlipFlop had 14% in the $11-20 range. These are the results that were expected based on the different packaging of the wines and where the wines were from (Appendix A). The actual cost of the Chateau Ste Michelle was $7.99. Funf was also $7.99 and FlipFlop was $4.99. A survey question asked participants to describe the appearance of the three wine bottles: Chateau, Funf, and FlipFlop. The options were fancy, fun, elegant, timeless, plain, traditional, and boring. When the Chateau was selected as a wine option, the researchers thought it was timeless and elegant. However, survey participants thought otherwise. Of the 61 female participants, an overwhelming 44 of them said Chateau looked traditional. The majority of the 34 men that answered also thought that traditional was an accurate description, with 18 responses. Another interesting finding was that 20 females thought the bottle was elegant, but only 7 men did. Women also found the bottle more boring, with 11 responses, while only 4 men found the label boring. Predictions were correct when hypothesizing respondents would call Chateau elegant with 20 women and 7 men answered that way. When the researchers purchased Funf, fun and fancy were words picked to describe the wine bottle. According to the survey, 54 men and 24 women also found it fun. This means that only 6 females didn’t find the bottle fun. No females or males found the bottle timeless, and only one female found the bottle traditional. Only 4 females and two males found the bottle boring. What did not coincide with our hypothesis was the word fancy. Only 4 males and 5 females described it as fancy. When the FlipFlop wine was purchased, words such as fun and plain were thought to describe the bottle by the researchers. Fun had an overwhelming response of 52 females and 25 males. Only one male and one female thought it was timeless. 6 males and 8 females found the bottle plain. One last cross tabulation that we observed was the association between the person’s knowledge of wine and which wine based on the packaging they would prefer to buy. The majority of participants who responded saying they had no knowledge at all said that they would first purchase the Chateau, then the Funf, and said they would never buy the FlipFlop (based on packaging). Similarly, the majority of participants with the most knowledge had the same results: Chateau first, then Funf, and would never buy the FlipFlop. Using this information it can be assumed that a consumer’s knowledge of wine does not influence the purchase decision as much as the wine packaging. Focus Groups Between the two focus groups there were 21 participants. Of these students 9 were male and 12 were female. All were between the ages 21 to 23. The groups were asked if they normally drink wine. Of those, 62% said yes. Of the 62%, 10 were female and 3 were male. When respondents were asked what they would normally pay for a bottle of wine, 12 out of the 21 respondents were willing to pay between $1-10. Of these 12, 10 were female and 2 were male. Only 5 respondents were willing to pay between $11-20. Of these, 2 were female and 3 were male (Appendix C). One male respondent said he would pay between $21-30 for wine and made the comment, “If I’m going to drink wine, I want it to be good.” According to the focus group results it could be concluded that men are more likely to pay a higher price for a bottle of wine than women. Respondents were also asked how they would rank their knowledge of wine on a scale of 1 to 5, 5 being they are very knowledgeable about wine 1 being they know nothing about wine. Most respondents rated themselves as having less than average knowledge, and females appear to view themselves as more educated about wine than men. Only 8 respondents said that they had no knowledge of wine (5 males and 2 females). However, 9 respondents said they had little knowledge of wine (4 males and 5 females). Only 4 females rated themselves as having an average knowledge of wine, and one female rated herself as having a greater than average knowledge of wine (Appendix C). When asked to describe wine labels, most respondents described FlipFlop as being “fun, cheap and simple.” They perceived it as having the lowest quality of the three wines, most respondents guessing the price range between $1-10. The Chateau was described most often as “traditional, elegant and fancy,” and was most often perceived as having a price range from $1120. The Funf was most often described as “modern, simple and sophisticated,” and was perceived as the most expensive with the estimated price range being $21-30. Respondents were also asked to rank the wines in order of which one they would want to buy 1st, 2nd, and last. Flip Flop was rated 3rd more often than Chateau or Funf, having 9 votes verses 7 and 4, respectively. Funf was most often rated as the 2nd choice with 10 votes, versus 5 for Chateau and 5 for FlipFlop. The rating for which they would buy 1st was very close, Chateau with 8 votes, Funf with 6 votes and FlipFlop with 7 votes. For both groups, control and experimental, most respondents did not suspect a change in pricing after tasting the wine (43% made no change in their price, 33% respondents made a negative change, and only 19% respondents made a positive change). Interestingly the results from the focus group were in favor of the hypothesis; the perception of packaging does influence perceptions of taste. By taking the average taste and quality from the tasting portion data, it was easy to see the relationships and differences between the two groups. When looking specifically at the packaging, the data describes that taste and quality were actually relatively the same despite the wine given in the sample. This can conclude that packaging does influence the buyer, as we saw in earlier data by the buying process and now seen in this data through taste and quality. All three packaging types influenced the focus groups in the same way. The FlipFlop packaging described as “fun, cheap and simple” influenced respondents perception of taste as an average 2.8 on a five-point scale for both groups, and a 2.65 (control group) and 3.2 (experimental group) for quality. The Funf packaging, described as ”modern, simple and sophisticated”, had similar effects on the respondents, with an average taste rating of 3.0 consistently between the groups. The quality rating did differ again from a 2.9 (control group) to a 2.6 (experimental group). This is still only a 0.3 difference, so not significant enough. The Chateau, described as “traditional, elegant, and fancy” is the most interesting because the sample given to the experimental group was actually the cheapest wine, FlipFlop, but respondents were shown the most expensive wine label, Chateau. The two test groups scored taste with an average of 2.9 (control group) and 3.1 (experimental group). The quality was rated as 2.9 (control group) and 3.0 (experimental group). It was interesting to see that the group who thought they were drinking Chateau, but were actually drinking FlipFlop, rated the wine with a higher quality than those who were given the actual Chateau wine and shown the actual Chateau bottle. The graph (Appendix C) shows how dependent taste is on packaging. For example the taste of FlipFlop increased when tasters thought they were drinking Chateau. Ironically the taste rating of Funf decreased when tasters thought they were drinking FlipFlop. Packaging influence on taste can be confirmed when we just look at the wine samples and their ratings in taste. It may not be a huge influencer but it does play a roll. Discussion: The hypothesis stated was, packaging influences buyers’ perception on quality and taste and the results did support this to some degree. Buyers subconsciously associate higher quality with traditional packaging with soft, curvy lines or modern packaging with hard, defined lines. When packaging was represented somewhere in the middle with a fun, almost generic design buyers associated this with low quality and poor taste. So can packaging help boost sales for marketers and keep consumers coming pack for more? The findings in this study were not a dramatic difference but there was a difference never the less, concluding packaging does play a roll in purchase intent. This study could be expanded in the future in many ways. Researchers may want to look at specific details of graphics, such as color, font, pictures associated with the wine, and so on. As college students we were limited to what was sold at the Festival Foods, our wallets, and time. When selecting a focus group, researchers may want to have a random sample made up of more than Junior to Senior year college students. This limited our research to a specific demographic, wine knowledge, and age. Increase finding would benefit with a spread of demographics from stay at home parents to sophisticated businessmen and women and everywhere in between. Marketers could use this study or similar studies to increase their wine sales. From the study it was clear that all wine drinkers, whether they never drink wine or drink wine all the time, look at packaging first when purchasing wine. By studying what graphics catch consumers eyes compared to that graphics that scream, “I’m a cheap bottle”, marketers could change designs to the more favored, which would theatrically increase sales. Appendix A How much would you pay for Chateau Ste Michelle? # Answer 1 $0-$10 2 $11-$20 3 $21-$30 4 $31-$40 5 $41+ Total Response 39 50 7 2 0 98 % 40% 51% 7% 2% 0% 100% How much would you pay for Funf? # Answer 1 $0-$10 2 $11-$20 3 $21-$30 4 $31-$40 5 $41+ Total Response 63 28 5 0 0 96 % 66% 29% 5% 0% 0% 100% How much would you pay for Flip Flop? # Answer 1 $0-$10 2 $11-$20 3 $21-$30 4 $31-$40 5 $41+ Total Response 80 13 2 0 0 95 % 84% 14% 2% 0% 0% 100% Appendix B $11.99 $4.99 $10.59 Appendix C Flip Flop Taste Change 5 4.5 Taste Rating 4 3.5 3 2.8 3.1 2.5 2 1.5 1 0.5 0 Origninal packaging Chateau packaging German Taste Change 5 4.5 Taste Rating 4 3.5 3 3 2.8 2.5 2 1.5 1 0.5 0 origninal packaging Flip packaging Chateau Taste Change 5 4.5 Taste Rating 4 3.5 2.9 3 origninal packaging German packaging 3 2.5 2 1.5 1 0.5 0 Influence of Flip Flop Packaging 5 4.5 Taste Rating 4 3.5 3 3.2 2.8 2.8 2.65 Given FlipFlop 2.5 2 Given Funf 1.5 1 0.5 0 taste quality Influence of German Packaging 5 4.5 Taste Rating 4 3.5 3 3 3 2.9 2.6 2.5 2 Given Funf Given Chateau 1.5 1 0.5 0 taste quality Influence of Chateau Packaging 5 4.5 Taste Rating 4 3.5 3 2.9 3.1 2.9 3 2.5 Given Chateau 2 Given FlipFlop 1.5 1 0.5 0 taste quality Focus Group How Much are you Willing to Pay for Wine? Number of people 12 10 8 6 Male 4 Female 2 0 $1-$10 $11-$20 Price Range Number of People Wine Knowledge 20 18 16 14 12 10 8 6 4 2 0 Male Female Wine Knowledge Appendix D Wine Perceptions Handout Group Number (A=mistmatch or B=controlled) Answer the following questions before the taste test: 1. What is your age? 21-23 24-26 27-29 30-31 32+ 2. What gender do you identify with? Male Female 3. Do you like drinking wine? Yes No 4. How often do you drink wine? Never Less than once a month Once a month ` Once a week 2-3 times a week Daily 5. Thinking of wines you consume, what percent is white and what percent is red? 6. How would describe your knowledge of wine? 1 I know nothing about wine 2 3 4 5 I am very knowledgeable about wine 7. What type of white wine would you prefer to drink? Moscato Riesling Sauvignon Blanc Pinto Grigio Chardonnay White Zinfandel 8. How much are you normally willing to pay for a bottle of wine? 0-10 11-20 21-30 31-40 41+ 9. How would you describe the label of each wine? (Fun, elegant, timeless, traditional, humorous, fancy, plain, etc) Wine A: Wine B: Wine C: 10. Rank order the wines. 11. How much do you think Wine A costs? 0-10 11-20 21-30 31-40 41+ 12. How much do you think Wine B costs? 0-10 11-20 21-30 31-40 41+ 13. How much do you think Wine C costs? 0-10 11-20 21-30 31-40 41+ 14. Taste Wine A. How would you rate the taste of this wine? 1 2 3 4 5 Bad Ok Excellent How would you rate the overall quality of this wine? 1 2 3 4 5 Bad Ok Excellent How much do you think this wine costs? $5-10 $11-16 $17-23 $23+ 15. Taste Wine B. How would you rate the taste of this wine? 1 2 3 4 5 Bad Ok Excellent How would you rate the overall quality of this wine? 1 2 3 4 5 Bad Ok Excellent How much do you think this wine costs? 0-10 11-20 21-30 31-40 41+ 16. Taste Wine C. How would you rate the taste of this wine? 1 2 3 4 5 Bad Ok Excellent How would you rate the overall quality of this wine? 1 2 3 4 5 Bad Ok Excellent How much do you think this wine costs? 0-10 11-20 21-30 31-40 41+ References: Beninger, Stefanie (2011, January). Regional brand image and perceived wine quality: The consumer perspective. Retrieved from http://www.emeraldinsight.com/loi/ijwbr Holter, Graham (2010, May). The Market for wine in the United States. Retrieved from http://www.winebusiness.com/news/?go=getArticle&dataid=73903 Mueller, Simone. (2008, July). How Important is wine packaging for customers? Retrieved from http://academyofwinebusiness.com/wp-content/uploads/2010/04/How-important-is-winepackaging-for-consumers_paper.pdf Siegrist, Michael & Cousin, Marie-Eve. (2009, June). Expectations influence sensory experience in wine tasting. Retrieved from http://www.sciencedirect.com/science/article/pii/ S0195666309000166