Browsing by Author "Priilaid, D"

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    Follow the leader: How expert ratings mediate consumer assesment of hedonic quality
    (2009) Priilaid, D; Feinberg, J; Carter, O; Ross, G
    Within the context of sighted wine appreciation, previous studies indicate that extrinsic cues like price and area-of-origin have a marked effect on the sighted ratings proffered by tasting experts. While these expert ratings are widely employed by the wine media as proxies of genuine quality, it remains uncertain whether such expert ratings, in turn, serve to influence the public in their own sighted assessments of wine quality. To determine the influence of the expert rating cue in the public's sighted appreciation of wine, a tasting-room experiment was held in which 32 subjects assessed seven wines first blind and then sighted. During the sighted tasting the only (additional) cue-information made available was the expert rating conferred by the South African annual wine-guide known as John Platter. An interrogation of the resultant database of 224 paired blind and sighted wine assessments reveals the extent to which the expert rating cue consistently mediates the sighted appreciation of wine, this particularly within the younger, less experienced demographic. An examination of the meta-model's driving coefficients suggests that in explaining sighted quality, expert ratings appear to operate at five times the strength of the original intrinsic (blind) assessment. For marketers, this finding suggests (1) that the promotion of this extrinsic cue be targeted more specifically at wine "novices", and (2) that this narrowing of marketing focus implies a more judicious and effective employment of media budgets.
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    The Hedonic Valuation of South African Wine Brands
    (2012) Priilaid, D; Van Rensburg, P
    Working with a set of 35 South African wine brands identified in Priilaid and Van Rensburg (2010a), this study presents two brand valuation techniques that combine non-ordinal wine valuation models with conventional methods of valuation. The first price-premium approach defines brand equity value as the difference between a wine's price and a valuation of its intrinsic worth. The second quality premium approach defines brand equity value as the difference between a wine's intrinsic value and, instead of price, the value of its perceived quality when sampled sighted. With a set of assumptions regarding consistency in future wine quality, hectorage, price premiums, and sales volumes, brand valuations for each method are calculated as the net present value of the brand premiums paid per unit over the total cases sold. The consequent computations reveal how the price-premium method realises a mean valuation three times greater than the average derived from the alternate quality premium method. This difference is attributed to extreme valuations noted at either end of the price-premium sample, and suggests that this method is perhaps less conservative than perceived quality premium-based valuations. Additionally, the specification of perpetuity is observed to be too extreme. Alternate time scenarios are considered, with a period of ten years posited as perhaps more appropriate to such computations.