Download French wine-making industry

BScB (IM) 6th semester
Author: Justina Simanaviciute
Advisor: Laura Kazbarė
Department of Marketing and Statistics
Bachelor thesis
French wine-making industry
Wine labeling understanding and associations
The Aarhus School of Business
2011
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Abstract
This paper analyzes consumer understanding, perceptions and associations about different
French wine labeling systems. In French wine industry, let alone global wine industry, one
general wine labeling technique does not exist. Some wine producers focus on building a famous
and well-marketed wine brand with less focus on tradition of wine making and region of origin.
While others still feel drawn to long-rooted French wine labeling tradition which favors
featuring the region of origin, the estate or village where the wine was made. Presumably, these
two different wine labeling techniques should evoke different associations, be perceived and
understood differently. A lot of studies have been carried out trying to find out how labeling
affects wine purchasing decision or which kind of labels are more preferred by consumers.
Though, not so many studies have dug into the field of wine labeling understanding and
associations that it evokes. After all, wine labeling is used to capture consumers, get their
attention and “manipulate” them through the associations that wine labeling triggers. This
paper discusses relevant frameworks concerning consumer perception, understanding and liking
of labeling signs as well as frameworks related to brand associations. These frameworks were
later adapted to better fit the issue at hand and help analyze consumer perception and
associations about different types of wine labeling. Theoretical frameworks provided a
background for empirical qualitative research which allowed us to gain deeper insights into the
complicated field of consumer perceptions and cognitive behavior with regards to wine labeling.
Collected data was structured and processed by program NVivo. Findings were analyzed in
depth and recommendations for wine producers and marketers were provided. The acquired
insights can be used by wine marketing specialists and wine producers to better understand their
customers and adapt wine offers accordingly.
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Contents
1. Introduction ........................................................................................................................................ 4
1.1 Structure of the report ................................................................................................................... 6
1.2 Problem formulation and research questions ................................................................................. 7
2. Theoretical foundation ........................................................................................................................ 8
2.1. Labeling and branding ................................................................................................................... 8
2.2. Theoretical framework by K. Grunert and J. Wills .......................................................................... 9
2.2.1. Understanding ..................................................................................................................... 10
2.2.2. Liking ................................................................................................................................... 14
2.2.3. Perception ........................................................................................................................... 17
2.3. Research design by F. Durrieu ..................................................................................................... 18
2.3.1. Brand identity and associations ............................................................................................ 20
2.4. Model by R. Lavidge and G. Steiner ............................................................................................. 22
2.5. Main framework ......................................................................................................................... 24
3. Methodology ..................................................................................................................................... 26
4. Data analysis and recommendations.................................................................................................. 29
4.1 Perception ................................................................................................................................... 29
4.2 Understanding ............................................................................................................................. 32
4.3 Liking ........................................................................................................................................... 38
4.4 Brand identity and associations.................................................................................................... 44
5. Limitations and future research .......................................................................................................... 47
6. Reflections and conclusions ............................................................................................................... 48
7. References ........................................................................................................................................ 52
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1. Introduction
France has traditionally been the world‟s leader in wine production and consumption, a country
with long-rooted traditions of wine drinking and historical heritage. Though, in 21st century
things started shifting and French wine industry found itself lagging behind the other countries in
terms of innovation and export opportunities. France still ranks as “the largest producer and
consumer of wine, accounting for 20% of world production and 14% of consumption” (Hussain,
Cholette & Castaldi 2007),but things are no longer as good as they used to be. France‟s domestic
wine consumption is on decline and in terms of exports French wine producers are lagging
behind Italy and Spain (Hussain, Cholette & Castaldi 2007). In addition to domestic problems
such as complicated appellation of origin system, competition from New World 1 countries has
increased sharply (Hussain, Cholette & Castaldi 2007). Outside of Europe, the biggest
competition comes from United States, Argentina, Australia, South Africa and Chile; in Europe
Italy, Spain and Germany present the biggest threat for French wine producers and exporters.
Clearly, French wine industry faces a crisis. There is a number of reasons why this crisis ensued
the previously prosperous industry. France is plagued by many domestic wine industry problems
and inability to follow global trends, such as consolidating all supply chain levels (Hussain,
Cholette & Castaldi 2007). This paper will focus on one of the main domestic problems, which is
a confusing and complicated wine labeling system.
At present two most popular wine labeling practices exist: one focused on protected region of
origin and place of production and other on the brand of the wine. In France the first technique is
more prevalent but many previous researches have shown that it can be really confusing for
customers. Wine labeling system based on protected geographical indications is called
Appellation d‟Origine Contrôlée (AOC). AOC wines are controlled by Institut National des
Appellations d‟Origine (INAO) which governs wine production processes, grape varieties that
can be planted in certain areas, ripeness of the grape when it can be picked, alcoholic strength
and etc. (Anonymous2011). Thus, it ensures a certain quality of wine that carries an AOC label.
Unfortunately, not many people are aware of the AOC system and what it signifies . For example,
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New World countries are defined as countries outside Europe (Hussain, Cholette & Castaldi 2007).
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a survey done in town of Angers (France) with a generally well educated population revealed
that 95.7% of respondents had little to poor knowledge of AOC system. (Gamble, Taddei 2007).
This system was introduced in 1937 and at present France has 467 appellations of controlled
origin (Gamble, Taddei 2007). As a consequence, inexperienced consumer might find it really
difficult to navigate through that many AOCs. This was concluded by the Audit Controller
General Jacques Berthomeau who in 2002 stated that “too many of the designations of whatever
kind on a wine label are unknown to buyers and many of them are illegible at the point of
purchase”(Gamble, Taddei 2007). On top of that, even the known designations can be really
confusing. For example, the AOC of Bordeaux is organized according to regional (e.g.
Bordeaux) and sub-regional names (e.g. Saint-Emilion) which can include communal AOCs (e.g.
Montagne Saint Emilion) (François Durrieu 2008). AOC system is also linked to the concept of
„terroir‟ which can be explained as a specific soil and microclimate where particular wines are
grown (Gamble, Taddei 2007).
As confusing as it is, appellations of controlled origin system is very valuable to small producers,
as its sign can increase retail wine value more than twofold (Gamble, Taddei 2007). Thus not
surprisingly it is believed that the association of brand with region of origin can strengthen brand
identity and contribute to brand equity (François Durrieu 2008). As a consequence, many wine
producers struggle to get their AOCs officially approved, as this may lead to huge boost in wine
value. Nonetheless, while feeling very protective of their AOCs wine producers may not fully
realize the downsides of it, such as stagnation of innovation. Wine makers producing wines
which bear AOC sign are not allowed to make any technical interventions to improve their wine
without approval of INAO (Gamble, Taddei 2007). Thus, other New World countries which do
not have a comparable protected designations of origin system, for example Australia, are freer
to make technological changes in wine production processes which may lead to competitive
advantage in a fiercely competitive wine industry. Nevertheless, there is a more positive side to
the AOC system. Since the producers are not allowed to make any technological changes without
consulting INAO, consumers can be sure that the production process does not include adding any
chemicals or substances that may be dangerous to the health.
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The other labeling technique is focused on building the brand of the wine rather than promoting
the place of origin. As a consequence, labels of branded wines tend to be simpler and more
innovative. They try to catch consumers‟ attention in other ways since they cannot derive brand
equity from protected designation of origin. Branded wines usually stand lower in the French
wine hierarchy, since their place of origin is not protected.
French wine hierarchy is quite complicated as well as it contains four categories. At the very
bottom of pyramid are table wines (vins de table, VdT), at the upper level are wines from regions
not protected by AOC (vins de pays (VdP), above them are AOC wines and at the top are the
vins de crus or vin de chateaux (Gamble, Taddei 2007). Crus wines are exceptional wines
coming from a specific terroir and they can also be classified into more levels (Gamble, Taddei
2007). Unfortunately, wine hierarchy cannot always be trusted as a reference point, as some vin
de pays or branded wines may be much better than AOC wines (Gamble, Taddei 2007).
Therefore, it important to sort out through this confusion which exists in French wine labeling
practices and discover how consumers understand and perceive different labeling techniques,
what they like or dislike about them, what associations different labels evoke. The acquired
information can provide insights what can or should be changed to better suit customer needs
and serve as a basis for quantitative research on the matter.
1.1 Structure of the report
The paper is structured into two main parts-theoretical analysis and primary research. First
section focuses on theoretical foundation of the paper. Chapter 1.2 indicates the problem
statement and research questions, section 2.1 discusses labeling as part of branding and
afterwards three theoretical frameworks are analyzed. Chapters 2.2, 2.3 and 2.4 deal with
Grunert &Wills, F. Durrieu and Lavidge & Steiner frameworks respectively. Then chapter 2.5
provides the final framework for the analysis of problem at hand.
Second section deals with the research part of the paper. Chapter 3 describes the methods that
were used to collect and analyze the data, while chapter 4 presents the results of the analysis and
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recommendations. Chapter 5 indicates limitations and future research and chapter 6 provides
reflections and conclusions. Finally, part 7 offers a list of references and part 8 indicates
appendix material.
1.2 Problem formulation and research questions
As explained above, French wine producing industry faces many problems, with complex
labeling practices being one of the biggest issues. As a consequence, this paper will deal with the
following problem statement:
Ideally, wine labels should be easy to understand, providing all relevant information for
consumers and relatively uniform across the global market. At the moment, confusion in the
French wine market exists. Surveys show that consumers are dissatisfied with current French
wine labeling as it is difficult to understand and confusing, as well it differs greatly from other
countries’ labeling techniques. However, there is a lack of qualitative studies from consumer
perspective and it is unclear what exactly is confusing for consumers and what should be
changed. If these questions remain unanswered, French producers are likely to lose global
market shares to other wine producing countries which are better able to satisfy customer needs.
To investigate the problem statement the following research questions will be asked:
RQ1: What influences consumer understanding of wine labeling?
RQ2: How do wine consumers understand different wine labels?
RQ3: How marketing specialists can use the acquired knowledge about consumer understanding
in practice?
In order to profitably sell wine domestically and on export, successful marketing strategies have
to be adopted. Labeling is an important but too often overlooked part of marketing. Thus,
analysis of consumer perception of different labeling types should help marketing managers
develop an understanding of consumers‟ mindset. This, in turn, would lead to creating successful
wine marketing campaigns and rethinking of current labeling practices.
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2. Theoretical foundation
Literature chosen for the theoretical analysis provides us with frameworks relevant for the
primary research. None of the frameworks chosen were developed to analyze wine labels
specifically, thus they will be adapted. Chosen literature is mostly in the field of food labeling
and consumer cognitive behavior. Other literature, concerning French wine industry and its
labeling intricacies, is used as well. It is supposed to provide an extensive overview about the
status of French wine making industry and challenges it currently faces.
2.1. Labeling and branding
In the dictionary labeling would be defined as “[a]n item used to identify something or someone,
as a small piece of paper or cloth attached to an article to designate its origin, owner, contents,
use, or destination.”(Anonymous2009b). Nevertheless, labeling is a much more complicated
phenomenon than that. It can be regarded as a part of packaging but it is also a marketing tool.
The functions of labeling are: 1) to identify the product; 2) position product in consumer‟s mind;
3) describe the product; 4) promote the product (Anonymous). These functions are related to
labeling as part of branding. Branding is meant to distinguish one product from others and if the
label helps to identify the product, it serves the purpose of branding. Branding specialists also
strive to carefully position brands in consumers‟ minds as luxurious or affordable, everyday use
or for special occasions and other, depending on the product and intended message. Therefore,
labeling also has to conform to the overall brand positioning and help position product in
consumer‟s mind. Labeling helps to describe and promote the product, and this description has to
be consistent with brand image.
In addition to that, labeling can also evoke brand associations. This function is primarily
performed by packaging in its broadest sense (Chris Baumann 2010), but as labeling is part of
packaging we can attribute this function to labeling too. These were functions and purposes of
labeling from the producer‟s perspective.
Labeling has also to be of use for consumers. According to EU legislation, the main purpose of
food labeling is to provide consumers with complete information about the products
(Anonymous). This information usually includes a list of ingredients, nutritional information and
country of origin. Certain food products, such as alcoholic beverages have to comply with
specific regulations (Anonymous). That is, according to EU law, all alcoholic drinks over 1.2%
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volume have to state their alcoholic strength on the label, as well as any containing allergens (in
wines it is usually sulfites) (Anonymous2008a). Health warnings are optional depending on the
country, e.g. Finland and France are mentioning health warnings on the labels of alcoholic
beverages (Anonymous2008a). In general, labeling has to provide all relevant information for
consumers.
In this paper, we will try to reconcile consumer and producer perspectives on wine labeling. We
will look into the cognitive dimension of wine labeling and try to understand how consumers
understand information presented on label. Associations that labeling evokes are also of interest.
Understanding of how consumers perceive wine labels is of use to wine marketers and producers
as then wine can be adequately positioned and promoted to suit consumers‟ taste.
Analysis of consumer perception about wine labeling is by no means an easy task, as French
wine labeling practices is a complicated phenomenon with more than one labeling technique.
Research needs to be done in a structured and consistent manner, and to achieve this goal three
frameworks will be used. These frameworks will be now presented in their original forms and
adapted later on to fit the purpose of this research. Under subcategories of these frameworks
findings from other relevant studies will also be mentioned as this will help with the extensive
overview of the topic and the development of questionnaire.
2.2. Theoretical framework by K. Grunert and J. Wills
A theoretical framework from the study done on food labeling in EU 15 countries is relevant to
the matter at hand and well worth discussing. This research aimed to identify how consumers
understand nutrition information provided at food labels and which signposting format they
prefer the most (Klaus G. Grunert,Josephine G. Mills 2007). This study used a theoretical
framework, Figure 1, (page 18) to help identify labeling effects on consumer perception about
nutrition. This framework is based on two streams of research: consumer decision making and
attitude formation and change (Klaus G. Grunert,Josephine G. Mills 2007). Authors assume, that
the use of label information can be direct, used for on-the-spot purchase of the product, or
indirect, cumulated over time and having effect on food purchase in general(Klaus G.
Grunert,Josephine G. Mills 2007).
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2.2.1. Understanding
In order to be used, information on the label has to be understood. According to the framework,
information on the label can be understood objectively, if the intended message on the label
reaches the consumer, and subjectively, if consumers relate information to pre-existing
knowledge (Klaus G. Grunert,Josephine G. Mills 2007).
During individual interviews objective understanding can be tested by presenting respondents
with a certain wine label and asking them what they know about information and symbols
presented on it. There is usually only one correct way to interpret what these symbols mean, thus
objective understanding is influenced by factor of knowledge and can be easily determined.
Subjective understanding, on the other hand, is a whole different matter. Consumers might think
that they understood information presented on the label, while it actually may not be true. As for
food labeling in general, it was found out that consumers feel that they understand the labeling
information (Klaus G. Grunert,Josephine G. Mills 2007). An assumption can be made that
consumers of French wine are likely not to be so confident about their understanding of wine
labeling due to different labeling techniques in different countries.
Apparently, European Council of Ministers is aware that there are some problems with
understanding of wine labeling in Europe (this time we are not looking at France specifically). In
2008 European Council passed a regulation restructuring EU wine sector (Anonymous2008b).
This regulation encompassed many issues such as planting rights, wine-making practices,
distillation schemes and it also covered labeling practices. Regarding labeling, the aim was to
simplify labeling rules. European Council is trying to protect the interests of both producers and
consumers, and it wants quality to be based on protected geographical indications/ designations
of origin (PGI/PDO) (Anonymous2008b).
PDO (a European equivalent of AOC) refers to an agricultural product “whose quality or
characteristics are essentially or exclusively due to a particular geographical environment
including the natural and human factors, and whose production, processing and preparation take
place in the defined geographical area”(Anonymous2009a). PGI has slightly less strict
requirements, applying to agricultural products “of which a specific quality, reputation or other
characteristics can be attributed to this geographical origin, and whose production, processing
and preparation takes place in the specific geographical area “ (Anonymous2009a). Not
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surprisingly, symbols of origin with similar meaning and similar colors did not help customer
understanding. In order to create awareness and make the difference of symbols more noticeable
the Commission of the European Communities introduced new symbol for PDO (cf. Appendix,
Figure 3). It also decided to keep the “well-established traditional national quality-labeling
schemes”, which means that French AOC system is here to stay (Anonymous2008b). Thus, even
though European Council wants to simplify labeling rules and create transparency, customers are
still obliged to know that e.g. AOC is an equivalent of PDO. Quality signs based on PDO/PGI
may actually help other food products such as cheeses, which will not be allowed to be labeled
with AOC (Anonymous2009e), but wines are a different case.
EU Council also relaxed quite strict labeling rules and allowed to print grape variety and vintage
on the label (Anonymous2008b). This can actually ease consumer understanding as almost all
the wines from New World show grape variety and vintage, so this law may create more
consistency in the global wine market.
A research aimed to explore how values-based labels affect consumer decision-making process
also came with certain interesting conclusions about PDO/PGI labels. It was concluded that “a
values-based label can operate as a signifier that is a highly credible label of quality” (Carpenter,
Larceneux 2008). PGI label was found out to have really positive effect to consumers inferences
about product quality if explained what it means (Carpenter, Larceneux 2008). This means that
after being exposed to certain information consumers develop positive inferential beliefs about
products labeled with PDO/PGI (Carpenter, Larceneux 2008). “Inferential” means that those
beliefs go beyond the information provided, consumers compensate for this missing information
and creates certain beliefs in their mind (Carpenter, Larceneux 2008). For example, they can
infer that a product will be of good taste because it bears PGI label. Descriptive beliefs, on the
other hand, are more objective and related to e.g. traditional method or place of origin, things
that can be deciphered from information provided (Carpenter, Larceneux 2008). It must be noted,
that this research examined consumers‟ inferences about food products other than wine, but the
findings can still provide certain insights to the wines case. AOC (wine equivalent of PDO) sign
on the label can actually provide consumers with positive inferences about product quality.
Whether these inferences will be subjective or objective depends on how well the consumer is
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aware what AOC means and if he/she is well familiar with the region of origin. Regardless, the
region of origin sign on the label is very likely to have impact on inference making.
Thus, AOC sign on wine labels is a very interesting phenomenon by itself, as it can have
different effect on consumers. It can serve as a source of confusion as AOC sign is used only on
French wines, but it also can serve as a sign of quality insurance for a consumer.
As it was mentioned in the introduction, AOC is also related to the concept of terroir. Therefore,
it is important to discuss if consumers have a general understanding what terroir is and if they
have certain subjective or objective inferences about it. It must be noted that terroir is not usually
explicitly mentioned on the wine label. Though, words like “estate grown” or “single vineyard”
give us a clue to terroir (Anonymous2009f). For example, blended wines are usually not terroir
wines, as grapes were likely grown in different areas (Anonymous2009f).
To help us grasp the meaning of terroir, article by P. Aurier exploring terroir product meanings
for the consumer will provide us with certain insights. It is known that terroir concept enhances
product value for consumer, as terroir products are perceived to be more natural and authentic,
related to the specific know-how of producers (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005).
Nevertheless, terroir concept is difficult to define and it may be confusing for non-connoisseurs.
Characteristics of terroir, common across most definitions are: 1) the product made of local raw
materials , 2) traditional recipe or know-how used to make a product, 3) firm, producing the
product has been located in the region for a long time (Philippe Aurier, Fatiha Fort, Lucie Sirieix
2005). Article argues that there may be a gap between what producers want to communicate
about terroir and what consumers imagine (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005).
Thus, it is important to analyze what consumers perceive about terroir products and why. In this
case, we will look specifically into terroir wines.
Terroir product is trying to reap the benefits of being attributed to specific origin, similarly to
PDO or PGI products (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005). It relates as well to the
country of origin (COO) cue, as it signifies as well the origin of product (Philippe Aurier, Fatiha
Fort, Lucie Sirieix 2005). The question arises, whether the concept of terroir is known as well as
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the other concepts. This will be explored during individual interviews, though an assumption can
be made that focus respondents may have no to little knowledge about terroir. This assumption
sounds reasonable based on complicated definition of terroir and it not being explicitly
mentioned on the label.
The before mentioned article argues, that terroir should be viewed as a cognitive category, as
terroir products are categorized to be more typical than others (Philippe Aurier, Fatiha Fort,
Lucie Sirieix 2005). “Typicality is the degree to which an object is representative of its cognitive
category” (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005), thus a certain terroir wine has to be
consistent with the image of its region of origin in order to have a positive image in consumer‟s
mind. According to consumer opinion, researched by P. Aurier, terroir product is linked to
“region”, “territory” and “land” (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005). Other popular
associations are related to raw, natural products and to “know-how”, “tradition” and “recipe”
(Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005). It can be generalized that consumers associate
terroir concept with three different actors: region, product and producer (Philippe Aurier, Fatiha
Fort, Lucie Sirieix 2005). We will analyze if these associations also occur to our respondents. It
must be noted, that here the factors of understanding/inferences and associations are
interconnected. With regards to terroir, there is no clear line where objective understanding ends
and associations begin.
A quantitative research about terroir meaning for consumers, carried out by the same authors,
found out that most people buy terroir product not for the “technical reason but more for the
meaning they bring” (Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005). The meaning of terroir
product is likely based on associations, thus it is important to find out what meaning consumers
attribute to terroir wines and how this meaning is understood.
All in all, factor of understanding is heavily influenced by general interest in wines and their
labeling.
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2.2.2. Liking
In the original model on the same level as understanding there is a liking dimension, i.e. a
negative or positive attitude towards a label. Speaking of wines, liking is massively influenced
by label format. It was long known that consumers prefer different kinds of labeling and many
qualitative and quantitative studies were carried out trying to find out labeling preferences. For
example, one study found out that consumers with low self-confidence in choosing wines prefer
classic labels for the “information provided”, while those with the higher self-confidence prefer
modern labels due to “image, picture and logo” (Barber, Ismail & Taylor 2007). The same
research paper claimed that “goal of label design is to create a striking visual image that can
serve as a narrative or storybook about the producer and the contents of a bottle.”(Barber, Ismail
& Taylor 2007). Thus, our goal is to analyze what stories different label formats tell and how
that influences liking.
We will focus on analyzing consumer liking of two different French wine label formats: one
terroir (also called estate) wine featuring a region of origin and marked with an AOC sign, other
being a generic branded wine.
A research done by Wolf&Thomas analyzed how different generations of wine consumers like
different kinds of wine labels. The generations studied were Millennial (also known as
Generation Y), Generation X and Baby Boomers (Wolf, Thomas 2007). Millennial are persons
born between 1977 and 1994 (Anonymous2009d), and according to research they have quite
unorthodox labeling preferences. It was found out that Millennial generation prefer fun wine
labels with original names and bright colors (Wolf, Thomas 2007). It is important to note that
wine industry is responding to consumer preferences and many of the top leading brands have
interesting and flashy labels (Wolf, Thomas 2007).
The study found out that Millennial are more likely than Baby Boomers to purchase wine for
home or party consumption (Wolf, Thomas 2007). Their preference to consume wine during
parties must have certain marketing implications. In this kind of situation wine can become a
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source of social risk or, on the other hand, enhance social acceptance. If the wine label is well
suited for the occasion, it can earn the host of the party public acceptance and acknowledgement
(Barber, Ismail & Taylor 2007).
One example of wine definitely suitable for public occasions is Beaujolais Nouveau. This wine is
released every year no later than the 3rd Thursday of November and cannot be sold before
midnight (Brad Prescott ). This creates a festive atmosphere and knowing that this phenomenon
is happening all over the world just adds to it. This kind of brand is probably liked by Millennial
generation more than by wine connoisseurs due to its flashy label and short maturing time. The
Millennial generation rates the importance of label higher than other generations (Wolf, Thomas
2007), thus a reasonable assumption can be made that flashy labels (such as Beaujolais Nouveau,
Piat d‟Or etc.) would be preferred by this generation. This assumption will be verified during
interviews as our respondents will fall into the Millennial age category. It must be mentioned that
so far French wine producers were not very adept at satisfying market need for attractive
packaging and funny labels. A lot of French wine labels are still clustered with too much
information that cannot possibly be relevant for uninvolved wine consumers and thus diminishes
the opportunity to be liked. Although, there is a reason why many French wines are labeled the
way they are. Jennings&Wood claim that wines from the Old World avoided radical front label
design changes in order to sustain the image of quality through tradition (Barber, Ismail &
Taylor 2007). This approach might appeal to certain type of consumers, but certainly not all, as
there is a pronounced demand for funnier wine labels.
The findings of this study are relevant to the analysis of our framework and can be tested during
interviews. Even though the wine consumers interviewed for the study at hand will be of
different national background than US residents from the previously mentioned study, a
reasonable assumption can be made that Millennial is fairly globalized generation and general
preferences should stay the same.
Research by M. Wolf also tried to discover consumer ratings of wine labeling characteristics
based on their desirability. Desirability can be roughly compared to likability, as the label will
not be desirable if it is not liked by consumers. The top most desirable characteristic turned out
to be attractive, eye catching, interesting, unique, stylish, creative, clever, colorful, sophisticated,
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artistic and elegant (Wolf, Thomas 2007). On the other hand, labels with no picture on it are only
slightly to somewhat desirable by consumers (Wolf, Thomas 2007). A hypothesis to be tested
during interviews is whether flashy labels are actually liked better than classical labels by wine
consumers belonging to Millennial generation.
It was found out that Baby Boomers are less likely to think that label uniqueness is a desirable
quality than other generations (Wolf, Thomas 2007). This fact has implications for wine
branding and labeling, as apparently many of French wines are now targeted towards older
generations which do not care much about unique and attractive labels. That would also explain
why wine is consumed mostly by older people in France and consumption by younger customers
is plummeting.
Another research, related as well to the dimension of liking, looked how the semantic primes
influence liking of the product. It was concluded that semantic primes (words that you need no
definition for) expressed visually on wine labels increase the liking of the product (Labroo, Dhar
& Schwarz 2008). Examples of semantic primes can be pictures of frogs or other animals
depicted on the label of a wine. This phenomenon can be explained that the factors which are
easy to process are liked better (Labroo, Dhar & Schwarz 2008). This fact can only contribute to
conclusion that French wine producers should avoid too complicated labeling as it may not be
appreciated by consumers. It was also found out that consumers perceive certain products to be
more attractive if they feature certain concepts that consumers were previously exposed to
(Labroo, Dhar & Schwarz 2008). If these concepts appear in an associated context as well (e.g. a
key and a lock), the liking is even greater (Labroo, Dhar & Schwarz 2008). Individual interviews
will help us to probe deeper into the depth of likability of familiar concepts featured on wine
labels.
The results of this research actually contradicts the traditional branding strategies claiming that
identifiers should be strongly related to the product (Labroo, Dhar & Schwarz 2008). E.g.
chateau were the wine was produced depicted on the label would be related to the product, while
a frog would not. It seems that traditional branding techniques are not omnipotent, and
innovation is welcome by consumers. The explanation is that, over time, certain identifiers
become part of the brand and are therefore liked (Labroo, Dhar & Schwarz 2008). E.g. small
green crocodile is associated with “Lacoste” rather than other reptiles, and red bicycle is
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associated with a brand of red wine. Thus, no matter if the symbols depicted on the label are
related to wine or not, they still are liked if they are easy to process. And the more times
customers are exposed to these concepts, the more they are liked. During the interviews, it will
not be feasible to expose consumers many times to certain wine labels, but it will be possible to
evaluate the likability of familiar concepts (semantic primes).
The factor of liking can be influenced by both rational (cognitive) and emotional states of mind.
As it was argued previously, people like the concepts, symbols, ideas etc. to which they have
been exposed before. Consequently, cognitive dimension comes into play, meaning that
consumers have to rationally process information and recognize it. If the information is easily
recognized, it will probably be liked, likability related with emotional state of mind.
2.2.3. Perception
Label cannot be liked or understood if the information is not perceived, consciously or
subconsciously (Klaus G. Grunert,Josephine G. Mills 2007). Perception happens if certain
familiar concepts are activated (Klaus G. Grunert,Josephine G. Mills 2007). Subconscious
perception happens if consumers have certain concepts in their head that they are not consciously
aware of. Conscious perception happens if consumers both read and logically evaluate the
information posted on the label(Klaus G. Grunert,Josephine G. Mills 2007) . This kind of
perception can be influenced by cognitive dimension, which is responsible for objective
processing of information and facts.
Information can be perceived only if consumers were exposed to it, and search for information
might facilitate or lead to exposure (Klaus G. Grunert,Josephine G. Mills 2007). Authors argue
that these dimensions are influenced by a number of factors such as interest and knowledge in
nutrition issues, consumer demographics and format of the label. The influence of these factors
will be discussed further in the paper.
This framework was used to determine consumer attitude towards nutrition labels, thus
excluding such hedonistic commodities as wine. The framework will need to be adapted
accordingly to help analyze the issue about wine labeling and possible associations it evokes.
18
Figure 1
(Klaus G. Grunert,Josephine G. Mills 2007)
2.3. Research design by F. Durrieu
Another research, performed by F. Durrieu, tried to analyze the impact of regional brand on
labeling (2008). This research paper focused on regional wine brand “Cotes de Bordeaux” and
tried to discover what kind of associations consumers have about this brand. To make the
categorization of associations easier, a brand identity prism (Figure 2, page 19) was employed
(François Durrieu 2008). This prism has six facets: physical (material traits), personality (traits
of human personality), culture (values that relate to the brand), relationship (relation we have
with the brand), reflection (how brand reflects consumer personality) and self-image (image that
wine transfers to its consumer) (François Durrieu 2008).
19
Figure 2
(François Durrieu 2008)
Focus group method was used to collect data, as authors wanted to collect ideas and insights of
consumers (François Durrieu 2008). Researcher interviewed wine makers, retailers, négociants
and HORECA2 representatives to compile complementary data from many perspectives.
As this research paper aims at providing recommendations and suggestions about labeling for
wine marketing specialists and producers only, the review of F. Durrieu findings will be limited
to chateau3 producers and retailers. The results after interviewing chateau wine producers have
2
HORECA- (International Union of National Associations of) Hotel, Restaurant, and Café Keepers
(Anonymous1998).
3
Chateau - an estate where wine is produced and often bottled, especially in the Bordeaux region of France
20
shown that physical aspects of brand name relate to sunny slopes, brand personality is based on
”convivial, festive and jovial dimensions”, wine‟s historical heritage is important for the aspect
of culture (François Durrieu 2008). For the relation facet, consumers implied simplicity, userfriendliness, opening up, and also authenticity. It indicates that consumer relationship with this
brand name is based on trust and wine is suitable for many occasions (François Durrieu 2008).
The reflection that brand casts on consumer can help describe him or her as open-minded and
curious, a wine drinker who possesses a certain wine knowledge. He or she also enjoys a good
quality/price ratio (François Durrieu 2008). The author does not clearly distinguish between the
reflection and self-image dimensions perceived by the wine producers, these two facets are more
or less blended into a uniform “Cotes de Bordeaux” consumer image.
For retailers “Cotes de Bordeaux” brand image is related to “terroir”, a locality (Bordeaux wines
are supposed to have a good quality/price ratio) and a wine type (red, traditional) (François
Durrieu 2008). As for physical aspects, the associations were quite similar to the ones of wine
producers: soils of the Côtes de Bordeaux and a landscape with sunny slopes. Wine personality
and cultural aspects are also perceived very similarly, with the emphasis on tradition and
authenticity. The “Cotes de Bordeaux” consumer definition conceived by retailers is a bit more
specific: “The wine is for the middle classes, aged between 35 and 50, urban but familiar with
the countryside. The Côtes de Bordeaux consumer goes out, entertains (user-friendliness), and is
open to different tastes.” (François Durrieu 2008).
Another interesting and relevant finding from this research is that most of the chateaux wine
producers prefer 3 levels of branding:”Cotes de Bordeaux” as an umbrella brand, their village
brand and chateau brand. On the other hand, retailers prefer to omit village brand and have only
chateau and regional brand separated by a logo (François Durrieu 2008). It is evident, that
different stakeholders in wine industry prefer different labeling types, though the research does
not consider consumer perspective.
2.3.1. Brand identity and associations
It must be stated that labeling contributes only partially to the formation of brand identity. Brand
identity encompasses many characteristics which cannot all be influenced only by labeling.
Nevertheless, the concept of label equity is really important to brand identity. Label equity
21
covers values and beliefs generated by label (Carpenter, Larceneux 2008), and these values and
beliefs form part of brand identity. As it was explained while describing brand identity model
used by F. Durrieu, brand identity consists of physical, personality, relationship, culture,
reflection and self-image facets(François Durrieu 2008).
Labeling is strongly related to physical facet of brand identity, as it may be one of the first things
consumers visualize while thinking about a specific brand. This assumption has yet to be proven
during interviews as there is no secondary material to back-up this hypothesis.
Brand personality is another dimension of brand identity that is likely to be influenced by
labeling. Consumers can easily perceive brands as having personality traits (Azoulay, Kapferer
2003), and labeling can make that perception easier. For example, if a wine has a flashy,
fashionable looking label, one is likely to assume that if this wine was a person, he or she would
be outgoing, sociable, someone who likes to stand out. If, on the other hand, the label is of
classical design, with picture of castle or other estate on it, one can assume that personality traits
pertaining to this wine would be conservative, with great respect to history and traditions, etc.
According to Aaker, gender can also be a part of personality traits (Azoulay, Kapferer 2003).
Implications of this are that certain wine labels can covey more feminine or more masculine
personality traits. Respondents will be asked to perform associations task and relate personality
traits to wine labels.
Labeling can also influence dimension of culture in brand identity. Culture pertains to the values
that can be related to the brand, and the label can convey the image/culture of the region where
the wine comes from (Azoulay, Kapferer 2003). Label can convey the values of tradition,
authenticity, respect for history etc. Actually, the values-based labels such as PDO and PGI are
used exactly for this purpose - to evoke certain traditional values for consumers (Carpenter,
Larceneux 2008).M. Carpenter argues, that, when label is easily recognized and acknowledged
as trustworthy, it evokes certain values and beliefs to the customer (Carpenter, Larceneux 2008).
It implies that label influences the dimension of culture in brand identity if it is well-known and
easily recognizable. Thus, wine marketers should avoid too complicated labels as it may hinder
transfer of values.
22
A more complicated phenomenon is brand relationship, as it is difficult to convey through
labeling only. One example of positive relationship can be a perceived good quality/price ratio.
Label equity can generate positive associations about product quality (Carpenter, Larceneux
2008), so consumer can get a feeling about wine quality and price through label.
The dimension of reflection (how brand reflects consumers personality (François Durrieu 2008))
is as well difficult to deal with. This dimension is related with the image that wine transfers to its
customer. Thus, there is a mutual exchange: brand reflects consumer personality and transfers
certain image to him/her. We can assume that labeling plays only a limited role in this exchange.
The factor of brand identity and associations is influenced by conative dimension as a good,
well-established brand is likely to be viewed as a positive goal to achieve (to consume). Conative
dimension refers to striving state of human mind, and if a product is strived for, that is the
ultimate achievement of marketing managers. Good and well-targeted label can contribute to the
development of brand‟s identity which in turns leads to product being wanted.
2.4. Model by R. Lavidge and G. Steiner
Another model, employed by R. Lavidge and G. Steiner in the article “A Model For Predictive
Measurements of Advertising Effectiveness” (1961), is also relevant for the research about wine
labeling. This model is relatively close to the one employed by Grunert which was mentioned
beforehand. It includes several extra dimensions which are well useful for our analysis.
With this model, authors strived to analyze and explain the movement towards purchase of a
product steps (Figure 3, page 23). Authors identified three major functions of advertising:
information (awareness and knowledge), attitude (liking and preference) and action (conviction
and purchase) (Lavidge, Steiner 1961). Three psychological dimensions that relate to these
functions are cognitive, affective and conative (Lavidge, Steiner 1961). The cognitive component
describes “rational” states of the mind, affective pertains to “emotional” or “feeling” states,
while conative component relates to “striving” states which “treat objects as positive or negative
goals” (Lavidge, Steiner 1961) The functions of advertising research are to decide which steps of
the model are the most critical ones, how many people are on which steps and how to reach them
23
(Lavidge, Steiner 1961). Then the advertising strives to move customers up the steps towards a
purchasing decision. (Lavidge, Steiner 1961). The original model relates only to functions of
advertising but it may as well be adapted to the functions of labeling as these can also be divided
to cognitive, affective and conative dimensions.
The study raised a hypothesis that “liking is determined by three conflicting dimensions: the
desire for simplicity, the desire for full information and the desire not to be coerced into
particular types of food choices”(Klaus G. Grunert,Josephine G. Mills 2007). In this research
paper the first two dimensions will be dealt with, as they can help explain consumers‟ attitude
towards different principles of wine labeling.
Figure 3
awareness
Cognitive
dimension
knowledge
Affective
dimension
liking
preference
Conative
dimension
conviction
purchase
(Lavidge, Steiner 1961)
24
2.5. Main framework
Previously discussed frameworks served as a good foundation for developing a new, more
extensive framework (picture below) which would be able to accommodate all the different
dimensions of consumer perceptions about wine labeling.
Exposure
to labeling
Perception


Conscious
subconscious
Interest
Cognitive
dimension
Knowledge
Affective
dimension
Conative
dimension
Understanding &
inferences:
Liking


Brand identity
and associations
influenced by
labeling
Subjective
objective
Demographics
Label format
25
The main body of this framework is taken from Grunert&Wills model, excluding the parts of
“search” and “use”. The dimension of search was excluded as this paper focuses only on
perception of wine labels, and in order to have a certain association about the label, consumer
has to be already exposed to it.
In the context of this paper exposure is just a necessary condition to be fulfilled in order to have
a customer perception towards a wine label. We will not distinguish between accidental exposure
and exposure caused by effortful search. All we need is the condition of exposure to be fulfilled
in order to dig into the field of consumer cognitive behavior and associations. Although it must
be mentioned that participants of interviews will be exposed to wine labels but not informed
about it beforehand. That would make the situation closer to the accidental exposure, but
participants might induce that interview about wine labeling can actually involve looking at wine
labels. Thus, the situation at hand cannot be easily categorized into one exposure type, but the
condition of exposure will be fulfilled.
Dimension of search would be too farfetched and out of scope of this paper. The part of use was
excluded as well because the use of label information pertains to the purchase intent of product
or food in general, and this paper does not deal with how labeling affects purchasing decision.
Interest, knowledge, demographics and label format were, however, left in the model as they fit
well in the scope of the research. We will analyze the effects of different label formats on
consumer perception and associations, thus label format is one the most important influencing
factors. Degree of consumer knowledge and interest in wine labels is also important as it directly
influences understanding dimension. Demographics is an important external factor as well, as
secondary material proves that demographical features influence attitude towards different
labels. It is outside of scope of this paper to analyze all possible demographical features and their
influence, but we will take into account that the liking of wine labels may be influenced by age
group respondents belong to.
Dimension of perception was left in the model as exposure to a wine label leads to a conscious or
subconscious perception about it. Wine label is perceived in one way or another if it is actually
read.
26
Liking will be used as well as it is a very important part of this framework. Most of the imported
wines in Denmark are French wines (Elsebeth Lohfert 2007), thus they are evidently liked by
customers. It will be interesting to find out what role the liking of the label plays for such
popularity of French wines. It would be useful to know what age cohorts usually consume
French wine in Denmark, though we have no access to such data, and finding out is beyond the
scope of this paper.
Understanding and inferences form part of the new framework as well as it is both relevant for
our research and relatively easily testable. Individual interviews will let us determine how wine
consumers understand and evaluate different labeling techniques.
The missing dimension of use was replaced by brand identity and associations, the concept of
which was taken from F. Durrieu research design. It was a little modified and turned to brand
identity and associations influenced by labeling, as the main focus of this paper is not the brand
but a narrower part of it - labeling. Thus, we are only interested in these parts of brand identity
which are derived from labeling.
Cognitive, affective and conative dimensions serve as explicatory factors in this framework.
Cognitive dimension which is responsible for the rational part of thinking will be used to explain
liking and understanding dimensions. Affective dimension both in the original and adapted model
explains liking. Conative dimension explains the relationship between strong brand image and
liking.
This multidimensional model will be used to explain consumer perception, liking and
understanding of wine labels as well as brand associations based on labeling. We will look
specifically into labeling of two different types of wines: terroir (estate) wines and branded
(blended) wines. Each stage of this model will be analyzed consecutively to build an
understanding of these phenomena which will lead to the developing of interview questions.
3. Methodology
The aim of this study is to analyze consumer understanding and perceptions about different wine
labeling techniques. Qualitative approach was chosen to deal with the matter at hand as wine
27
labeling is a field not very well researched from consumer perspective. Thus, we need to uncover
certain insights and concepts that would help us understand how consumers think and that later
on could be used for quantitative research. Acquired knowledge should be useful for marketing
and branding managers as the prerequisite for successful marketing campaigns is understanding
consumers‟ mindset. Qualitative approach seems to be an appropriate choice as it helps to
understand certain phenomena from the subject‟s point of view and capture inherent perceptions
and beliefs which cannot be quantified. Qualitative research can also pave the path for future
quantitative research as the findings can be used to develop questionnaires for quantitative
studies.
Interviewing was chosen as a specific qualitative research method to be employed. It helps us “to
understand the world from the subject‟s point of view” and presents the possibility to interpret
the meaning of the described phenomenon (Kvale, Kvale 1996). Interviews fit the purpose of
capturing opinions and insights of wine consumers which would not be acquired otherwise.
Interview can also be defined as “an inter-change of views between two persons conversing
about a theme of mutual interest” (Kvale, Kvale 1996), so this exchange of views will help us to
shed some light on consumer cognitive behavior with regards to wine labeling.
Interviews, rather than group or focus group interviews, were chosen as we are only interested in
pure dimensions of understanding, liking and perception and not in respondent interactions.
Therefore, while group interviews may provide us with more lively discussions and unexpected
insights, simple interviews were chosen to insure the unhindered exchange of relevant
information and the opportunity to dig deeper into respondent‟s point of view. Thus, the purpose
of this research is depth, not breadth.
The selection of respondents was mostly based on convenience sampling technique. Since the
research is of exploratory nature, achieving consumer insights about wine labeling is of interest.
This needed to be done without incurring a lot of costs for selecting a random sample which
would be more appropriate for quantitative research. Therefore a sample which is convenient to
access was chosen. Students in Aarhus School of Business were recruited for the interview after
making sure that they are wine consumers: i.e. they consume wine at least once a month.
Respondents were approached in person in Aarhus School in Business or contacted with the aid
of Facebook website. Prospects were asked if they would be willing to participate in individual
28
interviews about wine labeling and how often they consume wine. People who responded
positively were screened with regards to consumption frequency, as it can be assumed that
people who consume wine less frequently than once a month are not interested in wine enough to
pay attention to labels. During the first few interviews, some respondents recommended other
people who are also wine consumers and might have interesting insights. Thus, snowballing
sampling method was also employed. The age range of participants varied from twenty-one to
twenty-six years old, all of them are students in Denmark, mainly in the field of business. One
respondent was male, nine were females and all of them consume wine at least a few times a
month (details of all the respondents are presented in table 4 in Appendix). In total ten interviews
were recorded and transcribes (cf. transcriptions in Appendix 10). Semi-structured interview
format was chosen in order to provide clear guidelines for interviewing, yet to allow for certain
degree of flexibility to probe the topic deeper (cf. questionnaire guide in Appendix 9). Since only
the frequency of consumption was screened for the selection of respondents, consumers with
different knowledge and different involvement were interviewed to uncover perception and
understanding about wines from different perspectives.
To achieve this goal not only simple interviewing but also visual cues were used. Respondents
were shown two different French wine labels. The primary purpose for choosing these labels
were that they perfectly represent two most prevalent French wine labeling techniques. One label
focuses primarily on the region where the wine comes from and provides as much information
on front label as possible (cf. Appendix Figure 1 ). The other is a classical example of a branded
wine, with a clear brand name, no famous geographical indication and minimal amount of
information (cf. Appendix, Figure 2). Both labels are of red wines made from Merlot grapes
which were chosen on purpose to eliminate the liking of specific grape taste and help
respondents concentrate on labeling. To eliminate the liking or disliking of the label caused by
accrued brand image, wines which are not currently imported to Denmark were chosen. We
focus primarily on crude wine labeling understanding and liking so the necessary condition is
that consumers should not have been exposed to these labels previously. The year of production
of the two wines were different, therefore respondents were told to ignore the year while
evaluating the product. French language is used on front labels of the chosen wines and that
reflects the reality as most French wines which are exported to Denmark or other countries still
keep the original labeling language. Thus, both the regular interviewing and questions related
29
with the understanding and perception of particular labels were used to uncover relevant
information.
Software for qualitative data analysis called NVivo was used to analyze the collected data and
draw conclusions. Audio files from collected interviews were transcribed and imported to the
program. Then data was grouped to tree nodes according to the main framework to create a
hierarchal representation (cf. screenshots of tree nodes in Appendix, figures 5, 6, 7, and 8). That
is, the main nodes represent the dimensions of “understanding”, “perception”, “liking” and
“brand associations”. More sub-nodes such as “preferred information”, “likable label” and other
were created to break down the data and perform a thorough analysis. Then data was analyzed
according to key words related to these dimensions and passages of text were attributed to one or
few of the nodes. Arranging data into nodes revealed consumer perceptions about certain wine
labeling characteristics and the analysis of what was found out will follow.
4. Data analysis and recommendations
4.1 Perception
Consumer perception of wine labeling is the first dimension in the main framework which
influences others, thus we will start by discussing what was found out about perception.
Perception of wine and its labeling is a complicated phenomenon and can be looked at from
different perspectives. To uncover the general perception about wine respondents were asked to
identify the first image that pops to mind after thinking about wine. This question helped to
determine whether physical or intangible product traits usually come to mind after mentioning
wine. Our respondents usually mentioned a glass of wine, grapes and bottle. Some also
mentioned intangible things like “special occasions”, “cozy atmosphere” and “taste”. Only one
consumer mentioned a label of wine. This can be interpreted as a space for improvement for
wine marketers and branding specialists. Their ultimate goal should be to achieve that the first
thing consumers visualize, when speaking about wine, is a label of a specific wine brand.
Respondents perceived a quite wide range of wine consumption occasions. It included dinners
with family and friends, parties, consumption at home for relaxing, celebrating special occasions
and before going out to town. One the most important subdimensions of perception is
consumption occasion and it‟s relation to preferred label format. This deals with how consumers
30
associate different labels with different consumption occasions. Marketers can take advantage of
wide range of consumption occasions and market certain wines to be consumed on certain
moments. A perfect example of that is a “Beaujolais Nouveau” brand which conveys a festive
mood through the label and the exclusive date when it reaches the market. The consumption
opportunity for wines can also be conveyed through promotion campaigns and commercials.
Differentiating wine for consumption occasions can also be a way of better segmenting and
targeting wine consumers. Respondent Alexandra complained that there is usually a huge variety
of wines on the shelves and a simple consumer can find it really difficult to choose. Some stores
categorize wines according to countries and a categorization by consumption occasion might be
also worth considering.
One of the consumption occasions is to consume wine before going to town. The purpose of this
kind of consumption is to experience a small buzz and in this case label design does not matter
much. A completely different consumption occasion is bringing wine to a party or a friend‟s
place. For example Viktorija claims that “I think that you can consume this wine for yourself if
you like the taste or something, but if you go out, I think that‟s more… that you should buy a
more expensive wine that looks better.” Her opinion is backed up by Alexandra (“ for a party I
try to buy something fancy that looks nice and for me it doesn‟t matter”) as well as Viltaute (“if
you just bring something to a party or to a friend‟s home, maybe you would bring a little bit
fancy one, that looks..to say a little bit better or you think looks better”). Other people expressed
similar opinions about the label of the wine they would bring to a party. Thus, it can be assumed
that wine is regarded to be a certain drink of “prestige”. This assumption can be backed up by
quote of Evelina: “wine is more like…not like priority thing but just like…more fancy thing”.
People care what other people think about the wine they consume. Wine marketers can use this
perception to their advantage and market certain wines as boosting one‟s image and conveying
certain values of “posh lifestyle”. Marketing consumption occasion such as parties for certain
wine brands might be a good idea as then this kind of wine can be perceived to be a safe choice
to bring to a party or a friend‟s place and reduce social risk. Although, one respondent indicated
that she thinks that nobody cares what kind of wine you bring to parties so it is a good idea for
marketers to further explore consumer perceptions about consumption occasions and labels of
the wine before realizing certain promotion campaigns.
31
The individual interviews indicated that with some exceptions respondents usually believe that
price and quality of the wine are related. Thus, they expect a better wine to cost more. That
brings us to the assumption that using a competitive pricing for premium wine might be a really
bad idea as then the perceived quality of the wine can be much lower than the actual quality.
This assumption is supported by Viktorija: “let‟s say it‟s a very good wine, but it‟s kinda cheap
so I don‟t think that it would make the wine look of good quality”. Thus even if some producers
are able to decrease their costs and production process becomes cheaper they should not reduce
the price of the wine as this might deliver a wrong message to consumers. This logic can also
work the other way around- if you use premium pricing for medium quality wine the perceived
quality can increase. If this can be regarded as an ethical pricing technique remains questionable.
Although it is clear that producers should be careful about pricing as it has a very close
connection to the perceived quality for consumers. Increasing the price and differentiating
product at the same time can be an idea worth considering.
Another dimension of wine labeling which is not very well explored yet is consumer perception
about simple, easily recognizable items such as animals, balls, bikes etc. depicted on the wine
label. During the interviews respondents were asked what their opinion about animals on the
wine labels is. Answers to this question varied greatly: some did not see the connection between
animals and wine and thought that it is a bad idea, some had nothing against animals, and some
thought that depends on the type of animal we are talking about. A few interviewees thought that
if you put an animal on the wine label it still has to be related or representative of the country
that wine comes from. Thus, it seems that whatever is depicted on wine label, consumers still try
to link it with the wine. An example of that is Anton, who was shown a label of wine called “Red
Bicyclette” with a picture of bike on it. He assumed that a bicycle which is just a simple wine
logo was related to the region: “I think this one, bicycle, maybe it is very important for this
region where they are producing this wine”. Alexandra said a similar thing about wine labels
with animals on them: “when you put animals on that label, maybe you try to make a link with
the country that wine comes from”. So it seems that respondents either do not understand the
purpose of putting the unrelated pictures on wine label or subconsciously try to connect the
pictures with the product. It seems that subconscious perception is at work and consumers
automatically relate pictures they see on the label with a particular wine (region of origin,
symbol of that region, etc.) and that is why in some cases semantic primes used for marketing
32
purposes can be really successful. The relation between the perception of this kind of pictures
and the liking of the wine will be discussed further in the paper under the liking dimension.
4.2 Understanding
Understanding of wine labeling was tested first by asking consumers to share their general
knowledge about wine labeling signs and later providing them with pictures of wine labels to test
the actual knowledge.
Before the more specific questions, respondents were asked if they are confident about their wine
labeling understanding. Five out of ten consumers were not confident about their understanding
while confidence level of others was ranging from “so and so” to “okay”. Thus, the assumption
made in the theoretical part that respondents are not likely to be very confident about their
understanding was confirmed. Interesting fact is that almost all respondents are quite heavy wine
consumers, consuming wine at least a few times a month, but apparently frequency of
consumption does not influence confidence level much. It turned out that confidence level did
not have much to do with actual understanding as confident respondents did not explain the signs
very well, similarly to those with low confidence level.
A factor, which is likely to influence the understanding of wine labeling, is a general interest in
wine. It turned out that respondents who are interested in wines are more willing to look for extra
information about wines. It is important to note that some wine consumers are not interested in
wine as such, they never look for any additional information about wines apart from shopping
places, they just consume it as any other drink. This type of consumer can be considered to be
uninvolved. A perfect example of uninvolved consumer is Samanta: she drinks wine a few times
a month, she is not interested in wine in general, never looks for any additional information and
does not closely examine wine label when buying a wine. Another similar case is Anton with a
similar approach towards wine. As a consequence, they both could not tell any wine labeling
signs that they know and while analyzing provided labels they understood only the year of
production. A completely opposite case is Patricia, who is interested in wines, closely examines
wine label while choosing a wine and who understood and explained almost all wine labeling
signs correctly. Thus, interest in wines can result in increased knowledge and have positive effect
on understanding labeling signs. Although it must be noted that interest in wines does not always
lead to good knowledge of wine labeling as almost all other respondents, who indicated interest
33
in wines, did not perform as well in explaining signs. Thus it seems that influence of interest on
understanding is a complicated phenomenon, implications of which can be further explored by
quantitative studies.
In order to test a general knowledge of wine labeling, respondents were asked to tell any signs
that they know which are usually printed on front wine label. The most frequently mentioned
signs were the name of the wine, year and country. Some respondents also mentioned percentage
of alcohol, grapes, taste and signs which indicate that wine was approved by European Union.
Then all respondents were asked to look closer at the provided wine labels and try to explain
every sign or wording on these labels. “Chateau Auguste” wine label included information about
the year of production, the fact that wine was bottled on the estate (mise en bouteille au chateau),
grape name (Merlot), claim that producers promote this wine as their best (grand vin de
Bordeaux), geographical indication of controlled origin (appellation Bordeaux controlée) and
brand name (“Chateau Auguste, Cuvée du Moulin). “Red Bicyclette” wine label provided only
the production year, region of origin (vin de pays d‟oc), grape name (Merlot), brand name (“Red
Bicyclette”) and a stamp indicating that the product was made in France. All respondents
understood clearly the production year of both wines but all the other signs presented some
confusion.
One of the most important signs on wine label which comes on almost every wine is a grape
name. In this precise case labels which were shown to consumers indicated that both wines were
made from Merlot grapes. It was important to explicitly test if interviewees understand what
Merlot is. Most of respondents stated that they did not know what it is, three thought that it is a
brand name and only one was correct. These results indicate that French producers apparently
have some problems in building strong brand names if consumers confuse grape name for a
brand name. Wines of different brands can be made from the same grape, thus consumers are
likely to be loyal to the grape (as it ensures a similar wine taste) rather than the brand of the
wine. Some respondents had strong feelings towards Merlot or Chardonnay names, not fully
realizing what these mean. As a consequence, they are likely to buy whatever brand of
Chardonnay if they like it. Thus, it seems that marketers have to put some effort to create a point
of difference for their brand and distinguish it from other wines made from the same grapes.
34
None of the respondents were able to correctly explain what the term “grand vin de Bordeaux”
means. Thus again miscommunication occurred, and information was seen but not processed in
the way it was intended. The producers wanted to promote this wine as their superior one, but
this marketing effort did not reach the consumers. Similar confusion prevailed with regards to
the concept of “appellation Bordeaux contrôlée” as this sign was supposed to assure consumers
of the region of origin and quality of wine due to controlled processes of production. Some
respondents assumed that the wine was controlled but only one related the control to the region
of origin. Although, most people understood correctly that Bordeaux is the region which only
proves the fame this region has for wine production. Most respondents were able to identify that
“Chateau Auguste” is the brand, though a little confusion was provoked by double brand name
(“Chateau Auguste, Cuvée du Moulin”). Speaking of the fact that the wine was bottled on the
estate, only one respondent was able to identify that correctly. With regards to “Red Bicyclette”,
it was clear for respondents that “Red Bicyclette” is the brand name, but some consumers
claimed that it would be nice to have a region or a country of origin on the label, even though it
was already indicated (vin de pays d‟oc). Thus, not all respondents could identify a region of
origin on the label. The stamp on the label was not clearly visible but some respondents
automatically related the stamp with the sign of quality, even though it only indicated the country
of origin. Therefore it can be assumed that using stamps rather than long wordings might be a
good idea to indicate, e.g. a tested quality of the wine. The understanding of wine labeling signs
was influenced by cognitive dimension which deals with all the rational states of mind and
respondents tried to rationally evaluate and explain labeling signs. Most of them failed to
understand all the signs correctly and this ignorance can be partly attributed to the lack of interest
but wine producers can be blamed as well for not educating consumers enough.
To further test the knowledge and understanding, respondents were asked if they knew any signs
of geographical indications to test their familiarity with geographical indication signs on wine
labels. Only one respondent knew about these signs and she named DOC and DOCG signs which
are Italian equivalents of AOC (appellation d‟origine contrôlée). Apparently, geographical
indications and their purpose is a completely unfamiliar area for the respondents. Although one
interviewee claimed that signs which indicate the region are of value: if the wine comes from a
famous region, consumer can assume that it is a good product. In order to better explore how
35
interviewees understand geographical indications, the concept of AOC was explained and
interviewees were asked to share any thoughts it evokes.
The respondents produced a wide range of subjective inferences with the leading one
concentrated on quality of the product (“the quality should be good”, “more focus on the
quality”). Other insights were about the region where AOC wines come from (“I would associate
it with, first, the region, the quality of the place where wine is produced and, ya, the geographic
conditions where the wine was produced”), trustworthy brand (“isn‟t it also about the brand? It‟s
how they promote it and …I don‟t know, trust”) , price (“that‟s probably kind of rare and the
wine might be expensive due to the fact that there aren‟t that many ”) and expert intervention
(“some wine people, experts, by the Chateau Auguste and they have tried the wine, but they have
also probably used some instruments to see how much grape there is in it”). Thus, AOC concept
about which most of the respondents have never heard before evokes quite many inferences,
most of which are positive. After the explanation of what AOC stands for, the perceived quality
of AOC wines increased considerably for most of the respondents. The opposite was true for the
blended wines: respondents assumed that blended things are usually worse than pure ones. These
inferences can be regarded to be subjective, since before the interview respondents were not very
familiar with the appellation of controlled origin concept. Thus, our findings actually support
Carpenter‟s claim that “a values-based label can operate as a signifier that is a highly credible
label of quality” (Carpenter, Larceneux 2008). It can be concluded that AOC label is really
valuable if consumers understand what it signifies.
Explanation of concept of “estate bottled” which most of the respondents also never heard before
produced some interesting inferences as well. Alexandra claimed that: “if they produce it there,
they put it in the bottles there, and they export the wine that means that they are really careful
and they are like in an industry, and they are specialized and know what they do”. Thus it is clear
that wines which are bottled on the estate convey a feeling of security and professionalism for
this respondent. Other respondents relate it to the tradition of wine making (“home made in some
way. Or has very old tradition in making wine”), constant taste (“it‟s about like having the
same..i don‟t know..minerals. The wine always taste the same cause there are not other factors
that can influence”) or image (“it sounds more fancy”). Inferences about traditional methods of
36
making can be categorized as descriptive beliefs as they are more objective and closer to the real
meaning of estate bottled wines.
Respondents were also asked to provide the associations of the word “terroir” before and after
the explanation of concept. Only a couple of respondents inferred that “terroir” relates to land or
soil, others were in the dark until the explanation. That confirmed the previous assumption that
respondents are likely to have little to none knowledge about terroir. According to previous
studies, respondents were likely to relate concept of “terroir” to region, product and producer
(Philippe Aurier, Fatiha Fort, Lucie Sirieix 2005). Actually, some respondents associated terroir
with old process of production, old-fashioned way of making wine, time and effort. These
inferences were mostly positive as well. If and how much these associations and perceptions
influence the liking of AOC and estate wines will be discussed further in the paper.
After explaining what concepts of AOC and estate bottled actually mean, respondents were
asked if these concepts seem confusing or if they are clearly understandable. Most respondents
indicated that they can understand the two concepts quite well after the explanation but they
believed that for an uneducated consumer these signs would not make any difference
whatsoever.
To further test the understanding of the wine respondents were asked if they are familiar with
wine hierarchy and how wines are classified (table wines, country wines etc.). Only one
respondent knew that DOC (Italian equivalent of AOC) wines are somewhere on top, others
were completely unaware of how wines are ranked. This consumer ignorance should warn wine
producers who rely too much on promoting their wines as superior ones. Due to inflexible
regulations it costs much more to produce an AOC wine rather than table one, but if there is no
clear difference for consumer, something must be done. If consumers are unaware that
appellation of controlled origin wine at least theoretically is better than table wine, some
marketing effort should be aimed at educating consumers. If the perceived quality would
increase, a premium price may be charged.
That brings us to the question how these findings can be used in marketing. Out in the world
there are many wine drinkers who are not involved consumers and are not interested in wine
labeling intricacies. Logically, different marketing and labeling techniques are needed to attract
37
involved and uninvolved wine consumers. It seems that at present many French wine labels carry
a lot of information relevant only to wine connoisseurs or really involved and knowledgeable
consumers. Although, a reasonable assumption can be made that uninvolved consumers can be
heavy wine drinkers as well and constitute quite a big market. Thus, more focus on this segment
of consumers can be recommended. Labels, designed to attract and retain uninvolved consumers,
can be the first step. For example Anton, who is an uninvolved consumer, prefers wines which
can be easily spotted on the shelf in a supermarket: ”I think some good pictures is always cool to
have. Because you can recognize them on the shelf”. Thus it might be a good idea to focus on
the design of easily recognizable labels that should appeal to uninvolved consumers and make
repeat purchases easier. Although, it must be noted that uninvolved consumers not always prefer
simple outstanding labels, as the amount of information on the label can be understood as a
signal of quality: “if it would be a simple label, then I would just think that the wine is really
crappy and really bad and really cheap”. There the education of consumers comes into play. One
respondent, Samanta, stated that she thinks that the biggest problem is the lack of information for
consumers: “maybe they should focus more on, when they do the commercials, on some stuff
that can inform people. Cause now the commercials are associated just with a bit more feelings,
and bit more like to attract customers and special occasions for wines and all other stuff. But
maybe they could have that thing, but maybe they could also include a bit of information how
they were made of”. An assumption can be made that if consumers were more educated about
the wine making processes the appellation of controlled origin wines may be of more value to
consumers than they are now. Same goes for other wine labeling signs designed to indicate
quality and production technique such as “estate bottled”. We can refer to Samanta again who
thinks that it would be nice to know “about the process, how they do that, how they produced”. It
can by no means be generalized that all wine consumers are interested in production processes
but it might be an opportunity to increase consumer awareness and by doing so increase
perceived quality of the wine. Although this is only possible for wines of good quality which
take pride in production process or place. This opportunity of combining promotion with
educating consumers can be further explored by quantitative studies to determine the possible
effects on consumers and if it would be financially profitable. More emphasis on helping
consumers differentiate between brand name and grape name is of importance as well.
38
Regarding the understanding of wine labeling, respondents provided certain recommendations
what would make it easier to distinguish between wine labeling signs. Main propositions were to
keep it simple and, most importantly, translate the French terms. Apparently the current practice
to keep the original language of producing country on the label does not appeal to consumers
much. Half of the respondents said that they would like to have French wine labeling signs
translated (if not on front, then at least on the back label). It seems that consumers care about
labeling signs and want to understand them, so the task of wine producers is to make it easier.
4.3 Liking
Another main dimension in the analysis is liking. After all, all marketing efforts directed towards
consumers are supposed to be liked, if they are not, they will not have a positive effect on wine
drinkers. In order to achieve certain insights about what consumers like and do not like,
respondents were first asked how much information in general they would prefer to have on the
front label of wine. Some consumers did not have a clear preference for the amount of
information provided on the front label and thought that it depends: “maybe sometimes with
more information and sometimes just the fancy one, the label which looks really good”, “I would
say it depends, because if you just go and don‟t have a lot of time and you just want to buy a
bottle of wine”, “on the rare occasions where you just want to have, as I mentioned, a really nice
chill out evening, you can drink some nice wine, I would say some more information would be
needed”. Apparently, for some consumers amount of information provided also depends on the
consumption occasion. It might be really difficult to position certain wines for certain occasions
and provide adequate amount of information on the label, thus it is interesting to see what
respondents with more concrete opinions on amount of information have to say. Certain
respondents prefer more information and the arguments are: “if it would be a simple label, then I
would just think that the wine is really crappy”,” I think it‟s useful to have more information”.
Others, who think that more information should be on the back label argue that “[i]n front I think
they should keep it simple because usually good consumer looks at the ingredients, the year, the
region”, “I would like just to keep the necessary information on the front and all the information,
to give us as much information as possible, to be in the back”. It must be noted that certain
consumers preferred to have the AOC sign and/or “estate bottled” to be printed on the back label
with an explanation what it means. Many wine producers are very proud of their appellation of
controlled origin recognition so it is very unlikely that they would be willing to print it on the
39
back label instead of front, but a small explanation what the sign means sounds reasonable and
might be realistic to implement. That would help increase consumer understanding and perceived
value of the wine at the same time.
There is also another category of respondents who think that a lot of information on the label,
whether it is front or back, is not good. Anton claims that for him “a lot of information makes it
very difficult to figure out”, others just think that a simple label is enough for them. It seems that
in this specific case the confidence in wine labeling understanding has nothing to do with the
amount of information preferred. A suggestion for future studies might be to explore what
categories of consumers (involved, experienced, confident, high income level etc.) prefer wines
with a lot or less information and target them accordingly. It must be mentioned that all
respondents positively evaluated the previously mentioned EU decision to allow labeling for
grape variety and production year on all wines. Thus it seems that this basic information is
important for all wine consumers. After individual interviews a general suggestion can be made
to make the back labels more informative and keep front labels simple as that can be a trade-off
between preferences of different consumers.
To gain an understanding how important country of origin for wine consumers is, respondents
were asked if the country matters and which wine producing countries they prefer. All
respondents claimed that the country of origin does matter and among the most popular countries
were Italy and France, as well as Argentina, Chile, Spain and Romania. An assumption can be
made that Romanian was preferred because a couple of respondents were Romanians but the rest
of the respondents do not come from wine producing countries. It is clear that country
preferences matter and respondents try to choose wines made in the country they like, so the
general opinion about “French wines” or “Italian wines” matters. As a consequence, a few bad
wines from one country can taint the image of other wines from that country. Prevention to that
problem might be creating strong brands, so no matter the reputation of other wines from one
specific country, consumers would know that this brand assures quality and good taste.
Another aspect of liking that we are looking into is liking of semantic primes (simple pictures)
on the label. Respondents were asked what is their opinion about animals depicted on wine labels
(animals can be regarded to be an example of semantic primes). There were some negative
opinions as consumers thought that they would not buy a wine with animals on it, some thought
40
that to have animals on the wine label is “just weird”. Although, some respondents thought that
their attitude depends on the kind of animal depicted on the label and were looking for
connection between the animal and the country of origin: ”that brand has a , I don‟t know, it‟s
local bird or a tiger then that brand must put a logo on the bottle. But if it‟s just a dog put on the
wine bottle it‟s nothing”. Others thought that the picture with an animal does not influence them
in any particular way. Thus, it seems that there is a variety of opinions regarding wine labels
with semantic primes. The liking and disliking on that matter was also tested by showing
respondents wine labels one of which depicted a semantic prime on the label (in this case, a bike,
wine name “Red Bicyclette”). Four out of ten respondents liked the label with the bike better
than the other one with no pictures. Liking of this label can be also influenced by the labeling
technique used, which provides only basic information. Although, two respondents claimed that
they liked the bike and they thought that it looks catchy. Therefore, it seems that catchy simple
pictures (semantic primes) impress certain people while others stay indifferent or negative. By all
means, using catchy interesting pictures on wine labels can be a good idea if it targets certain
segments of wine consumers who are perceptive to this kind of marketing (e.g. young,
innovative, modern).
After discovering consumers‟ perceptions and associations about AOC wines, we will try to find
out if this has any effect on them liking these wines. After the explanation of AOC sign, only for
two respondents it did not have any particular impact on liking, the rest liked the wine with this
sign better. It is clear that there is a huge gap between what impact on consumers wine producers
try to achieve with controlled origin sign, and what the actual impact is. There are many
inexperienced or/and uninvolved wine consumers who buy AOC wines without even realizing
what this sign means, and they are probably more than willing to change to blended wines
another time they buy a wine. If they are not aware what this sign means, they do not perceive
AOC wines to be of better quality than blended ones and this sign does not influence liking in
any direction. There are many opportunities for improvement and if only a tiny explanation on
back label would be provided that might increase liking of AOC wines a lot. This claim can be
backed up by the opinion of one respondent: “[i]f you know something about that..about the
organization that stuff..then it makes a huge impact I think so..but if you don‟t know that , and
you don‟t see any..you don‟t understand what‟s written there, then there is no impact at all
actually”. If producers want to realize the full benefit that controlled origin can bring, they must
41
find a way to communicate the meaning of this sign to consumers. A reasonable assumption can
be made that so far AOC is only relevant for more experienced wine consumers. Nevertheless,
there are not so many consumers who fall into this category and a really big chunk of revenues
come from uninvolved consumers. As a consequence, marketers should try their best to keep
less involved and knowledgeable consumers informed about the wine signs which may have a
big effect on liking and later on a purchase of wine.
Speaking of blended wines, most respondents do not like them as much in comparison to
appellation of controlled origin ones. One respondent, Patricia, argued that “it sounds nicer and
more.. it just sounds better if it‟s from one region, if it‟s not mixed, kinda like cheese”, while
Desi though that “wines from different regions they still have a bit of different taste, so I don‟t
want this mixture, I prefer more the pure taste”. Although, there was one consumer who thought
that blended wines are more aromatic and therefore should be preferred, all other respondents
were leaning towards the AOC wine after the explanation of the difference between the two
concepts. It can only be repeated again, that information is a powerful tool and wine producers
who had the origin of their wine approved should learn how to reap the full benefit of it. While
producers of blended wines can exploit the absence of wine making regulations and concentrate
on improving the taste and aroma.
It is important to know if the fact that wine was bottled on the estate has any effect on liking the
wine. More than half of the respondents claimed that after explanation of the concepts they
would like the estate/terroir wine better. If consumers perceive a wine as a local specialty, the
liking of the wine increases considerably. Thus, it is another unexploited area for wine marketers
to focus on. Although, some respondents claimed that if you do not know the region and the soil,
it is not of big importance and do not have any effect on liking the wine (“I don‟t live in France,
so I don‟t know the kind of soil, so this wouldn‟t matter for me”). It is likely that the effect on
“estate bottled” sign on liking the wine is not as big as that of AOC sign, but this needs to be
explored by future studies.
Respondents were also asked about design preferences for the wine label and how they would
describe a likable label. Respondents provided many different characteristics of a likable label:
with some pictures; with attractive colors; with traditional ornaments and colors; original and
joy-inspiring; simple but also original; fancy; classical without the picture; traditional;
42
expensive-looking; combining traditional with modern; with a small picture, representative of the
region; with an interesting name. Some respondents also claimed that the preferred design also
depends on the consumption occasion. All ten interviewees imagined a likable label really
differently and the results partly contradicts previously mentioned findings that “Millennial
generation prefer fun wine labels with original names and bright colors” (Wolf, Thomas 2007).
As a consequence, it is quite difficult to come up with useful insights and propositions about
wine design. Thus the question about design preferences was narrowed down to a choice
between traditional and original labeling designs, and most respondents replied that they would
pick a traditional one. Of course, the assumption that producers should focus more on
classical/traditional design can only be backed up by quantitative research on this matter.
As mentioned before, interviewees were shown two different French red wine labels. They were
asked not only to explain how they understand labeling signs but also to tell which wine they like
better and why. As both wine labels represent really different labeling techniques, liking of these
two wines can help us gain understanding about wine labeling technique preferences. “Chateau
Auguste” was preferred by six respondents and the comments were “it looks more official with
the design”, “[t]his one looks like more classical”, “I like the more classical looking wines”, “it‟s
more fancy”, “that looks more classy”, ”it‟s looks very good and makes it look a bit more royal”.
Thus, it seems that there is a certain type of consumers who, while not understanding all the
signs, simply likes classical design with a lot of information. Thus, tactics “to sustain the image
of quality through tradition” (Barber, Ismail & Taylor 2007) definitely work for some
consumers.
Other part of respondents who liked “Red Bicyclette” justified their preference by comments
such as: “it‟s simple. It‟s not so complicated”, “I think the label itself is very old fashioned, you
know, and that‟s why I feel more confident in this wine”,” it just focuses my attention because
you just see it‟s red, it‟s says the name, Merlot, and it says the year”, “it has the red color which
is like..taking my eyes”. Therefore, this group of respondents liked the eye-catching design and
simplicity of the label. One respondent did not even like the picture of the bicycle, but still chose
“Red Bicyclette” because of the clearly presented information. It is also important to notice, that
even some respondents who claimed that they do not like unrelated pictures on wine label
preferred “Red Bicyclette”. So it seems that semantic primes work even though consumers are
43
not always aware of that. Without doubt, respondents have previously been exposed to pictures
of bicycles and bicycles themselves, thus cognitive dimension may be at work here, since people
simply like familiar items. In conclusion, the respondents did not exhibit any clear preference
towards one label format, even though they all belong to Millenial age generation. Confidence of
wine labeling understanding also did not affect the preferred label format, as we may have
suspected based on previously mentioned Barber‟s research.
Interviewees were asked if their opinion about the wine labels have changed after the explanation
of previously unfamiliar concepts of AOC and estate bottled. And all but two respondents
changed their opinion-perceived quality and liking of “Chateau Auguste” wine increased because
it carries previously mentioned signs. Thus, it is clear that unexploited marketing opportunity
exists in, for example, informative commercials as explanation of signs can significantly increase
the liking.
Respondents were asked whether they would like to change anything about the two wine labels
and almost all of them had something to offer. Respondents, who originally preferred “ Chateau
Auguste” wine were critical about “Red Bicyclette‟s” name, logo and lack of information:
“instead of the bike I would put the vineyard” , “I don‟t like the bike”, “I would definitely put
more information on this”. Respondents, who favored “Red Bicyclette” to begin with, thought
that the label was good the way it was, only one person was not very fond of the name and the
logo. Therefore when it came to semantic primes, the respondents either liked it or were really
critical.
All respondents had something to say about the label of “Chateau Auguste” wine. Criticism was
mainly focused on the graphical design which included many ornaments and apparently made it
difficult for consumers to read: “maybe I would take out the graphic things because maybe it
makes harder for the consumer”, “I would change the design”, “more simple, with not so many
fancy things on the background”. The amount of information provided on the front was also an
issue: “I think I would just reduce the amount of information written..text”,” I think it‟s too much
the written part, I would prefer it to be, for example, on the back side”. Since the written
information on the label was quite extensive, some respondents preferred to have it translated (“I
think I would write something in English or other language”), while others preferred to have a
simpler sign instead of writing full “Appellation Bordeaux contrôlée” (“[m]aybe they should do
44
a particular sign for that (AOC) and just put it on the label, so people will know what is with
wine”). It seems that wine producers should make sure that the label is easily legible and
information is not too concentrated on the front. Translating certain French phrases might be also
worth considering. Coming up with a specific sign for “appellation d‟origine contrôlée” might
sound as an innovative and rather bold idea but taking into account that certain signs are already
used for “protected designation of origin” and “protected geographical indication” this is not so
impossible.
The dimension of liking as such is influenced by both affective and conative dimensions. If
consumers like the wine, they feel positive towards it but that does not necessarily mean that
they buy or consume it. The ultimate goal of marketers should be to create a certain wine product
that could be regarded as a goal to achieve. For a product to be regarded as a goal, it has to
deliver strong values to consumer that cannot be substituted with other products. An example of
wine, that delivers value of exclusivity and can be regarded as a goal to achieve, is the highestend rare wine “1945 Chateau Mouton-Rothschild Jeroboam” costing over $100.000 a bottle
(Anonymous2006). Values that can be delivered by wines will be further discussed under brand
identity and associations.
4.4 Brand identity and associations
The last dimension of the main model is “brand identity and associations” which is influenced by
perception and liking. The way in which a person perceives a certain product contributes to the
brand‟s associations attached to that product, thus it is important to find out what associations
respondents had about “Chateau Auguste” label.
Respondents were asked to describe a consumer of this wine and one of the most important
characteristics of the consumer was that he or she has to be knowledgeable about wines: ”this
one for more experienced ones in wine”, “I think both of the wines fall under “wine knower”” ,“I
see like more mature consumers”. Another important feature of the consumer was the financial
well-being: “with a good income”, “people that are rich”. A few respondents also perceived a
consumer of this wine as a snobbish businessman: “‟[b]usiness people. This one would be like
for official dinners or something”, “as I kind of assume that this would be more expensive, more
45
like for business people, official dinners and really fancy occasions”. Therefore, a consumer
profile for this wine would be a rich wine-knower bringing the wine to a fancy dinner.
Interviewees were also asked to describe “Chateau Auguste” wine if it was a person and one of
the most popular features of this person was fancy clothing : “would be a guy with a shirt..maybe
a tie”, “it seems like he would be dressed up”. Another popular characteristic was classic or
fancy style: “more like French people that are like more fancy, more sophisticated”, “[t]his could
be, um, elegant lady, like really fancy and old-style lady” , “an office worker which is kinda busy
but has to go to a classy meeting”, “I imagine I don‟t know, being snobbish”. Perceived price of
the wine according to the label is also of interest and every respondent claimed that “Chateau
Auguste” looks like an expensive wine and should more expensive than “Red Bicyclette”. Thus,
from whichever perspective we try to evoke associations about “Chateau Auguste” wine,
whether it‟s consumer, person or price, similar characteristics are mentioned. An opportunity
regarding wine labeling might be to design expensive looking labels even for not-so-expensive
wines. Then consumers would feel that they are making a good deal and paying not so much for
a wine of perceived good quality. It is important to note that the retail prices of both “Chateau
Auguste” and “Red Bicyclette” wines are relatively similar, though “Chateau Auguste” was
perceived to be much more expensive due to its fancy design.
It was important to find out whether a wine label can convey any values, and apparently it can.
Respondents claimed that label of “Chateau Auguste” wine primarily advocates French values:
“I see French people..like very fashionable, and enjoying expensive stuff “,”[p]roducing wine is
like part of French culture, they were making wine from the early age so I think yeah… They are
part of the French culture”. It also promotes the values of exclusivity: “[w]here “Auguste”,
maybe not everyone can buy it, puts people maybe not into the boxes, but into the frames..that
not everyone can afford it let‟s say.. so”, “Ya, exclusive, maybe a little bit more luxury let‟s
say”, “posh”. Therefore, “Chateau Auguste” or other wines promoting similar values have a
potential to be positioned as a “need-to-have” product for luxurious lifestyle.
The quite opposite values were attributed to “Red Bicyclette” wine label. The values are
simplicity, affordability and dynamic lifestyle. Several respondents also mentioned that they can
relate this wine to Denmark because of the bicycle culture and bike logo on the label. One
respondent also thought that “this one, bicycle, maybe it‟s very important for this region where
46
they are producing this wine”. Thus, wine producers should be deliberate about what they depict
on wine labels because consumers can decipher even unintended messages (in this case, bikes
and the region of origin). On the other hand, a meaningful and catchy picture might only enhance
value of wine for consumer. If used correctly, wine label can be a powerful tool to convey
intended values and promote a certain lifestyle or consumption occasion.
Speaking of general associations about the brand image of “Red Bicyclette”, some respondents
thought that it is a very old-fashioned wine, while some claimed that it looks like a good wine or
a catchy wine. Perception of potential consumer ranged quite a lot: from a young person to a
conservative, old-fashioned consumer. Although, the most frequent consumer characteristics
were young or a student consumer, middle class or lower income. Perceived price was low,
affordable to everyone. Considering this wine was a person, most frequently mentioned
characteristics were young (“a young person, that is really active and enjoys life”,” [t]his should
be student”, “person in mid-twenties or something like that”), active (“that is really active and
enjoys life”, “a modern girl or boy, full of life”, “a city person, biking in the city”, “dynamic,
crazy, creative person”, “she‟s very free, very open-minded”) and casual (“a person with jeans
with holes for sure”, “more like a simple person”, “it looks like more casual”).
All in all, it seems that respondents had no trouble attributing certain images and associations to
the two wine brands. In certain cases the liking and perception of the wine labels influenced
brand images as consumers who preferred, e.g. “Chateau Auguste” wine tended to attribute more
negative images to “Red Bicyclette” wine (“a person with jeans with holes for sure”). If
consumers perceived “ Red Bicyclette” to be less expensive wine and not of superior quality,
they attributed the value of simplicity to this wine. If consumers perceived “Chateau Auguste” to
be an expensive wine for special occasions, they pictured a classy businessman consuming this
wine. In conclusion, respondents‟ perception about certain wine label in most cases influenced
brand image and associations. On the other hand, liking not always played the role in
constituting brand image, as some respondents who did not like “Red Bicyclette” much, still
pictured a quite positive brand image (e.g. “I think this one (“Red Bicyclette”) promotes a
dynamic lifestyle, tendency to changes”). The same is true for “Chateau Auguste” wine. Persons,
who were not very fond of it, still described it as “elegant”. Thus, it seems that in certain cases
47
perception and liking influence brand image but this is not always true, and wine marketers can
try to create a brand image that would permeate all positive or negative opinions.
In the end of interviews respondents were asked if they would like to recommend something to
French wine producers and marketers and their thoughts about possible improvements in wine
industry can serve as a closing part in the analysis of primary research. Main recommendations
of the interviewees were to provide more information about the quality of wines, to design
catchier labels or the labels that would make you feel special. Thus, it seems that wine marketers
should work not only on informative but also on emotional aspect of wine commercials and
labeling. Another important and frequent suggestion was just to keep the front label simple and
to provide more information on the back label.
To sum up the findings of the primary research, it can be stated that our respondents perceive
wine as a drink for various occasions such as dinners, parties and special events. Most of them
are quite heavy wine consumers but not particularly confident about their wine labeling
understanding. Respondents did not excel at objective labeling understanding and had various
preferences for label formats. Most of them believed that preferred label and the amount of
information depends on the consumption occasion. Additional information about labeling signs
such as AOC and “estate bottled” in most of the cases influenced consumers‟ perception about
the wine positively. Therefore, educating consumers can contribute greatly to the perceived
quality of terroir wines. Consumers had no trouble attributing certain values to wines and
characteristics to wine consumers, thus it proves that there is an opportunity for creating strong
wine brand values and promoting them to certain segments of consumers. In conclusion, if a
wine company is ready to change its current practices to better fit consumers‟ needs and listen to
what they are saying that can become a huge competitive advantage. Consumers are more than
willing to share their opinions, all that wine producers have to do is ask.
5. Limitations and future research
The scope of this study was limited to analyzing wine front labels only. The reasoning is that the
front label is the most important visual cue while choosing or consuming wine with a lot of
important information provided on it. In addition to this, analysis on how consumers perceive
both front and back labels would be too complicated due to very vast scope. Although, a study in
48
relation how back label complements front label and what kind of information consumers would
be prefer to have on both of these labels would be of interest and can be recommended for future
research.
This study aimed to gain understanding how consumers of different knowledge and experience
understand, perceive and like different types of French wine labeling. What brand associations
labeling evokes was also within the scope of this study. Though, it must be mentioned that
different knowledge and understanding of more and less experienced wine consumers was not
used for comparative analysis in this study, as we are only striving to uncover consumer
perceptions and not compare them on basis of experience. Respondents of different knowledge
were only interviewed to achieve a broader spectrum of insights into the topic. Comparative
analysis would make more sense if a larger number of interviews were conducted and certain
generalization possibilities would exist. This type of analysis can be recommended for further
research on the topic of wine labeling understanding.
People interviewed were the students in Aarhus School of Business, thus young and belonging to
the Millennial age generation. Therefore, the uncovered perceptions and understanding about
wine labels can be influenced by demographic factors such as age and social status (students).
Thus another suggestion for future research might be a comparative analysis of wine labeling
perception and understanding of consumers from different generations such as Baby Boomers
and Millennial. The results can then be used to better segment and target wine consumers.
Comparative analysis can also be done not only according to demographic characteristics but
also according to countries. Studies of wine labeling understanding can be extended further to
other European and New World countries to find out which wine producing countries employ the
most consumer-friendly labeling techniques. Then the best case practices can be used to better fit
customer needs.
6. Reflections and conclusions
The purpose of this thesis was to explore how consumers perceive, understand and like different
French wine labeling techniques, as well as what kind of associations different labels evoke. This
purpose was derived from the problem statement, indicating that dissatisfaction about French
49
wine labeling exists and it is unclear what exactly is confusing for consumers and what should be
changed. As a consequence, research questions were formulated, to which the answers were
provided in the paper and will be summed up below.
RQ1. What influences consumer understanding of wine labeling?
Wine labeling understanding is influenced by conscious and subconscious perception of labeling:
in order to be understood, a label needs to be read and perceived in one way or another.
Understanding is also influenced by cognitive dimension, since consumers have to rationally
evaluate the information and recognize it. Other factors that influence consumer wine labeling
understanding are interest, knowledge, label format, demographics and marketing efforts. People
who are more interested in wines, usually posses a greater knowledge of labeling signs and excel
in objective understanding. Label format is of importance as well, since labels which are more
clustered with information are not very well understood and therefore European Union took
some measures to ensure a simpler and more consistent labeling. Language used on the label also
influences understanding, as original language of producing country used for exported
production can seriously hinder objective understanding of wine labeling. Demographical
variables such as age can also influence understanding, since wine knowledge of young
uninvolved consumers and older, more experienced ones may differ. Marketing efforts directed
towards consumer education can be also partly responsible for their labeling understanding.
Since most commercials are targeted towards triggering emotional feelings rather than the
rational state of the mind, many consumers are actually unaware what many labeling signs
represent.
RQ2: How do wine consumers understand different wine labels?
Respondents that were interviewed did not excel at wine labeling understanding even though
most of them were quite heavy wine consumers, consuming wine at least a few times a month.
Most respondents identified correctly the brand name and production year, but all the signs that
indicated the place of origin or process of production (estate bottled) were mostly misunderstood.
Nevertheless, after the explanation of unfamiliar concepts most of the respondents inferred that
the appellation of controlled origin wines can be regarded to be of higher quality than the
branded ones. Thus, understanding and inferences about different wine labels depend on the
50
amount of information accessible to consumers, and additional information can significantly
influence and change understanding of different labels. The results of consumer interviewing
confirms the hypothesis that wine labels are usually really confusing for consumers. The most
confusing labeling signs apparently are the indications of geographical origin, provided in
original language with no further explanations, and indications that the wine was bottled on the
estate. Wine logos also present some confusion since consumers usually try to relate them to the
characteristics of wine, such as region of origin.
This paper also aimed to put findings about wine labeling understanding in perspective and
provide recommendations how French wine producers and marketing specialists can better suit
customer needs.
RQ3: How marketing specialists can use the acquired knowledge about consumer understanding
in practice?
Consumer understanding of wine labeling is not so great due to wine labels which are not
customized for exports and preserved in an original language of producing country. Since many
consumers cannot understand what certain French terms mean, the recommendation would be to
adapt the labeling language according to the country to which French wines are exported.
Marketing campaigns and commercials which focus more on premium production processes or
traditional places can also be recommended since this makes a big impact on consumers if they
are exposed to this information. If explained, AOC concept serves as a significant quality
indicator, thus wine producers from protected designations of origin need to educate customers
better and the perceived quality of their wines can increase significantly. Making wine logo both
meaningful and catchy can also enhance perceived wine value in the eyes of consumers.
The assumption that younger wine consumers belonging to Millennial generation, such as our
respondents, would prefer original and more outstanding wine labels was not confirmed. Some
respondents did prefer original labeling, but the majority was more inclined towards classical
labeling since it apparently conveyed the feelings of tradition, quality and trust. Although,
different labeling was preferred depending on consumption occasion, so trying to position wine
and design its label accordingly to consumption occasion might be a wise marketing move. Wine
labels are also capable of transferring different values, therefore wine marketers can take
51
advantage of that and promote certain lifestyles with adequate labels to create a strong affiliation
to product and the advertised values.
The results of this study question previous findings about wine labeling preferences which
indicated that younger generations of consumers prefer original and funny wine labels. This
study can be used as a basis for quantitative research meant to establish a better grounded
confirmation that most wine consumers prefer classical labeling.
52
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