The Impact of General Public Wine Education Courses on Consumer Perception
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1 To create or restore value, who said? I believe vehemently that education is the best way ahead» The Impact of General Public Wine Education Courses on Consumer Perception Richard Sagala / Paolo Lopes École IN VINO VERITAS, Canada / BEM KEDGE Management School, Bordeaux EuAWE Conference, Lyon, June 5th, 2014 To create or restore value: Literature review (highlights): I believe vehemently that education is the best way ahead» Dan Jago Global Director for Wine attesco «When looking for sources of literature on the value of wine education courses one finds very little, this topic has not been researched to any extent» (Taylor et al., 2009).
2 Impossible d'afficher l'image. Votre ordinateur manque peut-être de mémoire pour ouvrir l'image ou l'image est endommagée. Redémarrez l'ordinateur, puis ouvrez à nouveau le fichier. Si le x rouge est toujours affiché, vous devrez peut-être supprimer l'image avant de la réinsérer. Literature review highlights Context: SAQ Wine school is an ancillary service «Education is key to increasing the level of consumer engagement with wine (Wine education is) a beacon of hope for the wine trade. Suppliers believe it will cure binge drinking, restore margins. The retail industry is not adding value and consumers are price loyal, not quality loyal. What we see piled high on every gondola end is the branded, the mundane and the heavily promoted. Whether it s pork bellies or pig iron, a commodity market has few margin opportunities. This situation will not change until we, as an industry, begin to add value" (Nielsen, 2010). "Wine is a fragmented market facing a confused audience battered by the retail trade, battered by oversupply" (Hegarty, 2010) Wine education in Québec CANADA Research Question What is the value of wine education courses and do they engage the Quebec consumer? a) Did wine education customers learn anything from attending the courses and if so, what is it? b) Do wine education courses change perceptions in students mind? Are they engaging differently with the product, and in what way? c) Do they know how to taste wine better and do they know their taste preferences better? d) Do wine education courses lead to up-trading or cross-trading? Do they engage more discretionary money in the category? e) Do wine education lead customers to intensify their relationship with wine, and to what degree?
3 Research methodology Research methodology Who were the respondents The data for this report was collected with four surveys, 2 identical an 2 new and different ones from the fall of 2010 to the fall of 2012; Demographics Before the course T0 n=277 After the course T5 n=277 3 months after T17 n= months after T110 n=60 Data was gathered via 2 in class questionnaires and 2 internet ones; In class questionnaires were collected from 25 classes by 12 different teachers teaching the same (standardized) course; In class (same) questionnaires were filled before beginning and after finishing the (five weeks) course and were paired; After 3 months (different) internet survey got filled by students who d to give their adress; After 24 months a new internet survey followed including some new and identical questions from the first internet one; 5 points Likert type scale used: 1-Do not at all, 2-, 3- Neutral, 4-Somewhat, 5- Totally Gender female 47% 47% 49% 47% male 53% 53% 51% 53% Age L.A*- 24 4% 4% 4% 2% % 49% % 34% % 12% 14% > 64 3% 3% 1% 1% Wine consumption More than once a week 2% 2% Once a week 52% 58% Once or twice per month 43% 38% Less than once per month 3% 2% Younger segments dominate <41 Did wine education customers learn anything from attending the courses and if so, what is it? Did wine education customers learn anything from attending the courses and if so, what is it? Série1 Série2 Sensory cues valorization: course improved the importance of the varietal attribute Responde ents (%) 3% 8% Do not at all First week 17% 15% 19% 17% 23% 42% 26% Neutral Somewhat Totally Respondents (% %) First week 4% 6% 24% 18% 45% 11% 12% Empowerment: wine course increased the subjective knowledge perception on wine for both: no prior and with prior education students Do not at all Neutral Somewhat Totally
4 Did wine education customers learn anything from attending the courses and if so, what is it? Do wine education courses change perceptions in students mind? Are they engaging differently with the product, and in what way? cues valorization: courses improved the importance of the region attribute Respondents (% %) 5% 1% Do not at all First week 7% 3% 61% 51% 17% 19% Neutral Somewhat Totally After 3 months, 9 of participants declared having changed their behavior as wine consumers 91% of participants declared choosing their wine better 71% of people on being willing to take more courses Wine course improved the participant s enthusiasm for communicating about wine: 78% of students declared speaking more about wine 71% of respondents declared encouraging other people to enroll in wine courses; After the course, 86% declared their interest in wine and food pairing Do wine education courses change perceptions in students mind? Are they engaging differently with the product, and in what way? Do they know how to taste wine better and do they know their taste preferences better? «Wine and food pairing is important for me» 88% of people declared knowing their taste better Seventeenth week ts (%) Respondent 51% 46% 25% 5% 2% 3% 1% Do not at all Neutral Somewhat Totally Respondents (%) % 82% 83% % trust their own palate in passing judgment on what taste good
5 Do wine education courses lead to up-trading or cross-trading? Do they engage more discretionary money in the category? Do wine education lead customers to intensify their relationship with wine, and to what degree? «Since I have taken a wine course I drink more wine» 44% 56% Spend more Same budget Respond dents (%) 11% 24% 36% 41% 18% 4% Young Mature Do not at all Neutral Somewhat Agree Totally 56% declared spending more on the category After the course, the increase in wine consumption intensity (drinking more wine) is only marginal (< 5%) regardless of ages Do wine education lead customers to intensify their relationship with wine, and to what degree? Conclusions What is the value of wine education courses and do they engage the Quebec consumer? Respond dents (%) 12% Do not at all 24% 18% 33% 42% Neutral Women After the course, the increase in wine consumption intensity (drinking more wine-more often) is only marginal (< 4%) regardless of ages and genders 23% Somewhat 8% 7% Agree Totally Men Economic value creation for the proponent of the courses who saw a majority of students wishing to buy more courses as well as recommending the courses to their peers Value creation for customers; after the course, students declared knowing more about their taste preferences and trusted more their own palate.interest for food and wine pairing also increased Shared value creation for consumers, trade and society from the fact that enthusiasm and commitment to wine exist concomitantly with consuming wine in a socially responsible manner Sustained spending commitment (more ) accompanied by a sense of empowerment and confidence when selecting and using the product.
6 Managerial implications Want to know more? Sustained profitability: If the majority of the (4,000 yearly) wine course students declared spending more, it stands to reason that course takers do generate recurrent profits for the liquor board-proponent of the (self-financing) wine appreciation courses The trade benefit from offering wines that are clearly identified in terms of varietal and provenance, and source value driven products from lesser known countries or appellations but crafted from reputable and well known varietals Please read AAWE Working Paper: WP 132 And visit: ecoleinvinoveritas.ca Trade need to advertise with an emphasis on wine & food pairing since it is a topic that interests involved customers Edutainment format wine courses engage consumers. Thanks for your attention! addenda Richard Sagala BEM KEDGE Management School, Bordeaux / École IN VINO VERITAS, Canada EuAWE Conference, Lyon, June 2014
7 Champagne owns Celebration, Coke owns Happiness, and Wine? Wine owns Food* P value results, Table 1 Subset 1 n= 274 and Subset 2 n= % 68% 86% Subset 2 n=134 51% 54% 46% Questions First week Mean SDev Mean SDev I don't know much about wine but would like to learn 3,83 1,24 3,5 1,25 <0.00 I know about wine and have been interested in the subject for a few years 2,69 1,14 3,03 1,09 <0.00 already P value I love wine and like to talk about it and communicate my enthusiasm 3,53 1,22 3,78 1,06 <0.05 T1 Subset T1 Subset T5 Subset T13 Subset 1 at T1 (n=274) is used as a reference point 2% 1% 1% Do not at all 5% 4% 3% 14% Neutral blue= T1, red = T5, green= T13 Somewhat 25% 26% Totally Wine on promotion 2,41 1,22 2,66 1,26 <0.05 Varietal 3,36 1,11 3,68 0,91 <0.00 Region 3,71 1,01 3,92 0,79 <0.00 Alcohol level below 13% 1,55 0,89 1,76 0,96 <0.00 *Sir John Hegarty P value results, after 3 months, Table 2 After three months P Value Questions Mean SDev Do you choose your wines better 4,37 0,53 <0.00 I speak more about wine 4 1,01 <0.00 I encourage other people to enrol in wine courses 3,8 1,01 <0.00 I drink more wine than before 2,87 1,14 ns I try to get more information, I read more on wine, 4,1 0,95 <0.00 I know my taste preferences way better 4,2 0,78 <0.00 I took wine classes to increase my enjoyment of wine 4,2 0,82 <0.00 I took wine classes to acquire theoretical knowledge on wine 4,3 0,67 <0.00 I took wine classes to acquire practical knowledge on wine 4,5 0,61 <0.00 I will surely take more wine courses 4,1 0,94 <0.00 I am looking more now to find more authentic wines 3,7 1,13 <0.00 I understand and appreciate the "terroir" concept 3,9 1,13 <0.00 I value more character and identity -vs- brand 3,91 0,85 <0.00 What matters is that I think that the wine taste good 4,24 0,82 <0.00 Wine and food pairing is important for me 4,24 0,8 <0.00 I only drink wine during meals 2,2 1,31 <0.00 I don't care much about points and medals... 3,72 1 <0.00 after 3 months 9 of participants declared having changed their behavior as wine consumers 91% of participants declared choosing their wine better 56% declared spending more on the category. 71% of people on being willing to take more courses 88% of people declared knowing their taste better 81% trust their own palate in passing judgment on what taste good 71% of respondents declared encouraging other people to enroll in wine courses 77% better understand and appreciate the "terroir 62% are interested by more Authentic wines that speak of place 66% declared an interest in wines with a sense of place and identity -vs- buying a recognized Brand.
8 Research methodology Surveys Number of surveys Notes First (in class) survey T1 & T5 T1-Beginning of course n=506 partially and fully filled surveys T5-End of course n=275 partially and fully filled Matched and Paired surveys n=260 Subset 1 fully completed Second (internet) survey T17 T17- Internet n=134 Subset 2 is matched with T1 & T5 T25- Clarification question n=10 intensity of usage clarification Third (internet) survey T110 T110- Internet n=60 Subset 3 = 110 weeks after the first survey Preparation to Completion T-16 T minus 16= Pilot class Pilot class Spring of 2010 Time span= 30 months Total duration=
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