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1 – 8 of 8Linda Bitsch, Jon Henrich Hanf and Jens Rüdiger
Due to high competition in the agricultural industries and heterogeneous products, the setting of prices for direct sales to consumers is difficult. In recent years…
Abstract
Purpose
Due to high competition in the agricultural industries and heterogeneous products, the setting of prices for direct sales to consumers is difficult. In recent years, pay-what-you-want (PWYW) is discussed as an innovative pricing strategy. This study analyses whether the implementation of a pay-what-you-want strategy can be successful and if there is a willingness to pay from the consumers for wine touristic offers. Furthermore, the study analyses, in general, how suitable experiments are as a research tool.
Design/methodology/approach
A PWYW mechanism creates a situation of strategic decision- making that can be modelled as a game. This can be transferred to an experimental setting. The results were analysed with a two-sided MWU test (Stata, ranksum) in order to determine whether the differences are statistically significant.
Findings
Participants pay positive prices, although theory predicts the opposite. PWYW is a good strategy to analyse the willingness-to-pay for heterogeneous and homogenous services or products. Information or reference prices have no clear influence on the willingness to pay, confirming results of other studies. There is no influence of gender and age on the payments.
Practical implications
In general, consumers have a willingness to pay positive prices for wine- touristic offers. The willingness to pay is not different for people with or without wine knowledge. For the chosen variable information and reference price, wine producers do not have to address target groups differently.
Originality/value
It is the first study which analyses the pay-what-you-want mechanism as a tool for wine touristic activities. In addition, an experimental approach was used to analyse an innovative, consumer-based price-setting strategy.
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Linda Bitsch, Jon H. Hanf and Isabel Kottmann
With increasing wine consumption in Armenia, both residents and inbound tourists have become attractive target groups for wine sales, which are stimulated by wine tourism…
Abstract
Purpose
With increasing wine consumption in Armenia, both residents and inbound tourists have become attractive target groups for wine sales, which are stimulated by wine tourism activities. The objective of this explorative study is to shed light on the potential of wine tourism for rural development in Armenia.
Design/methodology/approach
The paper starts with a structured and interdisciplinary literature review. Based on qualitative surveys among local tour operators and wine producers, and complemented by three expert interviews, the offer of wine tourism activities in Armenia will then be analyzed.
Findings
Each of the surveyed wine producers offers wine tourism activities. Foreign tourists know little about the Armenian wine industry, however, and are interested in cultural experiences and Armenia’s breathtaking nature. Armenian wine producers need to understand the expectations of their target groups to develop or adapt their offers successfully.
Research limitations/implications
Due to the explorative nature of this study, the sample size of the surveyed wineries and tour operators is small and hence not representative. In addition, only local tour operators were surveyed. The sample should be extended to include foreign tour operators and more wineries in future research projects.
Originality/value
Whereas first studies on the structure and competitiveness of the Armenian wine sector exist, there is no survey on the general wine tourism in Armenia and its potential to foster rural development.
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Barbara Richter, Yanlin Yang and Jon H. Hanf
In 1998, the Chinese Communist Party introduced the strategy for modernizing agriculture with large-scale production and launching large commercial enterprises known as dragon…
Abstract
Purpose
In 1998, the Chinese Communist Party introduced the strategy for modernizing agriculture with large-scale production and launching large commercial enterprises known as dragon head enterprises (DHEs) to process and market agricultural products. Although scholars have raised awareness of the development of DHEs in China, there has been little investigation on DHEs in the Chinese wine business. Based on the existing theoretical background on the concept of DHEs, this study aims to identify the structure and operating system of a DHE in the Chinese wine business. Changyu is chosen as an example because it is the oldest and largest wine company in China, operating in various grape-growing regions.
Design/methodology/approach
Due to the research's explorative character, the qualitative approach and case study focus were considered adequate. In-depth interviews have been conducted with the employees of the company. The authors analysed data with a qualitative content approach of Gläser and Laudel (2010).
Findings
Results show that the grape procurement of Changyu is organized in an integrated system, which consists of the DHE (Changyu), the Changyu-led cooperative, and the grape producers who have a contract with the cooperative. The company takes different measures in terms of intra-organizational coordination to secure the required quantities and qualities of its grape supply base.
Research limitations/implications
In this research, the authors could only access three interview partners of Changyu's grape procurement department, and it was not possible to conduct interviews with the management of Changyu. Another limitation is that it is difficult to collect adequate data in the Chinese wine industry.
Originality/value
There has been little investigation on DHEs in the Chinese wine business. This research contributes to the existing literature as it takes a closer look at the structure and operating system of a DHE in the Chinese wine business. The case study and chosen example (Changyu) allow a better understanding of DHEs and provide first insights into their operating principle.
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Linda Bitsch, Shuo Li and Jon H. Hanf
Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since…
Abstract
Purpose
Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. The wine production process requires close coordination between growers and processors to avoid disruption and instability in the supply chain of the wine grapes. However, vertical coordination in the Chinese wine regions has received little attention. Based on the existing theoretical background on vertical coordination, this study aims to detect the evolution processes of vertical coordination in the Chinese grape market.
Design/methodology/approach
Exploratory qualitative research fits with the aim of this study. From December 2018 to January 2019, interviews with grape growers and wine processors of various Chinese wine-producing areas took place. After transcribing all recorded files into text, a qualitative data analysis following the approach of Mayring (2015) was used to analyse and interpret the data.
Findings
The models of vertical coordination in the grape supply in China vary between the producer's requirements on grape quality/quantity and the arrangements of grape supply chains, which are diverse depending on regional strategies of the local government.
Research limitations/implications
However, in this research, the authors did not get into details on the organization of the contractual coordination, and due to the limited access to grape growers, the relationship between farmers and processors cannot be analysed in detail. With a better understanding of the coordination relationship and enhanced contract enforcement, the vineyard management and grape supply chain management can be better performed, inducing a steady industrial development.
Originality/value
Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. However, vertical coordination in the Chinese wine regions has received little attention. The study provides a first insight into the grape market structures, as very little is known.
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Tri Lam, Jon Heales and Nicole Hartley
The continuing development of digital technologies creates expanding opportunities for information transparency. Consumers use social media to provide online reviews that are…
Abstract
Purpose
The continuing development of digital technologies creates expanding opportunities for information transparency. Consumers use social media to provide online reviews that are focused on changing levels of consumer trust. This study examines the effect of perceived risk that prompts consumers to search for online reviews in the context of food safety.
Design/methodology/approach
Commitment-trust theory forms the theoretical lens to model changes in consumer trust resulting from online reviews. Consumer-based questionnaire surveys collected data to test the structural model, using structural equation modelling (SEM).
Findings
The findings show when consumers perceive high levels of risk, they use social media to obtain additional product-related information. The objective, unanimous, evidential and noticeable online reviews are perceived as informative to consumers. Perceived informativeness of positive online reviews is found to increase consumers trust and, in turn, increase their purchase intentions.
Originality/value
The findings contribute to the knowledge of online review-based trust literature and provide far-reaching implications for information system (IS)-practitioners in business.
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Vera Belaya and Jon Henrich Hanf
The purpose of this paper is to examine power from a multi‐theoretical perspective by comparing and analyzing different views and definitions of power in order to use the findings…
Abstract
Purpose
The purpose of this paper is to examine power from a multi‐theoretical perspective by comparing and analyzing different views and definitions of power in order to use the findings for further studying this construct as a key element for managerial purposes in the interorganizational context.
Design/methodology/approach
An overview of the literature is conducted examining the power from sociological, psychological and managerial perspectives specifying views on power, its sources and consequences of its use offered by selected theories.
Findings
This paper presents the opinion that the definitions of power by different theories resemble each other and the main differentiations in conceptualizations of power stem mostly from the differences in capturing sources and consequences of power. Power generally refers to the ability, capacity or potential to get others do something, to command, to influence, to determine or to control the behaviors, intentions, decisions or actions of others in the pursuit of one's own goals or interests despite resistance, as well as to induce changes.
Originality/value
The fact that power can be used as an effective tool to coordinate and manage others appears to be largely ignored in the literature. In order to understand how to use it for these purposes, it is necessary to define power, which is an elusive concept that has a variety of meanings and definitions, and there seems to be much disagreement to the precise meaning of power.
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Rodney C. Runyan, Mijeong Noh and Jon Mosier
The purpose of this paper is to operationalize the ubiquitously used concept of “cool,” specifically considering its meaning to Generation Y consumers of apparel. Using…
Abstract
Purpose
The purpose of this paper is to operationalize the ubiquitously used concept of “cool,” specifically considering its meaning to Generation Y consumers of apparel. Using Churchill's rigorous scale generating method, the authors generate items, pre‐test, and the test with a sample (n=265) of college students.
Design/methodology/approach
Researchers specify the domain of the cool construct, conduct item generation, collect data through a pre‐test to purify the measures and then collect data from a large sample to assess reliability and validity of the measures and construct.
Findings
Results of exploratory factor analysis reveal a six‐factor solution; a confirmatory analysis shows that cool is a multi‐dimensional construct reflected in two second‐order factors that this paper labels hedonic and utilitarian cool. These factors are reflected in five first order factors: singular, personal, aesthetic, quality and functional cool.
Originality/value
The study provides a valuable insight into cool concept as being a multidimensional construct, operationalizing a scale to measure cool.
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The purpose of this paper is to evaluate and compare the efficiency of wine making in Germany and Ukraine in order to find the controllable factors of wine business performance…
Abstract
Purpose
The purpose of this paper is to evaluate and compare the efficiency of wine making in Germany and Ukraine in order to find the controllable factors of wine business performance using benchmarking tools.
Design/methodology/approach
The models of data envelopment analysis and other benchmarking tools are used to analyse the efficiency of wineries in two countries. Returns to scale, scale efficiency, super-efficiency and some other indicators are examined. The research is based on the sample of 36 German and Ukrainian wineries.
Findings
The hypothesis of higher wine making relative efficiency in Germany was compared with Ukrainian wine making, then analytically and statistically verified. A relatively high average scale efficiency score indicates good potential (above 30 per cent) for efficiency growth, due to the optimisation of a scale of production and sales. Generally, wine making in Germany and Ukraine has increasing returns to scale. The high-efficient wine business cannot bring great losses. It was found that the most efficient combinations of size and legal form of business organisation for wine business are presented in Germany.
Research limitations/implications
The research is limited by a single industry of only the two countries.
Practical implications
This study provides useful information for researchers, investors and policy makers, enabling them to understand the current state, basic problems, controllable factors and efficiency levels of wine making in Germany and Ukraine. It may be useful to wine producers in these countries for improving their business performance.
Originality/value
This is the first paper that compares wine business performance and discloses its factors for Germany and Ukraine.
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