Territorial brand equity in the wine market and the role of the organic label: A consumer perspective

Abstract

Organic certification can be a powerful differentiation marketing strategy for wine producers. However, the role of this certification in attracting consumers depends on its synergy with other factors that are associated with and interact alongside it, such as the brand. This study examines consumers' perceptions and purchasing behaviour when the organic label coexists with different levels of territorial brand equity (in our case, Geographical Indication). A 2 (Geographical Indication brand equity: high vs. low) by 2 (organic: organic label vs. no label) between-subjects factorial design experiment was conducted to test the interaction effects of these two dimensions. Data were collected from 412 wine consumers. The results demonstrate that when territorial brand equity is low, the organic label increases consumers' taste perception, perceived quality, and willingness to pay a premium price. In contrast, organic certification does not significantly influence consumer purchase behaviour for high-equity brand wines.