International Journal of Wine Marketing

Using Involvement and Brand Equity to Develop a Wine Tourism Strategy

Larry Lockshin Tony Spawton
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Larry Lockshin Tony Spawton, (2001),"Using Involvement and Brand Equity to Develop a Wine Tourism
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 Using Involvement
Using Involvement and Brand
and Brand Equity to
Develop a Wine
Equity to Develop a Wine
Tourism Strategy Tourism Strategy
by Larry Lockshin, University of South Australia, Australia; and Tony
Spawton, University of South Australia, Australia

Introduction

The concept of brand equity is beginning to filter into the wine industry from
its base in fast moving consumer goods (FMCG) (Spawton, 1990). In order
to develop and enhance brand equity through tourism, wine managers need
to understand the concept and its building blocks. Brand equity is a sum total
of the attributes of a brand (awareness, loyalty, perceived quality brand as-
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sociations and other brand assets (Aaker, 1996)). These can then be applied
to a wine region and more specifically to wine tourism. The attractiveness of
Australia's wine regions as a focus of tourism is embryonic and currently
only about 11% of international tourists to Australia specifically visit its
wine regions. In comparison, with France, this proportion is small, as Aus-
tralia as yet has not developed a recognised wine culture sufficient to be seen
as a wine tourism destination. Thus, branding and the use of brands in the
wine industry context will be an important component of overall success for
the winery.

This paper will briefly describe branding within the wine context. Then
some key aspects of wine consumer behaviour will be presented. This will
be followed by an explanation of brand equity and its components. Finally,
these concepts will be applied to wine tourism and the complementary pro-
cess of customer database management.

Australia is one of the world's leading purveyor of wine brands, along

with other New World wine producing countries. Rather than identifying
wines mainly by the region or vineyard as in Europe, Australia has tradition-
ally blended wines and used proprietary names for identification. This use of
brand names has helped simplify the process for any wine-buying consum-
ers. Why is this so important?

Australia alone has over 16,000 different labels produced by over 1100
different wineries. When we look around the world, we find that the tradi-
tional wine producing countries of Europe use a combination of place
names, vineyards, winemaking families, and negotiant-based labels. This
creates a huge range of 100,000s of different labels, plus the different vin-
tages, which multiplies this complexity. A small number of consumers find
this complexity intriguing and worthy of study; whereas most of the world's

72 International Journal of Wine Marketing

 wine buyers are utterly confused and find wine buying to be a risky activity
(Mitchell and Greatorex, 1996). As more visitors choose wineries as a desti-
nation, and as more wineries are focusing on building their overall brand Using Involvement
name, it is useful to understand how different levels of interest in wine corre- and Brand Equity to
spond to different mechanisms for building the wine company brand. This Develop a Wine
paper is a preliminary exploration of the application of two constructs, prod- Tourism Strategy
uct involvement and brand equity, to the important winery activity of tour-
ism.

Product Involvement

Research has shown consumers to be generally in two different segments:

those involved in wine and those uninvolved in wine (Lockshin et al., 1997).
Involvement is a psychological concept that describes a person's mental
processing of information for product categories (Zaichowsky, 1985).
Highly involved people relate to a product category as part of their lifestyle,
and it holds an important place in their daily existence. Highly involved con-
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sumers like to learn about the category. They pay attention to ads; they read
and cognitively process the fine print (Flynn and Goldsmith, 1993; Kapferer
and Laurent, 1993; Laurent and Kapferer, 1985; Mittal and Lee, 1989; Oha-
nian and Tashchian, 1992; Slama and Tashchian, 1985; Steenkamp and We-
del, 1991). They often subscribe to specialty magazines, visit websites,
linger in the retail shop, talk to sales people, and discuss their hobby with
friends (Lockshin et al., 1997). Involvement also affects the time and mental
effort expended in choosing stores and brands (Quester and Smart, 1998).

Low involved buyers can still enjoy a product category, but they do not
cognitively process ads and other information; they usually just see the pic-
tures in an ad, but do not think about the words. They are mainly influenced at
the point of sale, but do not tend to talk to sales people, linger long over pur-
chase decisions, or talk much about the category. High involvement buyers
are not necessarily experts, but they do seek information. They make up
about one third of wine buyers, but buy more wine and spend more dollars
per bottle than low involvement buyers (Lockshin et al., 1997). High in-
volvement buyers use complex cues to make purchase decisions, such as re-
gion, style, wine maker, vintage, and vineyard. Low involvement buyers
tend to stick with price, variety, and brand as cues to which wine to purchase
(Rasmussen and Lockshin, 1999). The effect of involvement level on the as-
pects of brand equity are discussed in the following section.

Brand Equity

The vast differences between these two types of wine buyers should be taken
into account when devising marketing and cellar door strategies. Building
brand equity is also affected by which target consumer group is the focus. We
can break brand equity into five separate areas based on Aaker's work (1996)
(see Figure 1). Each area can be used to build wine brand equity.

Volume 13 Number 1 2001 73

 Using Involvement
and Brand Equity to
Develop a Wine
Tourism Strategy
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74 International Journal of Wine Marketing

 Brand awareness
Using Involvement
Brand awareness (knowledge and salience) is the first and simplest base of
brand equity. If buyers are unaware of your brand, they are highly unlikely to and Brand Equity to
purchase it. In a general sense, awareness leads to liking. If people are aware Develop a Wine
of your brand, they tend to like it more than brands they are less familiar with. Tourism Strategy
Obviously, when people visit your winery, you have a strong opportunity to
not only create awareness, but also familiarity and liking. It may be your one
and only chance to do so among the less involved wine buyers.

The key issue is, however, to create enough awareness to get the con-
sumer to visit. The high involved consumer will be more susceptible to ad-
vertising in specialty publications prior to the trip. S/he is more likely to plan
the winery visit based on advertising or promotion by the winery. The low in-
volved consumer is more apt to make a last minute decision to visit a winery,
and the choice of winery is also one that will use little prior thought. The
overall volume of advertising and promotion will be the biggest influence.
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Thus, local expenditure on brochures and tourist ads, plus long term ad
spending that creates awareness will influence the less involved consumer.
Large well-known brands will have the advantage over smaller boutique
brands for the low involved buyer. This means that wineries with small pro-
motional budgets (and small production) should focus their tourist activities
on high involvement buyers.

Brand loyalty

Brand loyalty is a fickle concept. We all would love our customers to be

loyal, but the vast variety of wines available makes this relatively unlikely.
Research on consumer brand use shows that consumers purchase a repertoire
of brands and that very few individuals loyally stick with a single brand
(Ehrenberg, 1988). The wine category has many times more brands than
most other consumer good categories; consequently, brand repertoires
would be expected to be much larger (Lockshin et al., 2000).

Low involvement consumers are more likely to be loyal to a small range

of brands, than high involvement buyers. Low involvement buyers reduce
their purchase risk by sticking to a group of well-known brands (Mitchell and
Greatorex, 1996; Spawton, 1990). The strategy of the largest brands in Aus-
tralia (and in all FMCG categories) is to keep awareness and familiarity high
through advertising, shelf space, and point of sale in order to attract the risk
adverse buyer. The high involvement buyer will often be loyal to a few
brands for case purchases each year; but they prefer to try lots of different
wines, including wines that are unfamiliar, in contrast to the low involvement
buyer. There is evidence that high involvement buyers prefer a wider variety
of brands (a larger repertoire) than low involvement buyers (Rasmussen,
2000).

Volume 13 Number 1 2001 75

 Though brand loyalty brings rewards in theory (Aaker, 1996), there is
no empirical evidence of strong brand loyalty in wine purchase research.
Using Involvement Anecdotal evidence and some initial consumer research (Rasmussen, 2000)
and Brand Equity to shows that high involvement buyers actually search for unknown brands
Develop a Wine from familiar regions. This would indicate that small boutique wineries fo-
Tourism Strategy cus on regional awareness in contrast to brand awareness. Wineries without
a major brand (less than 100,000 cases domestically) are unlikely to be part
of the brand repertoires for low involvement consumers due to their low
brand share. These wineries need to focus on building strong market pres-
ence locally and direct marketing to high involvement consumers. It is pos-
sible to build some degree of brand loyalty to high involvement consumers,
if we define brand loyalty as purchases of the same brand over a period of
years (as compared to purchases over a period of weeks or months for
FMCG goods). In this way, wineries can strive to have a direct marketing
programme to gain case sales to the same buyers over a period of years. This
method has worked well for limited release wines and for boutique labels
with a high image. Methods of direct mail will be discussed below.
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Perceived quality

Perceived quality is perhaps the cornerstone of brand equity. Studies of hun-

dreds of product categories have shown perceived quality to be the factor
most closely related to profits and return on investment (Aaker, 1996).
Higher perceived quality generally leads to higher prices and margins. But
the concept is 'perceived' quality, not winemaker measured quality. It is im-
portant to use cues to quality that your target market understand. For low in-
volvement buyers, packaging is very important, as is brand name, price, and
show medals. When trying to build an image of quality, the target market
must be taken into consideration. High involvement buyers focus on more
substantive cues, like the region, the winemaker, wine writer reviews, and
salesperson recommendations. Many super premium and hard to find, very
high priced wines do not excel in packaging or other external cues to quality.
Third party endorsements and a history of quality provide the cues.

The cellar door is a unique place to help the customer 'see' quality by
explaining the more intrinsic aspects, rather than the external cues. Cellar
door staff must be able to recognise the involvement level of the visitors by
asking a few key questions (Macintosh and Lockshin, 1997). Then, staff can
afford to spend more time and effort with those interested in learning the key
indicators of quality. For all consumers, but especially the lower involved
ones, cellar door can provide a unified set of quality and image cues. Too of-
ten cellar doors have been developed in an unorganised manner, rather than
to provide an integrated experience aimed at improving quality perceptions.
The overall image of the wine brand must be carefully crafted and reflected
in the visitor experience. If the wine is traditional and historical, then the cel-
lar visit should provide these qualities. If on the other hand, the brand image
is one of modern finesse, the cellar door would have a totally different look

76 International Journal of Wine Marketing

 and feel. Since quality is 'perceived', it is part of the winery's strategy to cre-
ate the proper cues to provide the quality perceptions. From a regional point
of view the quality and diversity of the supporting hospitality functions fur- Using Involvement
ther enhance perceived quality. As with a wine brand this perceived quality is and Brand Equity to
reinforced by wine show and/or tourism awards. Develop a Wine
Tourism Strategy
Brand associations
Brand associations are the various aspects outside the wine itself that help the
consumer remember your wine and winery. Brand associations help con-
sumers retrieve the brand from memory when faced with a choice among
many brands (Aaker, 1996). Symbols on the label, like the Wolf Blass eagle
are strong brand associations that last and can be transferred to new wines.
Other packaging cues can also act as brand associations, if they are used con-
sistently. The winery itself can be a positive brand association through its
buildings and people. Linking a brand to a region is also a good tactic, if the
region is more well known than the brand. Some wineries look to sponsor-
ships as another way to build positive brand associations. The key concern
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should be consistent and long term linking of the associations to the brand.

Generally, brand associations are more subtle and peripheral cues to the
brand. In this way, the linking of associations to the cellar door provide rein-
forcement mainly to the lower involved consumers. The associations help re-
inforce the image and quality level of the brand. More involved consumers
are more likely to process (think) about the associations and use them only
when they directly affect brand knowledge and enjoyment. Well-trained and
knowledgeable staff will have a greater effect on high involved consumers,
than on low involved ones. Even friendliness and positive demeanour have a
strong effect on high involved consumers than on low involved ones (Dean
and Lockshin, 1997). Low involvement consumers just do not consider and
evaluate many of the customer service aspects of a cellar door visit.

Other proprietary brand assets

Other proprietary brand assets can build brand equity. Historic buildings,
single vineyard wines (like Hill of Grace), and management excellence can
build brand equity. Low cost production or unique processes can build brand
equity. One of Australia's key assets has been in managing the distribution
process better than its competitors. Individual wineries can build these pro-
prietary brand assets by having strong distribution relationships and unique
channel management methods. One with great potential for small wineries to
link with tourism is a customer relationship management (CRM) system.
These can be as unsophisticated as a newsletter, but with the low price of
computers and software, sophisticated database systems are well within the
reach of most small and medium sized wineries.

When adapting this brand equity model to wine tourism, consumer be-
haviour comes to the fore. As the preceding discussion shows, much of the

Volume 13 Number 1 2001 77

 brand building activities are geared to the high involvement buyer. It is a tru-
ism, that when you focus on one segment, you discount the other segment.
Using Involvement
Too many winery cellar doors try to be everything to everyone and thus fail
and Brand Equity to at being anything to anyone. It is a difficult decision to develop a focus strat-
Develop a Wine egy, but it is one that will pay dividends. Which customer group to focus on
Tourism Strategy has a lot to do with how big the winery is. Large wineries with the need to sell
hundreds of thousands or even millions of cases of wine must focus most of
their efforts on the low involvement buyer. Smaller wineries can choose to
be more exclusive and to develop a cellar door geared to the highly involved
consumer. Charging for tastings is one tactic that tends to separate the two
groups. Training cellar door staff to recognise the high involvement con-
sumer and treat them accordingly is an important aspect of creating brand
equity at cellar door. It does not mean that low involvement buyers are
treated badly; but they need little detailed information and do not like to
spend time in conversation with staff.
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On top of everything else, brand equity is built through long term con-
sistent management. It is tempting to try new directions, but these should be
carefully considered before investing. Packaging, labelling, symbols, build-
ings, even the decor at cellar door should mesh - providing a seamless and
simple set of associations for the customer to use in remembering the brand.
That is brand equity: when one cue triggers a rich set of memories/cues that
result in a purchase.

Customer relationship management is the watchword of the new econ-

omy. Gaining and maintaining customer relationships provides a steady
stream of high value transactions to a variety of businesses from banks to air-
lines to websites. But doing it right is important. This means understanding
what the customer values and endeavouring to provide that, often before the
customer decides s/he needs it. First you must identify the customer. This is
often done at cellar door or through a website. Information must be col-
lected, either directly by asking, or indirectly through observation which en-
ables the winery to differentiate or separate the customers into useful
groups, such as those that buy cases at reach new release, or that like mag-
nums, or respond to cellar door activities like music or art. This information
is not just past purchase history, but consists of more personal likes and dis-
likes, even timing of purchases or special life events, like birthdays and an-
niversaries (if they enjoy buying special wines for these events. The next
step is to interact with the customer. This may take place on the phone or e-
mail or on the website. It is not a one-way affair, so newsletters are not inter-
action. CRM software must be able to identify the customer so that the inter-
action is meaningful and specialised. This customisation is at the heart of
CRM. Recent research has shown that customers buying over the web can be
very loyal if they trust the company and that company responds to their indi-
vidual needs.

78 International Journal of Wine Marketing

 Conclusion
Building brand equity through tourism is a management mindset. The range Using Involvement
of brand equity building blocks must be used consistently and targeted to a and Brand Equity to
clear set of buyers. The long term results of good brand equity can be en- Develop a Wine
hanced through customer relationship management. Getting to know your Tourism Strategy
customers, understanding their buying style and needs, and then treating
them like you would like to be treated remains the Golden Rule of customer
loyalty. Just remember that low involvement visitors are not like most win-
ery managers or staff; they do not think often or deeply about wine and the
various cues we manage. High involvement consumers are more like winery
personnel; they do think and consider the cues we provide.
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Volume 13 Number 1 2001 79

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Volume 13 Number 1 2001 81

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