Reputation Uncorked: A Study of the California Wine Industry

Abstract

This study investigates the concept of reputation exploring how producers’ reputations are created and maintained within the California wine industry. Through conducting 30 interviews with those involved in the production of wine, I conclude that pricing, scarcity, status, and relationships are the most significant factors. Stable pricing serves as an indicator of quality and helps retain the loyalty of customers. Scarcity send signals of quality. Status encompasses a producer’s identity, defined by the producer’s unique story and enhanced by great grapes and a great winemaker. Lastly, relationships between producers and consumers are crucial for success. When producers offer a positive and memorable experience to customers through tours and tastings, they create the grounds for a loyal relationship. The consumers serve as the producers’ marketing tools within their social networks and producers benefit from the consumers’ loyalty.