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Wowing the millennials: Creating brand equity in the

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 Wowing the millennials: creating brand
equity in the wine industry
Linda Nowak, Liz Thach and Janeen E. Olsen
School of Business and Economics, Sonoma State University, Rohnert Park, California, USA

Abstract
Purpose – The purpose of the study is to examine the attitudes of millennial wine consumers and determine if positive affect in
tasting room situations leads to higher levels of brand equity for the winery.
Design/methodology/approach – A survey was developed to evaluate winery tasting room experiences based on standardized brand
measurement scales. In total 80 millennials visited tasting rooms and then completed the survey to evaluate their experience.
Findings – The results of this research empirically support the anecdotal evidence that, through positive emotions associated
with the tasting room experiences, wineries can cultivate relationships with millennial customers that may lead to long-term,
profitable relationships through continued patronage and brand loyalty.
Originality/value – Practical application of this study suggests that carefully orchestrating a tasting room experience to create a positive
experience for the millennial customer appears to be a critical component of post-purchase attitudes and building brand equity. In
addition, customer commitment, product quality, service quality, and fair pricing are also significant predictors of brand equity.

Keywords Brand equity, Wines, Customer service management, Youth, Individual psychology, United States of America

Paper type Case study

An executive summary for managers and executive readers can be purpose of this study is to examine the attitudes of millennial wine
found at the end of this article. consumers and determine if positive affect, in combination with
factors such as service quality, product quality, fair pricing,
Introduction feelings of commitment towards the winery, and customer
satisfaction with the tasting room experience lead to higher levels
How does a winery successfully build its customer base? One of brand equity for the winery in this particular segment of the
method may be to start cultivating relationships with the wine market.
millennial generation – potentially 76 million new customers. The
millennials were born between 1977 and 1999 and are the children
of the baby boomers (Lancaster and Stillman, 2002). They are Theoretical background and development of
considered to be the largest consumer group in the history of the research questions
USA with annual incomes currently totaling $211 billion (Harris About the millennial consumer segment
Interactive, 2001).
The millennial market segment in the USA is estimated to be
Two important keys to building a relationship with this currently between the ages of 7 and 29 (Lancaster and Stillman,
generation is understanding and responding to their wishes and 2002), but is being heralded by most major consumer product
needs. This research focuses on the tasting room experience with companies as a generation with very high buying power (Harris
the millennial generation; on building loyal millennial wine
Interactive, 2001; KeyFindings, 2004). They are also referred to as
drinkers that will continue to purchase the winery’s brand after the
the Y Generation, Nexters, and Echo Boomers – the later title a
tasting room experience is over. By getting to know the millennial
tribute to the claim that they are primarily the children of the baby
wine consumer, wineries can learn how to meet the customers’
boomers. According to Lancaster and Stillman (2002), they are
expectations for the type of tasting room experience that will lead
approximately 76 million in size.
to positive word of mouth, wine club memberships, and repeat
purchases.
Not only is the millennial generation much larger than their
Previous research has shown that perceived wine quality along
with consumer perceptions of fair pricing relative to quality are previous generation, the gen Xers, at 46 million; they are also
two critical success factors for building brand equity (Nowak and reported to be very market savvy when it comes to consumer
Washburn, 2002). But what else can the winery do to create loyal purchases. Even at their current young age, they are attributed to
millennial customers? Perhaps one way is to build strong have annual incomes totaling $211 billion; spend approximately
emotional connections. Therefore, the $172 billion per year and save $39 billion per year (Harris
Interactive, 2003). According to Fernandez-Cruz (2003, p. 1),
“quickly surpassing its parent generation, Generation Y has grown
The current issue and full text archive of this journal is available at up in a media-saturated, brand-conscious world, and is keeping
www.emeraldinsight.com/1061-0421.htm
advertisers on their toes.” They not only have a lot of their own
money, but they influence family purchases. Many have been
given parent co-signed credit cards at a young age, and perform
Journal of Product & Brand Management the grocery shopping for their families (Neuborne, 1999).
15/5 (2006) 316– 323
q Emerald Group Publishing Limited [ISSN 1061-0421] [DOI
Research shows that they are savvy when it comes to brands
10.1108/10610420610685712] (Moriarty, 2004),

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 Brand equity in the wine industry Journal of Product & Brand Management
Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

and value quality products when sold at a fair price (Key Findings, Emotion marketing is neither quick nor easy to employ, but the
2004). results can be measured in loyal customers who spend more and
The reason they are of interest to the wine industry, is because stick with the brand longer (Robinette et al., 2002). Loyal
those that are between the ages of 21 and 29 have begun to adopt customers make a difference in the bottom line. Forming an
wine in increasing numbers. According to the Wine Market emotional bond with a customer involves showing them that the
Council (2003), millennials are already consuming larger winery truly cares about their customers as people. Product quality
quantities of wine than the previous generation of Gen Xers. and fair pricing still form the foundation for a successful brand,
Furthermore, a recent Gallup Poll (Seed, 2005) identified but the emotional components of a brand can be effective in
millennials as part of the reason for the increased popularity of differentiating a wine from its competitors. Emotional marketing
wine in the USA. which incorporates lifestyle-based persuasive communication
The millennial generation is known for certain traits and targeting selected audiences, such as the millennial generation,
behaviors which may influence their purchasing decisions. A may have a positive impact on brand equity (Orth et al., 2005).
primary trait is that they are very technology savvy. Most have
grown-up with the Internet and are adept at using it for product
research and purchasing. According to Moriarty (2004), the Emotion marketing is not just a heart-tugging advertising
Internet is their primary source of information and they trust it. A campaign that is eventually forgotten. It is a total company effort
second trait is their concern for the environment and social by employees, events, and communications (e.g. events, phone
responsibility issues. They have been known to boycott brands calls, e-mails, and newsletters) to give the customer a tremendous
which they perceive to be violating these values (BusinessWire, sense of belonging and camaraderie. The tasting room experience
2004; Neuborne, 1999). Related to this is a concern for diversity. is a perfect place to start building this relationship with younger
Not only have they grown up in an age in which diversity was wine consumers. Consumers are emotional beings and they strive
taught in school, but one-third of the millennial generation is non to meet their higher-level needs in every aspect of their lives
Caucasian (Key Findings, 2004). Therefore, they look for, and (Robinette et al., 2002). We see consumers trying to meet their
expect to see, advertising that includes diversity of race and emotional needs through their consumption choices, through
gender. where they dine out, what they wear, what they drive, and of
Other traits and behaviors that distinguish this generation course, their alcoholic beverage choices. This is especially true in
include their very optimistic nature and belief that they can make a the case of the millennial generation in regards to wine adoption
difference in the world (Lancaster and Stillman, 2002). This is (Olsen et al., 2006).
balanced by a strong practical streak. They are reputed to be
financially savvy, and don’t like owing money. Because of this, Oliver et al. (1997) found that positive emotion (positive affect)
they often seek brands which provide quality, but at a fair price, had a direct and significant effect on customer satisfaction which
and prefer advertising that is “disarmingly direct” (Neuborne, then leads to purchase intention. Research has shown that other
1999). A final characteristic is their belief in work/life balance. factors also contribute to repurchase or future purchase intentions.
Millennials tend to believe that life should be fun and enjoyable, A strong emotional marketing campaign can not make up for poor
but at the same time they do want responsibility and challenge on quality, lousy service, or too high of a price (Robinette et al.,
the job. According to Harris Interactive (2001, p. 1), millennials 2002). Excellent customer service becomes a key factor in
exhibit “a well-balanced mixture of mind and heart.” pleasing customers and gaining a share of their heart. Charters and
O’Neill (2001) found that dealing with customers in a speedy,
Examining the characteristics and traits of the millennial sensitive, and sympathetic manner is more important than the
generation is useful for marketers, as it suggests new marketing facilities, the decor, or the wine offered for tasting.
strategies to reach this large and affluent segment. Indeed,
according to Neubourne (1999, p. 4), “marketers who don’t bother Customer satisfaction has a significant and positive effect on the
to learn the interests and obsessions of Gen Y are apt to run up profitability of a firm (Yeung et al., 2002). Satisfied customers
against a brick wall of distrust and cynicism.” return to the winery, bring their friends, and spend more on both
wine and wine accessories than typical first time visitors (Dodd,
1999). Yu and Dean (2001) found that the affective (emotional)
Building emotional brands to increase market share component of customer satisfaction was a better predictor of
If any business is successful at forming a positive emotional bond customer loyalty than the cognitive (price and quality) component.
with the consumer, it has a competitive advantage. Some In their study, positive emotions were the best predictor of overall
marketers refer to this as “share of heart”. Day (1989) describes loyalty and positive word of mouth. Building loyalty for a brand is
how important it is to appeal to the consumer on a personal and one way to build brand equity. Therefore, positive affect as a
emotional level. She talks about creating products and then ad means of building loyal wine consumers is an important topic for
campaigns that will “win the hearts” of the customer. Share of the wine industry.
heart leads to market share. But other factors contribute to market
share also. For example, new buyers can be attracted to a wine Brand equity
simply through special promotions (e.g. price discounts, coupons), All wineries strive to build brand equity. It is the incremental
but marketers warn that often these special promotions do not value added to a product because of its brand name (Farquhar,
create brand loyalty (Schultz and Robinson, 1986). Deal-prone 1994). This value can be reflected in the price premiums that
consumers can comprise a significant portion of a firm’s market customers are willing to pay for a particular wine brand or this
share, but how long will they be there? Building share of heart is a value can be a loyalty or commitment toward a brand that is
good defense against aggressive promotional efforts (e.g. price difficult to articulate in measurable terms. According to Aaker
deductions) by other wineries. (1991, 1996) brand equity is a multidimensional concept that
consists of brand loyalty,

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brand awareness, perceived quality, brand associations, and other creates exceptional results. For managers, this level of customer
proprietary brand assets. As a measurable asset, brand equity may satisfaction is commonly referred to as “customer delight”
increase cash flow to the firm (Simon and Sullivan, 1993) and (Keiningham et al., 1999). Schlossberg (1990) also proposed that
competitive advantages based on nonprice competition (Aaker, merely satisfying customers is not enough, that you really need to
1991). delight them in order to build loyalty and loyalty-driven profits.
A consumer’s attitude towards a wine brand is also a key Whittaker (1991) proposed the same concept when he said
component of brand equity. Often, brand attitude reflects the “although the elimination of defects is critical to continuing
extent to which a firm has been able to create close emotional customer satisfaction, increased productivity, and decreased costs,
bonds with the customer (Lemon et al., 2001). In the wine it is customer delight that is the key to survival in today’s
industry, loyalty programs such as wine clubs, special recognition markets”. Jones and Sasser (1995) found that Xerox Corporation’s
or treatment such as invitations to member-only functions, “totally satisfied” customers were six times more likely to
community-building programs such as support of local schools or repurchase the company’s products over the following 18 months
events, and knowledge-building programs such as food pairing than customers who rated themselves as merely “satisfied”.
classes can build strong emotional bonds. If a winery is able to
help a customer feel a strong sense of belonging and makes them Roche Diagnostics Systems, a division of F. Hoffman-La Roche
feel like part of the family, then a feeling of commitment towards Ltd health care, had rarely met its profit objectives for nearly 20
the relationship with the winery starts to be cultivated. years (Keiningham et al., 1999). Roche conducted focus groups
Commitment is defined as a consumer’s belief that an ongoing with its customers to determine their weaknesses in the areas of
relationship is worth investing time, energy, and money in product quality and customer service. It then adopted a strategy
(Sharma and Patterson, 2000). Hirschmann and Holbrook (1982) focused on moving customers’ reported levels of satisfaction
proposed that extremely positive, consumption-related emotions beyond “satisfied” to the “very satisfied” level by making
are likely to lead to very high levels of commitment. improvements in those areas. Roche found that by improving the
quality of customer interactions with their business (e.g. toll-free
The wine’s image is another component of brand equity and can telephone support and ordering assistance) that the number of
be critical when the customer’s use of the product is highly visible “very satisfied” customers increased, as did sales and profits
to others (Lemon et al., 2001). The brand becomes an extension (Keiningham et al., 1999).
of the individual, a statement the individual can make to the world
about himself or herself. Everything a winery does that the public Positive affect
sees can affect the brand’s image: label design, price, ratings,
advertising, customer service, community service, environmental Richins (1997) determined that there were over 17 consumption-
issues, which restaurants serve it, and which celebrity drinks it. related emotion sets. They are anger, discontent, worry, sadness,
fear, shame, envy, loneliness, romantic love, love, peacefulness,
contentment, optimism, joy, excitement, surprise, guilt, and pride.
Brand equity for a winery is a competitive asset that is
He developed the consumption emotion set (CES), which
developed over time. It is what may prompt a consumer to
purchase one wine with similar attributes and price over another. It identifies emotions that are relevant to consumers. Delight is
is a combination of factors such as brand loyalty, brand awareness, considered to be a descriptor of the “joy” cluster. Therefore, the
perceived quality, brand image, and attitudes toward the company two consumption-related emotion sets that may be appropriate for
and its wine (Orth et al., 2005). Positive customer experiences a study relating to wine consumption are “joy”, which is
should contribute to positive attitudes towards the brand and thus comprised of the descriptors of happy, pleased, and joyful and
contribute toward building brand equity for the winery. “excitement” which is described as excited, thrilled, and
enthusiastic. These descriptors could easily be included in survey
Customer satisfaction questions. Other feelings that may lead to positive emotions and
which may be associated with “share of heart” are “sense of
All businesses understand that satisfying customers is important
belonging”, “sense of being appreciated as a customer”, “sense of
for positive word-of-mouth, repeat business, and profitability.
being like family”.
However, researchers and practitioners alike have been proposing
that merely “satisfying” customers is not enough anymore
(Keiningham et al., 1999). In fact, Yeung et al. (2002) analyzed The customer interface during the tasting room experience is an
customer satisfaction data and financial performance data from area in which a winery can differentiate itself from the
approximately 100 firms over a five year period and found that competition. Successful firms “realize that every interaction with
there is a direct linear relationship between customer satisfaction the customer can make or break the relationship” (Brown, 2003).
and profitability. In other words, with increased satisfaction came Customer contact employees need to understand that often they
increased profits. Anderson et al. (1994) found that “high” levels are the key to delighting the customer and creating lasting,
of customer satisfaction are correlated with superior economic positive memories. Tasting room staff can never have a “bad day”
returns. Some researchers and practitioners call extremely satisfied or appear snooty. Not enough staff to handle a surge of customers
customers “delighted” customers (Keiningham et al., 1999). in the tasting room can be the kiss of death, leaving the customer
with a feeling of “just being one of the crowd” and not
It has been proposed that customers have a range of satisfaction, “appreciated” by the winery. Helping a visitor feel special during
referred to as the “tolerance zone” and within this range of the tasting room visit may help the consumer develop a special
satisfaction differences between firms does not produce much attachment to that particular winery (Olsen and Thach, 2006).
change in customer behavior, and therefore profitability. However, Hirschmann and Holbrook (1982) proposed that extremely
it is believed that moving satisfaction scores beyond the upper positive, consumption-related emotions are likely to lead to high
threshold of this zone of tolerance levels of repurchase intentions.

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Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

Product quality of pricing strategies: skim, penetration, and neutral (Holden and
Nowak and Washburn (2002) found that among wine consumers, Nagle, 1998). Wineries use all three of these strategies. Skim
product quality is the strongest predictor of brand equity. pricing is the strategy of pricing a wine higher than its
Anderson et al. (1994) found that quality was a significant competitors. Some wineries make a conscious decision to
predictor of customer satisfaction and that this relationship, over deliberately price above the market average in order to indicate
the long term, was an important predictor of superior economic superior quality or even luxury. The wineries that are able to
returns through repeat sales. Novice and expert wine consumers successfully use this strategy do so because of the wine’s
will assess quality using a variety of cues: their senses, price, reputation for extremely high quality, prestige in ownership, or
brand name, awards, ratings, growing region, the winery’s collectability. When a winery decides to use penetration pricing, it
reputation, and recommendations from other wine drinkers. is a decision to price the wine lower than the competition and low
relative to the wine’s value, in other words many wine consumers
For some novice wine drinkers, a sweet wine such as a white would consider it a “good deal”. Neutral pricing by a winery
zinfandel might be considered a wine of good quality because it is would be an attempt to eliminate price as a decision factor for
enjoyable to drink, has a pretty label, and is a brand name they wine consumers by pricing neither high or low relative to the
recognize. A novice wine drinker may not be able to appreciate the competition. This is the strategy that most wineries are currently
taste of a $100 bottle of award-winning zinfandel, but the price using.
would certainly hint at its quality and act as a substitute for a
sophisticated palate. In fact, Lockshin and Rhodus (1993) found Research question
that there was a positive relationship between price and perceived
quality by consumers. Consumers were either unable or unwilling Millennials are considered to be practical and often look for value
to trust their own palates. However, they found that as a in their consumption choices (Harris Interactive, 2001). How
consumer’s knowledge of wine increases, the reliance on external would positive emotion factor into their attitudes toward a brand?
cues to determine quality tends to decrease. Regardless of how a Based on the literature, the authors propose that positive emotion
wine consumer assesses quality, past research supports the will have a positive relationship with attitudes towards a wine
premise that the higher the level of perceived wine quality, the brand. Previous findings regarding the importance of customer
higher the level of repurchase intention. satisfaction, product quality, perceptions of fair pricing, service
quality, and feelings of commitment as factors that contribute to
building brand equity must also be evaluated in millennial
consumers. Therefore, the authors propose that:
Service quality
The customer interface is another area in which a winery can H1. The higher the level of customer satisfaction, perceptions
differentiate itself from the competition. Successful firms “realize of fair pricing, product quality, service quality,
that every interaction with the customer can make or break the commitment, and positive emotions, associated with the
relationship” (Brown, 2003). Customer contact employees need to winery visit, the higher the level of reported brand equity
understand that often they are the key to delighting the customer by the millennial consumer.
and creating lasting, positive memories. Tasting room staff can
never have a “bad day” or appear snooty. Not enough staff to
handle a surge of customers in the tasting room can be the kiss of
death, leaving the customer with a feeling of “just being one of the
Methodology
crowd” and not “appreciated” by the winery. Subjects and design
Millennials, aged 21 through 28, were asked to visit a winery they
All internal operations that interface with the customer are also had never visited before and then fill out the questionnaire
critical. Employees should be empowered to handle customer evaluating the winery on product quality, fair pricing, positive
problems, such as adjusting a customer’s bill, without the delay of emotions felt, overall customer satisfaction, brand equity, feelings
management approval. Phone calls and e-mail inquiries should be of commitment, and service quality. The participants were asked
returned promptly. Customers appreciate it when a firm learns the to visit the wineries on a week-end in order to control for volume
customer’s preferences and buying habits (Lemon et al., 2001). of traffic as a determinant of customer satisfaction. The
Customer databases should be carefully maintained for all participants were also asked their ages, their gender, and
customers: distributors, retailers, restaurants and end consumers. approximately how many wineries they had visited in their
Even internet sales can be personalized. For example, lifetime. Individuals participating in this study were 80 MBA and
Amazon.com does a great job of personalizing their relationship undergraduate business students from a public university in
with the customer by sending e-mail order acknowledgements to California. The sample included 41 men and 39 women. The
customers signed with the name of a “real person” and urging the number of times they had visited wineries in their lifetimes ranged
customer to call or e-mail with any questions. When a customer’s from 0 to 200, and the mean number of visits was 13.975. All had
order is shipped, the customer receives yet another e-mail saying easy access to local wineries.
when it was shipped and what day to expect it, signed by the same
“real person.”
Measures
The strength of the emotional bond was measured using two of
Pricing Richins (1997) consumption-related emotion sets, joy and
Perceptions of fair pricing have been found to be highly excitement. The components of joy and excitement are happy,
significant predictors of brand equity in the wine industry (Nowak pleased, joyful, excited, thrilled, enthusiastic, and delighted. The
and Washburn, 2002). There are three general types participants were asked to indicate, using a 7-point

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 Brand equity in the wine industry Journal of Product & Brand Management
Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

semantic differential scale, how often they felt these emotions profitable relationships through continued patronage and brand
during their visit to the winery (never . . . always). The Cronbach loyalty. Carefully orchestrating a tasting room experience that
Alpha score for emotions was 0.943. creates a positive experience for the millennial customer appears
Three items were used to measure perceptions of fair pricing, to be a critical component of post purchase attitudes. Previous
adapted from research conducted by Nowak and Washburn (2002). research into what drives consumer behaviors supported the
The Cronbach Alpha was 0.860. Product quality was measured premises tested with this small sample of millennials. Robinette et
with three items developed by the authors for this study. Product al. (2002), emphasize that lifelong loyalty can be created by
quality was measured with the following items: “Overall, I emphasizing the emotional component of human interactions, such
consider the quality of the wine to be excellent”, “I believe that as the importance of friends and family. These authors also
the general quality of the wine is low”, and “The quality of the stressed that everyone who interfaces with the customer must
wine is generally (very poor . . . show that they truly care about them as people. The goal is to help
excellent). The Cronbach Alpha was 0.866. All used a 7-point the customer feel a sense of belonging and camaraderie. This is
scale. evidenced in the regression model results in which commitment
Service quality was measured using three items and was based was the strongest predictor of brand equity. In this study
on questions developed by Taylor and Baker (1994). The commitment was measured with the following statements: “this
Cronbach Alpha was 0.907. Brand equity was measured with five winery makes me feel like part of the family”, “I feel a special
items, adapted from a scale developed by Yoo and Donthu (1997). attachment to this winery”, and “this winery makes me feel a
The Cronbach Alpha was 0.924. Commitment to the winery was strong sense of belonging”.
also measured with three items, adapted from research conducted
by Meyer and Allen (1991) and Bansal et al. (2005). The
Cronbach Alpha was 0.915. All used a 7-point scale, with 1
anchoring “strongly disagree” and 7 indicating “strongly agree”. Managerial implications
The four customer satisfaction items were based on a scale Kumar et al. (2001), in their article on the antecedents of
developed by Oliver and Swan (1989), using a 7-point semantic customer delight, recommend that organizations try to find a very
differential scale. The Cronbach Alpha score was 0.889. meaningful way to delight customers “through an on-going
activity which physically and/or mentally engages the customer
with the firm or its products and services”. In other words, the first
Results visit to the winery is just the beginning of the relationship. Special
invitations and seasonal events should keep the customer
Multiple regression was used to test customer satisfaction, product returning. Wineries can also personalize the relationship by
quality, fair pricing, service quality, commitment, and positive sending birthday greetings with gift coupons to its wine club
emotions as predictors of brand equity. The multiple regression members in order to get them to return to the winery and to
model found customer satisfaction not to be a significant predictor convey the message that the winery really cares. Another way to
of brand equity. This was not unexpected, since customer build a sense of belonging in wine club members is to get them
satisfaction was found to be highly correlated with both positive involved in an activity that makes them feel good about their
affect and service quality. The results of the second model that relationship with the winery...perhaps by asking them to help serve
excluded customer satisfaction are in Table I. Commitment was their wine during a fund-raising event. Participants can be given
the strongest predictor of brand equity. Product quality and free wine for their efforts.
positive emotions were also highly significant. The model
predicted approximately 61 percent of the variance in brand
equity. The F score for the model was 26.102 at a significance Limitations and future research
level of 0.000. There are several limitations to this study, as well as opportunities
for future research. The primary limitation is the small sample
sized limited to a single geographic region – California. Another
Discussion limitation is that the study only examines the millennial market
segment for wine. It would be useful in a future study to increase
The results of this research empirically support the anecdotal the sample size and to include other wine market segments such as
evidence that through positive emotions associated with the tasting the Baby Boomer generation in order to compare perceptions.
room experiences, wineries can cultivate relationships with Furthermore, since the number of wineries is growing across the
millennial customers that may lead to long-term, USA, with a current number of 5300 (Wine Business Monthly,
2006), it would be useful to expand this study to other wine
tourism regions in which there are large numbers of winery tasting
Table I Multiple regression: predictors of brand equity as
rooms, such as Washington State, Oregon, and New York. Finally,
evaluated by millennial consumers
it would be interesting to be able to design a longitudinal study
Beta t score Significance which tracked survey participants over time to determine if the
positive brand attachment created from their winery tasting room
Customer commitment 0.507 5.645 0.000
visit continued to be as strong over time.
Positive emotions 0.244 2.617 0.011
Product quality 0.250 2.562 0.012
Service quality 0.186 1.903 0.061
Fair pricing 0.157 1.871 0.065 Conclusion
Notes: F ¼ 26.102; adjusted r ¼ 0.614; sig. ¼ 0.000 In conclusion, this study focused on the tasting room experience
for millennials and how a positive emotional

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Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

experience combines with product quality, excellent service, and Keiningham, T.L., Goddard, M.K.M., Vavra, T.G. and Iaci, A.J.
fair pricing to contribute to brand equity. Wine consumers have a (1999), “Customer delight and the bottom line”, Marketing
vast array of choices and there are many quality wines being Management, Vol. 8 No. 3, pp. 57-63.
produced worldwide. Creating an experience in the tasting room Key Findings (2004), “Understanding the millennials: who they
that is fun or exciting builds customer loyalty and future sales. are and how you can reach this young, affluent market segment”,
Through careful research into the needs and wants of the Key Findings Newsletter, November/December, available at:
millennial wine consumer, wineries can focus their efforts on www.keyfindings.com/healthcare/article2.htm Kumar, A.,
improving the customer’s experience and build loyal consumers Olshavsky, R.W. and King, M.F. (2001), “Exploring alternative
for the long term. antecedents of customer delight”,
Journal of Consumer Satisfaction, Dissatisfaction and
Complaining Behavior, Vol. 14, pp. 14-26.
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Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

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consumer-based overall brand equity scale for Americans and and perceptions of value (essentially relating quality to the price)
Koreans: an extension of Aaker’s and Keller’s are the twin pillars of brand building. Without them there is very
conceptualizations”, paper presented at American Marketing little except undifferentiated cheap plonk. However, if emotional
Association’s Summer Educators’ Conference, Chicago, IL. connections can be built, then opportunities for brand loyalty will
grow significantly, and customer loyalty is the heart and soul of
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are when it comes to brands. New customers may be attracted by
the glitter of promotions. Loyalty through emotion marketing
involves showing that you care, day after day. Yet forming a
About the authors positive emotional bond will bring lasting competitive advantage.
Linda Nowak is Professor of Marketing and Wine Business, at the Quality and pricing that reflects value provide the foundations
School of Business and Economics, Sonoma State University, from which the brand is built. Emotional components provide the
Rohnert Park, CA, USA. She is the corresponding author and can differentiation that makes a brand special.
be contacted at: Linda.nowak@sonoma.edu
So what do marketers understand about the millennial
Liz Thach is an Associate Professor, Management and Wine generation? For legal reasons wineries are interested in those aged
Business, School of Business and Economics, Sonoma State between 21 and 29. They are a generation that are drinking more
University, Rohnert Park, CA, USA. wine than their predecessors, the Generation Xers, and seem to be
Janeen E. Olsen is a Professor, Marketing and Wine Business, responsible for wine drinking becoming increasingly popular in
School of Business and Economics, Sonoma State University, the USA. In examining the traits that affect their consumer
Rohnert Park, CA, USA. purchasing behaviour, these have been identified as:

Executive summary . being very technologically savvy, with the internet a primary
source of information;
This summary has been provided to allow managers and executives a . being aware of the environment and corporate social
rapid appreciation of the content of this article. Those with a particular responsibility issues; and
interest in the topic covered may then read the article in toto to take . a belief in balance between work and life, between fun and
advantage of the more comprehensive description of the responsibilities.

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Linda Nowak, Liz Thach and Janeen E. Olsen Volume 15 · Number 5 · 2006 · 316 – 323

.
Those who take the trouble to get to know the segment can Product quality – among wine consumers this is the strongest
achieve very successful outcomes. Those who don’t can find a predictor of brand equity. Cues used by consumers are their
brick wall of cynicism to bump into. senses, price, brand name, awards, ratings, growing region,
the winery’s reputation, and recommendations from other
What to concentrate on wine drinkers.
Positive emotion has a direct correlation with customer . Service quality – which for tasting room staff is like every
satisfaction, a prerequisite for customer loyalty, and directly other business, consistently good service quality is key – no
related to purchase intention. In the wineries, satisfied customers room for bad days and the like that make experiences variable.
are seem to be willing to return, to bring their friends, and to
spend more on wine and the other goodies that are offered for sale. . Pricing – which must be seen to be fair. Prices don’t need to
It won’t compensate for poor quality and poor value, but if these be cheap, but must be perceived to offer value.
are appropriately handled then serious relationships can be built. Wineries must view first visits by customers to their premises as
The building blocks for this are:
the beginning of a relationship. If they are successful the
. Brand equity – built upon customers’ beliefs that investing relationship will flourish. Wine clubs have been a key component
time energy and money in an ongoing relationship with a for many, and are very good at generating a sense of belonging.
brand is worthwhile. For the brand owner, benefits include the Other methods need to be found too, from personalizing
ability to charge premium prices. invitations to special tasting events, to providing sample wine to
.
Customer satisfaction – in which mere sufficing alone is not be offered at customers’ corporate functions.
enough, but where those who can generate high levels of
customer satisfaction can expect to see this correlated to high As in all successful relationships, there should not only be one
levels of economic returns. winner, both should thrive from knowing each other. Milennials
. Positive affect – every interaction with customers in the make for interesting relationship partners, but once their needs are
winery tasting rooms can be make or break, moments of truth understood, everything in the garden can come up smelling of
in fact. Emotions which can be triggered, positively or roses.
negatively, have been identified as anger, discontent, worry,
sadness, fear, shame, envy, loneliness, romantic love, love, (A pre´cis of the article “Wowing the millennials: creating
peacefulness, contentment, optimism, joy, excitement, brand equity in the wine industry”. Supplied by Marketing
surprise, guilt and pride. Consultants for Emerald.)

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