Status games in Wine industry .pdf

Consumers lack well established stable preferences

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consumers lack well-established, stable preferences, which makes them susceptible to social in uence. Rejecting con- sumer input, fi rms develop a vision, build relationships, and seek recognition for their vision. Firms gain recognition through a status game, and winners emerge with greater in uence than losers. High-status fi rms de fi ne product cat- egories, set benchmarks, and shape consumer preferences to re ect the fi rms visions, earning signi fi cant price premiums and enjoying fi nancial success as a result. When achieved, high status is dif fi cult to imitate, creating an advantage that can last for years, decades, and even centuries. Our analysis suggests that market-driving fi rms enjoy re- markable success with consumers despite displaying none of the values or behaviors associated with market orientation identi fi ed in previous research. In some cases, fi rm behavior fundamentally contradicts market-oriented values. The status game among market-driving fi rms differs from competition among market-driven fi rms. Our analysis reveals that fi rms compete to gain in uence and power rather than to satisfy consumers. In addition, our fi ndings show that brands can be powerful competitive weapons in the battle for in uence even without consumer awareness. Further exploration of the roles of status and social in uence in driving markets would therefore be a fruitful avenue for further research. REFERENCES Ali, H´ela Hadj, S´ebastiaien Lecoq, and Michael Visser (2008), The Impact of Gurus: Parker Grades and En Primeur Wine Prices, Economic Journal (London) , 118, 158 73. Asch, S.E. (1951), Effects of Group Pressure upon the Modi fi cation and Distortion of Judgments, in Groups, Leadership, and Men , H. Guetzkow, ed. Pittsburgh: Carnegie Press, 222 36. Becker, Howard S. (1953), Becoming a Marihuana User, American Journal of Sociology , 19 (3), 235 42. Becker, Howard S. (1961), Boys in White: Student Culture in Medical School . Chicago: University of Chicago Press. Bell, Sheryl, Catherine Eckel, Philip J. Grossman, and William Zane (2001), Status in Markets, Quarterly Journal of Economics , 116 (1), 161 88. Benjamin, Beth A., and Joel M. Podolny (1999), Status, Quality, and Social Order in the California Wine Industry, Administrative Science Quarterly , 44 (3), 563 89. Besanko, David, David Dranove, and Mark Shanley (1996), The Economics of Strategy . New York: John Wiley & Sons. Bester, Inneke (2012), Consumers Don t Stress About Buying Wine Or Do They? WineLand Media , (February 1), . wineland.co.za/consumers-dont-stress-about-buying-wine-or-do- they/. Beverland, Michael B. (2005), Crafting Brand Authenticity: The Case of Luxury Wines, Journal of Management Studies , 42 (5), 1003 29. Bothner, Matthew S., Joel M. Podolny, and Edward Bishop Smith (2011), Organizing Contests for Status: The Matthew Effect vs.
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