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Journal of Promotion Management

ISSN: 1049-6491 (Print) 1540-7594 (Online) Journal homepage: http://www.tandfonline.com/loi/wjpm20

Social Media and Societal Marketing: A Path for aBetter Wine?

Mariantonietta Fiore, Demetris Vrontis, Raffaele Silvestri & Francesco Contò

To cite this article: Mariantonietta Fiore, Demetris Vrontis, Raffaele Silvestri & Francesco Contò(2016) Social Media and Societal Marketing: A Path for a Better Wine?, Journal of PromotionManagement, 22:2, 268-279, DOI: 10.1080/10496491.2016.1121755

To link to this article: http://dx.doi.org/10.1080/10496491.2016.1121755

Published online: 23 Mar 2016.

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Social Media and Societal Marketing: A Path for a BetterWine?

Mariantonietta Fiorea, Demetris Vrontisb, Raffaele Silvestria, and Francesco Cont�oa

aUniversity of Foggia, Foggia, Italy; bUniversity of Nicosia, Nicosiam, Cyprus

ABSTRACTThe social-media marketing tools, such as social networks, wineclub and societal marketing strategies, can increase theknowledge of consumer’s expectations. The aim of the article isto verify whether these tools affect the product improvement.An exploratory survey is carried out in the wine sector in Apuliaregion (South Italy). Data were collected by online survey usingthe Survey Monkey software and were administered to a sampleof pre-selected wineries; then, responses were processed bymeans of an ordinary logistic regression. Results are presented.Management implications and conclusions close the article.

KEYWORDSconsumer empowerment,product development, socialmedia marketing, societalmarketing, wine sector

Introduction

Businesses have to find and develop resources in their competitive context in orderto create value for their customer: a big chance, arises from digital technologies,concerns the capability to engage the customers in value creating process throughsocial media: the interaction on social networks stimulates a business sharing thatturns the consumer into an active player able to affect business decisions; movingfrom the firm’s customer-centric orientation (Pires, Stanton, & Rita, 2006), theconsumer empowerment may be seen as a process of delegation to the consumeralso in strategic decisions. The company tends to yield increasing amounts of deci-sion-making power to its customers in improving existing products and in creatingnew ones, thus stimulating a new process of democratization, which, according tosome authors, affect internal development processes, the consumer’s company per-ception and, consequently, the purchases (Fuchs & Schreier, 2011; Fuchs, Pran-delli, & Schreier, 2010).

In the literature, there are eminent scholars who studied this topic, especially inthe case of innovation and new product development (Prahalad & Ramaswamy,2004; Thomke & Von Hippel, 2002). The literature has not expanded the knowl-edge regarding the consumer’s power effectiveness in improving existing products:

CONTACT Mariantonietta Fiore mariantonietta.fiore@unifg.it Department of Economics, University ofFoggia, Largo Papa Giovanni Paolo II, n. 1 71121 Foggia, Italy.© 2016 Taylor & Francis

JOURNAL OF PROMOTION MANAGEMENT2016, VOL. 22, NO. 2, 268–279http://dx.doi.org/10.1080/10496491.2016.1121755

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is the consumer’s role in the marketing process able to improve a product or toremove it from the market? Does social media marketing affect the ability toimprove products?

Furthermore, consumers are increasingly aware of new global issues. Demandchanges, new consumer preferences, and global market challenges drive agri-foodproducers to recognize consumer expectations for quality, ethics, sustainability,and safety as a significant opportunity to differentiate and to improve their prod-ucts and to be competitive (Cont�o, Antonazzo, Fiore, & La Sala, 2015). Then, sev-eral authors highlight the ethical behaviors that provide benefits either to society,in general, or to specific groups or individuals (Brown & Miller, 2008; Nost, 2014;Fonte, 2013) such as the fair trade initiatives, social co-operation (Higgins, Dibden,& Cocklin, 2008; Tregear, 2011), or cause-related marketing (CRM) strategies(Koschate-Fischer, Stefan, & Hoyer, 2012; Larson, Flaherty, Zablah, Brown, &Wiener, 2008). Some authors, for example, examine the potential link betweenCRM and product innovation and extraordinary sustainable leadership (Christofi,Leonidou, & Vrontis, 2015).

In considering this background, do ethical and social considerations motivateconsumers in purchasing decisions and, as a result, entrepreneurs’ changes in theproduct?

In this presented context, our research objective is to fill a gap present in the lit-erature and so to verify whether the product improvement is positively affected byweb and social media marketing actions such as the presence on social networks,the use of wine clubs, and societal marketing strategies. In order to analyze andinvestigate these research aims, a sample of 280 wineries, extracted from the popu-lation of companies participating in the Integrated Projects of Food chain (IPF) inthe Apulia region (in South Italy), were studied. Data, collected through an on-linesurvey, were processed through a binary logistic regression.

In our opinion, the results may imply interesting entrepreneurial conclusionsand suggestions for firms that can have positive effects on people’s well-being andon product improvement.

The article is structured and organized as follows: the first part is devoted to theanalysis of literature focusing on digital technologies and societal marketing strate-gies: then, steps of methodology for the data collection and processing are pre-sented; this is followed by an analysis of the results; and the concluding remarkscomplete the article.

Background research

Digital technologies

Businesses use an increasing interactivity that facilitates “communication, coopera-tion, collaboration and connection” between the users (Cook, 2008): this allows theenterprise to involve (Sawhney, Verona, & Prandelli, 2005) the consumer in devel-opment and innovation product through openness (Barnes et al., 2012) and a

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clever and complex use of customer knowledge in the creation and selection ofideas for the launch of a new product (Verona, & Prandelli, 2006). Some eminentstudies (Von Hippel, 1998) highlighted how the product innovation extendsbeyond the traditionally understood firm’s boundaries: it gives to the firm’s strate-gic partners an active role, first of all its own customers.

A power transfer from business to its customers occurs, even with different lev-els of engagement; it generates opportunities and problems (Fuchs & Schreier,2011), which stimulate research questions on this new relationship’s influence onproduct improvement and on the optimal relationship’s management. The con-sumer empowerment phenomenon is defined, in the literature, as the process bywhich suppliers let the customer take control of variables that are usually deter-mined by marketers (Wathieu et al., 2002; Denegri-Knott, Zwick, & Schroeder,2006). The role of the consumer as a provider of valuable and relevant insight canbe used by the company to directly collect market data (Pires et al., 2006). Accord-ing to other authors (Rezabakhsh, Bornemann, Hansen, & Schrader, 2006), theconcept of consumer empowerment is defined as higher consumer ability in adapt-ing the business process of value to create their own particular needs, as well as agreater capacity in evaluating the company, which affects the suppliers selectionprocess. Digital technologies and social media have played a key role in the lastyear in growing the relevance of consumer empowerment (Rezabakhsh et al., 2006;Pires et al., 2006; McCarthy, Rowley, Ashworth, & Pioch, 2014): social networkingsites, blogs, content sites such as YouTube, etc. showed several ways of marketpower transfer from companies to customers. Consumers can specify products’features, can take part in developing new product through technological platforms,can select a chosen distribution channel or price (Fuller, M€uhlbacher, Matzler, &Jawecki, 2010; Fuchs & Schreier, 2011), and can learn about other customers’ expe-rience. Some scholars underlined that companies may even lose part of their con-trol over a brand in favor of consumer communities (Cova & Pace, 2006). Thedevelopment of interactive relationships with the consumer (Garrigos-Simon,Lapiedra Alcam�ı, & Barber�a Ribera, 2012) is therefore to be understood as a crucialelement in observing the role of web marketing in the search for the competitiveadvantage for SMEs (Sparkes & Thomas, 2001).

In the literature, some studies show the potential for the company to develop apersonal relationship with the consumer, proposing certain categories of possiblebenefits (Hinchcliffe, 2010): increased productivity and operational efficiency; bet-ter cognitive abilities development (due to greater connection internal and withthe outside); greater effectiveness in communication with the exterior; increasingability to offer customized products and services based on innovation. The effectiveuse of the customer’s motivations and feelings may provide relevant informationregarding the customer’s needs necessary to shape the marketing strategy: this isconsidered a fundamental driver (Kristensson, Matthing, & Johansson, 2008) toensure a competitive service level to the customer, as they reduce the uncertaintyin decision-making, the market risk, and the impact of competition. Research

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regarding the relationship between innovation and customer empowerment, mov-ing from the concept of consumer as a co-creator of value (Fuchs & Schreier, 2011;Fuller et al., 2010; Ramaswamy, 2008) can be found in the literature, as well asmodels of co-creation process management (Bhalla, 2011; Prahalad & Ramasw-amy, 2004; Ramaswamy, 2008) for optimizing strategic value for firms.

There are several studies, emerging from the literature, concerning digital mar-keting in the wine industry: some authors (Begalli, Codurri, & Gaeta, 2009) ana-lyzed the level of internet marketing in the use and the web marketing strategiesmodels, highlighting the entrepreneur’s perception of web site quality identifiablein navigability parameters; some authors (Szolnoki, Taits, Nagel, & Fortunato,2014) studied the use of social media tools by wineries, with special attention toFacebook, highlighting that Facebook fans have a higher turnover compared to thenon-Facebook fans of the observed wineries. Other scholars (Capitello, Agnoli,Begalli, & Codurri, 2014) deepened the web-marketing behavioral models adoptedin the wine industry, as well as the potential of m-commerce (mobile commerce)combined with social media in order to reach distinctive customer segments (Pelet& Lecat, 2014).

There is less attention on the relationship between consumer empowerment andproduct strategies, in particular between the digital technologies’ use and theimprovement of existing products: this aims to fill this gap with an exploratory sur-vey in the wine sector.

Societal marketing

Over the last decade, digital technologies attracted more people because interac-tion between each other has always been a basic need for humans, according tothe famous Maslow’s hierarchy of needs pyramid (Maslow, 1954). Due to globali-zation, the context in which business operates is changing fast. New stakeholdersand different national legislations (such as Corporate Social Responsibility) areputting new expectations on business and altering how the social, environmental,and economic impacts should be optimally balanced in decision-making(Dahlsrud, 2008). Due to these expectations, social approaches and societal con-cerns standout as essential crucial drivers in business–consumer relationships, inconsumer preferences, and, therefore, in the development of consumer-drivenvalue chains (Buurma, Lamine, & Haynes, 2012). Indeed, in making purchasedecisions, consumers may have expectations related to public interests such asenvironmental and social issues. The new marketing trends are oriented towardbilateral relations, in which the consumer/citizen has a role in the decision-mak-ing process and is based on the concept of corporate giving: philanthropy andsponsorships in social and CRM. The interactive marketing strategies are madepossible thanks to new communication systems: the web, digital TV, and alldigital technologies. Societal marketing is a strategic tool for firms (Tudisca, DiTrapani, Sgroi, & Testa, 2013): it allows to organizations to investigate the needs

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and the interests of target markets, in a way that preserves or enhances the con-sumer’s and the society’s well-being (Kotler, Armstrong, Saunders, & Wong,2005). Ethical and social considerations motivate consumers and entrepreneur-ships to make changes. CRM is a relevant expression of societal marketingbecause the aim is to deliver mutual benefit and well-being for both consumersand the partners of the program. The CRM is considered a form of collaborationbetween a company and a nonprofit organization that is based on a relationshipof mutual benefit, and in which the involvement of the social aspects integrateswith the marketing strategy.

Among important criteria, firms have to present a reputation credible in termsof social commitment; furthermore, consumers must be able to understand theethical motivations of the company. Indeed, firms should take steps to make sureconsumers perceive a positive relationship between the firm and the cause (Ross,Patterson, & Stutts, 1992). The results of the social campaign should be made pub-lic. This set of criteria for planning the whole project is crucial; consumers aremore and more disposal to purchase products deriving from societal marketingstrategies because it may be possible that these organizations are considered moreneutral by the consumers (Kotler et al., 2005). Scholars demonstrated that CRMhad a positive influence on respondents’ willingness to buy the firm’s products,particularly among respondents who had children (Ross et al., 1992). Therefore,the use of CRM is a strategy to influence consumer choice (Barone, Miyazaki, &Taylor, 2000).

In particular, the wine sector has some elements that can contribute to efficientcause related strategies: the wine consumers are increasingly aware of the qualityand of the ethical and environmental aspects involving the production methodand the use of profits. In winemaking, terroir plays a decisive role in determiningthe value of the bottle and for some occasions of consumption (invitations, gifts,etc.), the purchasing choice of wine represent and reflect the social status of thebuyer. Several examples related to CRM are in the wine sector: since 2003, Winefor Life, together with Food for Life, is an initiative of the Community of Sant’Egi-dio, in Rome that links stably for the first time great quality wine to aid Africa,where more than 25 million people have HIV/AIDS (without medicine for treat-ment) and 14 million children are orphaned by AIDS. Additionally, Fantinel, abrand composed of several winemakers with over 250 hectares in Friuli Region(North Italy), adopted CRM strategies for solidarity by joining the project “Thecellar of the heart,” born from an agreement between the Onlus Black Spruts Versi-lia and the Foundation Marco Pantani. The aim of this project is to support thehospital Pediatric Apuano that is engaged in infant heart surgery for children inthe Third World, infant hospital Sant’Anna in Turin, and children affected by thetsunami that devastated Southeast Asia. Another important example that is alsofrom the North Italy, Associazione Insieme is composed of 12 producers fromLanghe, a historic area of Piedmont, that have created a special label, called“Together,” to identify wines obtained from each producer with different grape

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varieties and distinct production techniques, but that have the same label, exceptfor the name and logo of the single enterprise. For each bottle sold, winemakersdonate about €5. An external committee, which meets on the 11th of November ofeach year, decides which social projects to be funded. Several other examples arefrom other parts of the world (such as Farrel distribution that promotes a CRMprogram) and it is sign of a change in consumer preferences and choices towardmore responsibility and awareness to social issues.

Finally, in spite of several standout examples, there is a gap in the literature andempirical studies in investigating and analyzing the role of societal marketing andCRM strategies in determining entrepreneurial and firm changes. Herein, we try tofill this gap, exploring the link and the correlation between societal and CRM strat-egies and product improvement.

Theoretical framework and survey analysis

Several research contributions have often used qualitative research for exploringissues, understanding phenomena, and answering responses by investigatingand carrying out unstructured data (Merriam, 2009; Patton, 2002). In the pres-ent research a dual methodology was used by means of a research triangulationthat facilitates validation of data through cross verification from two or moresources (Rothbauer, 2008). Then, it refers to the combination of severalresearch methodologies in the study of the same phenomenon that takes intoaccount primary and secondary data that are crucial to establishing the validityof qualitative studies.

Primary data are collected by questionnaires administrated to the target popula-tion or sample. Secondary data have several typologies as sources: previousresearches, official statistics (Italian National Institute of Statistics, Regional Insti-tute of Economic and Social Researches, FAOSTAT, WTO, and so on), and gov-ernment and scientific reports.

Regarding primary data, they are collected via web-based administration of aquestionnaire to a sample of 280 wineries extracted from the population of farmsparticipating in the IPF in the Apulia region, a Southern Italian region, followingan Apulia Authority call in September 2011. Indeed, the present paper has beendesigned and carried out within the following IPF measure of 124 of the RuralDevelopment Program of Apulia Region (EAFRD): Nord Wine, Sud Wine, andVitis Castel del Monte. There were a total of 204 respondents.

The main steps were the definition of the target and the definition of the princi-pal sections of the survey; then, the method of choice for administration and thedecision regarding the questionnaire testing step with niche experts in the winesector were carried out.

Our hypotheses are structured as follows:

HQ1: It does not increase consumer power effectiveness in improving existing products:is the consumer’s role in the marketing process able to improve a product in the market?

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HQ2: Does social media marketing affect the ability to improve products?HQ3: Do ethical and social considerations motivate consumers in purchasing decisionsand therefore entrepreneurships choices to make changes to the product?

The questionnaire, which includes firm data and information, socio-economicaspect, preferences, and business choice, is semi-structured and implemented on36 open-ended questions, with binary options, developed to measure the proceed-ings with their scores (from 1 to 7). We used several Likert rating scales (Allen &Seaman, 2007).

We chose methods of collecting qualitative data such as the administration ofthe survey via e-mail and by using the Survey Monkey on-line software over fur-ther telephone recall. The latter step was functional to answer some questions; fur-thermore, other data was derived by the statistic and descriptive reports related toall wineries involved in IPF. In a way, product improvement implemented by firmswas the main result derived from several reports elaborated by scientific research-ers involved in IPF management.

A further step was necessary in order to answer the third research hypothesis:we analyzed the websites of the 204 respondent wineries in order to verify theimplementation of Corporate Social Responsibility communication, CRM strate-gies, and societal marketing activities on the websites (Mulky, 2013; Esrock &Leichty, 1998).

In order to answer H1 and H2 and to address the aims of our paper (Naidoo,2010), we selected 5 questions from the entire survey:

- Pr_Impr [dependent variable: the responses are coded from 1 to 7 (Never,Very Rarely, Rarely, Occasionally, Very Frequently, Always)]: if the firmmade small changes in the products or services in the last 5 years (productimprovement);

- Yr [continuos variable]: age of the firms in years;- SocNet [dummy variable]: if Social Networks and 2.0 are used;- MobPhApp [dummy variable]: ifMobile phone application are used;- Wine club [dummy variable]: ifWine club measures are implemented.

From the anaysis of websites (Mulky, 2013; Esrock & Leichty, 1998) of 204involved respondent wineries, we obtained the following variables:

- CRM [dummy variable]: if CRM strategies or ethics approach in firm deci-sions are implemented by winemakers.

In consideration of the ordered nature of the dependent variable, we adopted anordinal logistic regression with the aforementioned selected and described varia-bles. In an ordinary logistic model, the categories of the response have a naturalordering. A multinomial logistic model can be used here too, but it has the disad-vantage of ignoring the ordering; in effect an ordinal logistic model does take theordering into account. This provides a model with fewer parameters to interpret.The ordered logistic model depends upon the idea of cumulative probabilities.This, in turn, relies on the idea of cumulative probability Cij that is the probability

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that the ith individual is in the jth or higher category:

Cij DPr.yi� j/DXj

kD 1

Pr.yi D k/ [1]

.Cij/D log.Cij 6 .1¡Cij// [2]

In prob.event/1¡ prob.event/ð Þ

� �Db0Cb1X0 Cb2X2C . . . CbkXk [3]

In other words, this model considers the log odds for the cumulative probabili-ties, one for each possible cut-off of the responses into two sets of high and lowresponses; for each such cut-off, a binary logistic model is defined and each modelhas a different intercept term. Data analysis was performed by using STATA 12.0software.

The selected variables address the objective of this research work. Weexpect that our logistic regression with the selected variables provides statisti-cally significant values. Furthermore, we estimated that the coefficients magni-tude and sign would provide insights on correlation between our variables inorder to respond to our research questions. Finally, we can expect that firmsthat adopt web marketing strategies (to have a more in-depth knowledgeregarding needs and expectations of customers) or social networks, wine club,and societal and CRM strategies can be positively induced to make manage-ment decisions that improve the product.

Results

The estimates obtained from the ordinal logistic regression show estimatedcoefficients that appear to be statistically significant at 95% C.I. [Yr (ß D–0.85), SocNet (ß D –1.66), MobPhApp (ß D 1.12), CRM (ß D 0.13)]; wineclub variable was not significant. Analysis of the results reveals that the mag-nitude and the sign of the variables can affect a business improvement of theproduct.

In order to explain our results, we highlight the following outcomes: a)entrepreneurs with a “digital” approach, that is web and social-media market-ing actions implemented in the firm (SocNet and MobPhApp), are more likelyto give responses that indicate agreement on product improvement decisionsowing to the major knowledge of the expectations of the end-consumer; b)firms with more years of activity (Yr) are more likely to give responses thatindicate disagreement on product improvement decisions; c) firms that adopta corporate philanthropic and social approach are slightly more likely to giveresponses that indicate agreement; and d) the wine club variable is not signifi-cant because of the limited number of companies participating in the wineclub. The values should not be considered in absolute terms. This follows ourassumptions.

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Limitations

Some limitations of our research can be found, calling for further investigations inthis domain. First, according to the survey, it is not clear what type of improve-ment or change in the product was introduced by the winemakers. Second, for ourempirical analysis, we chose a geographic segmentation approach, and thereforethe sample cannot be quite representative and a comparison with another Italianregion or of another country could be very interesting. Furthermore, understand-ing if the selected firms participating in the IPF represent a homogeneouscluster can be crucial. Finally, the results, though corroborate the initial researchhypothesis, should be considered with prudence, imposed by the size and typologyof the sample and by the exploratory characteristics of the survey, require furtherresearch steps and empirical insights and application. Even identifying those limits,we would conclude that this work fills the gap in literature and in empirical studieson this topic, thereby representing a first step in investigating the role that digitaltechnologies and CRM strategies can provide increasing insight into consumerperception and entrepreneurial behavior as well. The overall results derived fromthe survey and from further scientific data infer that high significance can be attrib-uted to ethics, social, and digital technology issues.

Management implications and conclusions

Confirming our research hypothesis, digital technologies can be considered animportant driver that affects and impacts firm decisions related to improving prod-uct quality. These results are corroborated by previous research (Fuchs & Schreier,2011; Fuller et al., 2010; Ramaswamy, 2008), creating the concept of the consumeras a co-creator of value.

On the other hand, actions and an approach aimed at the concept of corporategiving such as philanthropy and sponsorships in social and CRM have a role too.The latter result is also in line with the recent literature (Buurma et al., 2012;Tudisca et al., 2013) following the concept that consumers are more and more will-ing to pay for products that are derived from societal marketing strategies (Kotleret al., 2005; Ross et al., 1992; Barone et al., 2000).

The long history of a company is no longer an asset but can have a negativeinfluence on the decision processes regarding product improvement. In effect, a“young” company is more willing to interact with the customer taking cues toimprove its performance and interactivity facilitates collaboration and a connec-tion with the consumer that holds a primary role (Cook, 2008; Sawhney et al.,2005).

Finally, companies that adopt digital and societal strategies have direct majorknowledge of the needs and expectations of customers (with social networks, blogs,and wine club, corporate social boundaries are opened) because of the ability toshare ideas and so on with consumers; this can positively induce managementdecisions that improve the product.

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Regarding management implications, it might therefore be strategic if compa-nies undertake a process of strengthening the resources invested in tools and mar-keting actions that are information and communications technology (ICT) based.This aspect, joined with the implementation of societal strategies or CRM activi-ties, can represent a crucial driver to deepen the role of the Apulia wine sector inglobal competition, thereby promoting the internationalization processes. Thisresearch indicated that there are necessary steps that the industry stakeholdersshould put forward to allow the wine industry to flourish again. It is anticipatedthat the findings of this research will aid practitioners to improve their currentmanagement practices and corporate approach. Furthermore, Apulia region is oneof the Italian regions with the longest history of winemaking in the world; there-fore, these insights can be replicable in other similar wine regions and countries. Inline with other research outlines (Ross et al., 1992), the aforementioned findingsallow the research to reach another conclusion, by extrapolation: the need for col-lective actions and interventions within the wider strategic and marketing pro-cesses. This is an important consideration as the wine industry is a significantsector of the region and it benefits all stakeholders for it to be developed. In theend, regarding the importance of corporate societal approach, this work has shownthat consumers of developed countries increasingly evaluate products not based ontheir physical quality attributes, but rather on intangible ones. These are usuallyrelated to images, mind associations, lifestyles, and their representations throughproducts. Above all, this research has found that a change must take place in theheart and mind of the winemakers.

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