Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
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1. Which factors influence the price of a bottle of wine? - Correct Answer:
1. Cost of growing grapes
Producing the wine
Transporting it to the end user
2. Supply and Demand
Why are supply and demand seldom in balance? - Correct Answer:
Example: Weather. 2017, spring frosts reduced the yields in much of Europe
to the lowest in 50 years.
Supply exceeds demand, prices fall
3. Which factors affect demand for wine of a particular variety, region,
country, style or price? - Correct Answer: Social, economic, legislative
and political factors
4. Which social factors influence the demand for wine? - Correct Answer:
1. Changes in Consumption Habits
2. Changing Consumer Preferences
3. Changes in Reputation
4. Changes in Spending Pattern
,5. How did consumption habits change this century? - Correct Answer:
Wine consumption increased rapidly in the early 2000s but after the
financial crisis in 2008, wine consumption fell as many consumers reduced
their spending on non-essential goods.
6. Which are the top five countries for wine consumption between 2003 and
2019? - Correct Answer: 1. Usa
2. France
3. Italy
4. Germany
5. China
7. How has wine consumption changed in the top five countries over the least
decade? - Correct Answer: Consumption has fallen in traditional wine
countries such as France and Italy and is gaining in non-traditional wine
countries such as the US and China
8. Why have the US overtaken worldwide wine consumption? - Correct
Answer: Due to increasing globalisation of foods and drinks industry
(growth of multi-national corporations, increased ability to export products
across national borders, consumer willingness to embrace new tastest)
Due to improvements in the domestic wine market
9. Why was there a significant increase in wine consumption in China? -
Correct Answer: Growing middle class who wish to show their new wealth
by moving away from local drinks to wine
,10.Which wines does the growing Chinese middle class like to drink? -
Correct Answer: Imported over domestic
They started with French but are increasingly looking to Australia and Chile
who they have a trade agreement with
11.What are some of the reasons why wine consumption is falling is some
countries? - Correct Answer: 1. Younger people drink less wine
2. Health Concerns
3. Changes in lifestyle
4. Reduced availability of cheap wine
12.What are some examples of changing consumer preferences? - Correct
Answer: 1. Rosé has become popular in recent years, especially in the US
2. Prosecco sales in US and UK have increased. (No rise in price because supply
has also increased)
3. Increased demand for low-alcohol wines due to health concerns and
decreased demand for fortified wines
4. Styles become out of fashion such as medium-sweet Liebfraumilch from
Germany which was popular in US and UK in the 50s, 60s and 70s. Brands such
as Blue Nun had to reinvent themselves to survive
13.What can lead to changes in reputation of wine region? - Correct
Answer: 1. Good reviews from publications and critics (Wine Spectator in US
or Jancis Robinson in the UK)
2. Online influencers and key opinion leaders can have an impact on
desirability of brand or style of wine
3. Influence of peer opinions and behavior
, 14.What does it mean if a wine region has an increased reputation? -
Correct Answer: Demand will increase and producers may be able to justify
higher prices. Conversely, a loss of reputation can have the opposite effect
with a delayed effect on pricing
15.What are price sensitive markets? - Correct Answer: Markets where
consumers are unwilling to pay more than the lowest price possible for the
style of wine they want to buy (UK and Germany)
16.What is an example of a market where consumers are willing to pay above
the minimum price for a wine they perceive as superior in quality? -
Correct Answer: US
17.What does it mean for producers to sell in price sensitive markets? -
Correct Answer: Competition is fierce as producers are competing within a
reduced price range. Market becomes unprofitable for some producers who
may choose to not sell there
They are reluctant to pass on increased production costs to consumers for
fear of losing sales to competitors and will try to create brand loyalty
through marketing campaigns
18.Can spending patterns change? - Correct Answer: They can, but it is a
slow process. There has been a trend for premiumisation in the US and the
UK (a price sensitive market). Consumers will buy less, but better quality
wine.