WSET Level 4 Diploma D2 Wine Business Exam
Questions with Verified Answers |Strategic
Commercial Focused Study Guide
1. QUESTION:
Describe what happens when relative supply and demand change.
ANSWER:
1. When supply exceeds demand, prices fall. Consumers have a greater choice
of cheaper alternatives, and producers lower prices to remain competitive.
Falling prices can lead to increased demand in the long run.
2. When demand exceeds supply, prices increase. Some consumers are willing
to pay more for certain wines, while others switch to a different wine or
alcoholic drink.
2. QUESTION:
What are the general factors affecting demand for wine?
ANSWER:
, 1. Social factors
2. Economic factors
3. Legislative factors
4. Political factors
3. QUESTION:
List major social factors affecting demand for wine.
ANSWER:
1. Change in consumption habits
2. Change in consumer preferences
3. Change in reputation
4. Change in spending patterns
4. QUESTION:
Describe how global wine consumption habits have changed since 2001.
ANSWER:
1. Rapid growth in the early 2000s
2. Decline after the 2008 financial crisis as consumers reduced spending on
non-essential products
3. Slight decline in recent years, expected to remain stable to 2021
4. Strong growth in sparkling wine sales
5. QUESTION:
Which were the top five countries for total wine consumption in 2017?
,ANSWER:
1. USA
2. France
3. Italy
4. Germany
5. China
6. QUESTION:
Explain the increasing wine consumption in the USA in the last 20–30 years.
ANSWER:
1. Increasing globalization of the food and drinks industry
2. Consumers are more willing to embrace new tastes
3. Growth and improvement in domestic wine production
7. QUESTION:
Explain the increasing wine consumption in China.
ANSWER:
1. Growing middle class showing wealth and status, moving away from local
drinks
2. Aspiration to drink imported wine
3. Bilateral trade agreements with countries like Australia and Chile
8. QUESTION:
Give possible reasons for falling wine consumption in traditional wine-drinking
countries.
, ANSWER:
1. Younger people drinking less wine due to old-fashioned image, less time in
bars, and more social media use
2. Health concerns, often influenced by government campaigns (e.g., Loi Evin
in France)
3. Changes in lifestyle, with less time for long meals and lunchtime drinking
4. Reduced availability of cheap wine, leading some consumers to switch to
other alcoholic drinks
9. QUESTION:
List a few major changes in consumer preferences in recent years.
ANSWER:
1. Rosé and Prosecco have become popular
2. Increased demand for lower-alcohol wines
3. Medium-sweet German wines and fortified wines are going out of fashion
10. QUESTION:
What factors could influence a wine's reputation?
ANSWER:
1. Good reviews from leading publications and critics
2. Online influencers and key opinion leaders (KOLs)
3. Presence in popular culture, such as films, TV series, music, or celebrity
lifestyle news
4. Peer opinions
Questions with Verified Answers |Strategic
Commercial Focused Study Guide
1. QUESTION:
Describe what happens when relative supply and demand change.
ANSWER:
1. When supply exceeds demand, prices fall. Consumers have a greater choice
of cheaper alternatives, and producers lower prices to remain competitive.
Falling prices can lead to increased demand in the long run.
2. When demand exceeds supply, prices increase. Some consumers are willing
to pay more for certain wines, while others switch to a different wine or
alcoholic drink.
2. QUESTION:
What are the general factors affecting demand for wine?
ANSWER:
, 1. Social factors
2. Economic factors
3. Legislative factors
4. Political factors
3. QUESTION:
List major social factors affecting demand for wine.
ANSWER:
1. Change in consumption habits
2. Change in consumer preferences
3. Change in reputation
4. Change in spending patterns
4. QUESTION:
Describe how global wine consumption habits have changed since 2001.
ANSWER:
1. Rapid growth in the early 2000s
2. Decline after the 2008 financial crisis as consumers reduced spending on
non-essential products
3. Slight decline in recent years, expected to remain stable to 2021
4. Strong growth in sparkling wine sales
5. QUESTION:
Which were the top five countries for total wine consumption in 2017?
,ANSWER:
1. USA
2. France
3. Italy
4. Germany
5. China
6. QUESTION:
Explain the increasing wine consumption in the USA in the last 20–30 years.
ANSWER:
1. Increasing globalization of the food and drinks industry
2. Consumers are more willing to embrace new tastes
3. Growth and improvement in domestic wine production
7. QUESTION:
Explain the increasing wine consumption in China.
ANSWER:
1. Growing middle class showing wealth and status, moving away from local
drinks
2. Aspiration to drink imported wine
3. Bilateral trade agreements with countries like Australia and Chile
8. QUESTION:
Give possible reasons for falling wine consumption in traditional wine-drinking
countries.
, ANSWER:
1. Younger people drinking less wine due to old-fashioned image, less time in
bars, and more social media use
2. Health concerns, often influenced by government campaigns (e.g., Loi Evin
in France)
3. Changes in lifestyle, with less time for long meals and lunchtime drinking
4. Reduced availability of cheap wine, leading some consumers to switch to
other alcoholic drinks
9. QUESTION:
List a few major changes in consumer preferences in recent years.
ANSWER:
1. Rosé and Prosecco have become popular
2. Increased demand for lower-alcohol wines
3. Medium-sweet German wines and fortified wines are going out of fashion
10. QUESTION:
What factors could influence a wine's reputation?
ANSWER:
1. Good reviews from leading publications and critics
2. Online influencers and key opinion leaders (KOLs)
3. Presence in popular culture, such as films, TV series, music, or celebrity
lifestyle news
4. Peer opinions
