Market orientation of French and Hungarian small and medium‐sized wineries

Abstract

Purpose

The purpose of this paper is to analyse the impact of market orientation on strategy orientation (communication, target and image strategy). This impact is studied by using a multicultural approach (Hungarian and French wineries).

Design/methodology/approach

A questionnaire was completed by 131 French wineries – châteaux and 66 Hungarian wineries. French wineries are located in the Bordeaux region. Participants were obtained by sending questionnaire to wineries lists provided by wine‐related organizations. Market orientation and strategy orientation scales were constructed by using confirmatory factor analysis and this impact confirmed by using structural equation modelling. To measure the differences of this impact between French and Hungarian wineries, multigroup analysis is practiced.

Findings

Market orientation as information gathering, and difficulties involved in searching and planning are defined. Concerning the impact of market orientation on strategy orientation, the main finding is that information gathering and planning impacts positively on the development of communication and target strategies; and the difficulties involved in searching for information impact positively on image strategy. Two main differences appear between French and Hungarian wineries: information gathering and difficulties in searching for information.

Research limitations/implications

One main limit concerns the characteristics of Hungarian and French wineries that are not similar especially in terms of area size. So these cultural differences could be also explained by structural differences of the wineries.

Practical implications

The majority of wineries do not have organized and large information gathering systems and marketing strategies are defined by communication objectives because they have some difficulties in defining their target.

Originality/value

The paper shows how image and communication strategies are implemented in Hungarian and French wineries.

Citation

Durrieu, F. and Toth Hofmeister, A. (2008), "Market orientation of French and Hungarian small and medium‐sized wineries", International Journal of Wine Business Research, Vol. 20 No. 2, pp. 124-137. https://doi.org/10.1108/17511060810883759