Examining Market-driving Innovation in the Wine Industry: A Topic Modeling Method on Consumer Reviews on Wine Documentaries

Abstract

This paper examines the transition of wine as a product to wine as a service, with a particular focus on the role of documentaries. Innovation is an important theoretical lens for examination of this transition. Two types of innovations, market-driven innovation and market-driving innovation, are closely related to wine consumption as a material purchase and as an experiential purchase, respectively. Market-driven innovation is product-level innovation in response to existing needs. Market-driving innovation is market-shaping and reimaginings of value propositions by forming new sets of relationships between various market actors. Market-driving innovation becomes important as the experiential purchase of wine rises. Consumer reviews on wine documentaries were examined with topic modeling and multi-dimensional scaling methods to investigate this innovation. Analysis revealed underlying dimensions (consumer’s participation and value proposition) of market-driving innovation and market shaping, which can be explained through the consumer experience paradigm (4E principles: Escapism, Education, Esthetics, and Entertainment). Theoretical and managerial implications are discussed to advance the scholarship of market-driving innovation in the wine market.