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AtlanticMarketingJournalAtlanticMarketingJournalVolume6Number2Article4November2017EntrepreneurshipMarketinginNorthCarolina'sWineIndustryEntrepreneurshipMarketinginNorthCarolina'sWineIndustryGeorgeD.
ShowsAppalachianStateUniversity,showsgd@appstate.
eduPiaA.
AlbinssonAppalachianStateUniversity,albinssonpa@appstate.
eduJamesE.
Stoddardstoddardje@appstate.
eduFollowthisandadditionalworksat:https://digitalcommons.
kennesaw.
edu/amjPartoftheAdvertisingandPromotionManagementCommons,EntrepreneurialandSmallBusinessOperationsCommons,MarketingCommons,andtheTourismandTravelCommonsRecommendedCitationRecommendedCitationShows,GeorgeD.
;Albinsson,PiaA.
;andStoddard,JamesE.
(2017)"EntrepreneurshipMarketinginNorthCarolina'sWineIndustry,"AtlanticMarketingJournal:Vol.
6:No.
2,Article4.
Availableat:https://digitalcommons.
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EntrepreneurshipMarketinginNorthCarolina'sWineIndustryEntrepreneurshipMarketinginNorthCarolina'sWineIndustryCoverPageFootnoteCoverPageFootnoteAcknowledgementsTheauthorswouldliketothankMr.
WhitWinslow,ExecutiveDirectoroftheN.
C.
WineandGrapeCouncilandtheN.
CDepartmentofAgricultureforhisinvaluablehelpwiththedatacollectionforthisproject.
ThisarticleisavailableinAtlanticMarketingJournal:https://digitalcommons.
kennesaw.
edu/amj/vol6/iss2/42017,AtlanticMarketingJournalAtlanticMarketingJournalISSN:2165-3879(print),2165-3887(electronic)Vol.
6,No.
2(Summer2017)43EntrepreneurshipMarketinginNorthCarolina'sWineIndustryG.
DavidShows,AppalachianStateUniversityshowsgd@appstate.
edu*PiaA.
Albinsson,AppalachianStateUniversityalbinssonpa@appstate.
eduJamesE.
Stoddard,AppalachianStateUniversitystoddardje@appstate.
eduAbstractEntrepreneurialmarketingseekstocreate,communicateanddelivervaluetocustomersandmanagecustomerrelationshipsinwaysthatbenefittheorganization.
ThispaperexploreswhetherincreasedentrepreneurialmarketingpracticesatNorthCarolinawineriescanleadtoenhancedwineryperformance.
AwebsurveywasdeliveredtoN.
C.
wineriesbyemail.
Theresultssuggestthatwinerycustomerintensityandinnovationwerepositivelyrelatedtowinerysatisfactionofwineryperformance.
Inaddition,innovationandvaluecreationwerefoundtobepositivelyrelatedtopercentagesalesgainsatwineries.
KeywordsRegressionAnalysis,EntrepreneurialMarketing,WineriesRelevancetoMarketingEducators,Researchersand/orPractitionersTheresearchreportedhereinsuggeststhatwineriesimplementingentrepreneurialpracticesmayperformatahigherlevelthanthosethatdonot.
Specifically,wineriesthatfocusedonnurturinglong-termcustomerrelationshipsandsoughtnewideasfrominsideandoutsidetheorganizationreportedhighersatisfactionwiththeirwineryperformance.
Inaddition,wineriesthatsoughtnewideasfromwithinandoutsidetheorganizationandthosethatactivelydiscoveredanddeliveredvaluetotheircustomersreportedahigherpositivepercentagechangeinsales.
Note:ApreviousversionofthispaperwaspresentedandpublishedintheProceedingsofthe2016AMAConference44|AtlanticMarketingJournalEntrepreneurshipMarketingintheNCWineIndustryIntroductionIthaslongbeenknownthateconomicrecessionsimpactconsumerbuyingbehavior.
FlattersandWillmott(2009)haveidentifiedseveralmanifestationsinthemostrecentrecessionincludingconsumerwillingnesstosimplifytheirbuyingchoicesandtoprefersimplerofferingswiththegreatestvalue.
Post-recessionconsumersarealsothriftier,moremercurial,moreinterestedinenvironmentalismandhavelessrespectfororganizationssuchasthegovernmentandbusinesses.
Finally,consumerdemandforextreme-experience-seeking(expensive,risky,frivolous,orenvironmentallydestructive)purchaseshasdecreasedasaresultofarecession-inducedmoodofseriousnessandresponsibility.
Thesechangesinconsumerbuyingbehaviorareevidencedinthewineindustryaswell.
Adler(2011)observedthatthemostrecenteconomicdownturnin2007-2008promptedwineconsumerstoshifttopurchasingbottlessellingatlowerpricepointsresultinginextremedownwardpricepressureforwineries.
Thisshifttolowerpricepointwinesisexpectedtobelong-termhavingthegreatestimpactonhigher-pricedwineregions.
Forthesereasonsitisofparamountimportancethatwineriesadoptamoreentrepreneurialmarketingviewoftheirorganizationsoastoofferwineryconsumersagreatervalueoffering.
Thepurposeofthispaperistoproposethatwineriespursuingagreaterdegreeofstrategicentrepreneurialmarketingwillperformathigherlevelsthanwineriesutilizinglessentrepreneurialmarketingstrategies.
Thepaperwillfirstdiscusstheconceptofentrepreneurialmarketing.
Next,theresearchmethodisdescribedandtheresultsarepresented.
LiteratureReviewOneofthemoreironicstatisticstocomprehendisthatthemajorityofFortune500companieswerestartedinbearmarketsorrecessions(Stangler,2009).
Recessionscreatelayoffsandunemployment,andtheseleadtothecreationofself-employedbusinesses(Farber,1999).
Evidencesuggeststhatentrepreneurialfirmscanusemarketingstrategiestocopewithrecessions.
PearceandMichael(1997)suggestedrisk-takingstrategiessuchasholdingpositionsindiversifiedproductsandproactivelyestablishingnichepositionsareprescriptionsforsurvivalduringdownturns.
Srinivasan,Rangaswamy,andLilien(2002)foundthatproactivemarketingpracticesinfirmswithanentrepreneurialculturehavebothadirectandindirecteffectonmarketperformance.
Manylargefirmsintimesofrecessionviewthesemarketingdownturnsasopportunitiestoexploitweaknessesincompetitivefirms.
Thus,inthespiritofentrepreneurism,recessionisanopportunitywhenentrepreneurialmarketingpracticesareexecuted.
Morrisetal.
(2002)conceptualizedentrepreneurialmarketing(EM)astheidentificationandexploitationofopportunitiesforacquiringcustomersthroughinnovativeapproachestoriskmanagement,theleveragingofresources,andthecreationofvalue.
Newerdefinitionshavebeenproposed;Krausetal.
(2010,p.
27)proposedthefusionofthecurrentAMAdefinitionofmarketingandothersconcerningentrepreneurshiptocreateadefinitionofentrepreneurialmarketingas"anorganizationalfunctionandasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders,andthatischaracterizedbyinnovativeness,risk-taking,proactiveness,andmaybeperformedwithoutresourcescurrentlycontrolled.
"Morrisetal.
(2002)conceptualizedEMeffortssothatorganizationsshouldbeableto(1)recognizeopportunitiestocreateandcultivatenewEntrepreneurshipMarketingintheNCWineIndustryAtlanticMarketingJournal|45products,markets,customers,(2)actproactivelyandbemoreacceptabletonoveltacticsandmorewillingtoexperiment,(3)beinnovative,(4)bewillingtoallowcustomerstobeactiveintheprocesstocreatevalue,(5)bewillingtoacceptandmanagerisk,(6)leveragelimitedresourcesinaperiodofpotentiallyunlimitedopportunities,and(7)beablestrivetocreatevalueeverywhereinthebusiness.
Severalofthesedimensionsarecenteredintheconceptofentrepreneurialmarketing.
Proactivenessreflectsleadingratherthanreacting(Morrisetal.
,2002),whereafirm'sproactivenesssupportsitsabilitytoanticipatemarketshiftsandchangesinconsumerneeds(Lumpkin&Dess,2001).
Proactivenessisdefinedasanticipatingandactingtotakeadvantageofnewopportunities,beingwillingtoeliminateproductsandoperationswhentheyareindecline,andbeingwillingtoriskcompetitivereactiontoachieveafirst-moveradvantage(Venkatraman,1989).
Proactivenessisadimensionthatisinconcertwithinnovation,whichisafirm'stendencytopursueuniqueopportunitiesandcreatenewproducts(Lumpkin&Dess,1996).
Morrisetal.
(2002)describedinnovationashavinga"healthydissatisfaction"withthe"waythingsare"andwithorganizationsattemptingtopredictfutureconsumerpreferencesanddemands.
Risk-takingstemsfromunderstandingthatresourcesarefiniteandinvolvesthecapacityofanorganizationtohandledifficulties(Wiklund&Shepherd,2003).
Opportunityfocusderivesfromanorganization'scapacitytopursueopportunitywithfiniteresources(Morrisetal.
,2002,Morrisetal.
2013).
Opportunitiesaremarketimperfections;suchasperceptualaspirationsconsumershavethatremainunfulfilled.
Resourceleveragingissimply"doingmorewithless,"i.
e.
maximizinglimitedresources(Morrisetal.
,2002).
Giventheselimitedresources,anentrepreneurialorganizationwillrelyontheirproactivenessandinnovativenesstoexploitresourcestheycontroltocreateuniquecompetencies(Miles&Darroch,2006).
Whenorganizationshaveinsufficientresourcestopursuemarketopportunities,theywilllikelyexchangeknowledgeanddiscussstrategieswithotherorganizationstosucceed.
Inthisway,theycanlowerriskandincreaseintellectualassets(Miles&Darroch,2006;Krausetal.
,2012).
Valuecreationisakeycomponentofentrepreneurism(Stevensonetal.
,1989)andimpliesaddingvaluetothecustomerexperience(Morrisetal.
,2002).
Extantresearchonentrepreneurialmarketinginthewineindustryislimited.
However,Chaudhuryetal.
(2014)conductedanexploratorystudyonNewMexicowinemakersasentrepreneurialmarketers.
TheyfoundpreliminarysupportforseveralEMdimensionssuchaspursuingopportunities,proactivenessandinnovation,valuecreationviacustomerparticipation,andcollaborationthroughthesharingofresources.
OtherscholarshaveexploredentrepreneurialorientationintheAustralianwineindustry(Griffin&Coulthard,2005),cooperativerelationshipsasarequirementforindustrygrowthinNorthCarolina(Taplin&Breckenridge2008),variousentrepreneurialmodelsutilizedbywineriesinTuscany(Mattiacietal.
,2006;Charters&Menival,2008;Taplin&Breckenridge,2008),andtheimpactofentrepreneurialbehavioronreturnoninvestmentinacross-culturalcontext(Gilinskyetal.
,2010).
However,novalidatedscaleontheentrepreneurialmarketingdimensionshasexisteduntilrecently(Fioreetal.
2013).
WeextendpreviousresearchonentrepreneurialmarketingbyconductinganempiricalstudyontheEMcharacteristicsofNorthCarolinawinemakers.
46|AtlanticMarketingJournalEntrepreneurshipMarketingintheNCWineIndustryTheNorthCarolinaWineIndustryWhilewinerieshavebeeninNorthCarolinanotlongafterSirWalterRaleighlandedinthe17thcentury(NorthCarolina'sWineHistory,2017),thestatehasbeenthehostoftremendouswinerygrowthinthelast20years.
Between1995and2006thenumberofwineriesinNorthCarolinawentfrom9to57(Taplin&Breckenridge,2008)andiscurrently10thinthecountryinwineproduction.
Commercialvineyards,thosethatdonotselldirectlytothepublic,increasedfrom68in1991toover350by2007.
Currentlythereareabout142wineriesinNorthCarolinathatfocusonnativemuscadinewinesandthemorecommontablewinegrapessuchastheEuropeanviniferagrapes(Frank,RimermanandCo.
2015)andhaveanannualeconomicimpactof$1.
76billionannuallyandsupportnearly7,600jobs.
Thereareover400individuallyownedgrapevineyardsinNorthCarolinathatcoverover1,800acres,with40wineriesclusteredneareachotherinYadkinValley,comprisingsome400acres.
ThisareaishometomanyboutiquewineriesthatparticipateinYadkinValleyWinetourswhichrunfromJanuarytoOctoberandconsumersvisitdifferentwineriesduringtheseason(YadkinValleyTours,2016).
Farfromcompetition,thewineriescoalescetocreateuniquevenuesfortourists,including"trails"throughNorthCarolinatovisitmultiplewineriesinagivenday.
Wineriesthatworktogetherinsuchafashionacceptriskinbandingtogether.
Forexample,visitingmultiplewineriesinashortperiodoftimecanencourageconsumerstocomparewineries,andthusallowconsumerstomentally"rank"themfromsuperiortoinferior.
Inaddition,visitingmorethanonewineryencouragesconsumerstoforgotheirtotalpurchasedollarsonasinglewineryandacceptonlyaportionoftheoverallexpenditure.
However,inacceptingtheriskinthisproactivebehavior,wineriescreatevaluebyprovidingvarietytotheconsumerexperience.
Collectiveactioninruraldevelopmentpracticessuchaswinerycollaborationhavebeenfoundtoenablelocalentrepreneursimproveeconomicperformanceandcreateopportunitiesforgrowth(Brunori&Rossi,2000).
Therefore,inacceptingrisk,wineriesembracethewillingnesstoproactivelyengagepotentialcompetitorsinacollaborativefashiontherebyincreasingthevalueoftheoverallcustomerexperience.
Thisincreaseinvalueforthecustomerexperienceisexpectedtoimprovecustomersatisfaction,whichinthelongtermmayyieldanincreaseinfuturerepeatpurchasingbehaviorandwineryperformance(Anderson,Fornell&Lehmann,1994).
Giventheprecedingdiscussion,weproposethatentrepreneurialmarketingpracticesbywinerieswillbepositivelyrelatedtowineryperformance.
ResearchMethodSurveysweremadeavailableviaQualtricstothe142membersonthelistofNorthCarolinawineriesidentifiedbytheNorthCarolinaDepartmentofAgricultureandConsumerServicesinthesummerof2015.
DatacollectionproceededthroughNovemberresultingin33usablesurveys(23%responserate).
NotethatthisresponserateissimilartothatfoundbyKlapowitz,HadlockandLavine(2004)comparingwebandmailsurveyresponserates.
SurveyInstrumentandMeasuresThesurveyincluded2sections,entrepreneurialmarketingquestionsandgeneralquestionsaboutthewinerysuchasdemographicsandperformance.
ThedegreetowhichawineryemployedentrepreneurialmarketingstrategieswasassessedusingamodifiedversionofthescaledevelopedEntrepreneurshipMarketingintheNCWineIndustryAtlanticMarketingJournal|47byFioreetal.
(2013).
The20scalestatementsidentifiedthekeydimensionsofentrepreneurialmarketing,includingproactiveorientation,opportunitydriven,customerintensity,innovationfocused,riskmanagement,andvaluecreation.
Thedegreetowhichawinerypracticedentrepreneurialmarketingwasassessedusinga7-pointLikertscaleanchoredby(1)"Doesnotreflectmywineryatall"and(7)"Fullyreflectsmywinery.
"AlthoughnoattemptwasmadetoreplicatethefactoranalysisconductedbyFioreetal.
(2013)tovalidatethescale(duetothesmallsamplesize),scalereliabilitieswereacceptable(proactiveorientationα=.
892,opportunitydrivenα=.
881,customerintensityα=.
804,innovationfocusedα=.
811,riskmanagementα=.
615,valuecreationα=.
825).
Wineryperformancewasmeasuredby2singleitemquestions,one7-pointquestionaskedifwineriesweresatisfiedwiththeirperformanceanchoredby(1)"Veryunsatisfied"and(7)"Verysatisfied.
"Thesecondperformancemeasureaskedwineriestocomparetheir2013saleswiththeir2014salesandindicatethepercentagechangeona7-pointscalerangingfrom(1)"Downover10%"to(7)"UpOver10%.
"Thedemographicquestionsaskedwineriesabouthowlongthewineryhadbeenoperating,theirannualsalesvolume(cases),andnumberoffull-andpart-timeemployees.
ResultsOverallSampleStatisticsThesamplestatisticsincludedthenumberofyearsthewineryhadbeeninoperation(M=13.
77),thewinery'sestimatedannualsalesvolume(M=7,581),andnumberoffull-andpart-timeemployees(M=15andM=11.
58respectively).
Thepropositionadvancedwasthattherewouldbeapositiverelationshipbetweenwineriesthatpracticeentrepreneurialmarketingandwineryperformance.
Totestthispropositionseveralsimplelinearregressionanalyseswereconducted.
Thedependentvariablesincludedsatisfactionwithwineryperformanceandpercentagechangeinwinerysalesfrom2013to2014.
Theindependentvariablesinthe6regressionequationswerewineryproactiveorientation,whetherthewinerywasopportunitydriven,thecustomerintensityofthewinery,whetherthewinerywasinnovationfocused,wineryriskmanagementandwineryvaluecreation.
SatisfactionwithWineryPerformanceSixregressionequationsassessedtherelationshipbetweeneachoftheentrepreneurialmarketingdimensionsandsatisfactionwithwineryperformance.
Ofthesix,twowerefoundtobestatisticallysignificant.
Customerintensity,thedegreetowhichwineriestrytoestablishlongtermrelationshipswaspositivelyrelatedtowinerysatisfactionwiththeirperformance(F=6.
935,p=.
012.
).
Wineriesthattriedtoestablishlong-termrelationshipswiththeircustomersweremoresatisfiedwiththeirwinery'sperformance(seeTable1).
48|AtlanticMarketingJournalEntrepreneurshipMarketingintheNCWineIndustryTable1TheRelationshipbetweenCustomerIntensityandSatisfactionwithWineryPerformanceInaddition,innovation,thedegreetowhichthewineryseeksnewideasfromwithinandoutsidethebusiness,wasalsopositivelyrelatedtosatisfactionwithwineryperformance(F=3.
510,p=.
069).
Wineriesthatsoughtnewideasfromwithinandoutsidethebusinessweremoresatisfiedwiththeirwinery'sperformance(seeTable2).
PercentageChangeinWinerySalesSixregressionequationsmodeledtherelationshipbetweeneachoftheentrepreneurialmarketingdimensionsandyearonyearsalespercentagechanges.
Again,twoofthesixentrepreneurialmarketingdimensionswerefoundtobestatisticallysignificant.
Innovation,thedegreetowhichthewineryseeksnewideasfromwithinandoutsideofthebusinesswaspositivelyrelatedtopercentagesalesgains(F=5.
012,p=.
031).
Wineriesthatseekoutnewideasfromwithinandoutsidethebusinesssawapositivepercentagesaleschange(seeTable3).
EntrepreneurshipMarketingintheNCWineIndustryAtlanticMarketingJournal|49Table2TheRelationshipbetweenWineryInnovationandSatisfactionwithWineryPerformanceInaddition,valuecreation,thedegreetowhichthewinerydiscoversanddeliversvaluefortheircustomerswaspositivelyrelatedtopercentagesalesgains(F=3.
545,p=.
068).
Wineriesthatdiscoveranddelivervaluefortheircustomerssawapositivepercentagesaleschange(seeTable4).
DiscussionandConclusionThisresearchbuildsuponthequalitativeworkofChaudhuryetal.
(2014)byconfirmingviaquantitativeresearchtheentrepreneurialcharacteristicsofwinemerchants,includingtheiracceptanceofinnovation(ideaseeking),andtheircommitmenttolongtermcustomer50|AtlanticMarketingJournalEntrepreneurshipMarketingintheNCWineIndustryrelationships(customerintensity).
Thesetwodimensionswerefoundtobepositivelyrelatedtothewinery'ssatisfactionwithperformance.
Table3TheRelationshipbetweenWineryInnovationandYearonYearSalesInaddition,moreinnovativewineries(thoseopentonewideas)wereassociatedwithapositivepercentagesaleschange.
Finally,wineriesthatweremorevaluecreationorientedwerealsofoundtobepositivelyrewardedbyconsumersresultinginapositivechangeinsales.
EntrepreneurshipMarketingintheNCWineIndustryAtlanticMarketingJournal|51Table4TheRelationshipbetweenWineryValueCreationandYearonYearSalesForthefirsttimeinthepost-WorldWarIIperiod,theUnitedStateshaslivedthroughadecadeinwhichtherehasn'tbeenayearofgrowthof3%ormore(Gosselin,2015).
Giventhiscircumstance,wineriesshouldreassesstheirtraditionalpositiononcompetition,growth,andstrategy.
Asstated,ineconomicdownturns,wineriesthatturntoentrepreneurialpracticestosucceedduringdifficulttimesincreasetheirchancesforsuccess,orperhapssurvival.
Ourresearchintothewineindustrysupportstheseconceptsandprovidesnewinsightinsucceedingindifficulttimes.
Futureresearchshouldexploreothervariablesconsistentwiththeentrepreneurialcharacteristicsofwineriesincludingconceptssuchas"competitivecooperation"whenitaddstooverallvalueforthecustomer.
Whilecollaborationinsomeindustriesmayseemhighlyimprobable,inthewineindustrythepossibilityforsuccessfulcooperationandevencollaborationseemsreasonable(i.
e.
,wineryclusters).
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yadkinwinetours.
comAuthorInformationG.
DavidShows(D.
B.
A.
,LouisianaTechUniversity)isanAssistantProfessorofMarketingintheJohnA.
WalkerCollegeofBusinessatAppalachianStateUniversity.
Hisresearchincludesfocusonentrepreneurialmarketing,restorativeatmospherics,andintersubjectivityinco-creationactivities.
HisresearchcanbefoundintheJournalofBusinessResearch,JournalofCreatingValue,MarketingIntelligenceandPlanning,andotherjournalsandproceedings.
PiaA.
Albinsson(Ph.
D.
,NewMexicoStateUniversity)isanAssociateProfessorofMarketingintheJohnA.
WalkerCollegeofBusinessatAppalachianStateUniversity.
Herresearchwhichfocusesongreenconsumptionpractices,valueco-creation,entrepreneurialmarketing,andadvertisingeffectivenesshavebeenpublishedinJournalofConsumerBehavior,EuropeanJournalofMarketing,JournalofMacromarketingandmanyotherjournalsandproceedings.
JamesE.
Stoddard(Ph.
D.
,VirginiaTech)isaProfessorofMarketingintheJohnA.
WalkerCollegeofBusinessatAppalachianStateUniversity.
HisresearchcanbefoundinpublicationssuchastheCornellHotelandRestaurantAdministrationQuarterly,theJournalofMarketingChannels,PsychologyandMarketing,TourismEconomicsaswellasseveralotherjournalsandproceedings.

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