MODELING LUXURY WINE PREFERENCE: A STUDY OF BUSINESS TRAVELERS FROM CHINA by Mark Mark Keene A Dissertation Submitted to the Faculty of Purdue University In Partial Fulfillment of the Requirements for the degree of Doctor of Philosophy School of Hospitality and Tourism Management West Lafayette, Indiana December 2018 2 THE PURDUE UNIVERSITY GRADUATE SCHOOL STATEMENT OF COMMITTEE APPROVAL Dr. Carl A. Behnke, Chair School of Hospitality and Tourism Management Dr. Liping A. Cai School of Hospitality and Tourism Management Dr. Susan E. Gordon School of Hospitality and Tourism Management Dr. Chantal Levesque-Bristol Department of Educational Studies Approved by: Dr. Jonathan Day Head of the Graduate Program 3 This research is dedicated to my husband, Dr. Bryan C. Keene. Our eternally-shared values of love, quality time with family and friends, and adventure through life experiences has withstood this test and will continue to define our―and our children’s―life. 4 ACKNOWLEDGMENTS There are three types of acknowledgments that I would like to mention: spiritual, mentorly, and familial. First, all that I achieve, including this research, is due to the grace of God. Second, I would like to express my heartfelt gratitude to my mentor and committee chair, Dr. Carl Behnke. His guidance and mentorship throughout the program, with a notable emphasis on the steps just preceding the defense, have been invaluable. I am grateful for the friendship that he and Sara have extended. I would also like to thank my other committee members: Drs. Liping Cai, Susan Gordon, and Chantal Levesque-Bristol. Dr. Liping Cai kindly bestowed his expansive but honed multi-cultural perspective that guided the purpose of this research. Dr. Gordon donated her valuable time and methodological expertise; her life-long friendship will continue to be highlighted with food- and wine-tastings and check-in meetings that always end with a balanced, well-being feeling of optimism and contentment. Dr. Levesque-Bristol was a welcome “outsider”―she hailed from educational studies. Her fresh and emphatic energy, engaging teaching style, and academic leadership served as the shining light in this research. The third and final type of acknowledgement is family- based. My parents Elaine and Doug Hoffman continue to be loving, financially supportive, and willing to assist. My parents Rose and Pastor Ken Keene have offered and provided emotional, family, and financial aid at every critical period. Their perpetual love and kindness are often overwhelming. Grandparents Virginia and Dr. Larry Keene warrant immeasurable gratitude. They have provided both emotional and financial assistance and unsurpassed guidance and knowledge which have kept my well-being in check, family intact. They have also allowed me to rely on the beach cottage during key writing moments. My brother Jack Botieff provided generous financial support as my family increased during the span of this program. He also arrived at our home during a critical period to appease everyone’s mindsets. I thank him both for his perfection and constant determination. The entire extended family offered their gracious support, especially endless love towards Alexander Jaxon and Éowyn Arya. I thank my son, Xander, for serving as my muse. 5 Margaret and Dr. Stephen Leitch provided me with a warm home when I returned periodically to Marriott Hall. Their hospitality was only exceeded by both their emotional guidance and cellar. I look forward to a lifelong friendship full of kids, luxurious sauvignon blanc, and office visits. Chef Nelly Farmer is thanked for her inspirational steadfastness and friendship. Professor Ai-jen Wann provided underground insight into the worlds of tea and wine; her life experiences and unmatched teaching style contributed greatly to more clearly defining The Chinese Phenomenon. Kim and Chef Ambarish Lulay have filled my time with the most important things in life. My affection for Chefs Cindy Schwanke, Michelle Razzano, and Daniel Otto is boundless; they offered me an environment to research, teach, serve, and eat. Mrs. Ayrielle Espinosa worked diligently and tirelessly to keep this program on track. Master Sommeliers Thomas Price and Larry O’Brien offered guidance during a critical period. There are limitless ways to describe unending support from another. I will continue to show gratitude to one man for his multifaceted support, forever. With great sentiment I would like to thank my husband of 12 years, Dr. Bryan C. Keene, for his rigorous, vast, and passionate encouragement; yet, family does not say, “Thank you.” 6 TABLE OF CONTENTS LIST OF TABLES .......................................................................................................................... 9 LIST OF FIGURES ...................................................................................................................... 10 ABSTRACT .................................................................................................................................. 11 CHAPTER 1. INTRODUCTION ................................................................................................. 12 1.1 Nature of the Problem ......................................................................................................... 12 1.2 Statement of the Problem .................................................................................................... 13 1.3 Purpose and Objectives of the Study .................................................................................. 14 1.4 Significance of the Study .................................................................................................... 14 1.5 Delimitations of the Study .................................................................................................. 15 1.6 Impact of the Study ............................................................................................................. 18 CHAPTER 2. REVIEW OF THE LITERATURE ....................................................................... 20 2.1 Wine Preference .................................................................................................................. 20 2.1.1 Influential changes in the wine industry ...................................................................... 20 2.1.1.1 Phylloxera ............................................................................................................. 20 2.1.1.2 Climate Change ..................................................................................................... 21 2.1.1.3 Transitioning Preference from Old to New World Style ...................................... 22 2.1.1.4 Globalization of the Chinese Wine Industry ......................................................... 23 2.1.2 Interdisciplinary Research............................................................................................ 23 2.1.3 Wine Preference Research ........................................................................................... 26 2.2 The Chinese Phenomenon .................................................................................................. 30 2.2.1 Chinese Success Factors .............................................................................................. 30 2.2.2 Globalization; China Takes the Lead ........................................................................... 32 2.2.3 China’s Wine Industry: Important Factors .................................................................. 37 2.2.3.1 Foreign, Luxury Wine Market .............................................................................. 38 2.2.3.2 Domestic Wine Market ......................................................................................... 40 2.2.4 The New Chinese Consumer ....................................................................................... 43 2.2.5 Chinese (Eastern) versus Euro-American (Western) perspectives .............................. 47 2.3 Cross-Cultural Theory ........................................................................................................ 49 7 2.3.1 Theoretical Framework ................................................................................................ 49 2.3.2 Interdisciplinary Scale Development ........................................................................... 50 2.3.3 Interdisciplinary Inventory Tests ................................................................................. 51 2.3.4 HTM Culture-Based Scale Development .................................................................... 54 2.3.5 HTM Culture-Based Item Development ...................................................................... 55 2.4 Summary of Literature Review ........................................................................................... 56 CHAPTER 3. METHODOLOGY ................................................................................................ 57 3.1 Rationale for New Model Development ............................................................................. 57 3.2 Research Design ................................................................................................................. 58 3.2.1 Research Questions ...................................................................................................... 58 3.2.2 Population and Sample ................................................................................................ 59 3.2.3 Data Collection ...........................................................................................................