WSET Level 4 D2 Q&A
Question 1: Describe what happens when relative supply and
demand change
CORRECT ANSWER : When supply exceeds demand: price falls, consumer have greater choice of cheaper alternatives.Producers lower price to remain competitive. Fall in prices lead to increased demand in the long run. When demand
exceeds supply: price increase, consumers willing to pay
higher for some wines; others simply switch to another wine or a different alcoholic drink
Question 2: The general factors affecting demand for wine
CORRECT ANSWER : Social, Economic, Legislative,
Political
Question 3: List major social factors affecting demand for
wine
CORRECT ANSWER : Change in consumption habits,
Change in consumer preferences, Change in reputation, Change in spending patterns
Question 4: Describe how global wine consumption habits
have changed since 2001
CORRECT ANSWER : Rapid growth in the first part of
2000, Fall after 2008 financial crisis as many consumers reduce spending on non-essential products, Slight decline in recent years and due to remain stable to 2021, Strong growth in sparkling wine sales
Question 5: Top five countries for total wine consumption in
2017
CORRECT ANSWER : USA, France, Italy, Germany, China
Question 6: Explain the increasing wine consumption in USA
in the last 20-30 yr
CORRECT ANSWER : Increasing globalization of the food
and drinks industry, Consumers more able and willing to embrace new tastes, Increases and improvement in wine production in the domestic market
Question 7: Explain the increasing wine consumption in
China
CORRECT ANSWER : Growing middle class showing
wealth and status - move away from local drinks, Aspire to drink imported wine, Bilateral trade agreement with Australia, Chile etc
Question 8: Give possible reasons for falling wine
consumption in traditional wine-drinking countries
CORRECT ANSWER : Younger people drinking less wine: old fashioned; less time in bars, more on social media, Health
concerns: mostly due to government campaigns, e.g., Loi
Evin in France, Changes in lifestyle: less time for longer
meals, less lunchtime drinking, Reduced availability of cheap
wine: reduce over-production, some consumers switch to
cheaper alcoholic drinks
Question 9: List a few major changes in consumer preferences
in recent years
CORRECT ANSWER : Rose and Prosecco become popular,
Increased demand for lower-alcohol wines, Medium-sweet German wines and fortified wines going out of fashion
Question 10: What factors could influence a wine's
reputation?
CORRECT ANSWER : Good reviews from leading
publications and critics, Online influencers and KOLs, Presence in popular culture, e.g., films television series, music lyrics or celebrity lifestyle news, Peer opinions
Question 11: What are price-sensitive markets? Give
examples