Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice

L. Lockshin, Wade Jarvis, F. D'Hauteville, J.P. Perrouty

Research output: Contribution to journalArticle

268 Citations (Scopus)

Abstract

The complexity of the wine category has forced researchers to try different means to understand how consumers choose wines. This research uses a discrete choice experiment approach to understand how key extrinsic cues are used by different consumer groups when choosing wine. We extend common practice by using a simulation algorithm to show how relative purchase rate changes as brand, region, price, and award are changed. The results show that low involvement consumers use price and award to a greater degree than high involvement consumers. A gold medal increases the choice probability the most, but mainly at the lower and middle price points, and a well known region amplifies the desirability of small brands more than large brands. The results are complex across the four factors and two levels of involvement, but provide a realistic appraisal of how consumers use extrinsic cues in combination when choosing wines. The strong differences in choice behavior between low and high involvement consumers show this to be a viable segmentation strategy and one that other researchers should consider utilizing.
Original languageEnglish
Pages (from-to)166-178
JournalFood Quality and Preference
Volume17
Issue number3-4
DOIs
Publication statusPublished - 2006

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