Measuring consumer willingness to pay for reduced sulfur dioxide content in wine: a conjoint analysis
Date
2012
Authors
Appleby, Christopher, author
Costanigro, Marco, advisor
Thilmany, Dawn, committee member
Menke, Stephen, committee member
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Abstract
As sulfites are often perceived by consumers as causing headaches and migraines, differentiated wines based on their sulfite content may be a profitable marketing avenue. Using stated choice methods, a sample of 223 wine consumers participated in a conjoint experiment where 36 hypothetical wine labels were ranked. Collected data included socio-demographic information, subjective experiences with headaches, and purchasing behavior. The results indicate that quality and price are the primary factors influencing wine choice, while "no sulfites added" labeling does not directly determine the purchasing decision. However, we find strong evidence that, at parity with price and quality, the average consumer is willing to pay $0.64 for no sulfites added in wine. Additionally, a substantial segment (34.08%) of the consumer population is willing to pay a greater premium of $1.23 for no sulfites added, indicating a potential niche market to which marketing promotions could be targeted.
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Subject
conjoint
wine
willingness to pay
sulfite