Distribution, Luxury and Mass Consumption: The Wine Case
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Juan Carlos Ortúzar G. [1] ; Oscar Alfranca B. [2]
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[1] Universitat de Lleida
Universitat de Lleida
Lérida, España
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[2] Universitat Politècnica de Catalunya
Universitat Politècnica de Catalunya
Barcelona, España
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- Localización: Economía Agroalimentaria, medio ambiente y medio rural: nuevos enfoques, nuevos desafíos / coord. por Manuel Sánchez Pérez, 2010
- Idioma: inglés
- Texto completo no disponible (Saber más ...)
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Resumen
The main objective of the current article is to determine the impact of distribution upon valuing premium and regular wines. The wine industry includes products that are qualified as premium, or mass consumption wines. Very little research has been done on the impact of distribution upon valuing these two wine categories. In order to accomplish this, we used the hedonic model and a store panel. Three segments were created: Premium, commercial, and regular wines. It was established that for Premium wines, increase in distribution has a negative effect on its valuing, whereas for regular wines, increased distribution positively affects its valuing by customers. The current study will assist retailers and wine manufacturers by providing criteria to rationalize distribution investment according to wine characteristics. The study provides an empirical basis about the different treatments for luxury and mass consumption wines
