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Consumer Willingness to Pay for Local Wines and Shopping Outlet Preferences

Author

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  • Everett, Connie
  • Jensen, Kim
  • Hughes, David
  • Boyer, Chris

Abstract

Tennessee recently changed its wine-marketing laws to allow wine sales in food-retailing facilities, and industry implications are still emerging. Using data from 500 wine consumers in Tennessee, this study measures willingness to pay for a Tennessee-labeled wine sold from the anticipated retail outlet. Results show consumers would pay a premium for a Tennessee red or white wine. Older females are more likely to anticipate purchasing Tennessee wine at grocery stores, convenience-oriented lower-income consumers at big box stores, and price-conscious consumers at warehouse clubs.

Suggested Citation

  • Everett, Connie & Jensen, Kim & Hughes, David & Boyer, Chris, 2017. "Consumer Willingness to Pay for Local Wines and Shopping Outlet Preferences," Journal of Food Distribution Research, Food Distribution Research Society, vol. 48(3), March.
  • Handle: RePEc:ags:jlofdr:274594
    DOI: 10.22004/ag.econ.274594
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    References listed on IDEAS

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    1. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    2. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
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    Cited by:

    1. Hughes, David W., 2020. "Analysis of Tennessee Wine and Grape Industry Trends, 2020," Extension Reports 304762, University of Tennessee, Department of Agricultural and Resource Economics.
    2. Jensen, Kimberly L. & Hughes, David L. & DeLong, Karen L. & Trejo-Pech, Carlos O. & Gill, Mackenzie B., 2021. "Factors Influencing Tennessee Adults’ Craft Hard Apple Cidery Visit Expenditures and Travel Distance," Journal of Food Distribution Research, Food Distribution Research Society, vol. 52(2), July.
    3. Rihn, Alicia L. & Jensen, Kimberly & Hughes, David W., 2022. "Tennessee's Wine Industry: Consumer Perceptions, Quality Assurance Programs and Marketing Strategies," Extension Reports 319853, University of Tennessee, Department of Agricultural and Resource Economics.
    4. Alicia L. Rihn & Kimberly L. Jensen & David W. Hughes, 2022. "Consumer Perceptions of Wine Quality Assurance Programs: An Opportunity for Emerging Wine Markets," Sustainability, MDPI, vol. 14(4), pages 1-16, February.

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