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Consumers WTP for wine with certified origin: Latent classes based on attitudinal responses

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Author Info
Scarpa, Riccardo
Thiene, Mara
Galletto, Luigi

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Abstract

This paper investigates preference heterogeneity of wine consumers by using latent class models based on attitudinal questions. Such responses turn out to be an important source of additional information when the goal is to identify different groups of people with a similar wine preference structure. We assume that preferences are latent and the responses to attitudinal questions are the visible effect of this latent heterogeneity. We find evidence of 4 different classes of respondents with similar response patterns. We focus on preferences for a well-known wine, the Prosecco, and sample the population in the area of production. For each preference-class we estimate a class-specific WTP equation for this wine, so as to estimate the class responsiveness of WTP to various determinants. Estimates for a 4-class model are discussed in detail to illustrate the potential of this approach in characterizing the preferences of local consumers for the two most common certifications of origin.

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Paper provided by European Association of Agricultural Economists in its series 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece with number 10046.

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Date of creation: 2006
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Handle: RePEc:ags:eaae98:10046

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Related research
Keywords: Latent Class Attitudinal model; consumer preferences; organic products; WTP; unobserved heterogeneity; Demand and Price Analysis;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September. [Downloadable!] (restricted)
  2. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(2), pages 396-405, 05. [Downloadable!] (restricted)
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  1. Kloos, Julia & Tsegai, Daniel W., 2009. "Preferences for domestic water services in the Middle Olifants sub-basin of South Africa," Discussion Papers 49970, University of Bonn, Center for Development Research (ZEF). [Downloadable!]
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