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Expenditures on Wine in General and Local Wine in Particular: Marketing and Econometric Analysis

Author

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  • Deng, Xueting
  • Butler, J.S.

Abstract

This article explores factors explaining wine spending patterns for consumers in Kentucky, Ohio, Pennsylvania, and Tennessee. We apply and compare five market segmentation measurements: wine purchase frequency, wine prices, local involvement levels, wine knowledge, and past local wine experiences. Data shows expenditures on wine. The econometric estimation employs interval estimation to interpret wine expenditures as reported in intervals and selection bias corrections to separate factors associated with decisions to purchase wine from factors associated with the amount expended. Results show that market segmentation measurements have stronger effects on local wine purchasing probability and purchasing quantity, compared with demographics.

Suggested Citation

  • Deng, Xueting & Butler, J.S., 2018. "Expenditures on Wine in General and Local Wine in Particular: Marketing and Econometric Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 36(2).
    • Handle: RePEc:ags:jloagb:302477
    DOI: 10.22004/ag.econ.302477
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    Keywords

    Agribusiness; Marketing;

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