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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. 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.
    3. 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.
    4. 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.

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