• Media type: E-Article
  • Title: Measuring price sensitivity to the consumption situation
  • Contributor: Candeias, Teresa; Alonso, Hugo
  • Published: Firenze University Press, 2024
  • Published in: Wine Economics and Policy, 13 (2024) 1, Seite 97-107
  • Language: Without Specification
  • DOI: 10.36253/wep-15236
  • ISSN: 2212-9774; 2213-3968
  • Origination:
  • Footnote:
  • Description: Consumer segmentation is very relevant in the design of wine marketing strategies. Previous studies showed that there is a relationship between the consumption situation and the willingness to pay for a bottle of wine. In this sense, the consumption situation is considered a segmentation variable. However, price sensitivity in relation to the consumption occasion was not measured. In this paper, we propose four measures of price sensitivity to the consumption occasion. We illustrate how to compute them and discuss their advantages and limitations. One of the measures only discriminates consumers that are sensitive to the consumption occasion from those who are not. In turn, the other measures are more informative and make it possible to distinguish between different degrees of sensitivity. The proposed measures can be used to classify consumers and further improve the knowledge of wine marketeers and decision makers in the wine industry about them.
  • Access State: Open Access