Work

Willingness to pay of Portuguese sparkling wine consumers: Econometric and machine learning approaches

Year: 2024

Type: article

Abstract: Understanding consumer choices and their drivers of willingness to pay (WTP) for a bottle of wine has been a research challenge in wine economics, particularly in niche markets such as sparkling wine. This study investigates the determinants of WTP for sparkling wine based on data from Portuguese consumers. The results provided by two alternative methodologies are compared: a traditional econometric model, based on the estimation of an ordered probit model; and a modelling approach based on data-driven and using machine learning algorithms. Both approaches present similar results, highlighting the relevance of some determinants including income, Champagne brand, not being a protected designation of origin and being a red wine consumer as main predictors of WTP for sparkling wine in Portugal.

Source: Journal of Wine Economics

DOI: 10.1017/jwe.2024.22

Authors: Lina Lourenço-Gomes, Mário Gonzalez Pereira, Norberto Jorge Gonçalves, Tânia Gonçalves, João Rebelo

Institutions: University of Trás-os-Montes and Alto Douro, Centro de Estudos Transdisciplinares para o Desenvolvimento, Centro de Investigação e de Tecnologias Agro-Ambientais e Biologicas

Language: English

Topic: Wine Industry and Tourism

Subfield: Tourism, Leisure and Hospitality Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,450

OpenAlex ID: W4404419882

FWCI: 0.75

Cites: 60

Cited by: 1

Related to: 10