AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

AAWE Working Paper No. 117 – Economics

 

Measuring Consumer Willingness to Pay for Low-Sulfite Wine:
A Conjoint Analysis

Christopher Appleby, Marco Costanigro, Dawn Thilmany and Stephen Menke

Abstract

Using stated choice methods, a sample of 223 wine consumers participated in a conjoint experiment where 36 hypothetical wine labels were ranked based on organic and “no sulfites added” labeling, as well as varying price and quality levels. The results indicate that quality and price are the primary factors influencing wine choice, while “no sulfites added” labeling does not directly determine the purchasing decision. However, we find strong evidence that, at parity with price and quality, the average consumer is willing to pay $0.64 for no sulfites added in wine. Additionally, a substantial segment (34.08%) of the consumer population is willing to pay a greater premium of $1.23 for no sulfites added, indicating a potential niche market to which marketing promotions could be targeted.

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