Palma, D orcid.org/0000-0002-1276-8469, Ortúzar, JDD, Rizzi, LI et al. (1 more author) (2018) Modelling consumers' heterogeneous preferences: a case study with Chilean wine consumers. Australian Journal of Grape and Wine Research, 24 (1). pp. 51-61. ISSN 1322-7130
Abstract
Background and Aims: Understanding consumers' preferences is key to making a successful product, but preferences are heterogeneous. We compare three approaches to consider preference heterogeneity in discrete choice models: (i) systematic preference variations based on socio‐demographic characteristics; (ii) latent classes; and (iii) hybrid choice models with latent variables measuring consumers' attitudes.
Methods and Results: Data from a stated choice survey of Chilean wine consumers were analysed using three different approaches; these agreed on average trends but differed in fit and implied different trade‐offs. For example, socio‐demographic characteristics correlate poorly with preferences. Latent classes offer a good fit but do not link preference heterogeneity to consumer characteristics. The hybrid choice model provides the best fit but requires more data, making it more difficult to use this approach in forecasting.
Conclusions: The best approach might depend on the research objectives. Using latent classes on a representative sample is the best approach if forecasting is paramount. Modelling attitudes is helpful when more insight into consumers' preferences is sought. Systematic preference variations based on socio‐demographic characteristics are a good choice when only average trends are relevant.
Significance of the Study: We make recommendations on how to model preference heterogeneity when studying wine preferences, an issue often overlooked.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2017 Australian Society of Viticulture and Oenology Inc. This is the peer reviewed version of the following article: Palma, D. , Ortúzar, J. d., Rizzi, L. and Casaubon, G. (2018), Modelling consumers' heterogeneous preferences: a case study with Chilean wine consumers. Australian Journal of Grape and Wine Research, 24: 51-61, which has been published in final form at https://doi.org/10.1111/ajgw.12297. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | discrete choice; hybrid choice models; latent classes; preference heterogeneity; wine |
Dates: |
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Institution: | The University of Leeds |
Depositing User: | Symplectic Publications |
Date Deposited: | 20 Sep 2018 10:31 |
Last Modified: | 20 Sep 2018 10:47 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/ajgw.12297 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:135973 |