| Article ID: | iaor2008764 |
| Country: | United States |
| Volume: | 7 |
| Issue: | 1/2 |
| Start Page Number: | 81 |
| End Page Number: | 95 |
| Publication Date: | Jan 2001 |
| Journal: | Journal of Food Products Marketing |
| Authors: | Orth Ulrich R., Krka Pavel |
| Keywords: | wine, pricing |
Producers of bottled wine have their products evaluated at various wine exhibitions for the purpose of receiving awards that can be displayed on the bottles. This contribution introduces an approach for retailers and producers to estimate optimal prices for wine exhibition awards. A case study has been employed in cooperation with a major Czech wine company to investigate the practical application of the method. Wine exhibition awards are found to be among the important factors affecting consumer preferences for bottled wine. A conjoint experiment allowed for estimating the relative importance of selected wine exhibitions as award origins and for determining the partial utilities of selected awards (medals). Calculating the individual price equivalents for those awards and three selected wines enables the estimation of prices for maximum turnover. According to the approach, price equivalents and markups can be estimated based on consumer preferences. Retailers as well as producers can employ the procedure for matching their offers with specifically designed prices to their target group's needs and wants in their individual markets.