Situational pricing: the role of wine consumption occasion on price decision

• Autor(a) principal: Candeias, Teresa
• Data de Publicação: 2020
• Outros Autores: Alonso, Hugo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10773/30495
• topic: Consumption situation; Market segmentation; Price; Wine

Wine companies are usually operating in larger and diverse markets and consumers show different needs. Given resource constraints, companies must segment the market, because they cannot cover the entire market or, if they do, they need to adopt and implement an appropriate marketing strategy. Market segmentation enables to treat consumers differently through a marketing strategy geared to this purpose. There are several segmentation criteria and one of them is the wine consumption occasion. Here, like other authors do, we consider the following five situations where the consumer pays for a bottle of wine: to drink at home, to drink at home with friends, to drink at a restaurant, to give as a gift and in businesses. We asked to 133 consumers, randomly selected, how much they were willing to pay in each situation: < 1 Euro; 1 – 2 Euros; 2 – 5 Euros; 5 – 10 Euros; 10 – 20 Euros; > 20 Euros. We concluded that the price decision depends on the wine consumption occasion (Friedman test, p-value=0,000). This is in accordance with the literature. Furthermore, we found something that, to our knowledge, is new: at a 5% level of significance, there is no difference between the situations “to drink at home” and “to drink at home with friends” and also between “to drink at a restaurant”, “to give as a gift” and “in businesses”; the difference lies between the former two situations and the latter three. This means that, for market segmentation, we can consider two instead of five wine consumption occasions. We further investigate how this conclusion depends on consumer gender.