Abstract
Several studies have focused on the behaviour of consumers towards organic wine, finding varying and sometimes conflicting results. Some scholars have noted that consumers may perceive wine labelled as organic to be of a lower quality, whereas others have found that consumers are willing to pay a premium price for it. Starting from these discrepancies found in the literature, this study seeks to investigate how the organic certification influences consumers when purchasing a bottle of red wine, evaluating the possible presence of attribute non-attendance (ANA) behaviour. A choice experiment was carried out on a sample of Italian wine consumers. Findings highlight that although, on average, consumers do not prefer organic wine, there is a relevant niche in the market consisting of consumers who benefit from purchasing it. Moreover, we have found that the majority of the sample ignores the organic attribute when choosing a bottle of wine, which reveals ANA behaviour.
Highlights
The production and sales of organic wine worldwide have shown a considerable positive trend
Where No_Buy is an alternative-specific constant representing the no-buy alternative in each choice set; Indication of Geographical Typicality (IGT), Controlled designation of origin (DOC) and Controlled and Guaranteed Designation of Origin (DOCG) are dummy variables indicating the geographical indication (GI) of the wine; ORGANIC and FAMOUS_PRODUCER are dummy variables assuming a value of 1 if they are present in option j; and PRICE represents the price levels offered to the respondent at which the bottle of wine can be purchased
We base the class selection following the criteria proposed by Hensher et al (2015) and Caputo et al (2018): (i) a data-driven process that involves the evaluation of the classes with a good probability membership along with the consideration of Bayesian information criterion (BIC) and Akaike information criterion (AIC) (Caputo et al 2018); (ii) we set to zero those attribute combinations considered plausible, according to the literature on consumer wine behaviour and on the basis of the random parameter logit (RPL) and latent class model (LCM) results (Hensher et al 2015)
Summary
The production and sales of organic wine worldwide have shown a considerable positive trend. We performed a latent class model (LCM) to investigate homogenous consumer segments, which can be defined according to their preferences for wine attributes.
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