Consumer Geographic Segmentation and Valuing Attributes of Wine in Supermarket: An Hedonic Approach

The main objective of this study is to determine the relevance of the main attributes for wine, in some geographic areas in supermarket of Santiago, Chile. The study allows us to estimate how different the value of wine characteristics could be depending on different geographical areas. The information used is a panel database for stores. Information from wine guides is also to be considered. These wine guides relate ranking positions with quality attributes. An hedonic model will be estimated. Hedonic models have been widely applied to determine the main characteristics of wine. In general, hedonic studies have focused on wine color or price level segmentation, but these have not been associated with different geographic areas associated with different socioeconomic levels. In this paper, brands and ranking appear to be relevant characteristics for wine value in all segments, mainly because consumers have been exposed to marketing activities, and can detect quality differences between wine brands. The size of bottle is very relevant.

Keywords: Hedonic model, wine, geographic segmentation, supermarket.