Modelling consumer preferences heterogeneity in emerging wine markets: a latent class analysis

Abstract

The purpose of this study is to explore the Russian and Chinese emerging markets for imported wines, by assessing Beijing and Moscow consumer demand for different attributes. This study employs the Discrete Choice Experiments technique to evaluate consumer preferences and willingness-to-pay for the selected wine attributes (medals, alcohol level, landscape certification, country of origin, grape variety and price). Results from Latent Class models provide evidence of preference heterogeneity and suggest the existence of two distinct consumer segments in China, and three segments in Russia. In both samples, the wine medals and country of origin are the top selected characteristics. Conspicuous consumption tendencies were found in some segments, with price having a positive impact on utility, probably signalling quality.