Retail Channel Selection on Wine by households in Argentina

GUSTAVO ROSSINI; GARCIA ARANCIBIA RODRIGO; EDITH DEPETRIS GUIGUET

Lyon

Conferencia; XXI Enometrics; 2014

Vineyard Data Quantification Society

Household choice of outlet retail channels over another in wine, depends on several factors and it is directly related to the variety of products offered, quality, prices, proximity to home, payment method, and ability to buy other consumer goods at the same location, among the most important.There are two main channels of purchase by household in Argentina. On the one hand, supermarkets and hypermarkets offer a wide variety of wines, and on other business specializing in the sale of alcoholic beverages. Consumers choose any of these sales channels or both according to their convenience. While there are some works in Argentina that characterize the attributes of channels and consumers with the choice of purchasing channels in wines, all of them performed descriptive by graphs or tables based on survey data. There are mo re interesting models related to consumer choice for estimating the impact of household traits on the probability of choosing retail channels. In consequence, the objective of this study is to k now and quantify the effect of demographic and socioeconomic factors of Argentine households in choosing outlet retail for wines. A Multinomial Logit Model was used to explain consu mer outlet selection and to calculate marginal effect of the variables included in the model. Data from the National Household Consumption Survey 2004-05 was used to estimate the model. Results show that wines are purchased principally e n two retail channels: supermarket-hypermarket and liquor store. Considering both channels, 96.45% of the households chose one of them or both for buying wines.