Italian millennials' preferences for wine: an exploratory study

2020 ◽  
Vol 122 (8) ◽  
pp. 2403-2423
Author(s):  
Federico Nassivera ◽  
Gianluigi Gallenti ◽  
Stefania Troiano ◽  
Francesco Marangon ◽  
Marta Cosmina ◽  
...  
Keyword(s):  
New Media ◽  
Willingness To Pay ◽  
Carbon Footprint ◽  
Generation Y ◽  
Logit Model ◽  
Random Parameter ◽  
Multinomial Logit Model ◽  
Discrete Choice Models ◽  
Content Type ◽  
Wine Consumption

PurposeThis paper aims to investigate the wine consumption among young people belonging to the so-called millennial generationDesign/methodology/approachThis study uses a questionnaire and a choice experiment (CE) with a multinomial logit model (MNL), implementing a random parameter logit model (RPL), to investigate the attitudes of millennials towards wine consumption, their purchasing behaviours and their willingness to pay for attributes of the products; in particular regarding the follwing: region of origin, “winescape”, certification, carbon footprint claim and price.FindingsMillennials appear to drink wine less frequently; they consume it more often in social on-premise settings, having a slightly higher willingness to pay and preferring carbon-neutral brands when choosing wine.Research limitations/implicationsThe limitation of this research was the analysis of a simulated situation where consumers declared their intention to purchase and not the effective purchase behaviour in the market.Further research should investigate wider millennials groups, also using the new media communication tools that characterise the communication behaviour of Generation Y. In this way, it would be possible to interview a millennial group at the national or international level.Practical implicationsThe research identifies some characteristics of millennials’ habits that can take into account the strategies of wine companies in order to develop a constructive relationship with Generation Y in Italy.Social implicationsThis research contributes to knowledge regarding the wine consumption habits of Italian millennials.Originality/valueThis paper applies discrete choice models to consumption situations in order to analyse millennials' preference and their willingness to pay for some innovative attributes of wine, in particular the carbon footprint.

Chinese consumers’ willingness-to-pay for safety label on tomato: evidence from choice experiments

2017 ◽  
Vol 9 (1) ◽  
pp. 141-155 ◽  
Author(s):  
Shijiu Yin ◽  
Mo Chen ◽  
Yingjun Xu ◽  
Yusheng Chen
Keyword(s):  
Food Safety ◽  
Willingness To Pay ◽  
Logit Model ◽  
Random Parameter ◽  
Choice Experiments ◽  
Content Type ◽  
Significant Difference ◽  
Random Parameter Logit ◽  
Organic Label ◽  
Random Parameter Logit Model

Purpose Unlike some developed countries, Chinese food safety certification system is multi-level including organic/green/hazard-free certifications. The purpose of this paper is to assess consumers’ preferences for tomatoes carrying these different labels. Design/methodology/approach Data used in this study came from choice experiments (CEs) conducted in Shandong province, China. Based on experiment data, a random parameter logit model was established to analyze consumers’ willingness-to-pay (WTP). Findings Consumers’ WTP for organic tomatoes was higher than that for hazard-free and green-certified tomatoes. Furthermore, consumers’ WTP for the European Union (EU) organic label was higher than that for the Chinese organic label, whereas a non-significant difference existed between the levels of consumers’ WTP for hazard-free and green-certified tomatoes. Consumers with different food safety risk perception (FSRP) had large differences in WTP, whereas those with varying environmental awareness (ENAW) had similar levels of WTP. Originality/value This contribution is the first research which focuses on consumers’ WTP for EU organic label, Chinese organic label, green label, or hazard-free label on tomato through CEs in China. Furthermore, the influence of consumers’ FSRP and ENAW on their preference was analyzed through a random parameter logit model.

Pricing Competition Under Specific Discrete Choice Models

2020 ◽  
Vol 37 (02) ◽  
pp. 2050008
Author(s):  
Farhad Etebari
Keyword(s):  
Discrete Choice ◽  
Logit Model ◽  
Choice Model ◽  
Public Information ◽  
Multinomial Logit Model ◽  
Multinomial Logit ◽  
Discrete Choice Models ◽  
Nested Logit ◽  
Nested Logit Model ◽  
Substitution Pattern

Recent developments of information technology have increased market’s competitive pressure and products’ prices turned to be paramount factor for customers’ choices. These challenges influence traditional revenue management models and force them to shift from quantity-based to price-based techniques and incorporate individuals’ decisions within optimization models during pricing process. Multinomial logit model is the simplest and most popular discrete choice model, which suffers from an independence of irrelevant alternatives limitation. Empirical results demonstrate inadequacy of this model for capturing choice probability in the itinerary share models. The nested logit model, which appeared a few years after the multinomial logit, incorporates more realistic substitution pattern by relaxing this limitation. In this paper, a model of game theory is developed for two firms which customers choose according to the nested logit model. It is assumed that the real-time inventory levels of all firms are public information and the existence of Nash equilibrium is demonstrated. The firms adapt their prices by market conditions in this competition. The numerical experiments indicate decreasing firm’s price level simultaneously with increasing correlation among alternatives’ utilities error terms in the nests.

The impact of setting on wine tasting experiments

2019 ◽  
Vol 31 (4) ◽  
pp. 578-590
Author(s):  
Geoffrey Lewis ◽  
Steve Charters ◽  
Benoît Lecat ◽  
Tatiana Zalan ◽  
Marianna McGarry Wolf
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Subjective Assessment ◽  
Social Setting ◽  
Content Type ◽  
Wine Consumption ◽  
The Past ◽  
The Social ◽  
The Impact ◽  
The Relationship

Purpose Tasting experiments involving willingness to pay (WTP) have grown over the past few years; however, most of them occur in formal wine-tasting conditions, removed from real-world experience. This study aims to conduct experiments on wine appreciation and willingness to pay in both settings, to allow a comparison of how tasters reached conclusions in different situations. Design/methodology/approach The authors conducted two sets of experiments in Dijon, France, with knowledgeable wine drinkers, in 2014 and in 2016, to explore the relationship between wine ratings, WTP and objective characteristics (appellation, labelling and price). The first was in a formal wine-tasting setting (n = 58), and the second in the social setting of a restaurant (n = 52). The experiments involved deception: the tasters were presented with five wines, but in fact only three wines were involved, two of the wines being presented twice. Findings The results from the 2014 study showed that even with a group of experienced tasters, objective characteristics overwhelmed subjective assessment (taste, sensory perception) of the wine. Ratings and WTP were driven by the appellation or brand, labelling and price of the wines. The authors replicated the experiment in a social setting in 2016 which, contrary to their expectations, produced very similar results. In neither experiment did the experienced tasters detect the deception. Research limitations/implications The social setting was a lunch in a restaurant with a group of students who were graduating together. The tasting was conducted by some of their professors, which may have influenced the results and raises questions about whether the setting was truly ‘social’. The sample size for the experiments was comparatively small and further research, including novice and expert tasters, might contradict these findings, or at least add nuances to them. Originality/value The study finds that, contrary to expectations, in the social wine consumption setting of a restaurant meal enjoyed with colleagues, objective wine characteristics over-rode subjective appreciation of the wine.

Conjoint analysis of purchasing behavior for energy-saving appliances

2020 ◽  
Vol 14 (6) ◽  
pp. 1255-1274
Author(s):  
Shin Kinoshita
Keyword(s):  
Climate Change ◽  
Renewable Energy ◽  
Energy Saving ◽  
Conjoint Analysis ◽  
Logit Model ◽  
Random Parameter ◽  
Monetary Incentives ◽  
Solar Panels ◽  
Online Questionnaire ◽  
Content Type

Purpose Saving energy is an essential issue in the world to attenuate climate change. To achieve the goal, energy-saving appliances such as refrigerators should be promoted. This study aims to analyze the conditions enabling Japanese households to purchase such appliances, focusing on the relation with preferences for renewable energy as one of the non-monetary incentives. Design/methodology/approach A conjoint analysis is used. A random parameter logit model and nested logit model are used for estimation. Data were collected through an online questionnaire of the Rakuten Insight service. Findings Households will purchase energy-saving appliances when renewable energy is used for electricity generation. This implies that households will purchase energy-saving appliances with electric power generators by renewable energy such as solar panels and home micro-wind generators. Research limitations/implications The response rate and attributes of respondents and non-respondents are not shown to researchers in the web-questionnaire service. Social implications Promoting energy-saving appliances and renewable energy is essential in Japan (as in other countries) to save energy and to attenuate climate change. Based on the results, both energy-saving appliances and renewable energy will be widely used. Originality/value Although many studies have analyzed households’ preferences for energy-saving appliances and the effects of non-monetary incentives, studies that mentioned the relation with preferences for renewable energy are few. This study analyzes the relation and proposes policy recommendations to promote both energy-saving appliances and renewable energy.

Demand for housing choices in the north of France: a discrete approach

2017 ◽  
Vol 10 (3) ◽  
pp. 346-365 ◽  
Author(s):  
Véronique Flambard
Keyword(s):  
Housing Market ◽  
Logit Model ◽  
Discrete Choice Models ◽  
Housing Demand ◽  
Capital City ◽  
City Centre ◽  
Housing Supply ◽  
Important Conclusion ◽  
Content Type ◽  
The North

Purpose This research aims to analyse the housing demand in northern France with respect to socio-demographic variables and the distance between the residence and the workplace. Design/methodology/approach Econometrics with discrete choice models are used to study the three main dimensional choices of housing demand: tenure, type and location. A contribution is to use a heteroscedastic logit model where the variance of the error term is allowed to differ over alternatives and to capture in particular the heterogeneity of tastes. As a matter of fact, household characteristics are very likely to influence the magnitude of the scale parameter in the choice of housing alternatives and then influencing the results if it is not taken into account. Applications for housing demand are nearly non-existent. This paper fills this gap. Findings Econometric estimation confirms that residential choices are influenced by age, income and size of the household, as well as by the rent-to-income ratio. An increase in any of these variables decreases the probability of choices of all the alternatives other than the most often chosen alternative (which is for this application house ownership in the suburb). Moreover, the distance to work systematically influences the housing choice for single-parent families and two-earner households. Additionally, preferences are found to significantly differ between local housing markets, specifically between Lille (a large agglomeration and capital city of the North area) and Dunkerque (an industrialised area). The geographical areas are defined based on INSEE employment zones (“zones d’emplois”). Research limitations/implications This research has been performed for the north of France and may not hold for other areas even though the methodology can be replicated and the mechanisms at play are quite similar elsewhere. Practical implications An important conclusion for sustainable development is the importance to improve city centre amenities relative to those of the suburb or to increase the services associated with high-density dwelling because clearly the most desired alternative remains a house in the suburb. The housing market in the Dunkerque area has some special features characterised by a strong industrial landscape (with port and heavy-duty industrial activities). In this context, amenities provided by the city centre offset the strong attraction of a house in the suburb. Social implications This research shows that households with similar characteristics tend to prefer the same type of real estate property. Therefore, to avoid social segregation, it is important that housing supply respond to different household preferences and needs in the different segments of the housing market. Moreover, the housing supply should take into account the specificities of the geographical areas (both in terms of population who may have a different profile) and in terms of amenities. Originality/value This research is one of the very few conducted ones on discrete housing choices in France (with the notable exception of De Palma et al., 2007 for the choice of location). Three simultaneous choices are considered: tenure (including social housing which is almost always ignored), type of building and location. The authors have shown that it is important to take into account the heterogeneity of the preferences in the econometric model with a heteroscedastic logit model.

scholarly journals Performance Analysis of Mixed Logit Models for Discrete Choice Models

2019 ◽  
pp. 563-575
Author(s):  
Jaka Nugraha
Keyword(s):  
Discrete Choice ◽  
Logit Model ◽  
Mixed Logit ◽  
Likelihood Estimation ◽  
Multinomial Logit Model ◽  
Discrete Choice Models ◽  
Logit Models ◽  
Nominal Data ◽  
Mixed Logit Models ◽  
Mnl Model

Mixed Logit model  (MXL) is generated from Multinomial Logit model (MNL) for discrete, i.e. nominal, data. It eliminates its limitations particularly on estimating the correlation among responses.  In the MNL, the probability equations are presented in the closed form and it is contrary with in the MXL. Consequently, the calculation of the probability value of each alternative get simpler in the MNL, meanwhile it needs the numerical methods for estimation in the MXL.  In this study, we investigated the performance of maximum likelihood estimation (MLE) in the MXL and MNL into two cases, the low and high correlation circumstances among responses. The performance is measured based on differencing actual and estimation value.  The simulation study and real cases show that the MXL model is more accurate than the MNL model. This model can estimates the correlation among response as well. The study concludes that the MXL model is suggested to be used if there is a high correlation among responses. 

What can we learn from experience? An impact analysis of experience on households' preferences for microfinance

2020 ◽  
Vol 12 (2) ◽  
pp. 215-239
Author(s):  
Zhao Ding ◽  
Awudu Abdulai ◽  
Yuansheng Jiang
Keyword(s):  
Willingness To Pay ◽  
Latent Variable ◽  
Impact Analysis ◽  
Rural Households ◽  
Bayesian Updating ◽  
Multinomial Logit Model ◽  
Microfinance Institutions ◽  
Random Utility Theory ◽  
Content Type ◽  
The Impact

PurposeThis article examines the impact of experience on rural households' preferences for microfinance attributes, using household data from Sichuan province in China.Design/methodology/approachWe use the Bayesian updating method to account for the learning process involved in acquiring experience on microfinance. We then use the generalized multinomial logit model that accounts for both preference and scale heterogeneity to estimate the choice probabilities and impact of experience on preferences and willingness-to-pay (WTP) for microfinance.FindingsThe empirical findings show that experience with microfinance products or lending institutions helps households in their selections of microfinance institutions. In particular, experience with financial institutions increase the scale parameter and help respondents to feel assured about their choices, while experience with individual lenders have no such effects. The results also indicate that the willingness-to-pay estimates vary across experiences, with WTP for installment credit displaying the biggest change and the Bayesian updating making the changes even much larger.Originality/valueThis study contributes to the research gap by taking experience as a latent variable that influences personal specific tastes and as an integral part of total utility of rural households in their decision-making processes. We develop a conceptual framework that is based on McFadden's random utility theory and Bayesian inference.

scholarly journals Investigation of Contributing Factors to Traffic Crashes and Violations: A Random Parameter Multinomial Logit Approach

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Jaeyoung Lee ◽  
Xing Li ◽  
Suyi Mao ◽  
Wen Fu
Keyword(s):  
Logit Model ◽  
Random Parameter ◽  
Multinomial Logit Model ◽  
Multinomial Logit ◽  
Contributing Factors ◽  
Traffic Crashes ◽  
Factors Affecting ◽  
Effective Strategies ◽  
Traffic Violations ◽  
Afternoon Peak

This study investigates contributing factors to traffic violations by seriousness. The traffic violations are divided into four categories by seriousness (unintentional violation, minor violation, serious violation, and crash with violation). The results of the random parameter multinomial logit model indicate that various factors potentially affect the severity of traffic violations. The key findings include the following: (1) female drivers are more likely to commit minor violations; (2) drivers from an area with a longer travel time to work and a higher proportion of driving to work are more likely to have minor violations and serious violations, while those from the high-income area are less likely; (3) drivers are more likely to be associated with a more minor infraction during the afternoon peak (4 p.m.–6 p.m.). The results from this study are expected to be beneficial for policymakers and traffic police to comprehend the factors affecting violations and implement effective strategies to minimize the number and seriousness of traffic violations.

scholarly journals A logistic distribution model of new short sea shipping line along a mutimodal corridor in Italy

2021 ◽  
Vol 81 (ET.2021) ◽  
pp. 1-11
Author(s):  
Mauro Catalani
Keyword(s):  
Logit Model ◽  
Random Parameter ◽  
Multinomial Logit Model ◽  
Distribution Model ◽  
Logistic Distribution ◽  
Short Sea Shipping ◽  
Multimodal Transport ◽  
Random Parameter Logit ◽  
Transport Choice ◽  
Random Parameter Logit Model

The purpose of the application focuses on an intermodal model (RPL) to simulate the transport choice for freight sending on the most relevant corridor Naples–Milan. In this, operate a rail- road system with the introduction a new short sea shipping (SSS) intermodal line (Naples Sea Genova road Milan). The paper considers a collaboration with a multimodal transport operator, with many logistic platforms in Italy to analyze the degree of competition inside corridor. An application along this very congested route Milan (Segrate interport) - Nola (Naples interport) was used. The econometric models applied to operator choices are a random parameter logit model vs multinomial logit model with frequency, type of load and cost as main parameters.

scholarly journals The shock of lockdown on the spending on wine in the Iberian market: the effects of procurement and consumption patterns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raúl Compés ◽  
Samuel Faria ◽  
Tânia Gonçalves ◽  
João Rebelo ◽  
Vicente Pinilla Navarro ◽  
...  
Keyword(s):  
Urban Areas ◽  
Multinomial Logit Model ◽  
Policy Implications ◽  
Consumption Patterns ◽  
Alcoholic Beverages ◽  
Consumption Pattern ◽  
Random Utility Theory ◽  
Content Type ◽  
Wine Consumption ◽  
Drinking Habits

PurposeThis study aims to provide a better understanding of the behaviour of wine consumers in a completely new and unexpected setting, that is, a forced lockdown due to the COVID-19 pandemic. It seeks to explain consumer decisions and the probability of changes occurring in wine expenditure compared to a normal situation.Design/methodology/approachThe empirical analysis, conducted on a representative sample of Iberian consumers and based on the random utility theory, consists in the application of a multinomial logit model, setting the “usual” pattern of expenditure as a baseline category.FindingsThe results show that the coronavirus pandemic could have changed alcohol drinking habits. Consumers generally spent less on wine during the lockdown, maybe due to the uncertainty regarding their future income and professional situation. Those people more likely to spend more on wine were those who increased their wine consumption during the lockdown, those who drank for romantic purposes, those who purchased less wine in supermarkets but more online, those who used a wine app and those living in urban areas. The increased consumption of other alcoholic beverages also increases the probability of spending less than usual on wine. Additionally, the absence of certain reasons for drinking wine other than social purposes, such as wine and food pairing, its taste and relaxing effects, together with the previous consumption pattern leads to a decrease in the probability of spending less per bottle.Originality/valueThis paper makes a significant contribution to the understanding of the determinants of wine consumption in a very abnormal setting, an imposed lockdown and provides important policy implications. The findings show that managers and policymakers should pay attention to the different influence of variables related to behaviour and consumption patterns that may contribute to an increase in the demand for less expensive wines. Specifically, they should focus on new consumption patterns that may arise, adapting the supply chain and defining appropriate marketing strategies to fill new market segments.

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