Exploring the economic value of wine attributes and consumer choice behavior using choice experiment data: A case study of the UK wine market

Abstract

This study investigates consumer decision-making and estimates willingness to pay for various wine attributes in the UK market using data from a choice experiment. An online survey of 1,402 respondents yielded 14,020 choice observations. Results from a conditional logit model reveal that consumers are more likely to purchase and are willing to pay more for wines that are lower in price, higher in alcohol content, sweeter, organically produced, and full-bodied. Additionally, when more alternatives with detailed attribute information are presented, the likelihood of choosing the ‘no-purchase’ option decreases. However, increased information complexity also raises cognitive effort and decision time, leading to a notable decline in the selection of newly introduced alternatives. These findings underscore the importance of the information search process in consumer decision-making. The study offers valuable insights into UK wine consumer preferences, providing practical guidance for producers aiming to enhance product-market alignment, increase sales, and refine marketing strategies for premium segments.