Vol. 13 No. 1 (2024)
Original Research Article

Measuring price sensitivity to the consumption situation

Teresa Candeias
Lusófona University
Hugo Alonso
Lusófona University, University of Aveiro

Published 2024-04-16


  • Wine,
  • Consumption situation,
  • Willingness to pay,
  • Sensitivity measure

How to Cite

Candeias, T., & Alonso, H. (2024). Measuring price sensitivity to the consumption situation. Wine Economics and Policy, 13(1), 97–107. https://doi.org/10.36253/wep-15236


Consumer segmentation is very relevant in the design of wine marketing strategies. Previous studies showed that there is a relationship between the consumption situation and the willingness to pay for a bottle of wine. In this sense, the consumption situation is considered a segmentation variable. However, price sensitivity in relation to the consumption occasion was not measured. In this paper, we propose four measures of price sensitivity to the consumption occasion. We illustrate how to compute them and discuss their advantages and limitations. One of the measures only discriminates consumers that are sensitive to the consumption occasion from those who are not. In turn, the other measures are more informative and make it possible to distinguish between different degrees of sensitivity. The proposed measures can be used to classify consumers and further improve the knowledge of wine marketeers and decision makers in the wine industry about them.


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