Original Research Article
Emerging Consumer Preference for Wine Attributes in a European Transition Country – the Case of Kosovo
Published 2020-05-13
Keywords
- consumer preferences,
- wine,
- Conjoint Choice Experiment,
- latent class choice model,
- Kosovo
How to Cite
Zhllima, E. ., Imami, D., Bytyqi, N., Canavari, M., Merkaj, E., & Chan, C. . (2020). Emerging Consumer Preference for Wine Attributes in a European Transition Country – the Case of Kosovo. Wine Economics and Policy, 9(1), 63–72. https://doi.org/10.36253/web-8285
Abstract
This study analyzes consumer preferences for wine in Prishtina, Kosovo – a transition country in the Balkans, which is making efforts to withstand to the competition pressure from the traditional neighboring wine producing countries. With the changes in life style and consumer behavior, and incomes rising rapidly since the last conflict, it is imperative to survey the changing demand for producers to compete in the domestic markets. Conjoint Choice Experiments were used to evaluate wine consumer preferences based on wine type (white vs. red), origin (domestic vs. imported), taste (sweet vs. dry) and price. Four distinct classes of consumers were identified. The top two important attributes in the choice of wine are the type and origin but preferences vary across groups – type of wine and origin appear far more important when compared to price, especially for the richest identified segment, whose consumers prefer more expensive wines.
References
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Cattin, P. &D.R. Wittink. 1982. Commercial Use of Conjoint Analysis. Journal of Marketing. 46:44-53.
Chan-Halbrendt, C., Zhllima, E., Sisior, G., Imami, D. & Leonetti, L., 2010. Consumer preferences for olive oil in Tirana, Albania. International Food and Agribusiness Management Review, 13(3).
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Gjonbalaj, M., Miftara, I., Pllana, M., Fetahu, S., Bytyqi, H., Gjergjizi, H., & Dragusha, B., 2009.Analyses of Consumer Behavior and Wine Market in Kosovo. Agriculture Conspectus Scientificus (ACS) 74(4), 333-338.
Goodman, S., Lockshin, L., & Cohen, E., 2005.Best-worst scaling: a simple method to determine drinks and wine style preferences, International Wine Marketing Symposium, Sonoma 2005.
Green, P.E. &Wind. Y., 1975. New Ways to Measure Consumers' Judgments. Harvard Business Review, 89-108.
Green, P. E., &Srinivasan, V., 1978. Conjoint Analysis in Consumer Research: Issues and Outlook. The Journal of Consumer Research 5, 103-123.
Hensher, D.A. 1994. Stated preference analysis of travel choices: the state of practice. Transportation, 21: 107-133.
Jantzi, H. A., &McSweeney, M. B., 2019. An overview of wine consumers in Nova Scotia, Canada: A conjoint analysis study. Journal of Wine Research, 30(1), 48-61.
Jarvis, W., Rungie, C., & Lockshin, L., 2007. Revealed preference analysis of red wine attributes using polarization. International Journal of Wine Business Research 19(2), 127-138.
Jover, A. J. V., Montes, F. J. L., & Fuentes, M. D. M. F., 2004.Measuring perceptions of quality in food products: the case of red wine. Food Quality and Preference 15(5), 453-469.
KAS 2015.Agricultural Census in the Republic of Kosovo 2014. Available at: http://ask.rks-gov.net/media/1375/final-results.pdf
Lancaster, K. J., 1966. New approach to consumer theory. Journal of Political Economy, 74:132- 157.
Lockshin, L., Jarvis, W., d’Hauteville, F., &Perrouty, J. P., 2006.Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food quality and preference 17(3), 166-178.
Loureiro, M. L., 2003. Rethinking new wines: implications of local and environmentally friendly labels. Food Policy 28(5), 547-560.
Louviere, J.J. &G.G. Woodworth. 1983. Design and analysis of simulated consumer choice or allocation experiments: An approach based on aggregated data. Journal of Marketing Research, 20: 350-367
McFadden, D. S. 1974. Conditional logit analysis of qualitative choice behaviour. Frontiers in econometrics. New York: Academic Press.
Mehta, R., &Bhanja, N. 2018. Consumer preferences for wine attributes in an emerging market. International journal of retail & distribution management, 46(1), 34-48.
Ministry of Agriculture, Forestry and Rural Development-MAFRD 2018. “Green Report, 2018”, Pristina.
Mtimet, N., &Albisu, L. M., 2006. Spanish wine consumer behavior: A choice experiment approach. Agribusiness 22(3), 343-362.
Mtimet, N., Kashiwagi, K., Zaibet, L., & Masakazu, N. 2008. Exploring Japanese olive oil consumer behavior (No. 725-2016-49724).
Mueller, S. & Szolnoki, G., 2010. The relative influence of packaging, labelling, branding and sensory attributes on liking and purchase intent: Consumers differ in their responsiveness. Food Quality and Preference 21(7), 774-783.
Palma, D. E., de Dios Ortúzar, J., Rizzi, L. I., Agosin&E., Casaubon, G., 2013. Modeling wine consumers preferences: How different can consumers be?.In International Choice Modelling Conference.
Remaud, H., Mueller, S., Chvyl, P.&Lockshin, L., 2008. Do Australian wine consumers value organic wine? In: Proceedings of the International Conference of the Academy of Wine Business Research. 17–19 July 2008. Siena, pp. 1–15
Rodríguez-Donate, M. C., Romero-Rodríguez, M. E., Cano-Fernández, V. J., &Guirao-Pérez, G., 2019. Analysis of heterogeneity in the preferences of wine consumption. Wine Economics and Policy, 8 (1), pp. 69-80.
Sánchez, M., Gil, J. M., 1998. Consumer preferences for wine attributes in different retail stores: a conjoint approach. International journal of wine marketing 10(1), 25-38.
Scarpa, R., Thiene, M. & Galletto, L., 2009. Consumers WTP for wine with certified origin: preliminary results from Latent Classes based on attitudinal responses. Journal of food products marketing 15(3), 231-248.
Simmons S.&Esser M., 2001. Developing Business Solutions from Conjoint Analysis. In: Gustafsson A., Herrmann A.& Huber F. (eds) Conjoint Measurement. Springer, Berlin, Heidelberg
Volk, T., Rednak, M. Erjavec, E. Rac, I. Zhllima, E. Gjeci, G. Bajramović, S. Vaško, Ž. Kerolli-Mustafa, M. Gjokaj, E. Hoxha, B. Dimitrievski, D. Kotevska, A. Janeska Stamenkovska, I. Konjevic, D. Spahic, M. Bogdanov & Stevović M. (authors), Ilic, B. Pavloska - Gjorgjieska D., Ciaian,P. (editors),2019. Agricultural policy developments and EU approximation process in the Western Balkan countries, EUR 29475 EN, Publications Office of the European Union, Luxembourg, doi:10.2760/583399, JRC114163.
Zhllima, E., Chan-Halbrendt, C., Zhang, Q., Imami, D., Long, R., Leonetti, L. & Canavari, M., 2012.Latent class analysis of consumer preferences for wine in Tirana, Albania. Journal of International Food & Agribusiness Marketing 24(4), 321-338.
Barrena, R.,&Sanchez, M., 2009. Connecting product attributes with emotional benefits: analysis of a Mediterranean product across consumer age segments. British Food Journal 111(2), 120-137.
Bernabéu, R., Díaz, M., Olivas, R. & Olmeda, M., 2012. Consumer preferences for wine applying best-worst scaling: a Spanish case study. British Food Journal, 114(9), 1228-1250.
Bytyqi, Nj., 2015. Analysis of the consumer preferences of some important agrifood products in Kosovo applying Conjoint Choice Experiment. PhD thesis, Defended at Agricultural University of Tirana in 2015.
Bytyqi, Nj., Skreli, E., Vercuni, A., Imami, D.&Zhllima, E., 2015. Analyzing Consumers’ Preferences for Apples in Prishtina.BOKU Journal, No. 66, 1-2.
Cattin, P. &D.R. Wittink. 1982. Commercial Use of Conjoint Analysis. Journal of Marketing. 46:44-53.
Chan-Halbrendt, C., Zhllima, E., Sisior, G., Imami, D. & Leonetti, L., 2010. Consumer preferences for olive oil in Tirana, Albania. International Food and Agribusiness Management Review, 13(3).
Cortez, P., Cerdeira, A., Almeida, F., Matos, T.&Reis, J., 2009. Modeling wine preferences by data mining from physicochemical properties. Decision Support Systems, 47(4), 547-553.
FAO2016.Value Chain Study, Technical report prepared in the context of FAO Project “Capacity development of MAFRD economic analysis unit on agricultural policy impact assessment (in Kosovo)”, TCP/KOS/3501.
Gjonbalaj, M., Miftara, I., Pllana, M., Fetahu, S., Bytyqi, H., Gjergjizi, H., & Dragusha, B., 2009.Analyses of Consumer Behavior and Wine Market in Kosovo. Agriculture Conspectus Scientificus (ACS) 74(4), 333-338.
Goodman, S., Lockshin, L., & Cohen, E., 2005.Best-worst scaling: a simple method to determine drinks and wine style preferences, International Wine Marketing Symposium, Sonoma 2005.
Green, P.E. &Wind. Y., 1975. New Ways to Measure Consumers' Judgments. Harvard Business Review, 89-108.
Green, P. E., &Srinivasan, V., 1978. Conjoint Analysis in Consumer Research: Issues and Outlook. The Journal of Consumer Research 5, 103-123.
Hensher, D.A. 1994. Stated preference analysis of travel choices: the state of practice. Transportation, 21: 107-133.
Jantzi, H. A., &McSweeney, M. B., 2019. An overview of wine consumers in Nova Scotia, Canada: A conjoint analysis study. Journal of Wine Research, 30(1), 48-61.
Jarvis, W., Rungie, C., & Lockshin, L., 2007. Revealed preference analysis of red wine attributes using polarization. International Journal of Wine Business Research 19(2), 127-138.
Jover, A. J. V., Montes, F. J. L., & Fuentes, M. D. M. F., 2004.Measuring perceptions of quality in food products: the case of red wine. Food Quality and Preference 15(5), 453-469.
KAS 2015.Agricultural Census in the Republic of Kosovo 2014. Available at: http://ask.rks-gov.net/media/1375/final-results.pdf
Lancaster, K. J., 1966. New approach to consumer theory. Journal of Political Economy, 74:132- 157.
Lockshin, L., Jarvis, W., d’Hauteville, F., &Perrouty, J. P., 2006.Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food quality and preference 17(3), 166-178.
Loureiro, M. L., 2003. Rethinking new wines: implications of local and environmentally friendly labels. Food Policy 28(5), 547-560.
Louviere, J.J. &G.G. Woodworth. 1983. Design and analysis of simulated consumer choice or allocation experiments: An approach based on aggregated data. Journal of Marketing Research, 20: 350-367
McFadden, D. S. 1974. Conditional logit analysis of qualitative choice behaviour. Frontiers in econometrics. New York: Academic Press.
Mehta, R., &Bhanja, N. 2018. Consumer preferences for wine attributes in an emerging market. International journal of retail & distribution management, 46(1), 34-48.
Ministry of Agriculture, Forestry and Rural Development-MAFRD 2018. “Green Report, 2018”, Pristina.
Mtimet, N., &Albisu, L. M., 2006. Spanish wine consumer behavior: A choice experiment approach. Agribusiness 22(3), 343-362.
Mtimet, N., Kashiwagi, K., Zaibet, L., & Masakazu, N. 2008. Exploring Japanese olive oil consumer behavior (No. 725-2016-49724).
Mueller, S. & Szolnoki, G., 2010. The relative influence of packaging, labelling, branding and sensory attributes on liking and purchase intent: Consumers differ in their responsiveness. Food Quality and Preference 21(7), 774-783.
Palma, D. E., de Dios Ortúzar, J., Rizzi, L. I., Agosin&E., Casaubon, G., 2013. Modeling wine consumers preferences: How different can consumers be?.In International Choice Modelling Conference.
Remaud, H., Mueller, S., Chvyl, P.&Lockshin, L., 2008. Do Australian wine consumers value organic wine? In: Proceedings of the International Conference of the Academy of Wine Business Research. 17–19 July 2008. Siena, pp. 1–15
Rodríguez-Donate, M. C., Romero-Rodríguez, M. E., Cano-Fernández, V. J., &Guirao-Pérez, G., 2019. Analysis of heterogeneity in the preferences of wine consumption. Wine Economics and Policy, 8 (1), pp. 69-80.
Sánchez, M., Gil, J. M., 1998. Consumer preferences for wine attributes in different retail stores: a conjoint approach. International journal of wine marketing 10(1), 25-38.
Scarpa, R., Thiene, M. & Galletto, L., 2009. Consumers WTP for wine with certified origin: preliminary results from Latent Classes based on attitudinal responses. Journal of food products marketing 15(3), 231-248.
Simmons S.&Esser M., 2001. Developing Business Solutions from Conjoint Analysis. In: Gustafsson A., Herrmann A.& Huber F. (eds) Conjoint Measurement. Springer, Berlin, Heidelberg
Volk, T., Rednak, M. Erjavec, E. Rac, I. Zhllima, E. Gjeci, G. Bajramović, S. Vaško, Ž. Kerolli-Mustafa, M. Gjokaj, E. Hoxha, B. Dimitrievski, D. Kotevska, A. Janeska Stamenkovska, I. Konjevic, D. Spahic, M. Bogdanov & Stevović M. (authors), Ilic, B. Pavloska - Gjorgjieska D., Ciaian,P. (editors),2019. Agricultural policy developments and EU approximation process in the Western Balkan countries, EUR 29475 EN, Publications Office of the European Union, Luxembourg, doi:10.2760/583399, JRC114163.
Zhllima, E., Chan-Halbrendt, C., Zhang, Q., Imami, D., Long, R., Leonetti, L. & Canavari, M., 2012.Latent class analysis of consumer preferences for wine in Tirana, Albania. Journal of International Food & Agribusiness Marketing 24(4), 321-338.