The Definition of a Price

Damien Wilson and Anthony Spawton
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Damien Wilson: MSc Wine Business, Groupe ESC Dijon Bourgogne
Anthony Spawton: University of South Australia

No 21-2010, Working Papers from Enometrica - Review of the Vineyard Data Quantification Society (VDQS) and the European Association of Wine Economists (EuAWE) - Macerata University, Faculty of Communications

Abstract:

This paper addresses the role of price in wine purchasing and how we as marketers have trained the consumer to judge the quality of a wine just on price. The authors introduce the cues and motivations on the consumers in regard to responding to prices, as well as the variations to this behavior that has been observed in empirical data. The consequence being that the managing of prices is being undermined by the negociants and retailers who are steadily eroding margins just to make the sale irrespective of the wishes of the association professional by using scarcity marketing tactics. The market is becoming increasingly 'Polarized' into three pricing strata - Monday to Thursday consumption, lifestyle appreciation and luxury. Within these strata, it is also being recognised that that consumers are "promiscuous" in their pricing behavior, as illustrated by the fact that the same consumer shows a transient behavior across prices based on the relative risk strategies that they go through depending on the role of the wine in the buyer's lifestyle purchase behaviour.

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Le prix d'un vin n'est pas simplement la valeur monétaire que le consommateur est prêt à payer et il n'est pas aisé pour un opérateur spécialement celui qui manque d'expérience de fixer la valeur de son vin. Les belles années sont derrière nous et nous devons tenir compte des nouvelles réalités du marche pour dé nir une stratégie prix. La présentation sera axée sur la signi cation du prix pour le consommateur et comment l'industrie du vin australienne doit agir pour repartir Ã la conquête des marchés export. Les lècons de l'expérience nous donnent des exemples de ce qui a marché et ce qu'il faudrait faire pour prendre en compte les changements qui doivent accompagner l'évolution du marché du vin.

Keywords: Market Trends; Australia; Price strategie; wine market; Prices; Market share; Purchasing factors (search for similar items in EconPapers)
JEL-codes: L66 M31 D12 (search for similar items in EconPapers)
Date: 2010-07, Revised 2010-09
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Published in Review Enometrica, Volume 3 - Special Issue 2010

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Persistent link: http://EconPapers.repec.org/RePEc:mcr:jenome:wpaper00021

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