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Abstract

U.S. wine buyers are Identified by major demographic characteristics, wine products purchased, and intended use of these products. Market demand functions are estimated by wine type and region. The typical wine purchasing household, according to the survey of 7,000 households on which this study is based, has higher income, fewer members, and more education than average. About half of U.S. households never buy wine, and less than 5 percent purchase more than half the wine. Two important variables influence amount of wine purchased: wine price and income level. In some markets, total industry revenues would increase if prices were raised.

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