Analyzing the pálinka purchase aspects by conjoint analysis

Abstract

THE AIMS OF THE PAPER

The research focuses on the importance of the three product attributes of pálinka (price, origin, fruit), the usefulness of their levels, and the examination of the segments formed on the basis of these.

METHODOLOGY

For this purpose of the research we used conjoint analysis based on evaluation, where we analyzed the consumer evaluation of three different fruit types of homemade and in-store pálinka in three price levels in this survey, the sample of 626 people corresponds to the composition of the Hungarian population over 18 years of age (age group ,gender, region).

MOST IMPORTANT RESULTS

In the case of the purchase of pálinka, the price most influenced the purchase decision, followed by the fruit used and then the origin. Due to the large price difference between homemade and in-store pálinka, the consumer also decides on the origin when choosing the price. The purpose of the purchase clearly determines the role of price, fruit and origin in the purchase. Consumer ethnocentrism, which prefers domestic products to foreign, did not affect the level of the utility of origin.

RECOMMENDATIONS

The regulatory environment and the preference for homemade pálinka causes a difficult position for producers of pálinka, that is why they need to understand the consumer decisions and conjoint analysis can simulate this shopping situation. When buying pálinka, consumers do not clearly prefer the cheaper product. Our study has shown that the cheaper price does not necessarily mean a higher preference in the purchase of pálinka, the consumer decision is more varied. Our research also confirmed the preference for homemade pálinka, which is also caused by the huge price difference between homemade and in-store pálinka. Because of this situation, the producers of in-store pálinka are forced to develop a new and effective marketing communication strategy. To focus on the target groups and the strengthening of gift shopping can increase the competitiveness of commercial pálinka manufacturers. We strongly recommend further researches to help identify consumers for who a higher price means more utility, have a good financial position, live in a city, and prestige is an important consideration when buying drink. For these studies, we consider conjoint analysis an appropriate solution.