A Methodology for Evaluating How Product Characteristics Impact Choice in Retail Settings with Many Zero Observations: An Application to Restaurant Wine Purchase

A Methodology for Evaluating How Product Characteristics Impact Choice in Retail Settings with Many Zero Observations: An Application to Restaurant Wine Purchase

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An approach is developed to examine the impact of product characteristics on choice using a quantity-dependent hedonic model with retail panel data.Since panel data for individual products from retail roman atwood gfuel settings can include a large number of zero sales, a modification of the zero-inflated Poisson (ZIP) regression model is proposed for estimation.Results for this model compare favorably to results for alternative hurdle and negative binomial hp 15-ef1005ds models.

An application of this methodology to restaurant wine sales produces useful results regarding sensory characteristics, price, and origin/varietal information.