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Product differentiation in the German soft drink market: which attributes matter?

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  • Julia Bronnmann
  • Julia Hoffmann

Abstract

In this study, we apply a hedonic pricing model to a unique data set of the German carbonated soft drink market. We distinguish between traditional brands and private label brands and include a variety of product attributes such as flavour, sugar content and bottle size in our analysis. Our results show that most traditional brands yield highest price premiums. However, organic niche products seem to be even more profitable. Also, unconventional flavours, small bottle sizes and retailing in supermarkets lead to higher price premiums. Private label brands are associated with highest negative price premiums.

Suggested Citation

  • Julia Bronnmann & Julia Hoffmann, 2018. "Product differentiation in the German soft drink market: which attributes matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 25(14), pages 968-971, August.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:14:p:968-971
    DOI: 10.1080/13504851.2017.1388906
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    Cited by:

    1. Trestini, Samuele & Stiletto, Alice, 2020. "Does Italian origin really determine a price premium for fluid milk? Evidences from a hedonic price analysis," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 22(1), June.
    2. Julia Hoffmann & Julia Bronnmann, 2019. "Bottle size matters: Heterogeneity in the German carbonated soft drink market," Agribusiness, John Wiley & Sons, Ltd., vol. 35(4), pages 556-573, October.

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