Trade-off analysis in a wine market research in Hungary

Marketing managers are faced with numerous difficult tasks directed at assessing future profitability, sales, and market share for new product entries or modifications of existing products or marketing strategies. Each of the identified marketing problems may be addressed and solved using the trade-off analysis methodology. In addition, a trade-off based competitive strategy may be implemented by modifying the marketing mix, i.e., new product/concept identification, pricing, advertising and distribution. In this article the main steps of the model is shown in a study through the research of the Hungarian wine market. A set of wine attributes that are anticipated as the most important factors when buying wine were shown to respondents. These attributes included growing site, variety, quality and price. Each of the attributes was further divided into levels, e.g. growing site consisted of Csongrád, Mátraalja, Eger and Hajós-Baja, while other attributes had their particular levels according to their characteristics. Twenty out of the total combination of attributes were chosen and so call profile cards were made. Respondents were asked to rank order cards according to their preference, thus simulating a purchase situation. The analysis calculated the utility of each levels of attribute for all of the respondents