An In-Depth Analysis of Wine Price Promotions in Argentina

Abstract

Purpose – This study investigates price promotions in the Argentine retail wine market, with a focus on the impact of economic inflation on promotional trends and the role of price reductions. The aim is to understand how market dynamics and external factors shape promotional activities.Design/Methodology/Approach – Using weekly data on 766 wines over a five-year period, the research employed boxplots to identify temporal patterns in wine promotions, offering an effective means of visualizing changes in promotional behavior. Logit estimations were applied to further explore the factors influencing these promotions.Findings – The findings indicate heightened promotional activity during periods such as pay weeks, winerelated festivities, and the COVID-19 lockdown in 2020. The logit estimations revealed that cost and exchange rate fluctuations significantly affect the likelihood of a wine being promoted.Research Implications – Although the study is limited to the Argentine market, the findings provide insights for consumers seeking cost-saving strategies and managers aiming to make informed decisions regarding pricing and discounting. Future research could benefit from employing more advanced statistical methods to further investigate the impact of economic conditions on promotional trends in other markets. These insights are valuable for strategic planning and competitive positioning in economically volatile environments.