Determinants of Prices in the Mexican Soft Drink Market: A Hedonic Pricing Approach
Keywords:
Precios hedónicos, refrescos, México, atributos del producto, estrategia de preciosAbstract
This paper analyzes the relationship between observable product attributes and the price of soft drinks in the Mexican market using a hedonic pricing approach. We assemble an original dataset of 314 observations collected manually from major online supermarkets in Mexico and estimate a linear regression to decompose the price per liter into the effects of container size, brand, presentation, and sugar content. Our results indicate that container size and brand are the main determinants of price, reflecting volume discounting strategies and brand-based segmentation, while sugar content and presentation play a minor role. These findings provide new evidence on pricing strategies in the soft drink industry in Mexico and highlight the importance of product differentiation in consumer valuation.Downloads
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