The Pareto Effect (80:20 rule) in consumption of liquor: A preliminary discussion

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dc.contributor.authorHabel, C.
dc.contributor.authorRungie, C.
dc.contributor.authorLockshin, L.
dc.contributor.authorSpawton, T.
dc.contributor.conferenceInternational Colloquium in Wine Marketing (2003 : Adelaide, S. Aust.)
dc.contributor.editorLockshin, L.
dc.contributor.editorRungie, C.
dc.date.issued2003
dc.description.abstractThis paper considers two performance issues for several types of alcohol – category penetration and consumer concentration. Consumer concentration is addressed using the performance measure of “Pareto Share”, which is defined as the percentage of category sales to the top 20% of its consumers. The beverage categories of beer, wine and spirits are first compared for their observed 1-week time period. The categories are then modelled, using the Negative Binomial Distribution in order to extrapolate market behaviour to longer time periods of observation – in this case a month and a year. Findings of this study are that the Pareto effect varies considerably across alcohol types and that the apparent Pareto effect increases as the sample time increases. The implications for managers are discussed and areas of further research highlighted.
dc.identifier.citationProceedings of the International Colloquium in Wine Marketing 2003 [electronic resource] / Larry Lockshin and Cam Rungie (eds.), [CDROM]:pp.2-12
dc.identifier.isbn0868039888
dc.identifier.urihttp://hdl.handle.net/2440/46536
dc.language.isoen
dc.publisherUniversity of South Australia, Wine Marketing Research Group
dc.publisher.placeAustralia
dc.titleThe Pareto Effect (80:20 rule) in consumption of liquor: A preliminary discussion
dc.typeConference paper
pubs.publication-statusPublished

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