Modeling of Demand on the Brewing Market

In modelling of consumer’s product among other products there can arise a situation when it is impossible to estimate all the relevant characteristics of different products. The characteristics of the product that affects the influence on consumer’s demand for a product can be divided on” observed “ characteristics that define precise standards of the product that are available for a consumer“and “unobserved” that means standards of the product which affect the price of the product , but remain unknown for a consumer. The market of the differentiated products is difficult to estimate because of the problem such as a disparity in the base of data represented by a great number of products and and the product chatacteristics. The Russian beer market is included in the top of the list that consists of ten counties concerning the volume of sales . Moreover , Russian beer market will have an influence from Russian football championship that is going to be in 2018.Consequently, the largest international producers will try to have an influence on this market in which the demand is not still defined. The goal of this master’s dissertation is a modeling of demand for a beer on the example of Russian market. The object of this current paper is the impact of the consumer’s demand for the characteristics of the product and prices. The subject of this work is the beer market of the Russian Federation on the precise period from January of 2016 till September of 2017. The theoretical and methodological base of this work is Russian and foreign publications devoted to consumer’s demand for differentiated products. The current paper presents an empirical study based on several models of consumer’s demand that were never approbated before in this sphere of beer production in Russia with the help of programme STATA 13.0.