Bottled Water Consumption: The Case of Italy - Wbiaus.org

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Giacosa & GiovandoIn addition, there is not always a connection between the annual per capita bottledwater consumption of a continent or geographical area, and the availability of drinkablewater. The consumption is in fact influenced by a series of factors in addition todrinkable water availability, including:a) the economic factor, which is due to the availability of resources consumer can usebuying bottled water (as an alternative to drinkable water);b) the natural factor, which is linked to the availability of pleasant drinkable water interms of taste, avoiding consumption of bottled water;c) the commercial factor, which is due to the advertising investments of companies thatinfluence consumption choices by pushing consumers to buy bottled water;d) the cultural factor, which itself is derived from other factors. For instance, there is a“fashion” in some countries to consume bottled water rather than tap water; widesegments of customers in certain regions are oriented more towards the consumptionof alcoholic drinks; and increasing attention is being paid to health.The validity of H2 and H3 has been demonstrated.This study has several implications for practitioners. In particular, companies operatingin the field can influence bottled water consumption through advertising, regardless ofthe availability of drinkable water in the country. Furthermore, we have identified thecountries with the highest per capita water consumption in the world, which representparticularly interesting markets for firms that are willing to invest in them. Market entrycan occur either through the import of bottled water (distance permitting), or through thepurchase of resources by which to bottle water – either bottling companies that arealready operating in the field, or creating new enterprises.Our research presents some limitations, which can be summarized as follows:a) a country’s GDP is not the only economic indicator influencing trends in bottled waterconsumption. Nevertheless, since this study represents the early stages of ourresearch, we have opted to consider this economic indicator alone, with the intention ofimproving the method in the future;b) these other factors can themselves influence bottled water consumption, and shouldtherefore be quantified; for instance, the advertising investments made by the firmsoperating in the field push consumers to buy bottled water;c) our method could be improved by adopting an econometric model, which couldenhance the informative degree of the research results.This study contributes to literature on the beverage sector, with particular reference tothe bottled water division, in the following ways. It shows that there is not always adefinite connection between the annual per capita consumption of bottled water within acertain geographic area, and the availability of drinkable water within the area.Consumption is, in fact, influenced by other factors, not only drinkable water availability.In addition, the research shows that the Italian market, which represents the largest percapita bottled water consumption of the ten main national markets, exhibits strongdifferences across its geographical areas: such information can provide an interestingarea of consideration for firms already operating in the field, or those interested in doingso.215
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