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Wine Label Descriptors and Shelf Price Paid by Argentine Consumers

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  • García Arancibia, Rodrigo
  • Rossini, Gustavo
  • Depetris Guiguet, Edith

Abstract

A wide variety of wines are sold in the Argentine retail wine market, both in specialized stores and supermarkets. There are several wine segments according to their degree of vertical differentiation, each with additional differentiation strategies. One of them centers on the information provided in the bottle label to attract consumers, which can be characterized as objective information (type of grape, color, age, alcoholic content, region of origin) and additional information (food pairing, sensorial and environmental characteristics, wine making process, serving temperature suggestions). The question arises about the relationship, if any, between those descriptors and the price paid by the consumer. To answer it, an empirical study was conducted for Santa Fe city, an important consumption center. A hedonic price model was estimated, with the results showing that within the lower-priced wine segment, the additional information had a positive impact on prices; this situation was not the same for the higher-priced wines. Statistically significant differences were also found between provinces of origin, type of wine and purchase place.

Suggested Citation

  • García Arancibia, Rodrigo & Rossini, Gustavo & Depetris Guiguet, Edith, 2015. "Wine Label Descriptors and Shelf Price Paid by Argentine Consumers," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), pages 1-17.
    • Handle: RePEc:ags:aergaa:253793
    DOI: 10.22004/ag.econ.253793
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    3. Peter Gal & Attila Jambor, 2020. "Geographical Indications as Factors of Market Value: Price Premiums and Their Drivers in the Hungarian Off-Trade Wine Market," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(2), June.

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