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Australian wines in the British wine market: A hedonic price analysis

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  • Bodo E. Steiner

    (Department of Rural Economy, University of Alberta, 515 General Services Building, Edmonton, AB T6G 2H1 Canada. E-mail: bsteiner@ualberta.ca)

Abstract

The market share of New World wines sold in many European countries has increased dramatically over the past decade. More aggressive marketing, together with a more distinct and recognizable labeling scheme, are often regarded as the keys to the marketing success of these new wines. This article employs hedonic price analysis to identify the values that marketers and consumers place on the information carried by the label of Australian wines in the British wine retail market. Although many grape varieties are given a highly distinct valuation by market participants, our results also suggest that consumers consider regions jointly with grape varieties as proxies for brands. This contrasts with the general observation that grape varietal labeling is the distinctive feature of New World wines. Marketing implications are examined by considering the revenue impact of changes in labeling at the retail level. [JEL citations: L150, D12, C21.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 287-307, 2004.

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File URL: http://hdl.handle.net/10.1002/agr.20012
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 20 (2004)
Issue (Month): 3 ()
Pages: 287-307

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Handle: RePEc:wly:agribz:v:20:y:2004:i:3:p:287-307

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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Cited by:
  1. Curtis, Kynda R. & Cowee, Margaret W. & Kim, Man-Keun & Harris, Thomas R., . "Evaluating Returns to Cool Season Grass Quality Characteristics for Niche Equine Feed Markets," Journal of Agribusiness, Agricultural Economics Association of Georgia.
  2. Cembalo Luigi & Cicia Gianni & Del Giudice Teresa & Scarpa Riccardo & Tagliafierro Carolina, 2008. "Beyond agropiracy : the case of italian pasta in the United States retail market," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 403-413.
  3. Smith, Travis A. & Lin, Biing-Hwan & Huang, Chung L., 2008. "Organic Premiums of U.S. Fresh Produce," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37626, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  4. Huang, Chung L. & Lin, Biing-Hwan, 2006. "A Hedonic Analysis on the Implicit Values of Fresh Tomatoes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25404, International Association of Agricultural Economists.
  5. Steiner, Bodo E., 2009. "The Extent and Nature of Contracting in the Wine Supply-Chain When Moral Hazard is Present," Staff Paper Series 154127, University of Alberta, Department of Resource Economics and Environmental Sociology.
  6. Scarpa, Riccardo & Thiene, Mara & Galletto, Luigi, 2006. "Consumers WTP for Wine with Certified Origin: Latent Classes Based on Attitudinal Responses," Conference Papers 6689, University of Minnesota, Center for International Food and Agricultural Policy.
  7. Davis, Timothy R. & Ahmadi-Esfahani, Fredoun Z. & Iranzo, Susana, . "Demand under product differentiation: an empirical analysis of the US wine market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society.
  8. Muth, Mary K. & Zhen, Chen & Taylor, Justin & Cates, Sheryl & Kosa, Katherine M. & Zorn, David & Choiniere, Conrad J., 2009. "The Value to Consumers of Health Labeling Statements on Breakfast Foods and Cereals," 2009 Conference, August 16-22, 2009, Beijing, China 50333, International Association of Agricultural Economists.
  9. Danielle E. Rabkin & Timothy K.M. Beatty, 2007. "Does VQA Certification Matter? A Hedonic Analysis," Canadian Public Policy, University of Toronto Press, vol. 33(3), pages 299-314, September.
  10. Ochieng', Otieno Geoffrey, 2010. "Effect of Value Addition on Price: A Hedonic Analysis of Peanut in Retail Supermarkets in Nairobi, Kenya," Research Theses 134495, Collaborative Masters Program in Agricultural and Applied Economics.

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