IDEAS home Printed from https://ideas.repec.org/a/zbw/hkjalm/156743.html
   My bibliography  Save this article

Quality and Value Creation on the Premium Wine Market

Author

Listed:
  • Werdelmann, Thomas

Abstract

Research questions: How does the value creating process on the wine market work? How is quality perceived and measured? And, are the wineries themselves able to influence the quality perception of their product on the market? Methods: Empirical study across different premium wine producers in Australia and California using a standardized questionnaire.Results: There is a significant interdependency between quality, price, and reputation. Institutions, like wine experts, wineshows, and wine producers influence the quality perception on the market actively and reduce uncertainty and, thereby, create the basis for market transactions.

Suggested Citation

  • Werdelmann, Thomas, 2014. "Quality and Value Creation on the Premium Wine Market," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 3, pages 47-72.
    • Handle: RePEc:zbw:hkjalm:156743
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/156743/1/13416-51429-1-PB.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Héla Hadj Ali & Céline Nauges, 2007. "The Pricing of Experience Goods: The Example of en primeur Wine," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 91-103.
    2. Kym Anderson & David Norman & Glyn Wittwer, 2019. "Globalisation of the World’s Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 2, pages 27-50, World Scientific Publishing Co. Pte. Ltd..
    3. Günter Schamel & Kym Anderson, 2019. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 10, pages 225-253, World Scientific Publishing Co. Pte. Ltd..
    4. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    5. Edward Oczkowski, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-382, December.
    6. Hoffmann, Dieter, 2006. "Der Weinmarkt in der Welt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(01), pages 1-7.
    7. Ali, Héla Hadj & Lecocq, Sébastien & Visser, Michael, 2010. "The Impact of Gurus: Parker Grades and en primeur Wine Prices," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 22-39, April.
    8. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    9. Victor Ginsburgh, 2003. "Awards, Success and Aesthetic Quality in the Arts," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 99-111, Spring.
    10. Oczkowski, Edward, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-382, December.
    11. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    12. Stuart Landon & Constance E. Smith, 1998. "Quality Expectations, Reputation, and Price," Southern Economic Journal, John Wiley & Sons, vol. 64(3), pages 628-647, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roselia Servín-Juárez & Carlos J. O. Trejo-Pech & Alma Yanet Pérez-Vásquez & Álvaro Reyes-Duarte, 2021. "Specialty Coffee Shops in Mexico: Factors Influencing the Likelihood of Purchasing High-Quality Coffee," Sustainability, MDPI, vol. 13(7), pages 1-20, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dieter Pennerstorfer & Christoph Weiss & Andreas Huber, 2019. "Experts, Reputation and Umbrella Effects: Empirical Evidence from Wine Prices," Economics working papers 2019-08, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Menival, David & Charters, Steve, 2014. "The impact of geographic reputation on the value created in Champagne," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), April.
    3. Antonis Michis & Anna Markidou, 2013. "Determinants of retail wine prices: evidence from Cyprus," Empirical Economics, Springer, vol. 45(1), pages 267-280, August.
    4. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2016. "Consumer’s comparison between local and imported organic products: a hedonic analysis of the Japanese table wine market," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 405-415, December.
    5. Christopher R. Gustafson & Travis J. Lybbert & Daniel A. Sumner, 2016. "Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 91-103, January.
    6. Richard Carew & Wojciech J. Florkowski, 2010. "The Importance of Geographic Wine Appellations: Hedonic Pricing of Burgundy Wines in the British Columbia Wine Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 93-108, March.
    7. Edward Oczkowski, 2016. "Analysing Firm-level Price Effects for Differentiated Products: The Case of Australian Wine Producers," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 43-62, March.
    8. Dubois, Pierre & Nauges, Céline, 2010. "Identifying the effect of unobserved quality and expert reviews in the pricing of experience goods: Empirical application on Bordeaux wine," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 205-212, May.
    9. Bicknell, Kathryn & MacDonald, Ian, 2009. "How Important is Reputation for New Zealand Wine Makers?," 2009 Conference, August 27-28, 2009, Nelson, New Zealand 115717, New Zealand Agricultural and Resource Economics Society.
    10. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2014. "Market penetration of imported agricultural products: A hedonic analysis of the Japanese table wine market," Working Papers e083, Tokyo Center for Economic Research.
    11. Teuber, Ramona, 2008. "Geographical Indications and the Value of Reputation - Empirical Evidence for Cafe de Marcala," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43835, European Association of Agricultural Economists.
    12. Schamel, Guenter, 2002. "California Wine Winners: A Hedonic Analysis Of Regional And Winery Reputation Indicators," 2002 Annual meeting, July 28-31, Long Beach, CA 19864, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Danielle Wood & Kym Anderson, 2019. "What Determines the Future Value of an Icon Wine? New Evidence from Australia," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 11, pages 255-282, World Scientific Publishing Co. Pte. Ltd..
    14. Schamel, Günter, 2005. "German Wine: Measurement and Evaluation of Product Quality," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    15. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    16. Jean Desrochers & J. Francois Outreville, 2013. "Uncertainty, Ambiguity and Risk Taking: an experimental investigation of consumer behavior and demand for insurance," ICER Working Papers 10-2013, ICER - International Centre for Economic Research.
    17. Davis, Timothy R. & Ahmadi-Esfahani, Fredoun Z. & Iranzo, Susana, 2008. "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, vol. 54(4), pages 1-17, December.
    18. Pomarici, Eugenio & Caracciolo, Francesco & Cembalo, Luigi, 2012. "Price Heterogeneity and Vine Homogeneity: An Ordered Logit Hedonic Price Estimation," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144957, International European Forum on System Dynamics and Innovation in Food Networks.
    19. Timothy R. Davis & Fredoun Z. Ahmadi-Esfahani & Susana Iranzo, 2008. "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, vol. 52(4), pages 401-417, December.
    20. Schamel, Guenter, 2003. "International Wine Trade: Analyzing The Value Of Reputation And Quality Signals," 2003 Annual meeting, July 27-30, Montreal, Canada 22157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:hkjalm:156743. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.journal-alm.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.