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Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand

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  • Schamel, Guenter
  • Anderson, Kym

Abstract

We estimate hedonic price functions for premium wine from Australia and New Zealand, differentiating implicit prices for sensory quality ratings, wine varieties, and regional as well as brand reputations over the vintages 1992 to 1998. For Australia, the results suggest regional reputations in general are becoming increasingly significant through time, indicating an intensifying regional quality differentiation. As well, some specific cool-climate regions (e.g. Adelaide Hills, Tasmania) are becoming increasingly preferred over other regions. Price premiums based on brand reputation also are shown to be significant. For New Zealand, regional quality differentiation is considerably less significant than is the case in Australia, which raises the question as to why. (Is there scope for more regional promotion there?) In both countries, price premiums for James Halliday’s sensory quality ratings are highly significant and have remained so over time.

Suggested Citation

  • Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125877, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare01:125877
    DOI: 10.22004/ag.econ.125877
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    References listed on IDEAS

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    1. 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.
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    5. Byron, R P & Ashenfelter, Orley, 1995. "Predicting the Quality of an Unborn Grange," The Economic Record, The Economic Society of Australia, vol. 71(212), pages 40-53, March.
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    7. Anderson, Kym, 2001. "Where In The World Is The Wine Industry Going?," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125531, Australian Agricultural and Resource Economics Society.
    8. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
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    Cited by:

    1. 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).
    2. Chang, Hui-Shung & Campbell, Gene & Sniekers, Peter, 2007. "Geographical Indication for New England Wines in NSW," Papers 234173, University of Melbourne, Melbourne School of Land and Environment.
    3. Anderson, Kym, 2001. "Where In The World Is The Wine Industry Going?," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125531, Australian Agricultural and Resource Economics Society.
    4. Szolnoki, Gergely & Hoffmann, Dieter & Herrmann, Roland, 2011. "Quantifizierung des Einflusses der äußeren Produktgestaltung auf die Geschmacksbewertung und auf die Kaufbereitschaft bei Wein mittels eines Charakteristikamodells," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(01), pages 1-19, February.
    5. Egon Franck & Martin Kukuk & Stefan Winter, 2004. "Weininvestment- Profitieren Anleger von der Berücksichtigung öffentlich zugänglicher Informationen?," Working Papers 0030, University of Zurich, Institute for Strategy and Business Economics (ISU).
    6. 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..
    7. James J. Fogarty, 2002. "Why is Expert Opinion on Wine Valueless?," Economics Discussion / Working Papers 02-17, The University of Western Australia, Department of Economics.
    8. Szolnoki, Gergely & Hoffmann, Dieter & Herrmann, Roland, 2011. "Quantifizierung des Einflusses der äußeren Produktgestaltung auf die Geschmacksbewertung und auf die Kaufbereitschaft bei Wein mittels eines Charakteristikamodells," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(1).
    9. Schamel, Guenter, 2002. "Focussing on Consumer Attention: Price-Quality Relationships and Reputation Indicators," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24933, European Association of Agricultural Economists.
    10. Preszler, Trent L. & Schmit, Todd M., 2008. "Modeling Perceptions Of Locally Produced Wine Among Restaurateurs In New York City," Working Papers 45503, American Association of Wine Economists.
    11. Kleynhans, Theo E. & Opperman, J.M., 2005. "Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-15, December.
    12. Jean Philippe Perrouty & François d'Hauteville & Larry Lockshin, 2006. "The influence of wine attributes on region of origin equity: An analysis of the moderating effect of consumer's perceived expertise," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 323-341.

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    Demand and Price Analysis;

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