Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand
AbstractWe 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.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2001 Conference (45th), January 23-25, 2001, Adelaide with number 125877.
Date of creation: Jan 2001
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Wine quality; regional reputation; brand reputation; hedonic pricing; Demand and Price Analysis; C50; D12; Q13;
Find related papers by JEL classification:
- C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
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