British Columbia Consumers' Preferences for Italian Wines: Reputation and Vintage Effects on Wine Quality and Prices
AbstractItalian wines have been enjoyed by Canadian consumers for decades and the consumption is not limited to the ethnic Italian population. The study examines effects of wine characteristics and the brand associated with the designation of geographic origin estimating five hedonic price equations for Barbaresco; Barbera; Veneto (Valpolicella, Amarone and Reecioto); Soave; and, Chianti and uses weekly sales data from British Columbia retail outlets. Results indicate that, in general, a premium was paid for higher alcohol content, but the effects of individual brands within each area of origin varied and the range of price premia and discounts was from 14% to -12% suggesting that small price changes with regard to the baseline wine price could affect purchase.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44403.
Date of creation: 2008
Date of revision:
Hedonic pricing; appellation; objective characteristics; Demand and Price Analysis;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Landon, Stuart & Smith, Constance, 1998. "Quality expectations, reputation, and price," MPRA Paper 9774, University Library of Munich, Germany.
- Vincenza Odorici & Raffaele Corrado, 2004. "Between Supply and Demand: Intermediaries, Social Networks and the Construction of Quality in the Italian Wine Industry," Journal of Management and Governance, Springer, vol. 8(2), pages 149-171.
- Luigi Benfratello & Massimiliano Piacenza & Stefano Sacchetto, 2009. "Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines," Applied Economics, Taylor and Francis Journals, vol. 41(17), pages 2197-2209.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.