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Private vs. Collective Wine Reputation

Author

Listed:
  • Caracciolo, Francesco
  • D’Amico, Mario
  • Di Vita, Giuseppe
  • Pomarici, Eugenio
  • Dal Bianco, Andrea
  • Cembalo, Luigi

Abstract

Using a hedonic pricing model, this paper investigates the pricing implications of two broadly defined wine reputation strategies: private and collective. While the former consists of an individual quality differentiation strategy relying on an individual wine producer's own reputation, the latter mainly relies on the reputation of a group of wineries belonging to a particular geographic denomination. To this aim, wine purchases made by a nationally representative panel of Italian households were analyzed. Estimates based on quantile regression reveal that the effects of the two reputation strategies (private and collective) have a different weight according to the price segment of the wines in question. While private reputation plays a major role in both low and high priced wines, collective reputation in terms of geographical designations seems especially important for high priced wines.

Suggested Citation

  • Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    • Handle: RePEc:ags:ifaamr:244704
    DOI: 10.22004/ag.econ.244704
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