British Columbia Consumers' Preferences for Italian Wines: Reputation and Vintage Effects on Wine Quality and Prices
Italian 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.
|Date of creation:||2008|
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- 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.
- 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..
- 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 & Francis Journals, vol. 41(17), pages 2197-2209.
- 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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