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In Vino Veritas : does origin truly matter ?

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  • Steiner, Bodo

Abstract

This paper applies hedonic analysis for an identification of the values which consumers place on attributes of origin as they are listed on the labels of bottles of wine. In particular, region and country of origin are examined with respect to the consumers' degree of product identification. Generalised least squares regressions are employed to infer the implicit valuation of information about wine attributes from explicit market prices in the British off-licence sector. The analysis allows for differential effects between attributes. Where these effects are found to have a significant impact on price, consumers are viewed as regarding attribute bundles as imperfect substitutes. The study identifies these cases where identical grape varieties originate from different countries and regions within those countries. Results suggest that grape varieties are highly important in the choice of Italian and Australian wines, whereas regional origins constitute the most important choice criterion in the case of French wines. The relationship between origin and quality is further explored as marketing implications for retailers are investigated. While considering interactions between the attributes, it is shown what potential gains or losses retailers may have to face as they intend a stocktransfer of wines from different origins.

Suggested Citation

  • Steiner, Bodo, 1999. "In Vino Veritas : does origin truly matter ?," 67th Seminar, October 28-30, 1999, LeMans, France 241050, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae67:241050
    DOI: 10.22004/ag.econ.241050
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    2. Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-692, December.
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    Cited by:

    1. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14596, International Agricultural Trade Research Consortium.
    2. Revoredo-Giha, Cesar & Lamprinopoulou-Kranis, Chrysa & Leat, Philip M.K. & Kupiec-Teahan, Beata & Toma, Luiza & Cacciolatti, Luca, 2009. "How Differentiated Is The Scottish Beef? An Analysis Of Supermarket Data Panel," Working Papers 109392, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Petzoldt, M. & Profeta, A. & Enneking, U., 2008. "Die Bedeutung von Preis und Herkunft für die Präferenzbildung bei Weinkonsumenten – Ermittlung von Präferenzheterogenität mittels einer Latent-Class-Analyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    4. Petzoldt, Marina & Profeta, Adriano & Enneking, Ulrich, 2007. "DIE BEDEUTUNG VON PREIS UND HERKUNFT FUR DIE PRAFERENZBILDUNG BEI WEINKONSUMENTEN-ERMITTLUNG VON PRAFERENZHETEROGENITAT MITTELS EINER LATENT-CLASS-ANALYSE - (German)," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7612, German Association of Agricultural Economists (GEWISOLA).

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