In Vino Veritas: does origin truly matter ?

Bodo Steiner

No 241050, 67th Seminar, October 28-30, 1999, LeMans, France from European Association of Agricultural Economists

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.

Keywords: Agricultural and Food Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 17
Date: 1999-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae67:241050

DOI: 10.22004/ag.econ.241050

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