The country brand trap

Rodrigo Berríos and Rodrigo Saens ()

Revista CEPAL, 2012

Abstract: Data on 14,284 bottles of wine from six regions or countries, namely Argentina, Australia, Chile, California (United States), Burgundy (France) and South Africa, and from five vintages (1997, 1999, 2001, 2004 and 2005), are used to estimate a hedonic price model that causally relates wine prices to individual quality and country brands. A positive and statistically significant relationship between price and individual quality is confirmed, and it is found that the premium or penalty attaching to wines because of their associated country brand has held steady over time, as has price-quality elasticity. Individual quality being equal, Chilean and Argentine wines continue to suffer a penalty of over 50% relative to Californian wines. Another finding is that the country brand problem will not be solved until countries that are newcomers to the industry, such as Chile and Argentina, succeed in producing a critical mass of wines of outstanding quality, for this is the factor that will ultimately determine whether their producers benefit from a good collective image or reputation.

Date: 2012-04
Note: Includes bibliography
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://repositorio.cepal.org/handle/11362/11583

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecr:col070:11583

Access Statistics for this article

More articles in Revista CEPAL from Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL) Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteca CEPAL ().