Effect of region of origin on willingness to pay for wine: an experimental auction
Carla Ferreira,
Ligia Pinto and
Lina Lourenço-Gomes ()
Applied Economics, 2021, vol. 53, issue 32, 3715-3729
Abstract:
The purpose of this paper is to examine the effect of the region of origin on wine consumers’ preferences and willingness to pay for wine together with other determinants, using an incentive compatible tool. Data were collected through an experimental auction mechanism in different Portuguese wine regions. Consumers’ willingness to pay for wines from three regions of origin was elicited under two information scenarios: i) blind tasting followed by extrinsic information regarding the region of origin and ii) full information provided at once. Wine consumers characteristics were also collected from a sample of 168 wine consumers. Results reveal that, the region of origin influences the hedonic evaluation of consumers.Consumers are willing to pay higher prices in full information condition, on average. Purchase frequency and less self-reported wine knowledge have a negative effect on the willingness to pay, while taste has a positive effect. Controlling for organoleptic attributes, and the importance of extrinsic cues, the region of origin has a significant influence on willingness to pay, as well as on the hedonic rating, and purchase frequency. This study offers important insights for policy makers regarding the existence of significant preference heterogeneity and the role of the region of origin.
Date: 2021
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2021.1885611 (text/html)
Access to full text is restricted to subscribers.
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:taf:applec:v:53:y:2021:i:32:p:3715-3729
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20
DOI: 10.1080/00036846.2021.1885611
Access Statistics for this article
Applied Economics is currently edited by Anita Phillips
More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().