The premium price for Italian red wines in new world wine consuming countries: the case of the Russian market

Galati, Antonino; Crescimanno, Maria; Abbruzzo, Antonino; Chironi, Stefania; Tinervia, Salvatore

doi:10.1080/09571264.2017.1324773

Cited by 25 publications

(16 citation statements)

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“…Regarding reputation attributes, protected indicators of origin are significant and increase sales by 104.33%, extending to China the study of Galati et al (2017), which showed a positive effect of designations of origin for the Russian market. Protected indicators of origin also enhance the importance of COO since they are strongly are connected to the production area.…”

Section: Resultsmentioning

confidence: 86%

“…The lowest prices are those of Argentinian Alcohol content does not represent a significant variable, confirming results by Angulo et al (2000) for the Spanish market. On the contrary, alcohol has found to be significant in the Russian market (Galati et al, 2017), denoting a different consumers' taste.…”

Section: Resultsmentioning

confidence: 97%

“…On the one hand, so far hedonic price models have traditionally been used to analyse the wine sector in "Old World" countries, apart from some recent studies in Brazil (Roberto Luppe et al, 2009), Canada (Kwong et al, 2011;Yoo et al, 2011) and Russia (Galati et al, 2017). On the other hand, previous country of origin (hereafter, COO) research conducted in China has mainly focused on consumers' perception and attitude towards wine (for example, Balestrini and Gamble, 2006;Hu et al, 2008), overlooking the analysis on product price and attributes.…”

Section: Introductionmentioning

confidence: 99%

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The country of origin effect: a hedonic price analysis of the Chinese wine market

Baldin

2018

BFJ

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This study aims at analysing the country of origin (COO) effect on wine purchase in China by considering a sample from an e-commerce website. We contribute to the literature on hedonic pricing by applying this model to the Chinese market and including COO as product attribute. Design/methodology/approach A hedonic price model is adopted to measure the effect of search attributes on wine sales in China. A reduced form of the classical hedonic analysis is used as in Nerlove (1995), given the assumption that prices and attributes are taken as exogenous to consumers. Findings Results show that the COO represents the attribute that most influences wine sales in China. Protected indicators of origin, which denote wine with recognized certificates, are also significant, reinforcing the importance of the production area. Vintage attribute does not impact sales, suggesting a low level of consumer experience with wine. Research limitations/implications The study suffers from the limitations of results' generalisability, given the size and characteristics of the sample. In the future research, the model should be tested on a larger sample. Moreover, it can be applied on other products, in which COO represents an information and quality cue. Practical implications Firms operating in sectors where COO implies specific characteristics of quality should enhance this attribute in their marketing strategies to increase their competitive advantage. Also policy implications with respect to the governmental actions to support wine producers are discussed. Originality/value Hedonic price analysis represents a well-established model, however to the best of our knowledge it has never been used in China before. This study also highlights the primary role of COO as search attribute in wine purchase.

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Section: Resultsmentioning

confidence: 86%

Section: Resultsmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

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The country of origin effect: a hedonic price analysis of the Chinese wine market

Baldin

2018

BFJ

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“…Moreover, it seems remarkable the role of 'alcohol content' variable that in our study was not statistically significant in affecting additional price for organic wine. Conversely, 'alcohol content' positively affects the prices of conventional wine (Galati et al, 2017). This result may suggest that the additional price for organic wine is not influenced by alcohol content, i.e.…”

Section: Resultsmentioning

confidence: 94%

Not everything has been still explored: Further thoughts on additional price for the organic wine

Vita

Pappalardo

Chinnici

et al. 2019

Journal of Cleaner Production

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Several studies have been conducted on organic wine consumption, but no specific study has yet fully explored how the set of attributes explored by existing research affects the additional price for organic wine. To fill this gap, the objective of this paper was to examine whether and to what extent consumers are inclined to pay for buying organic wine and what are the attributes that significantly influence the additional price of organic wine compared to conventional one. With this aim, a quantitative study over a representative sample of wine consumers in Sicily (Italy) was carried out. Results allowed to observe that consumers attached greater importance to personal motivations such as environmental protection, distinctness and curiosity as well as to explicit label information such as brand renown and local production. In addition, male gender and income are positively correlated to the willingness to pay an additional price for organic wine. Our results have important implications for the actors involved in the wine sector as the adoption of marketing practices explicitly related to the label and motivations attributes can lead to value augmentation of organic wine that could increase consumers' valuation for it.

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“…Another study on willingness to pay (WTP) shows consumers' willingness to pay a premium price of 20% on organic salmon in Danish retail sale (Ankamah-Yeboah et al, 2016) Furthermore, a study on Italian wine showed the willingness of Russian consumers to pay a premium price on Italian red wines (mainly Piedmontese and Tuscan wines) and IGT and IGP wines (Galati et al, 2017).…”

Section: Country Of Originmentioning

confidence: 99%

The attitude of consumers towards “Made in Italy” products. An empirical analysis among Italian customers

Cappelli

D’Ascenzo

Ruggieri

et al. 2019

Management &Amp; Marketing. Challenges for the Knowledge Society

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The paper is part of a broader research project studying consumer’s attitude towards “Made in Italy” products through empirical investigation. The research questions addressed are: 1) Does recognition in terms of the qualitative characterization of “Made in Italy” products exist? And if so, 2) are people willing to pay, in quantitative terms, a premium price for such products? From a theoretical standpoint, the research seeks to fill a gap in the literature, since studies combining the “made in” characteristic with measured “willingness to pay” are neither conventional nor numerous. The specific purpose of this contribution is to analyze the relationship between the purchase of “Made in Italy” products, recognition of the quality and willingness to pay a premium price on the part of Italian consumers, reporting the results of an empirical research. The survey involved a total of 315 Italian consumers while three commodity sectors were analysed: food, fashion and mechanical automation. The results confirm that there is a propensity to purchase “Made in Italy” products which does not seem to be a matter of irrational consumer behaviour. “Made in Italy” is confirmed as a conceptual category consolidated in the minds of consumers, since there is clear recognition of these products in terms of qualitative characterization. These and other results of the research (which need to be confirmed and extended with further empirical investigations) should prove relevant both to the literature and as indications for public policies and the strategies of companies operating in the sectors examined. For the literature this research can be useful because there is no complete overview of quantitative data on the premium price. It can also serve for public policies because quantification of the premium price can influence the choices and strategies of companies. This study shows a significant willingness to pay a premium price for the three sectors analyzed, although the premium price is not homogeneous: while the measures range mostly between 10 and 30%, higher values appear for products in the food sector.

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The premium price for Italian red wines in new world wine consuming countries: the case of the Russian market

Cited by 25 publications

References 50 publications

The country of origin effect: a hedonic price analysis of the Chinese wine market

The country of origin effect: a hedonic price analysis of the Chinese wine market

Not everything has been still explored: Further thoughts on additional price for the organic wine

The attitude of consumers towards “Made in Italy” products. An empirical analysis among Italian customers

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