Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand

Abstract

We estimate hedonic price functions for premium wine from Australia and New Zealand, differentiating implicit prices for sensory quality ratings, wine varieties and regional as well as winery brand reputations over the vintages 1992–2000. The results show regional reputations have become increasingly differentiated through time (although less so for New Zealand). In particular, cool‐climate regions are becoming increasingly preferred over other regions in Australia. In each country, price premia associated with both James Halliday's and Winestate magazine's sensory quality ratings, and with Halliday's winery ratings and classic wine designations, are highly significant.

Short communication. Price determinants of Chilean wines in the US market: a hedonic approach

“…based on regional appellations) is as important as individual firm reputation, since consumers value these indicators as predictors of product quality. Similar results were obtained by Schamel and Anderson (2003) for Australian and New Zealand wines, who found significant price premia based on brand and regional reputations.…”

Spanish wines in the US market: What attributes do US consumers look for in Spanish wines?

“…This justifies efforts to improve classifications, especially in the ultra premium category. Our results showed a proportional relationship between quality rating and consumer valuation, as reported in past studies (Schamel & Anderson, 2003;Cacchiarelli et al, 2014). However, it is worth noting that only quality scores above 90 were significantly effective when it came to compensating the investment effort they required.…”

“…Its use in research about its role as determinant of wine's prices has produced mixed results. For some authors it has little or no influence (Schamel & Anderson, 2003;Schamel, 2006;Luppe et al, 2009), and for others it is a determining factor (Angulo et al, 2000;Lecocq & Visser, 2006;Schroeter et al, 2011) Finally, the inclusion of the winery size variable enables assessment of the impact of the scale factor on wine prices, as well as quantification of the exclusiveness that consumers can award to wines. Winery size is expected to be inversely related to price (Rodríguez & Castillo, 2009;Kwong et al, 2011;or Delmas & Grant, 2014).…”

Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee

“…country-of-origin for high-quality coffee controlling for other relevant product attributes such as variety, sensory quality or certifications. The hedonic approach is quite common to explore the value of different wine growing regions and some studies applied this approach to European GIs such as olive oil or cheese (Santos and Ribeiro 2005;Schamel 2006;Schamel and Anderson 2003). One study can be found that used internet auction data for specialty coffee to estimate the effect of sensory and reputation quality attributes on specialty coffee prices (Donnet and Weatherspoon 2006).…”