Estimation of a hedonic price equation for Burgundy wine

Combris, Pierre; Lecocq, Sébastien; Visser, Michael

doi:10.1080/000368400322011

Cited by 141 publications

(101 citation statements)

References 5 publications

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“…These results are in accordance with other studies from Old World countries (Angulo et al, 2000;Combris et al, 2000;Mtimet & Albisu, 2006;Perrouty et al, 2006;d'Hauteville et al, 2007;Barreiro et al, 2008;Hertzberg & Malorgio, 2008;Bernabèu et al, 2012). Thus, there are clear indications that this attribute should have more emphasis in communications with them.…”

Section: Discussionsupporting

confidence: 83%

Wine consumers’ preferences in Spain: an analysis using the best-worst scaling approach

Magistris

Gracía

Albisu

2014

Span. j. agric. res.

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Research on wine consumers’ preferences has largely been explored in the academic literature and the importance of wine attributes has been measured by rating or ranking scales. However, the most recent literature on wine preferences has applied the best-worst scaling approach to avoid the biased outcomes derived from using rating or ranking scales in surveys. This study investigates premium red wine consumers’ preferences in Spain by applying best-worst alternatives. To achieve this goal, a random parameter logit model is applied to assess the impacts of wine attributes on the probability of choosing premium quality red wine by using data from an ad-hoc survey conducted in a medium-sized Spanish city. The results suggest that some wine attributes related to past experience (i.e. it matches food) followed by some related to personal knowledge (i.e. the designation of origin) are valued as the most important, whereas other attributes related to the image of the New World (i.e. label or brand name) are perceived as the least important or indifferent.

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Section: Discussionsupporting

confidence: 83%

Wine consumers’ preferences in Spain: an analysis using the best-worst scaling approach

Magistris

Gracía

Albisu

2014

Span. j. agric. res.

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“…Class of wine, vintage year and region of origin are attributes that significantly influence the price of wine (Combris et al, 1997(Combris et al, , 2000Cardebat and Figuet, 2004). This means that Spanish consumers attach a price premium to the wines from La Rioja as well as French consumers are prepared to pay more for a 'grand cru' from Saint Emilion, a highly reputed Bordeaux appellation.…”

Section: Resumen Nota Corta Determinantes Del Precio De Los Vinos Chmentioning

confidence: 99%

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

Troncoso

Aguirre

2006

Span. j. agric. res.

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A hedonic function relating the retail price of Chilean wine in the US market to a number of relevant variables was estimated. The variables were: quality ratings, aging, grape variety, valley of origin and membership to an association. Estimates for the percentage impact and marginal prices of these variables are provided. The overall conclusion is that variety and location are more influential in the commercial success of wines than quality ratings and aging, suggesting that oenological practices cannot outweigh judgemental errors in these long-term choices.Additional key words: hedonic function, marginal price, percentage impact. Resumen Nota corta. Determinantes del precio de los vinos chilenos en el mercado de Estados Unidos: un enfoque hedónicoSe estimó una función de precios hedónicos asociando el precio al detalle del vino chileno en el mercado estadounidense a los siguientes atributos visibles: nota de calidad, envejecimiento, cepa, valle de origen y pertenencia a alguna asociación de productores. Se estimó el impacto porcentual y el precio marginal de cada uno de estos atributos. La conclusión general de este estudio fue que la cepa y el valle de origen («terroir») son considerablemente más influyentes en el éxito comercial de un vino que la calidad, medida por juicios expertos, y el envejecimiento. Ello es importante porque indica que malas decisiones de largo plazo no pueden después modificarse mediante tratamientos enológicos (envejecimiento).Palabras clave adicionales: función hedónica de precios, impacto porcentual, precio marginal.The Chilean wine industry has experienced a remarkable expansion over the past decade, based primarily in the advantages offered by the international markets. Thus, while in 1990 most of the wine produced in Chile was consumed domestically and exports accounted for only 7% of total production, in 2002 about 60% of the Chilean wines were sold in the export market. In the same period of time the industry more than doubled production, passing from 2.6 to 5.9´10 6 hl, and the value of exports grew from US$ 80 million, in 1990, to US$ 608 million, in 2002 (Foster and Valdés, 2001; SAG, 2003). Wine is now one of the most important single export commodities in Chilean trade, as it contributes with about 11% of all forestry and agricultural exports.In economic theory, consumer demand is normally derived from a utility function, a theoretical construct that defines preferences over the array of commodities placed at the consumer's disposal. These preferences are based on the ordinal utility (i.e. satisfaction) obtained from the quality attributes of each commodity, as perceived by an ordinary consumer. Thus, it can be hypothesized that prices are the value that consumers attach to the bundle of quality attributes of each commodity, given certain budget restrictions and limited commodity supplies. The determination of market values based on commodity attributes can be carried out through the estimation of a hedonic price

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“…We report estimation results of hedonic price equations based on three data sets. The first one (Bordeaux I) is a sample of Bordeaux wines and formed the basis of the paper by Combris, Lecocq and Visser (1997); the second one (Burgundy) is a sample of Burgundy wines and was exploited in Combris, Lecocq and Visser (2000); the third and most recent data set is another sample of Bordeaux wines (Bordeaux II) and was analyzed in Lecocq and Visser (2001). The three data sets were generated in almost exactly the same way, and all three contain the same set of variables.…”

Section: Jones and Storchmannmentioning

confidence: 99%

What Determines Wine Prices: Objective vs. Sensory Characteristics

Lecocq¹,

Visser²

2006

J Wine Econ

Self Cite

162

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The hedonic technique is applied to wines. In the price equation we include objective characteristics appearing on the label, as well as sensory characteristics and a grade assigned by expert tasters. We have three almost identically structured data sets (two on Bordeaux wines, and one on Burgundy wines). The results are used to make comparisons between two of the most important wine regions in France, and comparisons over time (the two Bordeaux data sets are sampled at different points in time). (JEL Classification: D49.) Another puzzle is the lack of correlation between price and pleasure. Perhaps it is not so surprising that a first-rate example of a little known wine can seem much more memorable than something more famous selling at ten times the price; part of the thrill is the excitement of discovery and

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Estimation of a hedonic price equation for Burgundy wine

Cited by 141 publications

References 5 publications

Wine consumers’ preferences in Spain: an analysis using the best-worst scaling approach

Wine consumers’ preferences in Spain: an analysis using the best-worst scaling approach

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

What Determines Wine Prices: Objective vs. Sensory Characteristics

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