Retail strategies for rosé wines in Italy: a hedonic price analysis

Abstract

Purpose The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding these wines. Design/methodology/approach A survey has been carried out on retailers by collecting data about wines as intrinsic attributes (grape variety, blending, origin, alcohol content, etc.) and extrinsic attributes (brand, price, packaging, etc.) and about outlet and retail environment. The hedonic analysis required a rearrangement of data survey, while a Box-Cox transformation allowed to control the strong heteroskedasticity detected of the data. Findings Results provide strategies for still, semi-sparkling and sparkling rosé market segments. Still rosé wines are strongly differentiated, while the price is affected by the appellation, grape variety, blending, brand and outlet features. Two main strategies are suggested: the first focuses on appellations endorsing consumer’s brand loyalty; the second is driven by retailers while involving weaker brands. Different pictures emerged for semi-sparkling and sparkling wines, as producers and retailers tend to follow consumer’s preferences for fresh and easy drinking wines as well as to extend the product assortment. Research limitations/implications Results for sparkling rosé wines cannot be generalized. The high fragmentation hinders the hedonic model performance in capturing the price effects of brands, appellations, grape variety and wine blend. Practical implications The hedonic analysis provides suggestions for rosé wine producers that should reinforce their brand through associations among intrinsic attributes, such as appellation, and extrinsic ones, such as price, while satisfying retailer requirements. Originality/value The paper contributes to the knowledge base about the Italian rosé wine market, which is mostly export-oriented. Model results help to understand why the domestic consumption is stagnant with respect to other countries such as France or the USA.

Does Italian origin really determine a price premium for fluid milk? Evidences from a hedonic price analysis

“…Regarding the Shelf placement, the model shows a very significant and positive role of the Higher and the Middle tier, implying a price premium For terms and conditions of usage please see: http://creativecommons.org of +14.7% and +17.8% respectively compared to the Lower tier. Our results differ from what found by Rossetto & Galletto (2019), who found that wines placed at eye level do not show any significant price effect compared to those located in the middle tier. Furthermore, we found, as expected, a significant and negative impact of sales Promotion on prices (-18.5%).…”

“…Literature reported different alternatives of functional forms to estimate the hedonic price function, going from linear to log-linear. In this paper, Box-Cox transformation was applied on the dependent variable (Y > 0) to choose the best functional forms to estimate (Costanigro et al, 2007;Rossetto & Galletto, 2019;Trestini et al, 2018) as follows:…”

Price Determinants of Sparkling Wine in Poland: Does Reputation Really Matter?

“…Brut type increases the price by 18.0%, if compared to the dry categories (Dry, Demi sec, Demi sweet, Extra dry). This is in line with what was found by Rossetto and Galletto [46] and justified by a general trend in modern consumption.…”

“…Following this method, also applied by Ferro and Benito Amaro [45] and Rossetto and Galletto [46], the transformation of the dependent variable, Y>0, is:…”

“…By applying an OLS regression the log-linear functional form was shown to be preferable, in line with many Source: analysis on own sources. other applications [46,5,47]. The OLS regression has to satisfy the hypothesis of homoscedasticity and no multicollinearity.…”