Regional reputation as the price premium : estimation of a hedonic model for the wines of Castile-La Mancha

Wine is a multi-attribute product and one of great differentiation. Consumers do not know wines’ intrinsic properties before its purchase; consumers need and look for extrinsic signals that allow them to infer those intrinsic properties. To evaluate those intrinsic wine properties, the article uses...

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Detalles Bibliográficos
Autores: Castillo-Valero, Sebastián, Villanueva, Emiliano C., García-Cortijo, M. Carmen
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Argentina
Institución:Universidad Nacional de Cuyo
Repositorio:Biblioteca Digital (UNCu)
Idioma:inglés
OAI Identifier:oai:bdigital.uncu.edu.ar:12004
Acceso en línea:http://bdigital.uncu.edu.ar/12004
Access Level:acceso abierto
Palabra clave:Precio diferencial
Vinos
Castilla-La Mancha (España)
Denominación de origen
Mercadotecnia
Unión Europea
Venta por Internet
Hedonic model
Wine of Castile
Attributes
Experts
On-line sales
Spanish wine market
Price premium
Modelo hedónico
Tiendas en línea
Modelo de precios hedónicos
Mercado del vino español
Descripción
Sumario:Wine is a multi-attribute product and one of great differentiation. Consumers do not know wines’ intrinsic properties before its purchase; consumers need and look for extrinsic signals that allow them to infer those intrinsic properties. To evaluate those intrinsic wine properties, the article uses price as an extrinsic signal to express their value. The price used is a comparison between the prices suggested by the specialized guides and the ones proposed directly to the consumer at the on-line stores. With the hedonic price methodology, which relates price and attributes, the article shows the convergence between the value referenced (price) by the Spanish experts and the one paid (price) in the Spanish market, the former being independent of the interests of the economic agents and the latter not. Regional reputation is the only attribute that positively impacts the price of Castilian wine and is prioritized in the ranking of attributes.