Drinking wine at home: Hedonic analysis of sicilian wines using quantile regression

American Journal of Applied Sciences

Volumn 12, Issue 10, 2015, Pages 679-688

  Di Vita, Giuseppe ^a   Caracciolo, Francesco ^b   Cembalo, Luigi ^b   Pomarici, Eugenio ^b   D’Amico, Mario ^a  

^a UNIVERSITY OF CATANIA   (Italy)

^b UNIVERSITY OF NAPLES FEDERICO II   (Italy)

Author keywords

Consumer scan dataset; Geographic origin; Hedonic price; Robust regression; Wine consumption

Indexed keywords

EID: 84947065643     PISSN: 15469239     EISSN: 15543641     Source Type: Journal    
DOI: 10.3844/ajassp.2015.679.688     Document Type: Article

References (59)

1. AC Nielsen, 2011. Home scan data.
2. Almenberg, J. and A. Dreber, 2011. When does the price affect the taste? Results from a wine experiment. J. Wine Econom., 6: 110-121. DOI: 10.1017/S1931436100001085
3. Angulo, A.M., J.M. Gil, A. Gracia and M. Sanchez, 2000. Hedonic prices for Spanish red quality wine. British Food J., 102: 481-493. DOI: 10.1108/00070700010336445
4. Armstrong, R.D., E.L. Frome and D.S. Kung, 1979. Algorithm 79-01: A revised simplex algorithm for the absolute deviation curve fitting problem. Commun. Stat. Simulat., 8:175-190.
5. Bellia, C., 2007. Strategies of improvement of marketing mix in the Sicilian market oriented wine entrerprises. New Medit., 2: 27-37.
6. Benfratello, L., M. Piacenza and S. Sacchetto, 2009. Taste or reputation: What drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines. Applied Econom., 41: 2197-2209. DOI: 10.1080/00036840701222439
7. Brentari, E., R. Levaggi and P. Zuccolotto, 2011. Pricing strategies for Italian red wine. Food Quality Preference, 22: 725-732. DOI: 10.1016/j.foodqual.2011.06.001
8. Cameron, A.C. and P.K. Trivedi, 2005. Microeconometrics: Methods and Applications. 1st Edn., Cambridge University Press, Cambridge, ISBN-10: 0521848059, pp: 1034.
9. Caniglia, E., M. D'Amico and I. Peri, 2008. An analysis of consumers' perception of the quality of the Etna DOC wine. New Medit., 3: 32-40.
10. Caracciolo, F. and P. Lombardi, 2012. A newinstitutional framework to explore the trade-off between Agriculture, Environment and Landscape. Econom. Policy Energy Environ., 3: 135-154. DOI: 10.3280/EFE2012-003009
11. Caracciolo, F., L. Cembalo and E. Pomarici, 2013. The hedonic price for an Italian grape variety. Italian J. Food Sci., 25: 289-294.
12. Cardebat, J.M. and J.M. Figuet, 2004. What explains Bordeaux wine prices? Applied Econom. Lett., 11: 293-296. DOI: 10.1080/1350485042000221544
13. Carew, R. and W.J. Florkowski, 2010. The importance of geographic wine appellations: Hedonic pricing of burgundy wines in the British Columbia wine market. Canadian J. Agric. Econom., 58: 93-108. DOI: 10.1111/j.1744-7976.2009.01160.x
14. Casini, L., A.M. Corsi and S. Goodman, 2009. Consumer preferences of wine in Italy applying best-worst scaling. Int. J. Wine Business Res., 21: 64-78. DOI: 10.1108/17511060910948044
15. Chinnici, G., B. Pecorino, M. Rizzo and P. Rapisarda, 2013. Evaluation of the performances of wine producers in Sicily. Quality-Access Success, 14: 108-135.
16. Cembalo, L., F. Caracciolo and E. Pomarici, 2014. Drinking cheaply: The demand for basic wine in Italy. Aust. J. Agr. Resour. Econom., 58: 374-391. DOI: 10.1111/1467-8489.12059
17. Cicia, G., L. Cembalo, T. Del Giudice and R. Scarpa, 2013. Country-of-origin effects on Russian wine consumers. J. Food Prod. Market., 19: 247-260. DOI: 10.1080/10454446.2013.724369
18. Combris, P., S. Lecocq and M. Visser, 1997. Estimation of a hedonic price equation for Bordeaux wine: Does quality matter? Economic J., 107: 390-402. DOI: 10.1111/j.0013-0133.1997.165.x
19. Combris, P., S. Lecocq and M. Visser, 2000. Estimation of a hedonic price equation for Burgundy wine. Applied Econom., 32: 961-967. DOI: 10.1080/000368400322011
20. Costanigro, M., J.J. McCluskey and R.C. Mittelhammer, 2007. Segmenting the wine market based on price: Hedonic regression when different prices mean different products. J. Agric. Econom., 58: 454-466. DOI: 10.1111/j.1477-9552.2007.00118.x
21. Costanigro, M., R.C. Mittelhammer and J.J. McCluskey, 2009. Estimating class-specific parametric models under class uncertainty: Local polynomial regression clustering in an hedonic analysis of wine markets. J. Applied Econometr., 24: 1117-1135. DOI: 10.1002/jae.1094
22. Costanigro, M., J.J. McCluskey and C. Goemans, 2010. The economics of nested names: Name specificity, reputations and price premia. Am. J. Agric. Econom., 92: 1339-1350. DOI: 10.1093/ajae/aaq065
23. D'Amico, M., G. Di Vita and G. Bracco, 2014a. Direct sale of agro-food product: The case of wine in Italy. Quality-Access Success, 15: 247-253.
24. D'Amico, M., G. Di Vita, G. Chinnici, G. Pappalardo and B. Pecorino, 2014b. Short food supply chain and locally produced wines: Factors affecting consumer behavior. Italian J. Food Sci., 26: 329-334.
25. D'Amico, M., G. Chinnici, G. Pappalardo and G. Di Vita, 2011. Analisi sul consumo di vino siciliano in Italia. In Economia Del Vino in Sicilia, D'Amico, M. (Ed.), Bonanno, Acireale, ISBN-10: 8877968729.
26. Di Vita, G., G. Chinnici and M. D'Amico, 2014a. Clustering attitudes and behaviours of Italian wine consumers. Quality-Access Success, 15: 54-61.
27. Di Vita, G., G. Chinnici, G. Pappalardo, M. D'Amico and S. Bracco, 2014b. Standard output versus standard gross margin, a new paradigm in the EU farm economic typology: What are the implications for wine-grape growers?. J. Wine Res., 25: 229-242.
28. Di Vita, G., C. Bellia, G. Pappalardo and M. D'Amico, 2013a. The role of innovation and organization in small size wineries: The case of Malvasia delle Lipari PDO wine. Quality-Access Success, 14: 107-112.
29. Di Vita, G., M. D'Amico, G. La Via and E. Caniglia, 2013b. Quality perception of PDO extra-virgin olive oil: Which attributes most influence Italian consumer? Agric. Econom. Rev., 14: 46-58.
30. Golan, A. and H. Shalit, 1993. Wine quality differentials in hedonic grape pricing. J. Agric. Econom., 44: 311-321. DOI: 10.1111/j.1477-9552.1993.tb00274.x
31. Goldstein, R., J. Almenberg, A. Dreber, J.W. Emerson and A. Herschkowitsch et al., 2008. Do more expensive wines taste better? Evidence from a large sample of blind tastings. J. Wine Econom., 3: 1-9. DOI: 10.1017/S1931436100000523
32. Hadj Ali, H. and C. Nauges, 2008. The pricing of experience goods: The example of en primeur wine. Am. J. Agric. Econom., 89: 91-103. DOI: 10.1111/j.1467-8276.2007.00965.x
33. Hunter, D.R. and K. Lange, 2000. Quantile regression via an MM algorithm. J. Comput. Graph. Stat., 9: 60-77.
34. Jones, G.V. and K.H. Storchmann, 2001. Wine market prices and investment under uncertainty: An econometric model for Bordeaux crus classes. Agric. Econom., 26: 115-133. DOI: 10.1111/j.1574-0862.2001.tb00058.x
35. Kerr, W.C., T.K. Greenfield and L.T. Midanik, 2006. How many drinks does it take you to feel drunk? Trends and predictors for subjective drunkenness. Addiction, 101: 1428-1437. DOI: 10.1111/j.1360-0443.2006.01533.x
36. Kwong, L.M.K., D. Cyr, J. Kushner and T. Ogwang, 2011. A semiparametric hedonic pricing model of Ontario wines. Canadian J. Agric. Econom., 59: 361-381. DOI: 10.1111/j.1744-7976.2010.01209.x
37. Landon, S. and C.E. Smith, 1997. The use of quality and reputation indicators by consumers: The case of Bordeaux wine. J. Consumer Policy, 20: 289-323. DOI: 10.1023/A:1006830218392
38. Lecocq, S. and M. Visser, 2006. What determines wine prices: Objective vs. sensory characteristics. J. Wine Econom., 1: 42-56. DOI: 10.1017/S1931436100000080
39. Ling, B.H. and L. Lockshin, 2003. Components of wine prices for Australian wine: How winery reputation, wine quality, region, vintage and winery size contribute to the price of varietal wines. Aus. Market. J., 11: 19-31. DOI: 10.1016/S1441-3582(03)70132-3
40. Manning, W.G., L. Blumberg and L.H. Moulton, 1995. The demand for alcohol: The differential response to price. J. Health Econom., 14: 123-148. DOI: 10.1016/0167-6296(94)00042-3
41. Mediobanca, 2013. Indagine sul settore vinicolo. MBRES, Ufficio studi Mediobanca, Milano.
42. Monroe, K.B., 1973. Buyers' subjective perceptions of price. J. Market. Res., 10: 70-80. DOI: 10.2307/3149411
43. Nerlove, M., 1995. Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers. Eur. Econom. Rev., 39: 1697-1716. DOI: 10.1016/0014-2921(95)00013-5
44. Oczkowski, E., 1994. Hedonic price function for Australian premium table wine. Aus. J. Agric. Econom., 38: 93-110. DOI: 10.1111/j.1467-8489.1994.tb00721.x
45. Oczkowski, E., 2001. Hedonic wine price functions and measurement error. Econom. Record, 77: 374-382. DOI: 10.1111/1475-4932.00030
46. Panzone, L.A., 2011. The lost scent of Eastern European wines in Western Europe: A hedonic model applied to the UK market. Brit. Food J., 113: 1060-1078. DOI: 10.1108/00070701111153797
47. Panzone, L.A., 2012. Alcohol tax, price-quality proxy and discounting: A reason why alcohol taxes may rebound. J. Agric. Econom., 63: 715-736. DOI: 10.1111/j.1477-9552.2012.00351.x
48. Panzone, L.A. and O.M. Simões, 2009. The importance of regional and local origin in the choice of wine: Hedonic models of Portuguese wines in Portugal. J. Wine Res., 20: 27-44. DOI: 10.1080/09571260902978527
49. Rao, A.R., 2005. The quality of price as a quality cue. J. Market. Res., 42: 401-405. DOI: 10.1509/jmkr.2005.42.4.401
50. Rao, A.R. and K.B. Monroe, 1989. The effect of price, brand name and store name on buyers' perceptions of product quality: An integrative review. J. Market. Res., 26: 351-357. DOI: 10.2307/3172907
51. Roma, P., G. Di Martino and G. Perrone, 2013. What to show on the wine labels: A hedonic analysis of price drivers of Sicilian wines. Applied Econom., 45: 2765-2778. DOI: 10.1080/00036846.2012.678983
52. Ronning, G. and N. Schulze, 2004. A microeconometric characterization of household consumption using quantile regression. Applied Econom. Q., 50: 183-208.
53. Rosen, S., 1974. Hedonic prices and implicit markets: Product differentiation in pure competition. J. Political Economy, 82: 34-55. DOI: 10.1086/260169
54. Schamel, G. and K. Anderson, 2003. Wine quality and varietal, regional and winery reputations: Hedonic prices for Australia and New Zealand. Econom. Record, 79: 357-369. DOI: 10.1111/1475-4932.00109
55. Schamel, G., 2006. Geography versus brands in a global wine market. Agribusiness, 22: 363-374. DOI: 10.1002/agr.20091
56. Shapiro, C., 1983. Premiums for high quality products as returns to reputations. Q. J. Econom., 98: 659-679. DOI: 10.2307/1881782
57. Steiner, B.E., 2004. Australian wines in the British wine market: A hedonic price analysis. Agribusiness, 20: 287-307. DOI: 10.1002/agr.20012
58. Tirole, J., 1996. A Theory of Collective Reputations (with applications to the persistence of corruption and to firm quality). Rev. Econom. Stud., 63: 1-22. DOI: 10.2307/2298112
59. Wolinsky, A., 1983. Prices as signals of product quality. Rev. Econom. Stud., 50: 647-658. DOI: 10.2307/2297767