PRICING ATTRIBUTES OF WINES FROM EMERGING SUPPLIERS ON THE BRITISH COLUMBIA MARKET

Review of Agricultural and Applied Economics, RAAE, VOL.18, No. 2/2015

ARTICLE TYPE: REGULAR ARTICLE
RECORD ONLINE: 16.10.2015
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KEYWORDS:
wine, objective characteristics, hedonic pricing, emerging suppliers, New World wine suppliers
DOI NUMBER:
10.15414/raae/2015.18.02.28-39
ABSTRACT:
We examine British Columbia (BC) wine consumers’ valuation of wine imported from emerging suppliers (Argentina, Bulgaria, Chile, Croatia and Hungary) using hedonic pricing technique. BC Liquor Distribution Branch retail sales data covering weekly sales of table wine imported into the province of British Columbia from all five countries for the period April 20th, 2002 to May 8th, 2004 are applied to estimate the influence of wine attributes on prices. The results indicate that grape variety, brand name, country of origin, and alcohol content are important factors influencing prices paid by consumers. In particular, Chilean white and red wines are associated with larger price premia as compared to Argentinean wines. Wines from Hungary, Bulgaria, and Croatia, although sold in large quantities in the BC market, are substantially discounted in comparison to New World wines. Cabernet Sauvignon fetches a higher price when blended with other varietals and Chardonnay appears to be popular and highly valued by consumers among white wines.
JEL CODES:
Q13
PAGES:
28 - 39
Please Cite this Article as:

Veronica YOO, Wojciech J. FLORKOWSKI, Richard CAREW (2015) Pricing Attributes Of Wines From Emerging Suppliers On The British Columbia Market. Review of Agricultural and Applied Economics. XVIII (Number 2, 2015): 28-39. doi: 10.15414/raae/2015.18.02.28-39
URL for sharing:

https://roaae.org/1336-9261/doi/abs/10.15414/raae/2015.18.02.28-39

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Review of Agricultural and Applied Economics | ISSN 1336-9261
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia.
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