Title: Italian red wine in the Japanese market: a hedonic price analysis

Authors: Antonino Galati; Maria Crescimanno; Salvatore Tinervia

Addresses: Department of Agricultural and Forest Sciences, Università degli Studi di Palermo, Viale delle Scienze 13, Building 4, 90128, Palermo, Italy ' Department of Agricultural and Forest Sciences, Università degli Studi di Palermo, Viale delle Scienze 13, Building 4, 90128, Palermo, Italy ' Department of Agricultural and Forest Sciences, Università degli Studi di Palermo, Viale delle Scienze 13, Building 4, 90128, Palermo, Italy

Abstract: This study applies the hedonic pricing model to examine important objective attributes appearing on the label of Italian wines influencing average customer wine prices in Japan. Data on 829 red Italian wines sold in the Japanese market were collected through the wine searcher dataset, and the information included on the wine labels, useful for assisting in the selection and appreciation of wines, has been included. A log-linear model was esteemed and the proposed hedonic equation accounted for 43.5% of the variation in wine prices. The results indicate that international grape varieties, alcohol content and the year of production explain most of the price difference. On the other hand, the appellations of origin linked to specific Italian territories negatively affect the medium price of wine. The proposed model will provide useful information for export-oriented Italian wineries in order to establish effective marketing strategies.

Keywords: Italian wine; Japanese wine market; quality extrinsic attributes; hedonic price model.

DOI: 10.1504/GBER.2017.10004179

Global Business and Economics Review, 2017 Vol.19 No.6, pp.760 - 770

Received: 21 Jan 2016
Accepted: 04 Apr 2016

Published online: 12 Oct 2017 *

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