Search results

Examines the information determinants on the hammer price of a remarkable collection often vintages of Château Léoville‐Barton, spanning 1981–90, which came up for auction at Christie's, South Kensington, during the early part of 1994. The vintage ratings of three leading wine writers and the Christie's guide prices were modelled as predictions of the hammer price. The results indicated that the auctioneer's guide prices had greatest explanatory power in terms of the variation in the hammer prices, but the vintage ratings provided by the wine authors were also significant

The purpose of this paper is to explore the notion of sustainability and research reporting price premiums for LEED‐certified buildings.

This paper explores the notion of sustainability and research reporting price premiums for LEED‐certified buildings. The durability of certification levels is explored by converting projects developed under the initial NC2‐series system to a new vintage rating adopted in 2009. This conversion is made by applying Lagrangian multipliers to model stochastic impacts.

The study reveals that 18 percent of 591 projects developed under the NC2‐Series were “misclassified” in terms of certification levels when converted to new NCv2009 standards. To the extent the market has pursued LEED certification levels, the unanticipated changes may have led to the adoption short‐term solutions that are inappropriate due to the long‐term nature of real estate assets.

Given the complexity of the LEED rating system, it is unknown how the market will react to the lack of durability and approach pricing over the long‐term.

The results indicate market participants should adopt a proactive approach to LEED certification.

The study identifies significant dynamics in the LEED certification system for new construction and behavioural responses that have not been reported in the literature.

The climate in Mendoza is significantly different from the climate in most global wine-making regions. This paper aims to explore the relationship between the quality of the Malbec wine from the Mendoza region and its weather.

This study uses a multivariate regression model with fixed effects to assess how weather variations relate to wine quality. The Wine Spectator ratings are used as a measure of wine quality and to build a longitudinal data set of Malbec wine ratings from 1995 to 2020. The weather is described with several variables based on temperature, rainfall, humidity and cloudiness data from the Mendoza region. The model controls for wineries which are treated as fixed effects.

The results of this study indicate that the weather has a modest explanatory power when it comes to the quality of Mendoza’s Malbec. Additionally, the analyses show that the wineries are more important than the weather to explain quality differences in the wines. These findings are in agreement with previous studies carried out in regions with stable weather such as California and Australia.

The quality of Mendoza’s Malbec depends more on the winery of origin than the year-to-year weather variations. Therefore, consumers should focus more on the winery and less on the vintage when making purchasing decisions. Additionally, given the relevance of the winery in relation to quality, the findings of this study indicate that future research efforts should focus on directly linking the wine ratings to quality-drivers behind the winery effects.

To the best of the authors’ knowledge, this is the first study that explores the relationship between wine quality assessed through wine ratings and the weather in the Mendoza (Argentina) region. Most such studies have been done in connection with northern hemisphere wines.

The purpose of this study is to illustrate a general method for identifying the price impact of using a different varietal name for a wine.

A revealed preference research approach is employed using marketed wines and prices. Price impacts are estimated using hedonic price models which control for the influence of other factors on prices. The technique is applied to the use of accepted synonyms to describe different varieties of Australian wine.

The use of varietal synonyms in the Australian market is suggested to be more of a marketing strategy designed to command a higher price rather than because of wine stylistic reasons. Important premiums are estimated for the use of the terms Syrah, Pinot Gris and to a lesser extent for Fumé Blanc.

Australian wine producers may be able to command price premiums by strategically choosing a name for a particular varietal. It appears no significant stylistic changes are needed to “justify” any varietal name change, and as such, only a label name change may be required. A switch to French-associated or -sounding names for a wine varietal may result in price premiums for Australian producers.

The paper illustrates a general revealed preference method for identifying wine varietal name price premiums and further illustrates the importance of “Frenchness” in wine name use.

Proceeding from studies that, at a general level, identify the extrinsic price cue as a mediator between a wine's perceived and intrinsic merit, the authors aim to report on a tasting‐room experiment conducted to determine the impact of the price cue on sighted ratings across categories of gender, age, and relative experience.

A total of 73 subjects assessed seven merlot wines, first blind and then sighted. During the sighted tasting, the only available cue‐information was the price per bottle. The seven price points ranged from the cheap (R25) to the expensive (R160).

Across all segmentations, the authors' analysis of sighted scores revealed the marked extent to which price effects demean the intrinsic merit of a wine. Older, more experienced and female strata appear to respond the most to price information; their respective model price effects are shown to increase by 57, 33 and 24 percent relative to their base comparators.

These findings challenge the dogma that unbiased sighted assessments are best conducted by self‐proclaimed wine experts who are older and more experienced; and suggest alternately, and perhaps heretically, that such assessments would be better conducted by younger, less experienced, non‐experts.

The purpose of this paper is to investigate the main factors and mechanisms that govern the price of cider, and to apply the analysis to the price of ciders in the Province of Québec, Canada.

The analysis is following the methodology applied to the determinants of the price of wine. A model for the price of cider is estimated with 70 prices representing five regions and five types of products.

The analysis is limited to one geographical factor, i.e. the region of origin and factors related to the producer, i.e. the age and the size of the firm. The results conclude on the importance of geographical factors related to the region of origin. The relationship between the price of ciders and the region of origin is statistically significant at the 1 percent level for two regions and shows a high premium for ciders produced in these two regions. Production factors related to the age and the size of the production unit although showing the expected sign are not statistically significant to conclude on the impact. There is a small premium for producing effervescent cider compared to still or rosé cider but the most statistically significant results at a 1 percent level are for ice ciders and fortified ciders which are two typical products from Québec.

The analysis has important potential implications on the role of certification of origin. Cider regions in Québec, Canada have recently defined quality standards applied to specialties like Ice cider and Fire ciders. The choice of high quality products is reflected in the premium associated to the price of these products.

Contrary to the wine sector, there is a lack of research and literature on the determinants of the price of ciders. This study is the first to propose a pricing model to examine some of the determinants of prices.

In increasingly competitive markets, opportunities exist to meaningfully differentiate product offerings by cue signalling the claims of emergent categories. Therefore, and within the context of wine sales, the purpose of this study models the supply-led price importance of nascent, extrinsic old vine (OV) cues for South African wines to establish whether to what extent and how producers prioritise such nascent cues relative to more established extrinsic cues of worth.

A data set was compiled of 159 South African wines with OV category cues signalled on front labels, back labels or via marketing material. The play of contending cue variables was computed through an ordinary least square hedonic pricing model.

In addition to the contribution of established cues such as aggregated critic ratings, grape varieties and area of origin, this study confirms that vineyard age contributes significantly to wine price, particularly when signalled on back labels.

In price setting and positional models, such as brand extensions, the findings prove useful in understanding the inherent value of nascent cues and specifically vineyard age, relative to competing established wine cues of worth.

This study extends the wine pricing theory by validating the viability of nascent OV cues in the modelling of a wine’s value.

The purpose of this paper is to examine the changing competitive landscape in the wine industry, focusing upon how premium Napa valley producers are responding to such changes.

The in depth interview technique with 11 privately owned premium wine producers was used, with interviews conducted in early 2005.

Wineries identify the growing concentration and consolidation amongst distributors and domestic US producers; increased foreign competition, particularly from Australia; and the trend towards homogenised taste following the increased power of numerical wine ranking surveys as principal concerns that they face.

The findings highlight the dilemmas faced by wineries as they attempt to stress their locational advantage for reputation building but endeavour to differentiate their product from other wineries in Napa.

As a pilot project the paper indicates how even firms in high value added product markets are facing heightened competition and what they fear might emerge in the near future from foreign producers.

The purpose of this study is to investigate the relevance of expert opinions as a marketing tool for Pinotage amongst young South African student millennials by means of sensory hedonic testing.

Sensory hedonic testing was used because it is necessary to examine the extent to which extrinsic cues influence a wine’s intrinsic merit, as this can influence future purchase decisions. Thus, it combines marketing factors and sensory science and explores the sensory liking of food products by consumers. A total of 126 South African student millennial consumers were analysed.

The results confirm that expert opinions are an effective marketing tool. While positive expert opinions did not reinforce perceived quality for already generally liked wines, they increased perceived quality for wines that were not liked. Female student millennials specifically seem to be influenced by expert opinions and packaging, even though they show a relative dislike for Pinotage under blind tasting. These results are useful in the design of marketing strategies.

Because of the chosen research approach, it may be difficult to generalize the research results. However, future research could apply this methodology to investigate the perceived quality of wine and other food products in different countries. Furthermore, replicating this study could provide interesting comparative results.

Little is known about the liking for Pinotage wines by young South African consumers or about the cues that make them respond positively to marketing.

This research is designed to explore Chinese customers' wine purchasing behaviours and to investigate the effect of country‐of‐origin (COO) information on their wine evaluations.

Data were collected from the shopping malls both in Shanghai and Hangzhou, China, using the systematic sampling method. A total 148 usable questionnaires were returned and analysed by SPSS.

The results confirmed that Chinese customers consider COO as the most important factor in their wine evaluation when a single‐cue approach is applied. When a multi‐cue approach is used however the results showed that there was no significant difference in the importance in COO and price as indicators. This research also revealed some salient characteristics of Chinese consumers buying behaviour associated with Chinese culture. When the Chinese are evaluating wine for gift giving and consuming wine in public, they tend to attach more importance to COO than to other variables and are more likely to purchase foreign or imported wine instead of domestic brands.

Only respondents from Shanghai and Hangzhou were chosen, limiting the representativeness of the sample. Future research will be benefited from increased sample size from different geographical regions and by examining the relationship between the consumer demographic characteristics and the COO effects.

The results from this study stand in contrast to previous studies relating to the role of COO in product evaluation. It illustrates the importance of culture in relation to COO.