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A HEDONIC PRICE FUNCTION FOR AUSTRALIAN PREMIUM TABLE WINE *
Author(s) -
Oczkowski Edward
Publication year - 1994
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1994.tb00721.x
Subject(s) - vintage , wine , hedonic pricing , hedonic index , economics , quality (philosophy) , function (biology) , marketing , econometrics , advertising , price index , business , geography , food science , chemistry , evolutionary biology , biology , philosophy , archaeology , epistemology
A hedonic price function, relating the price of Australian wine to its attributes, is estimated. Six attribute groups are found to be statistically important in explaining deviations from average wine prices, i.e., quality, cellaring potential, grape variety/style, grape region, grape vintage and producer size. Various interaction terms between these variables and the impact of the year of marketing are also modelled. The consequent marketing implications for producers and consumers are discussed.