Examination of objective wine attribute influence on prices of Argentinean and Chilean wine
Yoo, Veronica Teresa
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This study examines values consumers place on wines from Argentina and Chile using the objective attribute measures provided on wine labels in the British Columbia (BC) market. Two separate models are estimated using the Ordinary Least Squares (OLS). The estimated results indicate that grape variety, producer name, alcohol content, corporate brand name, special descriptors, quantity sold, and seasonal changes are all important factors influencing prices. Results show that BC consumers are willing to pay a premium for blended red wines, Argentina’s Malbec, Chile’s Cabernet Sauvignon, and Carmenere. In Argentina, wines produced by foreign firms are significantly discounted with respect to those produced by domestic firms, while in Chile such disparity is not confirmed due to an industrial structure that is more homogenous than in Argentina. While prices of Argentinean wines are not influenced by corporate brand names, the latter add a premium to Chilean wine prices sold in BC.