What Price Quality? An Investigation into the Prediction of Wine-quality Ratings

Ira Horowitz · Larry Lockshin

70 citations0/0 files storedJournal of Wine Research

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Wine Industry and Tourism Art History and Market Analysis Horticultural and Viticultural Research

Abstract

The paper uses the wine-quality ratings devised by James Halliday in his book Australia and New Zealand Wine Companion 2000 as the dependent variable in a regression-based analysis. Equations are developed for eight different wine varieties in Australia: Chardonnay, Riesling, Semillon, Sauvignon Blanc, Cabernet, Shiraz, Merlot and Pinot Noir. The independent variables having the greatest correlation with the quality rating include price range, winery rating, vintage, size of winery and region. The importance of these independent variables varies with the variety and some traditional indicators of quality, such as region, do not seem to have as great a correlation with quality as might be expected.

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References

1997Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?1997The Use of Quality and Reputation Indicators by Consumers: The Case of Bordeaux Wine 2003Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand 1994A HEDONIC PRICE FUNCTION FOR AUSTRALIAN PREMIUM TABLE WINE*1995Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers 1995Bordeaux Wine Vintage Quality and the Weather 1989Risk Reducing Strategies Used in the Purchase of Wine in the UK 1986A Consumer Approach to Branded Wines

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