The Italian Grappa Market: An Analysis of Consumer Preferences Through Hedonic Price Analysis

This work carries out a hedonic price analysis in the Italian grappa market. We use a dataset composed of around 15.576 observations of retail chain prices (related to transactions taken place in Italy in the period 1997-2004) and product characteristics. We estimate the implicit price of the main product attributes. Results show that particularly bottle format, high alcohol content and brand affect the consumer’s willingness-to-pay for grappa. In particular, the Prime Uve variable presents statistically significant, positive estimated coefficients, with high magnitude, which we interpreted as a “fads and fashion effect”. In addition, we are able to capture consumer taste evolution over time and consumer taste differences in space (different consumer preferences across Italian regions).


Issue Date:
2006-08
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/6654
Total Pages:
17
Series Statement:
Proceedings of the 10th Joint Conference on Agriculture, Food, and the Environment, August 27-30, 2006, Duluth, Minnesota




 Record created 2017-04-01, last modified 2017-08-23

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