THE PREMIUM PRICE FOR ITALIAN RED WINE QUALITY ATTRIBUTES IN THE JAPANESE MARKET

Abstract

In this paper we apply the hedonic price model in order to estimate implicit price for the main objective characteristics appearing on the label of Italian wines sold in Japan, easier to identify than sensory attributes by consumers. In this paper, the wine searcher dataset has been used in order to select the retailer price and the research score for 829 wines, for each of which we have observed information about their geographical origin, vintage, grape varieties, vintage, and the alcohol degree. Our results indicate that international grape varieties, alcohol content and the year of production explain the major part of price difference. On the other hand, the origin appellations linked to specific Italian territories negatively affect the medium price of wine.