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How do consumers use signals to assess quality? AgEcon
Gergaud, Olivier; Livat, Florine.
This article analyzes the way some 6,000 European wine consumers, both connoisseurs and non-connoisseurs, use a set of available signals (price, umbrella branding, goodwill, past consumption) to assess the quality of Bordeaux wines where price is the main source of information on quality. Connoisseurs use this signal less intensively than on connoisseurs. Price represents a substitute for umbrella branding where consumers are not aware of who is beneath this umbrella, and where this signal is thus of no help to them. This could explain why such wines tend nowadays to lose market share in favor of branded wines that are easier to evaluate.
Tipo: Working or Discussion Paper Palavras-chave: Wine quality; Information; Quality signaling; Wine market; Consumer/Household Economics; Demand and Price Analysis; Industrial Organization; Marketing.
Ano: 2007 URL: http://purl.umn.edu/37296
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Natural endowments, production technologies, and the quality of wines in Bordeaux. Is it possible to produce wine on paved roads? AgEcon
Gergaud, Olivier; Ginsburgh, Victor.
We study whether quality assessments made by wine experts and by consumers (based on prices obtained at auction between 1980 and 1992), can be explained by variables describing endowments (land characteristics, exposures of vineyards) and technologies (from grape varieties and picking, to bottled wines). However, since technological choices are likely to depend on endowments, the effects can only be identified using an instrumental variables approach. We show that technological choices affect quality much more than natural endowments, the effect of which is negligible.
Tipo: Working or Discussion Paper Palavras-chave: Wine production; Wine quality; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/37294
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