Consumers´ Preferences for Spanish Wines with Protected Designation of Origin Using Home-Scan Data
2023
Demirtas, Ahmet
This paper assesses the relevant derivatives influencing the retail price of wine in different canals in Area Metropolitana de Barcelona and Spain. It investigates the contribution of Protected Designation of Origin (PDO) to the retail price of wine by considering consumers’ loyalty and willingness to pay a price premium for local wine. A hedonic price model was estimated together with an Almost Ideal Demand System (AIDS) using household scan data (967 households for Barcelona level) of the period 2018 - 2020. The results show that Denominación De Origen Calificada (DOCa) Rioja wine certification is the PDO label with the highest willingness to pay among non-sparkling PDO wines. Furthermore, shop types randomly affect consumers’ willingness to pay for wine. Finally, loyalty and differentiated products play an active role in consumers' willingness to pay for PDO wine.
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