Implicit prices of a hedonic study are only as good as the information upon which they
are based. The data set used in the calculation of the Model was attained from one store. However, due to the centralised buying arrangements of the Grocery chain, there is a large degree of uniformity between stores’ prices. A limitation of the model may be its failure to completely account for the market structure. Accounting for the nature of the fruit juice industry proved to be a difficult task in light of the limited data available. Information on product mark-ups may have enhanced the model, but further research would be needed to establish this. Finally identification of the underlying supply and demand functions for characteristics is difficult when little prior information is available. Consequently the approach followed in this paper developed reduced form models that focused neither on consumers’ valuations nor producers’ factor costs.