Schamel (2000) estimates a hedonic pricing model
based on United States data for sensory quality ratings,
individual wine quality and regional reputation
indicators for two premium wine varieties: a
white (Chardonnay) and a red (Cabernet Sauvignon).
That paper examines seven regions (Napa and
Sonoma Valley, Sonoma County, Oregon, Washington
State, Australia, Chile, South Africa) and includes
observations from a pool of eight vintages between
1988 and 1995. However, it does not estimate
coefficients for individual vintages. The estimated
price elasticity of sensory quality is larger for white
than red wine, but both regional reputation and individual
quality indicators seem to be more important
to red wine consumers in the United States. The
results also suggest that the marketing of regional
origin as a reputation attribute may have a higher
payoff for regions primarily growing red wine.
Because wine consumers are uncertain about quality,
we assume that, in addition to their own quality perceptions
about grape varieties and growing regions,
they use expert quality ratings for the wine and /or the
winery in their buying decisions. Thus, consumer
willingness to pay for a particular wine depends on
a critic’s quality rating of the wine and / or the producer,
as well as their own reputation assessment for grape
varieties and growing regions expressed through premia
or discounts relative to a base region and variety. The
present paper analyses such quality and reputation
indicators for premium wines from Australia and New
Zealand. For each country, we examine Halliday’s (1999
and 2001) data sets for nine vintages. Moreover, we
analyse a second data set with more than 12 500 tasting
scores for premium wines for the same two countries
and up to eight vintages (Winestate 2001). This enables
us to compare hedonic pricing model results for two
different data sets drawn from the same base population
of wines and consumers and for the same vintages.