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Abstract
A wide variety of wines are sold in the Argentine retail wine market, both in specialized
stores and supermarkets. There are several wine segments according to their degree
of vertical differentiation, each with additional differentiation strategies. One of
them centers on the information provided in the bottle label to attract consumers, which
can be characterized as objective information (type of grape, color, age, alcoholic content,
region of origin) and additional information (food pairing, sensorial and environmental
characteristics, wine making process, serving temperature suggestions). The
question arises about the relationship, if any, between those descriptors and the price
paid by the consumer. To answer it, an empirical study was conducted for Santa Fe city,
an important consumption center. A hedonic price model was estimated, with the results
showing that within the lower-priced wine segment, the additional information had a
positive impact on prices; this situation was not the same for the higher-priced wines.
Statistically significant differences were also found between provinces of origin, type of
wine and purchase place.