Ma chini, And ea; Riganelli, Chia a; Dio alle i, F ancesco; Pa a ini, Chia a
A icle
Fac o s o collec i e epu a ion o he I alian PDO wines:
An analysis on cen al I aly
Wine Economics and Policy
P o ided in Coope a ion wi h:
UniCeSV - Cen o Uni e si a io di Rice ca pe lo S iluppo Compe i i o del Se o e Vi i inicolo,
Uni e si y o Flo ence
Sugges ed Ci a ion: Ma chini, And ea; Riganelli, Chia a; Dio alle i, F ancesco; Pa a ini, Chia a
(2014) : Fac o s o collec i e epu a ion o he I alian PDO wines: An analysis on cen al I aly, Wine
Economics and Policy, ISSN 2212-9774, Else ie , Ams e dam, Vol. 3, Iss. 2, pp. 127-137,
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Wine Economics and Policy 3 (2014) 127–137
Fac o s o collec i e epu a ion o he I alian PDO wines: An analysis on
cen al I aly
And ea Ma chini
a,
n
, Chia a Riganelli
b
, F ancesco Dio alle i
c
, Chia a Pa a ini
c
a
Dipa imen o di Scienze Ag a ia, Alimen a i e Ambien ali (DSA3), I aly
b
Economics a he Uni e si y o Pe ugia, I aly
c
Ag icul u e and Resou ce Economics a he Uni e si y o Pe ugia, I aly
Recei ed 21 July 2014; ecei ed in e ised o m 1 Decembe 2014; accep ed 18 Decembe 2014
A ailable online 5 Janua y 2015
Abs ac
As many esea ch s udies confi m, he impo ance o collec i e epu a ion is inc easing, especially in he ag o- ood chain. Cu en ly, he
epu a ion o fi ms and b ands is he main key d i e o companies' compe i i eness and success in mode n ma ke s.
This pape empi ically in es iga es he de e minan s o epu a ion o PDO wines in Cen al I aly. In pa icula , i uses he quali a i e assessmen
exp essed by he Na ional Associa ion o Sommelie s and p oposes a syn he ic indica o o epu a ion. By using di e en s a is ical sou ces, we
also e alua e he impac o some a iables on he epu a ion le els o indi idual PDO a eas. We looked a he s uc u al cha ac e is ics o he
designa ion (numbe o p oduce s, age o he designa ion, e c.), he minimum quali y s anda ds, and he cha ac e is ics o he economic i ali y o
he e i o ies. The s udy aims o con ibu e o he deba e on he ole o he quali y p oposed by fi ms and epu a ion buil o e ime.
&2015 UniCeSV, Uni e si y o Flo ence. P oduc ion and hos ing by Else ie B.V. All igh s ese ed.
Keywo ds: Collec i e epu a ion; DOC wines; O de ed logi ; I alian wines
1. In oduc ion
Value p oposi ion is essen ial o he fi m's compe i i eness
and success (Lindg een and Wyns a, 2005;Po e and
K ame , 2011). Wi hin he ood ma ke , alue is adi ionally
in e p e ed in e ms o nu i ional alue o alue o money.
Howe e , some ma ke ing esea ch has epea edly ques ioned
he consis ency o he p oduc a ibu e o he consume s'
pe cep ion o “ alue”(Galla za e al., 2011;Sanchez-
Fe nandez and Inies a-Bonillo, 2007).
S udying alue is o g ea in e es because i has a di ec
bea ing on he managemen o companies and on ag o- ood
policies. In ac , esea ch p ojec s ha e sough o iden i y and
manage he d i e s o ood alue o e ime. All d i e s a e
in e ela ed and con ibu e o he alue p oposi ion o he
company –o companies –in ol ed in he sys em o he
p oduc (supply chains, o ms o associa ion, e c.).
Mo eo e , alue is cen al o ood ma ke ing because i
analyse he alue pe cei ed by consume s and i finds sys ems
o gene a e and o e s alue o cus ome s (Alb ech , 1992;
Ande son, 1982;Lindg een and Wyns a, 2005;Ande son and
Na us, 1999;Wood u , 1997;Doyle, 2000).
Acco ding o Lindg een e al. (2012), he li e a u e on alue is
huge and, despi e ecen a emp s o be e unde s and and
unambiguously define his concep , academics and p ac i ione s
s ill disag ee on he eal meaning o “ alue”(Ande son and
Na us, 1998).
The li e a u e on alue shows ha he e a e cu en ly wo,
mo e o less dis inc , esea ch s eams, one ocusing on he alue
o he objec o exchange (goods and se ices), and one ocusing
on he alue o he p ocess o exchange ( he ela ionships,
ne wo ks, and in e ac ions he company is embedded in).
www.else ie .com/loca e/wep
h p://dx.doi.o g/10.1016/j.wep.2014.12.003
2212-9774/&2015 UniCeSV, Uni e si y o Flo ence. P oduc ion and hos ing by Else ie B.V. All igh s ese ed.
n
Co espondence o: DSA3 , Uni e si à degli S udi di Pe ugia Bo go XX
Giugno, 74 - 06121 - Pe ugia Tel.: þ39 075 5856276.
E-mail add esses: and ea.ma [email protected] (A. Ma chini),
[email p o ec ed] (C. Riganelli),
[email p o ec ed] (F. Dio alle i),
pa fi@ho mail.com (C. Pa a ini).
Pee e iew unde esponsibili y o Wine Economics and Policy.
In pa icula , FCV (Food Consump ion Value) is consume -
cen ed (Dage os and Ophem, 2013) and i inco po a es
physical p oduc cha ac e is ics, emo ional associa ions e oked
by he ood b and, he si e o momen o ood consump ion,
and consume e hical conce ns abou ce ain p oduc ion
p ac ices in he ood sys em.
This s udy aims o gi e alue o he ood consump ion
esea ch by empi ically analysing he “collec i e epu a ion”o
quali y wines. This epu a ion helped change he in angible
alue o wines and is influenced by many ac o s: he s uc u e
and beha iou o fi ms in he PDO a ea, hei s a egy o
enhance quali y, he social and economic cha ac e is ics o he
e i o ies, e c.
This pape p oceeds as ollows. In Sec ions 2 and 3,we
in oduce he concep o epu a ion and we elabo a e on he
heo e ical elemen s used o de elop ou hypo heses. Sec ion 4
desc ibes he da ase and gi es some desc ip i e s a is ics.
Empi ical esul s a e discussed in Sec ion 5, and conclusions
a e d awn in Sec ion 6.
2. D i e s o collec i e wine epu a ion
The heo e ical deba e on epu a ion is wide anging, bu he
mechanisms used o build epu a ion ha e no been ully explo ed
om an empi ical iewpoin (Cas io a and Delmas o, 2010).
Acco ding o in e na ional li e a u e, collec i e epu a ion can be
conside ed a mul i a iable phenomenon, esul ing om he
in e ac ion o complex dynamics defined by managing some
a iablesinspaceandin ime(Cas io a and Delmas o, 2010).
The li e a u e on collec i e epu a ion is s ill in i s in ancy.
So a , heo e ical esea ch has ocused on modelling he
collec i e epu a ion building p ocess, while he empi ical
model has measu ed he consequences o posi i e g oup
epu a ion on cus ome s' willingness o pay by using he
hedonic p ice models (e.g. Landon and Smi h, 1998). Despi e
a numbe o aluable heo e ical wo ks ha s udy he
collec i e epu a ion building p ocess, he e is s ill no s udy
es ing g oup epu a ion de e minan s, due o da a limi a ion
(Cas io a and Delmas o, 2009).
In hei s udy, Ge gaud and Li a (2004) p opose an
empi ical s a egy o assess bo h umb ella-b and
1
impac s
( he impac o collec i e epu a ion on a gi en indi idual
epu a ion) and con ibu ions o he umb ella (i s con a y).
Empi ically, he no ion o collec i e epu a ion has ecei ed
less a en ion. E dem (1998) finds ha “consume s o o al-
hygiene p oduc s expec he quali y le els o umb ella b anded
p oduc s o be highly co ela ed”.Sulli an (1990) p o ides
empi ical e idence o he exis ence o posi i e and nega i e
image spillo e s be ween he demand o p oduc s sold unde
he same b and name in he case o au omobiles.
Ja ell and Pel zman (1985) assess he e ec o a p oduc
ecall on he demand o his p oduc and on he demand o i s
subs i u es in he case o d ugs and ca s. The esponsible
p oduce bea s losses g ea e han he s ic ecall cos s because
o a loss o goodwill, and hose losses spill o e o compe-
i o s. Due o a nega i e ex e nali y, any a ou able e ec o a
ecall on he demand o subs i u es is swamped by a mo e
gene al nega i e e ec on he indus y. Bo ens ein and
Zimme man (1988) examine a simila e ec in he case o
ai lines. They find ha a dec ease in demand esul ing om a
specific c ash a ec s he ai line in ol ed as well as compe ing
ai lines.
Repu a ion is a basic esou ce o ypical p oduc ion and an
essen ial elemen in alue c ea ion p ocess, since a good
epu a ion allows p oduce s o p edic , and expec , u u e
(posi i e) incomes (Belle i, 2002). When a fi m has a good
epu a ion, i a ac s cus ome s, which o en leads o highe
p ices and la ge p ofi ma gins, while he good epu a ion o
an indi idual may esul in be e ca ee s (see Le in, 2001;
Tadelis, 2002,2003).
The li e a u e also p esen s epu a ion as a mechanism o
p o ide incen i es o agen s in o de o exe g ea e e o s
(Maila h and Samuelson, 2002;Tadelis, 2002), i hey can eap
he benefi s in he u u e.
S udies ha e shown ha he e is “b and con usion”in he
wine sec o . Se e al mis akes a e made du ing he consume
in e ence p ocess which unconsciously lead him/he o an
inaccu a e assessmen o he a ibu es o benefi s o lesse -
known p oduc s, since assessmen s a e based on a ibu es o
pe o mances o he mos popula p oduc s (Fa aoni, 2005).
This can occu e en i he consume links he co po a e b and
o he p oduc b and, o ice e sa (Foxman e al., 1992).
The e o e, his con usion can gi e ise o a dis o ion o he
esul s o s udies pe o med on a ious ypes o wine, one o
he causes being he in o ma ional asymme y (Ake lo , 1970)
a ec ing he wine sec o . On he o he hand, he consume
daily objec i e is o sa e ime, so he/she akes in o accoun he
b and and e i o y epu a ion o e i y he quali y o he
p oduc s o pu chase (Ande sson, 2002). I p ope ly exploi ed,
he ela ionship be ween he b and and he e i o y may
p o ide companies an oppo uni y o ob ain a solid compe i i e
ad an age and i may u n in o a dis inguishing ac o o he
b and as well. Companies may ake his in o conside a ion a
di e en le els and use i in he b and iden i y building p ocess
(Ag awal and Kamaku a, 1999). In a ecen s udy on I alian
consume s' p e e ences ega ding dealcoholised wine in o ma-
ion and p ice, S asi e al. (2014) unde line ha common
esul s confi m ha o igin, in ne , in age, and b and epu a-
ion significan ly a ec consume s' p e e ences and hei
pe cep ion o he p oduc .
A single p oduce o a PDO
2
wine can enjoy epu a ion
benefi s hanks o he consume pas pu chases, e en i o he
fi ms o he same PDO p oduce ha wine. Hence, epu a ion
1
Umb ella b anding is one o he e ms used o desc ibe he common
p ac ice o selling se e al p oduc s unde he same b and name (Miklós-Thal,
2012).
2
Wines wi h a P o ec ed Designa ion o O igin (PDO wines) in he EU a e
wines p oduced in a delimi a ed a ea ollowing specified p oduc ion ules
epo ed in an o ficial documen called p oduc specifica ion (Reg. 1308/2013)
and p esen ed wi h he name o he p oducing a ea (Designa ion o O igin)
which is p o ec ed by law. Acco ding o he I alian egula ion PDO wines a e
p esen ed on he ma ke as wines wi h Denominazione di O igine Con olla a
(DOC wines) o Denominazione di O igine Con olla a e Ga an i a (DOCG
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137128
can be conside ed a dynamic signal o quali y o he collec i e
designa ion o o igin. The his o y o he p oduc ion a ea and
he wine membe ship o a designa ion o o igin p o e o be
synonymous wi h inc eased accoun abili y and consume
p o ec ion (Pas o e, 2002).
Malo gio e al. (2008) e alua e he e ficiency o PDO
sys em in he in e na ional wine ma ke as an ins umen ha
can sa is y he needs o bo h p oduce s and consume s, and
gi e ad ice on how o imp o e u u e ma ke pe o mance.
They (2008) show he inc easing app ecia ion o wine con-
sume s in e ms o epu a ion and o igin a ibu es h ough
desc ip i e s a is ics and economic li e a u e e iew; on he
supply side, hey iden i y he main quali y s a egies imple-
men ed in he in e na ional wine ma ke and illus a e he
inc easingly impo an ole ha o igin a ibu es play on
s a egic choices made by fi ms wo ldwide.
The concep o epu a ion can be be e unde s ood in he
impe ec in o ma ion con ex (S igli z, 1989), as p e iously
men ioned. Acco ding o Ande sson (2002), he epu a ion phe-
nomenon conce ns many expe ience goods o se ices, whose
quali y is di ficul o asce ain a easonable cos s be o e consump-
ion. Ande sson shows ha he p ofi s gene a ed by a fi m wi h a
pooled epu a ion o p oducing wo high quali y goods a e “no
lowe ” han he sum o he p ofi s gene a ed by wo sepa a e fi ms,
each p oducing a high quali y good and ha ing i s own indi idual
epu a ion. Collec i e epu a ion is impo an because many
ma ke s ha e a huge a ie y o p oduc s and abundance o
in o ma ion. Consume s willing o economise on he cos s o
asce aining quali y o en ely on he epu a ion o fi ms o g oups
o hei pu chases (Ande sson, 2002). When o ming expec a ions,
consume s ha e o choose he sou ces o in o ma ion o use and
he le el o in o ma ional knowledge hey a e willing o accep
(Cos anig o e al., 2009). Ge gaud e al., (2012) unde line ha a
good epu a ion is o en c ucial in a ac ing and e aining
cus ome s, and i can also be associa ed wi h a significan p ice
p emium. The fi s sou ce o in o ma ion is usually ela ed o
geog aphical b ands, in o ma ion on he fi m and bo le/ in age
equi ing a highe le el o expe ise (Cas io a and Delmas o,
2009).
While he impac o g oup epu a ion on indi idual epu a-
ion has been analysed, no empi ical wo k has hus a es ed
he de e minan s o he collec i e epu a ion building p ocess.
Ac ually, some pape s e alua e he impac o g oup epu a ion
on indi idual epu a ion and/o p ices; in pa icula , due o he
la ge a ailabili y o da a om p es igious wine guides, some
empi ical pape s deal wi h ( he consequences o ) collec i e
epu a ion e e ing o he wine sec o . The s udies by Landon
and Smi h (1998),Schamel and Ande son (2003),Cas io a
and Delmas o (2008), and Cos anig o e al. (2009) analyse –
among o he hings – he impac o collec i e epu a ion on he
epu a ions o wine ies o on wine p ices.
3. Resea ch hypo heses
Ne e heless, some s udies allow o se some hypo heses on
specific de e minan s o epu a ion in he case o PDO wines
and he cu en esea ch had he objec i e o es such
hypo heses.
Ti ole (1996) a gues ha an indi idual membe o he chain
decides on his e o le el on he basis o he alue o
collec i e epu a ion, which is es ablished by o me and
exis ing membe s o he umb ella b and, be o e he indi idual's
en y. In o he wo ds, he e o le el o an indi idual membe
is likely o be a ec ed by pas beha iou s o o he membe s in
he umb ella. In a s udy on wine p oduced in he Bo deaux
a eas, Ge gaud and Li a (2004,2010) suppo ed Ti ole's iew
and empi ically showed ha collec i e epu a ion is a ec ed by
indi idual epu a ion, and ice e sa. Specifically, hei model
(2004; 2010) has s ong connec ions wi h he umb ella
b anding li e a u e (see Ge gaud e al., 2012 o Miklós-Thal,
2012 o a ecen and mo e de ailed su ey). This li e a u e
shows ha a collec i e b and o name may be a quali y
signal h ough image spillo e s which c ea e epu a ion
linkages among a ious fi ms o indi iduals (Choi e al.,
1995). In his con ex , indi idual incen i es a e associa ed
wi h g oup incen i es; such a connec ion p o ides a s ong
commi men o main ain a high le el o quali y o each
p oduc and could, in u n, se e as a compe i i e ad an age.
Ac ually, he possibili y o consume s o iden i y a ange o
p oduc s wi h he g oup can p o ide he fi m subs an ial
economies o scope.
Fo hese easons, i is in e es ing o in es iga e some
aspec s ela ed o he s uc u e o he Designa ion. The analysis
o he links be ween hese aspec s and epu a ion can lead
o a be e unde s anding o which o he main s uc u al
aspec s o a collec i e b and play a significan ole in he le el
o epu a ion o a wine. So, he ollowing hypo hesis is
o mula ed.
H
1
.The s uc u al aspec s o Designa ion ha e an impac on
wine epu a ion.
As sugges ed by Shapi o (1983), epu a ion means he
expec ed quali y as assessed by pee s o consume s. Acco ding
o Shapi o (1983),“afi m has a good epu a ion i consume s
belie e i s p oduc s a e high in quali y”. In ou s udy,
collec i e epu a ion is a p ope y o he Designa ion, i is
sha ed be ween p oduce s and, despi e i s expansi eness in
excluding o he s om use, i can be es o ed in ime (Os om,
1996). This mechanism is heo ised by Shapi o (1983): in he
case o epea ed pu chasing, epu a ion inc eases when he
a ibu es defining he quali y o a p oduc a e no de ec able
be o e pu chase.
Acco ding o Fleckinge (2007), he epu a ion building
p ocess equi es he es ablishmen o a las ing ela ionship
be ween he e i o y, i s p oduce s and po en ial buye s. The
s able ag eemen among p oduce s in he p omise o ce ified
quali y allows a s able quali y le el o he p oduc ion wi hin
he collec i e b and and, hus, a well-es ablished le el o
epu a ion. We ha e he e o e iden ified a second esea ch
( oo no e con inued)
wine). The la e a e PDO wines wi h a longe adi ion and s ic e p oduc ion
ules (D. Leg. 61/2010).
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137 129
hypo hesis which ela es he le el o epu a ion o he mini-
mum quali y s anda ds.
H
2
.The minimum quali y s anda ds ha e an impac on wine
epu a ion.
We ne el (1988) demons a es ha b and ex ension is
e ficien only when all p oduc s unde he umb ella a e o
good quali y and, he e o e, con ibu e o he epu a ion o he
umb ella. B and ex ension p ac ices (Taube Edwa d, 1988)
and, mo e gene ally, bundling a p oduc o es ablished quali y
wi h one o unknown quali y can also be seen as a mechanism
o in o ma ional le e age, whe e a fi m le e ages o a good's
epu a ion in one ma ke o mi iga e he p oblem o in o ma-
ional asymme y encoun e ed in o he ma ke s (Choi, 1998,
2003).
When looking a he di e en ia ion s a egy o a wine, i s
associa ion wi h a specific e i o y and he sha ing o meaning
a e o be conside ed oo. They ac ually ep esen an ad an age
o he fi m ha exploi s his ela ionship o enhance i s
epu a ion and make he b and mo e a ac i e o consume
(Vesco i and Gazzola, 2007). He zbe g and Malo gio (2008)
examine consume p e e ences o wine a ibu es h ough a
choice expe imen ca ied ou on 444 wine buye s in No h-
Eas e n I aly. Resul s indica e ha he p esence o PDO, a
known b and and he indica ion o he g ape ine a ie y on he
label inc ease he choice p obabili y and hey a e all associa ed
wi h a posi i e WTP (Willingness To pay). P ice has a smalle
influence han o he a ibu es and i s ela ionship wi h u ili y is
quad a ic. The p i a e label only sligh ly a ec s consume
choices, wi h a nega i e o posi i e e ec depending on he
ini ial p ice o he wine.
Fo hese easons, we also conside he impac o he se e al
ypes o di e en ia ion on he epu a ion le el. Hence, we
define a specific esea ch hypo hesis.
H
3
.A di e en ia ion has an impac on wine epu a ion.
Wi hin he wine ma ke , i is impo an o ake in o accoun
he s ong in e ac ion be ween di e en sys ems ( ou is ,
en i onmen al, social, cul u al and o he s), and o conside
hem as being s ic ly ela ed o he wine sys em in o de o
ans e he sui able epu a ion c ea ed by all hese ac o s o
consume s (Lopoli o e al., 2010). Se e al s udies ocus on
hese aspec s o define he dynamics o u al de elopmen and
he ag o- ood ma ke (Belle i, 2001). O he wo ks analyse he
impac o di e en ac o s on wine epu a ion: o example
Gokcekus and Finnegan (2013) examine he ela ionship
be ween egional epu a ion and he p ice–quali y a io o
wine du ing he G ea Recession (Sep embe 2008 un il June
2009). Thei s udy (2013) shows ha a subs an ial decline in
income and a ise in in o ma ion sha ing ia he in e ne and
social media had a dampening e ec on he egional epu a ion
p emium and lowe ed he p ice–quali y a io di e ences
among di e en wine egions.
When a local sys em es ablishes a local p oduc , i uses
he collec i e epu a ion, which seems o play a majo ole
in defining he final no o ie y o he p oduc . A p oduc wi h
a PDO can ac ually be conside ed as an ins i u ional and
ju idical p ocess o con ol and p ese e collec i e epu a ion.
The ad an age consis s in he possibili y o p oduce s o
achie e some benefi s –de i ing om collec i e epu a ion –
in o de o ob ain be e incomes o he en i e geog aphical
egion (Sis o e al., 2006). Bu eau and Valceschini (2003)
claim ha “ he appella ion o o igin has p o ed success ul in
allowing e en small p oduce g oups o benefi om a well-
es ablished epu a ion”. In p oduc s, adi ion does no me ely
coincide wi h hei e i o ial o igin and/o PDO label, bu i
also eflec s eal local oo s as well as he his o ical, cul u al
and ma e ial aspec s o he e i o y (An onioli Co ignano,
1999;Pacciani e al., 2001).
Fu he , analysing he social and economic en i onmen by
e alua ing he quali y and quan i y o se ices allows o iden i y
he communica ion le el o he e i o y and o de e mine
whe he his can be conside ed o no a “ma ginal a ea”
(Me hods and Objec i es o and e ec i e use o Communi y
Founds 2014–2020, 2012). Mo eo e , he cul u al componen o
an a ea is inc easingly con ibu ing o he p ocess o economic
alue c ea ion (Sacco and Fe illi, 2006).
Specific ( e i o ial) esou ces, due o hei selec i e na u e
(i.e. hey a e used only in specific geog aphical a eas), play an
impo an ole: on he one hand, hey inc ease he compe i-
i eness o local sys ems, hanks o hei abili y o imp o e he
s eng h o ela ionship and ade sys ems; on he o he , hey
p omo e he specific quali y o adi ional ood p oduc s
(Belle i, 2002).
Fo his eason, i is in e es ing o s udy con ex ual ac o s in
he wine epu a ion building p ocess.
H
4
.Con ex ual ac o s ha e an impac on wine epu a ion.
4. Ma e ial and me hod
The s udy mo es om he (simplified) assump ion ha he
epu a ion o a wine wi h PDO is closely ela ed o i s
s uc u al aspec s, minimum quali y s anda ds, le el o di e -
en ia ion and con ex ual ac o s. These con ibu e, along wi h
he epu a ion o he wine y, o he collec i e epu a ion o he
whole p oduc ion a ea. The e o e, epu a ion is ela ed o a
ague and subjec i e pe cep ion o quali y, o en shaped by
“opinion leade s”, who ha e he powe o influence he gene al
public on he quali y o wines and hei p oduc ion a eas.
These aspec s a e c i ical also o he success o wine ou ism.
The s a ing poin o he analysis is he defini ion o
epu a ion adop ed in his s udy, on he basis o he li e a u e
on model exchange wi h quali y p emium (Shapi o, 1983;
Klein and Le fle , 1981). In pa icula , epu a ion is in e p e ed
as accumula ion a he ime o he le els o quali y o e ed a
he ime n(pas alue p oposi ion), and i is pe cei ed by
consume s h ough he consump ion expe ience and he
knowledge o he a ea o o igin. A he same ime, he di e en
epu a ion le els ep esen he p omise o quali y p oduc s o
he u u e þ1(new alue p oposi ion) (S igli z, 1989;Belle i,
2001).
Se e al s udies ha e been ca ied ou on wine no o ie y by
analysing bo h he collec i e and he indi idual no o ie y and
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137130

hei impac on wine p ices, and by using he in o ma ion
published by p es igious wine guides as epu a ion indica o s
(Landon and Smi h, 1998;Schamel and Ande son, 2003;
Cas io a and Delmas o, 2008;Cos anig o e al., 2009).
In he pas , many s udies e alua ing he “hedonic p ices”o
wines ha e used he sco es assigned by guides as a p oxy
a iable o objec i e quali y (Schamel, 2006;Cos anig o
e al., 2007;Angulo e al., 2000). Howe e , he e alua ions
o expe s in cha ge o wine e alua ion o he guides canno
be compa ed o he esul s o a eal es ing ju y ope a ing, o
example, applying ecognised in e na ional s anda ds o blind
quali y assessmen . Indeed, he e alua ions used o guides'
anking a e o mula ed knowing, he wine b and, he s o y o
he PDO, he geog aphical si e o p oduc ion, and p e ious
yea s' assessmen s. Fo hese easons, his e alua ion can be
mo e ealis ically assimila ed o a judgemen o he epu a ion
han o an e alua ion o he objec i e quali y o he
as ed wines.
This s udy in ends o in es iga e he ela ionships be ween
quali a i e and con ex indica o s on, and he PDO (DOC o
DOCG) epu a ion le els o PDO wine belonging o di e en
a eas. Resea ch has been ca ied ou on he PDO in ou
egions o Cen al I aly, Tuscany, Umb ia, Ma che and Lazio.
These ou egions a e conside ed among he mos impo an
ones in e ms o adi ion and inno a ion in he wine sec o a
he na ional le el. In o de o empi ically analyse da a, we
c ea ed, o each PDO, da abase a iables ha we e conside ed
ele an in inc easing no o ie y in 2012. Ou final da abase
e e s o 100 wine designa ions.
The fi s s age o he empi ical analysis in ol ed he
cons uc ion o a syn he ic indica o as a p oxy a iable o
he collec i e epu a ion o he PDO wines. To his end, we
used he quali a i e assessmen s o indi idual wines made by
he Bibenda Guide 2012, whe e e e y e alua ed wine is
assigned a numbe o “g apes”exp essing he assessed quali y.
Fo each PDO a ea we calcula ed he sum o o al “g apes”.
This sum a iable was hen ca ego ised in o fi e le els, om 0
o 5.
3
In o de o answe o he hypo heses o mula ed abo e, we
choose he explana o y a iables ha ep esen hem. These
a iables a e ela ed o se e al aspec s o wine. Some o hem
a e linked o o ganolep ic aspec s, chemical s anda ds and
p oduc ion echnology explici ly imposed by he p oduc
specifica ion (all o his in o ma ion is a ailable in each DO
P oduc ion Specifica ion). O he a iables desc ibe some
ele an social and economic aspec s, mainly ob ained om
census o popula ion, indus y and ag icul u e. So, all a iables
can be classified in o ou main g oups.
H1. The se o a iables ep esen ing he fi s hypo hesis
desc ibes he cha ac e is ics o each PDO: he wine DOC o
DOCG membe ship, he PDO es ablishmen yea , and he
numbe o p oduce s.
4
H2. The second se o a iables ep esen s he “minimum
quali y s anda ds”pa ame e s, desc ibing he maximum p o-
duc ion and g ape yield, he minimum alcoholic con en (%),
he minimum o al acidi y alue, and he minimum aging.
5
H3. The hi d se o a iables conside s he di e en ia ion o
wine. Some o hese pa ame e s ( e ical di e en ia ion) a e
mo e se e ely se on a olun a y basis wi h espec o echnical
aspec s such as he selec ion o ineya ds (classic and
subzone), he ag onomical p ocedu es (passi o - aisined wine,
la e ha es and in san o), and he oenological s anda ds
(supe io o alcoholic con en , and ese e o wine aging).
We also conside o he a iables –no compulso y o
p oduce s, bu allowed by na ional dec ees –in o de o c ea e
a ho izon al di e en ia ion. We ake in o accoun he wine
p ocessing sys ems and he o ganolep ic p ope ies o di e en
wine ypologies o he di e en p oduc specifica ions (Whi e,
Rose, Red, D y, sligh ly swee , swee , No ello, Semi-spa kling
and Spa kling).
H4. We comple e he in o ma ion se by collec ing da a on
a e age social and economic indica o s o he wine designa-
ion egions examined ha cap u e he con ex aspec s. In
pa icula , we conside ed a iables linked o he epu a ion
hypo hesis; in o he wo ds, a iables ha explain a “ ou is ,
economic and consume flow”in he a eas. We conside ed he
ollowing pa ame e s: o al popula ion (up o 2010), a ea
su aces, numbe o ATMs pe 1000 inhabi an s, numbe o
au ho ised ho els and holiday a m houses, numbe o
museums and a chaeological si es. Mo eo e , o ake in o
accoun he “ag icul u al– u al”p opensi y o e i o ies, he
ollowing indica o s ha e been epo ed: deg ee o u banisa ion,
ag icul u e employmen le el, popula ion dispe sion index (cal-
cula ed as he pe cen age a io o he popula ion li ing in
sca e ed houses and se lemen s on he o al esiden popula ion),
and emale popula ion employed in non-ag icul u al sec o s.
Table 1 shows he a iables conside ed in he analysis.
Table 2 p esen s desc ip i e s a is ics o he a iables used in
he model.
The e o e, he equa ion model will be s uc u ed as ollows:
Repu a ioni¼β0þβ1S uc u al aspec s o Designa ioni
þβ2Minimum quali y s anda dsi
þβ3Di e en a ioniþβ4Con ex iþεi
whe e he subsc ip i e e s o he di e en designa ions.
3
In a fi s s age o he analysis we ha e also conside ed dependen a iables
ha ake in o accoun he numbe o awa ds and he numbe o p oduce wi hin
each Designa ion. Howe e , hese did no p o ide sa is ac o y esul s. The e-
o e, we con inued he analysis conside ing as dependen a iable he
epu a ion ca ego ised in he fi e le els.
4
This is he numbe o p oduce s conside ing he admission on he egis e
o Designa ion.
5
To a oid con usion in he in e p e a ion o he a iables, we should cla i y
how hey we e included in he da ase . Wi hin each PDO's p oduc specifica-
ion, di e en ypes o wines can be included; o each o hese ypes o wine,
indi idual cha ac e is ics and di e en alues o he quali a i e pa ame e s a e
specified. In o de o p o ide a single ep esen a i e alue o he di e en
a iables on a PDO wine, we adop ed he esul o he a i hme ic mean
calcula ed on he quali a i e pa ame e alues exp essed in he p oduc
specifica ion.
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137 131
We chose an econome ic analysis which akes in o accoun
he ca ego ical na u e o he dependen a iable (Ag es i, 1996,
2002). Such a cha ac e is ic, indeed, a ises p oblems in he use
o OLS modelling, because i s assump ions a e iola ed.
Fu he , due o he o dinal na u e o he ou come a iable, an
o de ed logi is p e e ed o he mul inomial logis ic eg ession
(G eene, 2011;Dobson and Ba ne , 2008). Gi en ha , he
pa ame e s o he equa ion can be es ima ed wi h an o de ed
logi eg ession model. The s a is ical analysis is pe o med
wi h STATA, e sion 12.
Table 1
Desc ip ion o a iables.
Sou ce: Ou elabo a ion om di e en da abases, 2013.
Va iable Sou ce Desc ip ion
Repu a ion
“Bibenda Guide”Repu a ion Bibenda Guide 2012
Edi ion
Numbe o “G apes” o each Designa ion
H1: Cha ac e is ics o Designa ion
DOC o DOCG Na ional dec ees Type o Designa ion –DV equal o 1 i he Designa ion is a DOCG
Age P oduc specifica ion Age o Designa ion (yea s)
P oduce s Code o Designa ion No. o Designa ion p oduce s
H2: Minimun Quali y S anda ds
G apes yield P oduc specifica ion Max. onnes o g apes pe hec a e
G apes/wine P oduc specifica ion Max. con e sion a io o g apes used in wine
Wine alcoholic con en P oduc specifica ion Min. wine alcoholic con en (%)
Wine o al acidi y P oduc specifica ion Min. o al acidi y
Wine aging P oduc specifica ion Min. wine aging
H3: Di e en a ion
Classic P oduc specifica ion DV equal o 1 i he Designa ion is om a his o ical es ic ed a ea wi hin he limi s o Designa ion
Subsi e P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha belong o a es ic ed a ea o he Designa ion
Passi o P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e s ong, mos ly swee , om d ied g apes
La e ha es P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e la e-ha es
Vin San o P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e s ong and swee , om “passi o”g apes, using
adi ional me hods
Supe io e P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e age and con ain 0.5–1% mo e alcohol
Rese e P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e aged o s a u o y pe iod, usually in casks o
ba els
Whi e P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e whi e
Rose P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e ose
Red P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e ed
D y P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e d y
Sligh ly swee P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e sligh ly swee
Swee P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e swee
No ello P oduc specifica ion DV equal o 1 i he Designa ion includes wines ha a e ea ly in age wi h ca bonic e men a ion
Semi-spa kling P oduc specifica ion DV equal o 1 i he Designa ion includes wines wi h excess p essu e, due o CO
2
in solu ion be ween 1
and 2.5 ba
Spa kling P oduc specifica ion DV equal o 1 i he Designa ion includes wine wi h excess p essu e, due o CO
2
in solu ion, no less han
3 ba
H4: Con ex
2010 o . pop. Na ional Census Numbe o inhabi an s
Su ace (squa e km) Na ional Census Su ace o he p oduc ion a ea
No. ATMs/1000 inhabi an s Na ional Census Ra io be ween numbe o ATM machines and 1000 inhabi an s
No. ho els Na ional Census Numbe o ho els
No. holiday a m houses Na ional Census Numbe o holiday a m houses
No. museums Na ional Census Numbe o museums
No. a chaeological si es Na ional Census Numbe o a chaeological si es
Deg ee o u banisa ion Na ional Census Numbe o inhabi an s pe 1000 m
2
Le el o employmen in
ag icul u e
Na ional Census Numbe o employees in ag icul u e
Le el o emale employmen Na ional Census Numbe o emale employees
Index o popula ion
dispe sion
Na ional Census Dispe sion o he popula ion
DV: Dummy Va iable.
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137132
5. Empi ical esul s and discussion
Gi en he high numbe o explana o y a iables and he lack
o p io knowledge on which a iables should be included in
he model, a subse o a iables was chosen using a model
selec ion me hod based on de iance es and compa ison o
nes ed models. This selec ion allows us o ob ain he final
model o analysis.
Mo eo e , we checked o po en ial mul icollinea i y. The e
a e wo ways o handle his. One is o es o pai wise
co ela ion be ween he a iables included in he model: only
one a iable has a alue la ge han 0.5 (i.e., 0.60),
sugges ing ha he e is no s ong co ela ion be ween he
a iables o he analysis. The second way is he e alua ion o
he Va iance Infla ion Fac o (VIF), by es ima ing he equa ion
using OLS (Mena d, 2002). The highes alue ob ained is 3.22
(a e age 1.64), which is lowe han he usual h eshold alue
(Hill and Adkins, 2001). Thus, we can exclude mul icollinea -
i y p oblems in ou econome ic model.
In Table 3 we show he es ima ed o de ed logi model wi h
STATA 2012,
6
conside ing he a iables ob ained om model
selec ion.
Based on he esea ch hypo heses p e iously es ablished, we
now epo he esul s o he es ima e.
H1. The hypo hesis is confi med o all he a iables belong-
ing o he se “cha ac e is ics o designa ion”. Two o hem
(Age and P oduce s) ha e low bu significan be a alues. The
a iable Designa ion shows a significan and conside able
impac on wine epu a ion. All be as a e significan (a he
5% le el) and posi i e, so he p esence o a DOCG and he
Table 2
Desc ip i e s a is ics.
Sou ce: Ou elabo a ion om da abase, 2013.
Va iable Obs. Mean S d. E . Min. Max.
“Bibenda Guide”Repu a ion 100 1.28 0.149 0 5
Designa ion 100 0.11 0.031 0 1
Age 100 21.31 1.272 2 43
P oduce s 100 193.24 44.450 0 3881
G apes yield 100 11.02 0.257 1 17
G apes/wine 100 67.78 0.678 35 73
Wine alcoholic con en 100 11.54 0.137 9.5 18
Wine o al acidi y 100 4.69 0.034 4 5.5
Wine aging 100 8.70 1.186 0 42
Classic 100 0.06 0.024 0 1
Subsi e 100 0.20 0.040 0 1
Passi o 100 0.15 0.036 0 1
La e ha es 100 0.05 0.022 0 1
Vin San o 100 0.27 0.045 0 1
Supe io e 100 0.25 0.043 0 1
Rese e 100 0.41 0.049 0 1
Whi e 100 0.68 0.047 0 1
Rose 100 0.30 0.046 0 1
Red 100 0.67 0.047 0 1
D y 100 0.20 0.040 0 1
Sligh ly swee 100 0.12 0.033 0 1
Swee 100 0.12 0.033 0 1
No ello 100 0.20 0.040 0 1
Spa kling 100 0.14 0.035 0 1
Spuman e 100 0.22 0.042 0 1
2010 o . pop. 100 112,617.20 16,018.480 2800 773,987
Su ace (squa e km) 100 707.68 90.080 37.88 4587.69
No. ATMs/1000 inhabi an s 100 0.65 0.023 0.20 1.22
No. ho els 100 85.32 16.023 1 1007
No. holiday a m houses 100 78.64 14.833 0 813
No. museums 100 1.24 0.427 0 31
No. a chaeological si es 100 0.69 0.213 0 16
Deg ee o u banisa ion 100 1.55 0.054 1 3
Le el o employmen in ag icul u e 100 9.21 1.203 1.48 104.35
Le el o emale employmen 100 31.19 0.607 17.41 41.48
Index o popula ion dispe sion 100 20.00 1.160 0.26 66.21
6
The STATA so wa e compu es he o de ed logi h ough he dicho omisa-
ion o he ou come a iable and by using a cumula i e unc ion. Fu he mo e,
a simpli ying hypo hesis is assumed: he e ec o explana o y a iables is no
dependen on esponse mode, hence we assume ha he coe ficien alues a e
cons an (p opo ional-odds model). Gene ally, his is a easonable assump ion,
bu in ou analysis we confi med i by unning he omodel (Wol e, 1997) and
he b an es s (Long and F eese, 2006).
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137 133
inc ease o he designa ion age and o he numbe o p oduce s
lead o a p opensi y o ha e a be e epu a ion.
H2. In he se o a iables ep esen ing he “minimum quali y
s anda ds”, wo show a s a is ical significance. The a iable
G apes/wine has a weak significance a he 10% le el and a
posi i e sign. The a iable Wine_alcoholic_con en has a
significan (a he 1% le el) and posi i e be a coe ficien , so
i s alue can be aken in o accoun . The esul shows ha a one
uni inc ease in he wine alcoholic con en leads o a wine
p opensi y o a be e epu a ion.
H3. The hypo hesis is confi med by wo o he a iables
belonging o hese “Ve ical di e en ia ion”, in pa icula
Subsi e and Passi o. The o me has a significan (a he 5%
le el), posi i e and conside able be a coe ficien : his esul
shows how Designa ions ha include wines belonging o a
es ic ed a ea o designa ion ha e a p opensi y o ge a highe
epu a ion le el han hose no belonging. The a iable Passi o as
well has a significan (a he 5% le el), posi i e and conside able
ele ance in wine epu a ion: Designa ions ha include wines
belonging o his e ical di e en ia ion ha e a p opensi y o ge
a highe epu a ion le el han hose no belonging.
H4. The hypo hesis ela ed o con ex ual ac o s finds suppo in
wo o i s a iables, in pa icula No. ATMs/1000 Inhabi an s
and No. Museums. The o me shows a posi i e, significan and
conside able be a coe ficien : an inc ease in he a io be ween he
numbe o ATM machines and 1000 inhabi an s leads o a wine
p opensi y o be e epu a ion. The a iable No. Museums has,
on he con a y, a weak significance.
In e ms o es ima es o he p edic ed p obabili y, Table 4
shows he esul s. In he es ima e o ma ginal e ec s we
conside he success odds o a wine so ha i s epu a ion le el
is 5 (max. h eshold). Gi en ha ou da abase con ains bo h
ac o and con inuous a iables, we decided o es ima e he
ma ginal e ec s se ing he second ones equal o hei means.
The e o e we explain he ma ginal e ec s be ween he highes
le el o epu a ion and specific a ibu es.
H1. The p edic ed p obabili y o being in he highes le el o
epu a ion is 7%, i he wine has a DOCG designa ion;
howe e , his p edic ed p obabili y dec eases a 3%, i he
designa ion is DOC. The p edic ed p obabili y o being in he
highes le el o epu a ion is 4%, i he age o designa ion is a
i s mean alue. The p edic ed p obabili y o being in he
highes le el o epu a ion is 3%, i he alue o he numbe o
p oduce s is a i s mean alue.
H2. The p edic ed p obabili y o being in he highes le el o
epu a ion is 5%, i he alue o he maximum con e sion a io
o g apes used in wine is a i s mean alue. The p edic ed
p obabili y o being in he highes le el o epu a ion is 3%, i
he alue o he minimum wine alcoholic con en is a i s
mean alue.
H3. The p edic ed p obabili y o being in he highes le el o
epu a ion is 6%, i he designa ion includes wines ha belong
o a es ic ed a ea o designa ion; his p edic ed p obabili y
Table 3
Resul s o logi model: β
j
es ima es.
Sou ce: Ou elabo a ion om STATA, 2013.
Hypo hesis Va iable
Repu a ion Coe . S d. E . zP4|z|[95% Con . in e al]
H
1
Designa ion 1.721 0.727 2.37 0.018 0.295 3.146
Age 0.050 0.020 2.53 0.011 0.011 0.090
P oduce s 0.004 0.001 3.57 0.000 0.002 0.006
H
2
G apes_yield 0.132 0.122 1.08 0.279 0.370 0.107
G apes/wine 0.084 0.051 1.66 0.097 0.015 0.183
Wine_alcoholic_con en 1.037 0.339 3.06 0.002 0.373 1.702
H
3
Subsi e 1.200 0.528 2.27 0.023 0.165 2.235
Passi o 1.259 0.556 2.26 0.024 0.168 2.349
H
4
No. ATMs/1000 Inhabi an s 3.608 1.080 3.34 0.001 1.491 5.726
No. Museums 0.446 0.240 1.86 0.063 0.917 0.025
/cu 1 20.141 7.637 5.172 35.109
/cu 2 21.066 7.664 6.045 36.087
/cu 3 22.710 7.715 7.589 37.831
/cu 4 24.320 7.766 9.099 39.542
/cu 5 26.637 7.911 11.130 42.143
Log likelihood¼103.33148
Numbe o obs.¼100
LR χ
2
(10)¼88.53
P ob4χ
2
¼0.0000
P eudo R
2
¼0.2999
A. Ma chini e al. / Wine Economics and Policy 3 (2014) 127–137134