Hedonic pricing of wine attributes in Hungarian online retail : the Tokaj noble rot wines

Abstract

Tokaji Aszu (a botrytised noble rot wine) is one of Hungary’s most renowned wine styles and an essential part of its viticultural heritage. This paper investigates the determinants of wine prices in the Hungarian online retail market, focusing on Tokaj wines. A hedonic pricing framework and a quantile regression approach are employed to analyse how the main wine attributes (e.g. origin or quality classifications) influence online retail prices across different market segments. The analysis is based on a cross-sectional dataset comprising 1,216 observations, including Hungarian and imported products. The findings indicate that vintage, import status, Tokaj-related characteristics, organic certification, and wine classification are significantly associated with observed retail prices, although the magnitudes vary across quantiles. The negative vintage coefficient indicates that earlier vintages are associated with higher observed prices, implying higher premiums for aged wines. Wines produced in the Tokaj wine region and classified as Tokaj botrytised noble rot wine demonstrate positive price differentials, confirming the quality and terroir-driven reputation of this Hungarian appellation. Moreover, organic-certified and superior quality (Premier/Grand Cru) wines exhibit positive price associations, whereas Selection labels show smaller effects across specifications. The most pronounced price effects are concentrated in the upper quantiles, indicating that in high-end wines, exceptional value is placed on heritage, scarcity, and symbolic quality cues. The research provides new empirical evidence on wine price differentiation in the Hungarian online retail market. It highlights how historical reputation, sustainability, and quality signals jointly influence wine pricing, reflecting heterogeneity across conditional price distribution.