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  3. òòò½Íø Journal: Applied Economics
  4. January 2012
  5. Do Expert Reviews Affect the Demand for Wine?

òòò½Íø Journal:
Applied Economics

ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)

Do Expert Reviews Affect the Demand for Wine?

  • Richard Friberg
  • Erik Grönqvist
òòò½Íø Journal: Applied Economics
vol. 4, no. 1, January 2012
(pp. 193–211)
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Abstract

We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. We find small demand-enhancing effects of neutral reviews and no evidence of important negative effects from unfavorable reviews. Restrictions on the state-owned monopoly retailer and the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand. (JEL D12, L66, L81, M31, M37)

Citation

Friberg, Richard, and Erik Grönqvist. 2012. "Do Expert Reviews Affect the Demand for Wine?" òòò½Íø Journal: Applied Economics 4 (1): 193–211. DOI: 10.1257/app.4.1.193

Additional Materials

JEL Classification

  • D12 Consumer Economics: Empirical Analysis
  • L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
  • L81 Retail and Wholesale Trade; e-Commerce
  • M31 Marketing
  • M37 Advertising