What is it about?
This study investigates how pricing strategies affect Hungarian wineries' ability to sell wine internationally. We found that wineries charging higher prices relative to their production costs (higher profit margins) are more likely to enter foreign markets and sell more wine abroad. Additionally, wineries that regularly export gain experience and increase their profitability even further. Our results suggest that improving pricing strategies can help Hungarian wine producers become more successful in international markets, benefiting both the industry and the economy.
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Why is it important?
This research is the first comprehensive analysis of how pricing strategies influence export success, specifically in the Hungarian wine industry. Given Hungary’s distinct market structure and recent integration into European and global markets, the study offers fresh insights into how wineries can strategically enhance their global competitiveness. Our findings come at a critical time, as Hungarian wineries face increasing international competition. By demonstrating that wineries with effective pricing strategies have stronger export performance, our research provides practical guidance for wine producers and policymakers aiming to strengthen Hungary’s position in the global wine market.
Perspectives
I believe this study sheds essential light on a practical yet underexplored aspect of international business—the power of pricing strategies in enhancing a firm's global competitiveness. What particularly excites me is how clearly the data show that higher profit margins not only attract wineries into export markets but also help them flourish through continued learning and adaptation. Working on this research reinforced my view that strategic decision-making, rather than mere production efficiency, can be pivotal in navigating competitive international markets. I hope our findings inspire Hungarian wine producers to embrace innovative pricing practices and encourage policymakers to support strategic market positioning, ultimately strengthening the reputation and reach of Hungarian wines globally.
Professor Imre Fertő
Eotvos Lorand Tudomanyegyetem
Read the Original
This page is a summary of: Wine, markups, and export behavior: Evidence from Hungary, Journal of Wine Economics, May 2025, Cambridge University Press,
DOI: 10.1017/jwe.2025.7.
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