Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework
AbstractDespite the importance of region of origin (ROO) as a quality indicator and EU recognition of territorial specificity in food products, there is still a dearth of work investigating the importance of regional (both national and territorial) identity in consumer perceptions for specific food product categories. Employing nationwide discrete choice data for Italy, we investigate the strength of the ROO attribute across three food product categories. Moreover, in addition to treating taste heterogeneity as conditional on socioeconomic factors, we employ recent advances in discrete-choice modeling to test for unobserved heterogeneity in consumer preferences for domestic and territorial origin of production certification. The results show evidence of home bias in preference across all three food products, while preference heterogeneity is exhibited for table grapes and oil, but not for oranges. The analysis shows that unobserved heterogeneity, as represented by mixed logit models, appears to explain more of the observed choice variation than heterogeneity associated to socioeconomic characteristics. [JEL classification: Q120,Q130, Q180]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 329-349, 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Agribusiness.
Volume (Year): 21 (2005)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 317-28, July.
- Zsolt Sándor & Michel Wedel, 2002. "Profile Construction in Experimental Choice Designs for Mixed Logit Models," Marketing Science, INFORMS, vol. 21(4), pages 455-475, February.
- Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387, October.
- Karen K. Lewis, 1999. "Trying to Explain Home Bias in Equities and Consumption," Journal of Economic Literature, American Economic Association, vol. 37(2), pages 571-608, June.
- Alford, Bruce L. & Engelland, Brian T., 2000. "Advertised Reference Price Effects on Consumer Price Estimates, Value Perception, and Search Intention," Journal of Business Research, Elsevier, vol. 48(2), pages 93-100, May.
- Kevin J. Boyle & Thomas P. Holmes & Mario F. Teisl & Brian Roe, 2001. "A Comparison of Conjoint Analysis Response Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 441-454.
- Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
- Vivien Foster & Susana Mourato, 2003. "Elicitation Format and Sensitivity to Scope," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 141-160, February.
- Rhonda Skaggs & Constance Falk & Jaime Almonte & Manuel Cárdenas, 1996. "Product-country images and international food marketing: Relationships and research needs," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 593-600.
- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
- Céline Bonnet, 2001. "Assessing consumer response to Protected Designation of Origin labelling: a mixed multinomial logit approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(4), pages 433-450, December.
- Guy D. Garrod & Riccardo Scarpa & Kenneth G. Willis, 2002. "Estimating the Benefits of Traffic Calming on Through Routes: A Choice Experiment Approach," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(2), pages 211-231, May.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Ulrich R. Orth & Zuzana Firbasová, 2003. "The role of consumer ethnocentrism in food product evaluation," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 137-153.
- Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
- Philippidis, George & Kakaroglou, Ioannis & Sanjuan, Ana Isabel, 2002. "Territorial Product Associations in Greece: The Case of Olive Oil," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24856, European Association of Agricultural Economists.
- Jayson L. Lusk, 2002. "A Comparison of Conjoint Analysis Response Formats: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1165-1171.
- Espejel, Joel & Fandos, Carmina & Flavian, Carlos, 2007. "La importancia de las DOP como indicadores de calidad para el comportamiento del consumidor. El caso del aceite de oliva del Bajo Aragon," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 7(14).
- Disdier, Anne-Celia & Marette, Stephan, 2011. "Globalization Issues and Consumers’ Purchase Decisions for Food Products: Evidence from a Lab Experiment," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114439, European Association of Agricultural Economists.
- Athanasios Krystallis & Michalis Linardakis & Spyridon Mamalis, 2010. "Usefulness of the discrete choice methodology for marketing decision-making in new product development: an example from the European functional foods market," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 100-121.
- Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
- Patel, Payal & House, Lisa & Spreen, Thomas H., 2011. "How Do Different Countries Use Labeling Standards: A Case Study Comparing Wisconsin Real Cheese to Parmigiano-Reggiano," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 122015, International European Forum on Innovation and System Dynamics in Food Networks.
- Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
- Bouamra-Mechemache, Zohra & Jianyu, Yu, 2013. "Production Standards, Competition and Vertical Relationship," TSE Working Papers 13-417, Toulouse School of Economics (TSE).
- Scarpa, Riccardo & Spalatro, Fiorenza & Canavari, Maurizio, 2003. "Investigating Preferences For Environment Friendly Production Practices: Taste Segments For Organic And Integrated Crop Management In Italian Households," Working Papers 14467, University of Minnesota, Center for International Food and Agricultural Policy.
- Lopez, Rigoberto A. & Pagoulatos, Emilio & Gonzalez, Maria A., 2006. "Home bias and U.S. imports of processed food products," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 363-373, December.
- Riccardo SCARPA & Fiorenza SPALATRO & Maurizio CANAVARI, 2005. "Investigating Preferences For Environment Friendly Production," Others 0505003, EconWPA.
- Resano, Helena & Sanjuán, Ana I. & Albisu, Luis M., 2012. "Consumers’ response to the EU Quality policy allowing for heterogeneous preferences," Food Policy, Elsevier, vol. 37(4), pages 355-365.
- Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2012. "Group heterogeneity and cooperation on the geographical indication regulation: The case of the “Prosciutto di Parma” Consortium," Food Policy, Elsevier, vol. 37(3), pages 207-216.
- Birol, Ekin & Roy, Devesh & Torero, Maximo, 2010. "How safe is my food?: Assessing the effect of information and credible certification on consumer demand for food safety in developing countries," IFPRI discussion papers 1029, International Food Policy Research Institute (IFPRI).
- Carlos E. Carpio & Olga Isengildina-Massa, 2009.
"Consumer willingness to pay for locally grown products: the case of South Carolina,"
John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
- Carpio, Carlos E. & Isengildina-Massa, Olga, 2008. "Consumer Willingness to Pay for Locally Grown Products: The Case of South Carolina," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6815, Southern Agricultural Economics Association.
- Bratti, Massimiliano & Felice, Giulia, 2009. "Exporting and Product Innovation at the Firm Level," MPRA Paper 18915, University Library of Munich, Germany.
- Tauber, Ramona & Anders, Sven & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
- Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2010. "Heterogeneity of Members’ Characteristics and Cooperation within Producer Groups Regulating Geographical Indications: The Case of the “Prosciutto di Parma” Consortium," 116th Seminar, October 27-30, 2010, Parma, Italy 95203, European Association of Agricultural Economists.
- Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.