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Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework

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Author Info

  • Riccardo Scarpa

    (Environment Department, University of York, York YO10 5DD UK)

  • George Philippidis

    (Agricultural Economics Unit, CITA, Government of Aragon, Zaragoza, Spain)

  • Fiorenza Spalatro

    (Department of Economics, University of Siena, Italy)

Abstract

Despite 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.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 21 (2005)
Issue (Month): 3 ()
Pages: 329-349

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Handle: RePEc:wly:agribz:v:21:y:2005:i:3:p:329-349

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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Citations

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Cited by:
  1. 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).
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Bouamra-Mechemache, Zohra & Jianyu, Yu, 2013. "Production Standards, Competition and Vertical Relationship," TSE Working Papers 13-417, Toulouse School of Economics (TSE).
  8. 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.
  9. 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.
  10. Riccardo SCARPA & Fiorenza SPALATRO & Maurizio CANAVARI, 2005. "Investigating Preferences For Environment Friendly Production," Others 0505003, EconWPA.
  11. 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.
  12. 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.
  13. 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).
  14. Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
  15. Bratti, Massimiliano & Felice, Giulia, 2009. "Exporting and Product Innovation at the Firm Level," MPRA Paper 18915, University Library of Munich, Germany.
  16. 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).
  17. 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.
  18. 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.

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