IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v38y2022i4p885-904.html
   My bibliography  Save this article

Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach

Author

Listed:
  • Petjon Ballco
  • Fatma Jaafer
  • Tiziana de Magistris

Abstract

This study investigates the price effects of honey quality attributes in Spain. Price and product characteristics are collected from 264 honey labels found on the shelves of the main representative retail stores available in the national territory. The marginal effects and the implicit prices of honey characteristics are assessed through a hedonic price approach. Results show that the prices of honey are affected by leader brands sold in gourmet stores and hypermarkets in glass packages compared to producer brands sold in discounts stores and supermarkets in plastic packages. The organic production and the protected designation of origin quality labels generate positive marginal effects on the prices of honey, as well. Regarding the origin of honey, the highest relative and absolute consumer price premiums are received for honey coming from the European Union and Spain compared with blend honey coming from EU and non‐EU countries. Consumer implicit prices are also influenced by mono‐floral and gourmet honey with additional properties (e.g., ginseng) compared with the multifloral varieties. These findings are a useful source for a better understanding of the evolution of honey in the Spanish market. Spanish beekeepers who can differentiate their honey, may use these results as an orientation for their business strategies.

Suggested Citation

  • Petjon Ballco & Fatma Jaafer & Tiziana de Magistris, 2022. "Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 885-904, October.
    • Handle: RePEc:wly:agribz:v:38:y:2022:i:4:p:885-904
    DOI: 10.1002/agr.21760
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21760
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21760?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kristina Brščić & Tina Šugar & Danijela Poljuha, 2017. "An empirical examination of consumer preferences for honey in Croatia," Applied Economics, Taylor & Francis Journals, vol. 49(58), pages 5877-5889, December.
    2. Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
    3. repec:ags:afjare:225657 is not listed on IDEAS
    4. Oczkowski, Edward, 2016. "Hedonic wine price functions with different prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), April.
    5. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    6. Chian Jones Ritten & Linda Thunström & Mariah Ehmke & Jenny Beiermann & Donald McLeod, 2019. "International honey laundering and consumer willingness to pay a premium for local honey: an experimental study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 726-741, October.
    7. Kallas, Z. & Alba, M. F. & Casellas, Karina & Berges, Miriam & De Greef, G. & Gil, J. M., 2017. "Impact of the sensory experience on consumers' preference toward the origin of honey: a case study in Mar del Plata, Argentina," Nülan. Deposited Documents 2849, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    8. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    9. Ballco, Petjon & Gracia, Azucena, 2020. "Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    10. Laurian J. Unnevehr & Fatoumata C. Gouzou, 1998. "Retail premiums for honey characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 14(1), pages 49-54.
    11. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    12. Kees Jan Van Garderen & Chandra Shah, 2002. "Exact interpretation of dummy variables in semilogarithmic equations," Econometrics Journal, Royal Economic Society, vol. 5(1), pages 149-159, June.
    13. Günter Schamel, 2006. "Geography versus brands in a global wine market," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 363-374.
    14. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
    15. Oczkowski, Edward, 2021. "Estimating supply functions for wine attributes: a two-stage hedonic approach," Working Papers 321856, American Association of Wine Economists.
    16. Jelena Vapa-Tankosić & Svetlana Ignjatijević & Jelena Kiurski & Jovana Milenković & Irena Milojević, 2020. "Analysis of Consumers’ Willingness to Pay for Organic and Local Honey in Serbia," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    17. Liam Pippinato & Simone Blanc & Teresina Mancuso & Filippo Brun, 2020. "A Sustainable Niche Market: How Does Honey Behave?," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    18. Shang Wu & Jacob R. Fooks & Kent D. Messer & Deborah Delaney, 2015. "Consumer demand for local honey," Applied Economics, Taylor & Francis Journals, vol. 47(41), pages 4377-4394, September.
    19. Bissinger, Katharina & Herrmann, Roland, 2021. "Regional Origin Outperforms All Other Sustainability Characteristics in Consumer Price Premiums for Honey: Empirical Evidence for Germany," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 36(1), pages 162-184.
    20. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    21. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    22. Bissinger, Katharina & Herrmann, Roland & Krandick, Lisa, 2019. "Implicit Prices of Sustainability on the German Online Market for Honey," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(3), September.
    23. Royo, Azucena Gracia & Perez y Perez, Luis, 2004. "Factores determinantes del precio de la carne de ternera: un analisis hedonico," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(08), pages 1-18.
    24. Rosella Levaggi & Eugenio Brentari, 2014. "The Hedonic Price for Italian Red Wine: Do Chemical and Sensory Characteristics Matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 30(4), pages 385-397, September.
    25. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    26. Titanilla Oravecz & Laszlo Mucha & Robert Magda & Gedeon Totth & Csaba Bálint Illés, 2020. "Consumers' Preferences for Locally Produced Honey in Hungary," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(2), pages 407-418.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sanja Lutzeyer, 2008. "Estimating Hedonic Prices for Stellenbosch wine," Working Papers 15/2008, Stellenbosch University, Department of Economics.
    2. Herrmann, Roland & Bissinger, Katharina & Krandick, Lisa, 2018. "Price Premia for Sustainability Characteristics in Foods: Measurement Matters!," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276855, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    4. Steiner, Bodo E., 2002. "The Valuation Of Labelling Attributes In A Wine Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19718, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).
    6. Ballco, Petjon & Gracia, Azucena, 2020. "Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    7. Schamel, Günter, 2005. "German Wine: Measurement and Evaluation of Product Quality," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    8. Edward Oczkowski, 2016. "Analysing Firm-level Price Effects for Differentiated Products: The Case of Australian Wine Producers," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 43-62, March.
    9. Luigi Benfratello & Massimiliano Piacenza & Stefano Sacchetto, 2004. "-What Drives Market Prices in the Wine Industry ? Estimation of a Hedonic Model for Italian Premium Wines," CERIS Working Paper 200411, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    10. Revoredo-Giha, Cesar & Leat, Philip M.K. & Lamprinopoulou-Kranis, Chrysa & Kupiec-Teahan, Beata, 2008. "Premia For Differentiated Products At The Retail Level: Can The Market Put A Value On The Mountain Attribute?," Working Papers 112887, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    11. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    12. Luigi Roselli & Domenico Carlucci & Bernardo Corrado Gennaro, 2016. "What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 329-342, July.
    13. 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), pages 1-16, August.
    14. Corsi, Alessandro & Strøm, Steinar, 2013. "The Price Premium for Organic Wines: Estimating a Hedonic Farm-Gate Price Equation," Journal of Wine Economics, Cambridge University Press, vol. 8(1), pages 29-48, May.
    15. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    16. Herrmann, R. & Bissinger, K. & Krandick, L., 2018. "Implicit Prices of Sustainability Characteristics in Foods: the Case of the German Online Market for Honey," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277079, International Association of Agricultural Economists.
    17. M. Laura Donnet & Dave D. Weatherspoon & John P. Hoehn, 2008. "Price determinants in top‐quality e‐auctioned specialty coffees," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 267-276, May.
    18. Empen, J., 2012. "Preissetzung auf dem deutschen Joghurtmarkt: eine hedonische Analyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    19. Lundhede, Thomas Hedemark & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "A hedonic analysis of the complex hunting experience," Journal of Forest Economics, Elsevier, vol. 21(2), pages 51-66.
    20. Eugenio Brentari & Rosella Levaggi, 2010. "Hedonic Price for the Italian Red Wine: a Panel Analysis," Working Papers 1001, University of Brescia, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:38:y:2022:i:4:p:885-904. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.