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Product Attribute Saliency and Region of Origin: Some Empirical Evidence from Portugal

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  • Santos, J. Freitas
  • Ribeiro, J. Cadima
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    Abstract

    This paper empirically investigates the extent to which consumer preferences may act as promoters of regional products. Three products are studied in terms of the importance consumers attach to various product attributes with particular emphasis on region of origin information. The estimation of a hedonic price function, which relates the price of Portuguese regional products to its various attributes, provided empirical support to the hypothesis that region of origin matters to consumers. The study shows that wine, olive oil and cheese from some regions of origin have a significant impact on price. Particularly, some regions of origin are expected to have price premiums, while others are expected to have discounts.

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    File URL: http://purl.umn.edu/24667
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24667.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae05:24667

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    Related research

    Keywords: regional products; hedonic approach; wine; olive oil; cheese; Food Consumption/Nutrition/Food Safety; C21; D83; Q18;

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    References

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    1. 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).
    2. 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, 04.
    3. Stanley, Linda R & Tschirhart, John, 1991. "Hedonic Prices for a Nondurable Good: The Case of Breakfast Cereals," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 537-41, August.
    4. Schamel, Guenter, 2003. "International Wine Trade: Analyzing The Value Of Reputation And Quality Signals," 2003 Annual meeting, July 27-30, Montreal, Canada 22157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. 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.
    6. Warren J Bilkey & Erik Nes, 1982. "Country-of-Origin Effects on Product Evaluations," Journal of International Business Studies, Palgrave Macmillan, vol. 13(1), pages 89-100, March.
    7. Saeed Samiee, 1994. "Customer Evaluation of Products in a Global Market," Journal of International Business Studies, Palgrave Macmillan, vol. 25(3), pages 579-604, September.
    8. G¸nter Schamel & Kym Anderson, 2003. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 357-369, 09.
    9. 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.
    10. 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.
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    Cited by:
    1. Caputo, Vincenzina & Aprile, Maria Carmela & Nayga, Rodolfo M., Jr., 2011. "Consumers’ Valuation for European food quality labels: Importance of Label Information Provision," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114324, European Association of Agricultural Economists.
    2. 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.
    3. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee," 105th Seminar, March 8-10, 2007, Bologna, Italy 7866, European Association of Agricultural Economists.
    4. Sanchez Garcia, Mercedes & Barrena Figueroa, Ramo, 2008. "Structural Equation Models For The Hierarchization Of Activities In The Supply And Distribution Of Origin-Certified Foods," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6394, European Association of Agricultural Economists.

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