How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?
AbstractIn the context of the wine industry, we investigate producers' choice between geographical indications and brand advertising to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We show that if this effort level is selected, a producer will prefer to rely on brand advertising for promoting its products and setting up its own reputation. Despite allowing the cost of promotion to be shared, a geographical indication does not sufficiently reward the effort to improve quality. Finally, the selection of both instruments by producers is examined.
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Bibliographic InfoPaper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 06-wp426.
Date of creation: Aug 2006
Date of revision:
brand advertising; effort; geographical indication; GI; quality; wine.;
Other versions of this item:
- Chengyan Yue & StÃ©phan Marette & John C. Beghin, 2006. "How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp426, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Yue, Chengyan & Marette, Stephan & Beghin, John C., 2006. "How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographic Indication?," 2006 Annual meeting, July 23-26, Long Beach, CA 21310, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
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