IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v21y2005i3p329-349.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Riccardo Scarpa & George Philippidis & Fiorenza Spalatro, 2005. "Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 329-349.
  • Handle: RePEc:wly:agribz:v:21:y:2005:i:3:p:329-349
    DOI: 10.1002/agr.20051
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20051
    File Function: Link to full text; subscription required
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, March.
    7. Vivien Foster & Susana Mourato, 2003. "Elicitation Format and Sensitivity to Scope," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 141-160, February.
    8. 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.
    9. 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, University of Bath, vol. 36(2), pages 211-231, May.
    10. 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 317-328, July.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Galanopoulos, Kostas & Tzouramani, Irene & Fotopoulos, Christos & Mattas, Konstandinos, 1999. "PDO supply chains in Greece: empirical evidence from two regional products," 67th Seminar, October 28-30, 1999, LeMans, France 241348, European Association of Agricultural Economists.
    16. 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.
    17. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    18. 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.
    19. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    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:21:y:2005:i:3:p:329-349. See general information about how to correct material in RePEc.

    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). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.