IDEAS home Printed from https://ideas.repec.org/p/ags/eaa145/200376.html
   My bibliography  Save this paper

How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy

Author

Listed:
  • Garavaglia, Christian
  • Mariani, Paolo

Abstract

This study investigates consumers’ preferences and WTP for PDO certifications. First, the paper proposes the use of a new index in food studies to measure WTP. We focus on dry-cured ham in Italy. Our results add a geographical dimension to studies of consumer preferences by providing evidence of the existence of differences based on place of residence. Consumers who live in the same area where certified ham is produced are willing to pay a lower premium price than consumers living farther away are willing to pay: the closer consumers live to the area of production of the certified product, the less they refer to extrinsic certification cues.

Suggested Citation

  • Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa145:200376
    DOI: 10.22004/ag.econ.200376
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/200376/files/C.%20Garavaglia%20P.%20Mariani%20_2015_%20How%20Much%20Do%20Consumers%20Value%20PDO%20Certifications%20Estimates%20of%20WTP%20for%20PDO%20Dry-Cured%20Ham%20in%20Italy.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    2. Ivo A. van der Lans & Koert van Ittersum & Antonella De Cicco, 2001. "The role of the region of origin and EU certificates of origin in consumer evaluation of food products," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(4), pages 451-478, December.
    3. Banterle, Alessandro & Cavaliere, Alessia & Ricci, Elena Claire, 2012. "Food labelled Information: An Empirical Analysis of Consumer Preferences," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144960, International European Forum on System Dynamics and Innovation in Food Networks.
    4. Cicia, Gianni & Colantuoni, Francesca, 2010. "Willingness to Pay for Traceable Meat Attributes: A Meta-analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(3), pages 1-12, October.
    5. 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.
    6. 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.
    7. 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.
    8. Krystallis, Athanasios & Ness, Mitchell, 2005. "Consumer Preferences for Quality Foods from a South European Perspective: A Conjoint Analysis Implementation on Greek Olive Oil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(2), pages 1-30.
    9. Luisa Menapace & GianCarlo Moschini, 2012. "Quality certification by geographical indications, trademarks and firm reputation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 539-566, September.
    10. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(2), pages 193-212, June.
    11. Dentoni, Domenico & Tonsor, Glynn T. & Calantone, Roger J. & Peterson, H. Christopher, 2009. "The Direct and Indirect Effects of ‘Locally Grown’ on Consumers’ Attitudes towards Agri-Food Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(3), pages 384-396, December.
    12. Rao, Akshay R & Monroe, Kent B, 1988. "The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations," Journal of Consumer Research, Oxford University Press, vol. 15(2), pages 253-264, September.
    13. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    14. Spencer Henson, 1996. "Consumer Willingness To Pay For Reductions In The Risk Of Food Poisoning In The Uk," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 403-420, January.
    15. Carl Johan Lagerkvist & Sebastian Hess, 2011. "A meta-analysis of consumer willingness to pay for farm animal welfare," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 55-78, March.
    16. Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 369-391, September.
    17. 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.
    18. Baker, Gregory A. & Mazzocco, Michael A., 2005. "Who Should Certify the Safety of Genetically Modified Foods?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(2), pages 1-20.
    19. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Oxford University Press, vol. 5(2), pages 103-123, Se.
    20. Pascale Bazoche & Pierre Combris & Eric Giraud-Héraud & Alexandra Seabra Pinto & Frank Bunte & Efthimia Tsakiridou, 2014. "Willingness to pay for pesticide reduction in the EU: nothing but organic?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 41(1), pages 87-109, February.
    21. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
    22. Lusk Jayson L. & Marette Stéphan, 2012. "Can Labeling and Information Policies Harm Consumers?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-15, October.
    23. Baker, Gregory A., 1999. "Consumer Preferences For Food Safety Attributes In Fresh Apples: Market Segments, Consumer Characteristics, And Marketing Opportunities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    24. Gan, Christopher E.C. & Luzar, E. Jane, 1993. "A Conjoint Analysis Of Waterfowl Hunting In Louisiana," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-10, December.
    25. Veale, Roberta & Quester, Pascale, 2009. "Do consumer expectations match experience? Predicting the influence of price and country of origin on perceptions of product quality," International Business Review, Elsevier, vol. 18(2), pages 134-144, April.
    26. Helena Resano‐Ezcaray & Ana Isabel Sanjuán‐López & Luis Miguel Albisu‐Aguado, 2010. "Combining Stated and Revealed Preferences on Typical Food Products: The Case of Dry‐Cured Ham in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 480-498, September.
    27. Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(3), pages 489-510, July.
    28. Visser, Jurriaan & Trienekens, Jacques & van Beek, Paul, 2013. "Opportunities for Local for Local Food Production A Case in the Dutch Fruit and Vegetables," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(1), pages 1-15, July.
    29. Zohra Bouamra‐Mechemache & Jad Chaaban, 2010. "Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 225-239, June.
    30. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    31. Banterle, Alessandro & Cavaliere, Alessia & Ricci, Elena Claire, 2013. "Food Labelled Information: An Empirical Analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 3(2), pages 1-15, January.
    32. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    33. Robin Cross & Andrew J. Plantinga & Robert N. Stavins, 2011. "What Is the Value of Terroir?," American Economic Review, American Economic Association, vol. 101(3), pages 152-156, May.
    34. Visser, Jurriaan & Trienekens, Jacques & van Beek, Paul, 2013. "Opportunities for Local for Local Food Production: A case in the Dutch Fruit and Vegetables," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164758, International European Forum on System Dynamics and Innovation in Food Networks.
    35. 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.
    36. Gan, Christopher & Luzar, E. Jane, 1993. "A Conjoint Analysis of Waterfowl Hunting in Louisiana," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(2), pages 36-45, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bruce L., Ahrendsen & Edward. Majewski, 2017. "Protected Geographical Indication Recognition And Willingness To Pay: A Case Of Grojec Apple," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(3-4), December.
    2. Maria Cecilia Mancini & Filippo Arfini & Mario Veneziani & Erik Thévenod‐Mottet, 2017. "Geographical Indications and Transatlantic Trade Negotiations: Different US and EU Perspectives," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 34-40, August.

    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. Christian Garavaglia & Paolo Mariani, 2017. "How Much Do Consumers Value Protected Designation of Origin Certifications? Estimates of willingness to Pay for PDO Dry‐Cured Ham in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 403-423, June.
    2. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    3. 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.
    4. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    5. Boncinelli, Fabio & Contino, Caterina & Romano, Caterina & Scozzafava, Gabriele & Casini, Leonardo, 2016. "Territory, environment, and healthiness in traditional food choices: insights into consumer heterogeneity," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), October.
    6. Garavaglia, Christian & Marcoz, Elena Maria, 2014. "Willingness to pay for P.D.O. certification: an empirical investigation," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 5(1), pages 1-12, July.
    7. 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.
    8. 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.
    9. 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.
    10. Helena Resano‐Ezcaray & Ana Isabel Sanjuán‐López & Luis Miguel Albisu‐Aguado, 2010. "Combining Stated and Revealed Preferences on Typical Food Products: The Case of Dry‐Cured Ham in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 480-498, September.
    11. Vecchio, Riccardo & Annunziata, Azzurra, 2011. "The role of PDO/PGI labelling in Italian consumers’ food choices," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    12. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
    13. Leonardo Cei & Edi Defrancesco & Gianluca Stefani, 2018. "From Geographical Indications to Rural Development: A Review of the Economic Effects of European Union Policy," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-21, October.
    14. Ngoulma, Jeannot, 2015. "Consumers’ willingness to pay for dairy products: what the studies say? A Meta-Analysis," MPRA Paper 65250, University Library of Munich, Germany.
    15. Yang, W. & Renwich, A., 2018. "Consumer Willingness to Pay Price Premium for Credence Attributes of Livestock Products A Meta-Analysis method," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277320, International Association of Agricultural Economists.
    16. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(2), pages 193-212, June.
    17. White, Robin R. & Brady, Michael, 2014. "Can consumers’ willingness to pay incentivize adoption of environmental impact reducing technologies in meat animal production?," Food Policy, Elsevier, vol. 49(P1), pages 41-49.
    18. Jianyu Yu & Zohra Bouamra-Mechemache & Angelo Zago, 2018. "What is in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 286-310.
    19. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," TSE Working Papers 12-335, Toulouse School of Economics (TSE).
    20. 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.

    More about this item

    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:eaa145:200376. 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: (AgEcon Search). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.