IDEAS home Printed from https://ideas.repec.org/p/isu/genres/13122.html
   My bibliography  Save this paper

Consumer Preferences for Country-Of-Origin, Geographical Indication, and Protected Designation of Origin Labels

Author

Listed:
  • Menapace, Luisa
  • Colson, Gregory J.
  • Grebitus, Carola
  • Facendola, Maria

Abstract

Motivated by the recognition that geography is often correlated with and/or an important determinant of the overall quality of agricultural products, consumer groups, industry representatives, and domestic and trade representatives have increasingly considered the potential role of geographical origin labels as consumer information and marketing tools. We investigate whether consumers recognize and value the informational content of a variety of nested geographical origin labels. In particular, this study disentangles and assesses three nested types of origin labels: country of origin (COOL), geographical indications (GI), and PDO/PGI. We find that, within the context of a high quality valueadded commodity such as extra virgin olive oil, consumers' willingness to pay varies across different countries of origin, and that within a country consumers have a greater willingness to pay for GI-labeled than non-GI labeled products. We also find evidence that consumers value PDOs more than PGIs, but the result is not as strong as that found for GI versus non-GI. Overall, our findings support the recent surge in interest by both developed and developing nations in reaching an agreement for stricter and more widespread protection of GIs within ongoing WTO discussions and harnessing them as marketing tools for expanding shares in export markets.

Suggested Citation

  • Menapace, Luisa & Colson, Gregory J. & Grebitus, Carola & Facendola, Maria, 2009. "Consumer Preferences for Country-Of-Origin, Geographical Indication, and Protected Designation of Origin Labels," Staff General Research Papers Archive 13122, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:13122
    as

    Download full text from publisher

    File URL: http://www2.econ.iastate.edu/papers/p3895-2009-11-02.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sergio H. Lence & Stéphan Marette & Dermot J. Hayes & William Foster, 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 947-963.
    2. 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.
    3. Scarpa Riccardo & Del Giudice Teresa, 2004. "Market Segmentation via Mixed Logit: Extra-Virgin Olive Oil in Urban Italy," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-20, August.
    4. Loureiro, Maria L. & Umberger, Wendy J., 2002. "Estimating Consumer Willingness-To-Pay For Country Of-Origin-Labels For Beef Products," 2002 Annual meeting, July 28-31, Long Beach, CA 19745, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Turkekul, Berna & Gunden, Cihat & Abay, Canan & Miran, Bulent, 2007. "A Market Share Analysis of Virgin Olive Oil Producer Countries with special respect to Competitiveness," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9410, European Association of Agricultural Economists.
    6. James Unterschultz & Kwamena K. Quagrainie & Michele Veeman & Renee B. Kim, 1998. "South Korean Hotel Meat Buyers' Perceptions of Australian, Canadian and U.S. Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(1), pages 53-68, March.
    7. Medicamento, Umberto & De Gennaro, Bernardo, 2006. "Social Networks and Supplychain Management in Rural Areas: A Case Study Focusing on Organic Olive Oil," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25266, International Association of Agricultural Economists.
    8. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
    9. 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 (IFAMA), vol. 8(02).
    10. Sterns, James A. & House, Lisa & VanSickle, John J. & Wysocki, Allen F., 2004. "Cool And Consumers' Willingness To Pay In The Fresh Produce Industry - Some Initial Impressions From The Field," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34780, Southern Agricultural Economics Association.
    11. Colin Carter & Barry Krissoff & Alix Peterson Zwane, 2006. "Can Country-of-Origin Labeling Succeed as a Marketing Tool for Produce? Lessons from Three Case Studies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 513-530, December.
    12. 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.
    13. Rigby, Dan & Burton, Michael P. & Young, Trevor, 2005. "Precaution and Protectionism: GM Food and the WTO," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24447, European Association of Agricultural Economists.
    14. 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.
    15. Wuyang Hu & Michele Veeman & Wiktor Adamowicz & Ge Gao, 2006. "Consumers' Food Choices with Voluntary Access to Genetic Modification Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 585-604, December.
    16. 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.
    17. James Rude & Javed Iqbal & Derek Brewin, 2006. "This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(3), pages 401-420, September.
    18. Roxanne Clemens & Bruce A. Babcock, 2004. "Country of Origin as a Brand: The Case of New Zealand Lamb," Center for Agricultural and Rural Development (CARD) Publications 04-mbp9, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    19. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    20. Tim Josling, 2006. "The War on "Terroir": Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 337-363.
    21. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    22. Baker, Gregory A. & Burnham, Thomas A., 2001. "Consumer Response To Genetically Modified Foods: Market Segment Analysis And Implications For Producers And Policy Makers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    geographical indications; consumer preferences; country of origin labels; PDO; PGI; olive oil;

    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:isu:genres:13122. 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: (Curtis Balmer). General contact details of provider: http://edirc.repec.org/data/deiasus.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.