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How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?

Author

Listed:
  • Yue, Chengyan
  • Marette, Stéphan
  • Beghin, John

Abstract

In 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.

Suggested Citation

  • Yue, Chengyan & Marette, Stéphan & Beghin, John, 2013. "How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?," ISU General Staff Papers 201301010800001446, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201301010800001446
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    Cited by:

    1. YOO, Veronica & FLORKOWSKI, Wojciech J. & CAREW, Richard, . "Pricing Attributes Of Wines From Emerging Suppliers On The British Columbia Market," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(2), pages 1-12.
    2. Fares, M’hand & Raza, Saqlain & Thomas, Alban, 2018. "Is there complementarity between labels and brands? Evidence from small French co-operatives," TSE Working Papers 18-895, Toulouse School of Economics (TSE).
    3. M’hand Fares & Saqlain Raza & Alban Thomas, 2018. "Is There Complementarity Between Certified Labels and Brands? Evidence from Small French Cooperatives," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(2), pages 367-395, September.

    More about this item

    JEL classification:

    • 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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