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Origin or organoleptic characteristics of Pears: which is more valued in the market?

Listed author(s):
  • Anabela Botelho

    ()

    (Universidade do Minho, NIMA)

  • Isabel Dinis
  • Lina Sofia Lourenço-Gomes

    ()

    (University of Trás-os-Montes and Alto Douro)

  • Jorge Moreira

    (CERNAS, Instituto Politécnico de Coimbra, Escola Superior Agrária de Coimbra)

  • Lígia Costa Pinto

    ()

    (Universidade do Minho, NIMA)

Consumers’ decision when buying fruit and vegetables is determined by tangible and intangible attributes. In general, intangible attributes, such as the origin of the variety, are not perceived by consumers before or after purchase; thus, information on these characteristics of products must be provided. The origin of the variety is a particularly important intangible attribute in the case of fruit and vegetables. Its relevance is due to the role that traditional varieties may play in the conservation of biodiversity, and also in the local economy. In many instances, however, the higher production costs and lower profitability associated with traditional varieties discourage the continuation of this activity. Arguably, the farmers shall then be compensated by the market (through a price premium) to ensure the maintenance of local traditional varieties. The purpose of the present study is to enhance information about the relative importance of several attributes or characteristics of the product Pears, and to assess consumers’ willingness to pay for the specific attribute Origin of Variety, detecting and quantifying the potential existence of a price premium.

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Paper provided by Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho in its series NIMA Working Papers with number 55.

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Length: 19 pages
Date of creation: Jan 2014
Handle: RePEc:nim:nimawp:55/2014
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  1. Mara Thiene & Riccardo Scarpa & Luigi Galletto & Vasco Boatto, 2013. "Sparkling wine choice from supermarket shelves: the impact of certification of origin and production practices," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 523-536, 07.
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  6. Jean Philippe Perrouty & François d'Hauteville & Larry Lockshin, 2006. "The influence of wine attributes on region of origin equity: An analysis of the moderating effect of consumer's perceived expertise," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 323-341.
  7. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
  8. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 205-223, June.
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