When Consumers and Products Come From the Same Place: Preferences and WTP for Geographical Indication Differ Across Regional Identity Groups. Issue 3 (2nd July 2016)

• Record Type: Journal Article
• Authors: Panzone, Luca; Di Vita, Giuseppe; Borla, Stefania; D'Amico, Mario
• Is Part Of: Journal of international food & agribusiness marketing. Volume 28:Issue 3(2016)
• Page Start: 286
• Page End: 313
• Publication Date: 2016-07-02
• Subjects: Contingent ranking -- extra-virgin olive oil -- geographical indication -- regional identity; Food supply -- Periodicals; Food -- Marketing -- Periodicals; Food industry and trade -- Periodicals; 338.10688
• DOI: 10.1080/08974438.2016.1145611
• Languages: English
• ISSNs: 0897-4438

Abstract

ABSTRACT: This article contributes to the existing literature on geographical indications by observing consumers' stated preference for extra-virgin olive oil in two groups differing in their regional identity. In particular, consumers from two groups were asked to rank products in a contingent ranking survey. One group ("insiders, " Sicilian consumers) shared origin with a good product (Sicilian oil); the other group ("outsiders, " Rome and Milan) presented "no association" consumer-product. Results indicate that insiders are willing to pay more for goods originating from the region they identify with compared with a region associated with outsiders. Identity seems to give a bias by which a local product is not necessarily perceived as superior in absolute terms, but in relative terms: outside products are never considered better than inside options but are either inferior or equal in perceived value.