When Consumers and Products Come From the Same Place: Preferences and WTP for Geographical Indication Differ Across Regional Identity Groups |
| |
Authors: | Luca Panzone Giuseppe Di Vita Stefania Borla Mario D’Amico |
| |
Affiliation: | 1. Newcastle University, Newcastle upon Tyne, UKluca.panzone@newcastle.ac.uk;3. University of Catania, Catania, Italy;4. Warwick University, Warwick, UK |
| |
Abstract: | ABSTRACTThis 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. |
| |
Keywords: | Contingent ranking extra-virgin olive oil geographical indication regional identity |
|
|