When Consumers and Products Come From the Same Place: Preferences and WTP for Geographical Indication Differ Across Regional Identity Groups

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  2. Dr Luca Panzone
Author(s)Panzone L, DiVita G, Borla S, DAmico M
Publication type Article
JournalJournal of International Food & Agribusiness Marketing
IssueePub ahead of Print
ISSN (print)0897-4438
ISSN (electronic)1528-6983
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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 (Sicilian oil); the other group (outsiders Rome and Milan) presented no association consumers-product. Results indicate that insiders are willing to pay more for goods originating from the region they identify with compared to 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.
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