We examine the potential demand for a local food speciality product, saffron, with alternative labels, using a choice experiment. The paper contributes to the literature on credence attributes, by examining Willingness to Pay (WTP) for the local, organic and PDO (Protected Designation of Origin), their differences across experimental conditions (hypothetical and non‐hypothetical), and by identifying the effects of personal characteristics, in terms of socio‐demographics and level of product involvement on the differences in WTP. We find that the local saffron speciality has an important appeal that could be better reinforced with the PDO rather than the organic labelling, and that consumers show a consistent pattern of preferences across experimental environments. WTP tends to be higher in the hypothetical setting and, in particular, consumers with relatively more knowledge and deeper roots in the territory tend to exhibit a larger WTP premium for local origin and its certification. These results may help producers improve their marketing of agri‐food products with a high gastronomic value and differentiation potential, while they warn about an overstatement of WTP for socially desirable characteristics, such as organic labelling, which is also relevant for policymakers.
In Europe, in the last decades, public administration has encouraged extensive livestock farming systems, usually related to high quality meat and the preservation of endangered local breeds. Nevertheless, its continuity in the near future should be based on adapting it to the market requirements. This paper investigates consumers' preferences heterogeneity towards veal attributes, as well as the linkage between a wide range of consumer traits and attributes that motivate purchasing of veal with unique characteristics. Main method of analysis included a choice experiment method. Findings showed that regional origin and health information play a stronger role than tenderness degree guarantee at the moment of choice. Moreover, regional origin is more relevant when it is linked to a local breed. Nevertheless, heterogeneous preferences have been detected. In contrast to the general trend, one-person households attach greater importance to the presence of a high degree of tenderness guarantee. Furthermore, younger consumers value more this guarantee, while expert consumers do not.
In the last decades, the European Union (EU) agricultural policy has encouraged extensive livestock farming systems as a sustainable way of production, while more recently, voluntary certification schemes on mountain origin and autochthonous breeds have been put in place to further contribute to the preservation of biodiversity and economic activity in mountainous areas. The aim of this study is twofold: first, to investigate the role of the mountain origin and local autochthonous breed certification on urban consumer’s acceptability; and second, to compare consumer’s overall acceptability at central location versus home-based. These two specific objectives are designed to better ascertain the suitability of these voluntary certifications as a marketing tool that helps to bridge the gap between urban consumers’ beef choices and rural sustainability. Main methods of analysis included internal preference mapping and cluster analysis. Findings suggested that both claims, mountain origin (Pyrenean in particular) and autochthonous breed conveyed relevant information to consumers at the moment of testing, while the former played a stronger role on hedonic valuations. We have found that the environmental setting significantly influences acceptability with higher ratings obtained in the home test. A small niche market for Pyrenean cattle breeders was also detected, while reaching the larger and more product involved segment of urban consumers would require further marketing actions.
1 June 2009 in Spanish Journal of Agricultural Research
The paper examines the retail price structure of saffron currently marketed in the Spanish market, with special emphasis on the assessment of the region of origin and its certification as tools of differentiation. The motivation lies on the search for effective marketing tools for Jiloca saffron (Aragón) that in turn may contribute to preserve this traditional agricultural sector threatened by progressive abandonment. An hedonic price regression is estimated for this purpose, where the functional form is empirically determined. The prices and product characteristics have been collected from labels of saffron references either found on the shelves of representative retail shops in the main city of Aragon (Zaragoza) or on the internet shopping services that the main Spanish distribution chains offer. Results show that higher prices are attached for saffron distributed at supermarkets and Gourmet shops, marketed in threads, packaged in glass, and which carries a brand owned by a processor specialized in the processing and marketing of saffron. Currently, the recognition of Jiloca origin does not carry a premium, contrary to what happens to La Mancha, whilst the Protected Designation of Origin reinforces the economic value of La Mancha origin.
It is increasingly important that the extensive livestock systems become more resilient and market orientated to face current challenges. But this can only be achieved by more interconnected supply chains where consumers’ expectations are understood and the benefits of the production systems are communicated to the final consumer. This paper focuses on an array of