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Hedonic valuation of country of origin in the Chinese dairy market

Author

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  • Zhang, Yan
  • Jin, Shaosheng

Abstract

The implicit value to Chinese consumers of the country-of-origin (COO) characteristic of dairy products is of great importance to estimate. This study adopted the hedonic price model to evaluate the shadow price of the COO attribute of both UHT fluid milk and infant formula collected from the five leading e-commerce platforms (Alibaba’s Tmall Supermarket, Jingdong, Suning Purchase, COFCO I buy nets, and Yihaodian) in China. The target countries were Germany, France, the Netherlands, and Spain from the EU, and Australia and New Zealand from Oceania. The results show that the implicit values of the COO of UHT fluid milk and infant formula are reversed. Having a COO of Spain and Germany decreased the price of UHT fluid milk compared with China, while Germany, New Zealand, France, the Netherlands, and Spain all earned a price premium on infant formula. The B2C platforms Yihaodian, Jingdong, Alibaba’s Tmall Supermarket and Suning Purchase all earned a price premium above COFCO I buy nets. These findings have important implications for dairy industry of EU countries, Australia, New Zealand, and China in terms of the promotion of domestic dairy products. Moreover, this study contributes to the existing body of literature by innovating in employing sales data from e-commerce scanners to study the implicit value of food attributes.

Suggested Citation

  • Zhang, Yan & Jin, Shaosheng, 2020. "Hedonic valuation of country of origin in the Chinese dairy market," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    • Handle: RePEc:ags:ifaamr:307219
    DOI: 10.22004/ag.econ.307219
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    References listed on IDEAS

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    1. Chung L. Huang & Biing-Hwan Lin, 2007. "A Hedonic Analysis of Fresh Tomato Prices among Regional Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 783-800.
    2. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2004. "Identification and Estimation of Hedonic Models," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 60-109, February.
    3. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2002. "Identifying Hedonic Models," American Economic Review, American Economic Association, vol. 92(2), pages 304-309, May.
    4. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    5. Peterson, Hikaru Hanawa & Yoshida, Kentaro, 2004. "Quality Perceptions and Willingness-to-Pay for Imported Rice in Japan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(1), pages 123-141, April.
    6. repec:dau:papers:123456789/6486 is not listed on IDEAS
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    Cited by:

    1. Xu, Hui & Wu, Yang, 2024. "Do virtual endorsers have a country-of-origin effect? From the perspective of congruent explanations," Technological Forecasting and Social Change, Elsevier, vol. 206(C).

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