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The impact of place-of-origin on price premium for agricultural products: empirical evidence from Taobao.com

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  • Xia Li

    (Shanghai University of Finance and Economics
    Xinjiang University of Finance and Economics)

Abstract

The impact of place-of-origin on price premium for agricultural products in the online marketplace has received limited attention in the existing literature. This study draws from the elaboration likelihood model and investigates whether place-of-origin affects price premium. Moreover, this study explores how other cues [seller’s reputation, positive word-of-mouth (WOM) volume, and WOM valence] moderate the relationship between place-of-origin and price premium for agricultural products in the online marketplace. The result of the empirical study reveals that place-of-origin indeed has a significant and positive impact on price premium. Furthermore, the study finds a negative interactive effect between place-of-origin and other cues (seller’s reputation, positive WOM volume, and WOM valence) on the price premium for agricultural products in an e-commerce setting. The results highlight the importance of place-of-origin in the competitive online market and have implications both for academic research and for online retailing practice.

Suggested Citation

  • Xia Li, 2022. "The impact of place-of-origin on price premium for agricultural products: empirical evidence from Taobao.com," Electronic Commerce Research, Springer, vol. 22(2), pages 561-584, June.
    • Handle: RePEc:spr:elcore:v:22:y:2022:i:2:d:10.1007_s10660-020-09404-5
    DOI: 10.1007/s10660-020-09404-5
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