IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v22y2022i2d10.1007_s10660-020-09404-5.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-020-09404-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-020-09404-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martin S Roth & Jean B Romeo, 1992. "Matching Product Category and Country Image Perceptions: A Framework for Managing Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(3), pages 477-497, September.
    2. van Ittersum, Koert & Candel, Math J. J. M. & Meulenberg, Matthew T. G., 2003. "The influence of the image of a product's region of origin on product evaluation," Journal of Business Research, Elsevier, vol. 56(3), pages 215-226, March.
    3. Jane Ricketts Hein & Brian Ilbery & Moya Kneafsey, 2006. "Distribution of local food activity in England and Wales: An index of food relocalization," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 289-301.
    4. Young Chan Choe & Joowon Park & Miri Chung & Junghoon Moon, 2009. "Effect of the food traceability system for building trust: Price premium and buying behavior," Information Systems Frontiers, Springer, vol. 11(2), pages 167-179, April.
    5. (Catherine) Zhang, Jie & Savage, Scott J. & Chen, Yongmin, 2015. "Consumer uncertainty and price discrimination through online coupons: An empirical study of restaurants in Shanghai," Information Economics and Policy, Elsevier, vol. 33(C), pages 43-55.
    6. Veale, Roberta & Quester, Pascale, 2009. "Do consumer expectations match experience? Predicting the influence of price and country of origin on perceptions of product quality," International Business Review, Elsevier, vol. 18(2), pages 134-144, April.
    7. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    8. Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006. "The value of reputation on eBay: A controlled experiment," Experimental Economics, Springer;Economic Science Association, vol. 9(2), pages 79-101, June.
    9. repec:bla:jindec:v:49:y:2001:i:4:p:541-58 is not listed on IDEAS
    10. Maheswaran, Durairaj, 1994. "Country of Origin as a Stereotype: Effects of Consumer Expertise and Attribute Strength on Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 354-365, September.
    11. Rao, Akshay R & Monroe, Kent B, 1996. "Causes and Consequences of Price Premiums," The Journal of Business, University of Chicago Press, vol. 69(4), pages 511-535, October.
    12. Tao Zhou & Yaobin Lu & Bin Wang, 2016. "Examining online consumers’ initial trust building from an elaboration likelihood model perspective," Information Systems Frontiers, Springer, vol. 18(2), pages 265-275, April.
    13. Davis, Joshua M. & Agrawal, Deepti, 2018. "Understanding the role of interpersonal identification in online review evaluation: An information processing perspective," International Journal of Information Management, Elsevier, vol. 38(1), pages 140-149.
    14. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-16, August.
    15. Michael D. Smith & Erik Brynjolfsson, 2001. "Consumer Decision-making at an Internet Shopbot: Brand Still Matters," NBER Chapters, in: E-commerce, pages 541-558, National Bureau of Economic Research, Inc.
    16. Hu, Ye & Wang, Xin, 2010. "Country-of-Origin Premiums for Retailers in International Trades: Evidence from eBay's International Markets," Journal of Retailing, Elsevier, vol. 86(2), pages 200-207.
    17. Paul A. Pavlou & Angelika Dimoka, 2006. "The Nature and Role of Feedback Text Comments in Online Marketplaces: Implications for Trust Building, Price Premiums, and Seller Differentiation," Information Systems Research, INFORMS, vol. 17(4), pages 392-414, December.
    18. Berry, Christopher & Mukherjee, Amaradri & Burton, Scot & Howlett, Elizabeth, 2015. "A COOL Effect: The Direct and Indirect Impact of Country-of-Origin Disclosures on Purchase Intentions for Retail Food Products," Journal of Retailing, Elsevier, vol. 91(3), pages 533-542.
    19. Kostyra, Daniel S. & Reiner, Jochen & Natter, Martin & Klapper, Daniel, 2016. "Decomposing the effects of online customer reviews on brand, price, and product attributes," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 11-26.
    20. Dentoni, Domenico & Tonsor, Glynn T. & Calantone, Roger J. & Peterson, H. Christopher, 2009. "Building Individual Brands with Place-of-Origin Information: Implications for the Food Industry," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58007, European Association of Agricultural Economists.
    21. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    22. Fan, Ying & Ju, Jiandong & Xiao, Mo, 2016. "Reputation premium and reputation management: Evidence from the largest e-commerce platform in China," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 63-76.
    23. Sattler, Henrik & Völckner, Franziska & Riediger, Claudia & Ringle, Christian M., 2010. "The impact of brand extension success drivers on brand extension price premiums," International Journal of Research in Marketing, Elsevier, vol. 27(4), pages 319-328.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiangyuan Hou & Mingyue Du & Qingjie Zhou, 2023. "What People Talk About Multi-Channel Purchasing Behavior and What They Intend to do: Related Perspective From ESG Evaluation System," SAGE Open, , vol. 13(4), pages 21582440231, October.
    2. Luis Filipe Lages & Nuno Catarino & Emanuel Gomes & Peter Toh & Carlos Reis-Marques & Mario Mohr & Sebastian Max Borde & Omid Asgari & Ronnie Figueiredo & Nuno Grosso & David Perez & Ana Ponte & Sílvi, 2023. "Solutions for the commercialization challenges of Horizon Europe and earth observation consortia: co-creation, innovation, decision-making, tech-transfer, and sustainability actions," Electronic Commerce Research, Springer, vol. 23(3), pages 1621-1663, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cuffaro, Nadia & Di Giacinto, Marina, 2015. "Credence goods, consumers’ trust in regulation and high quality exports," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(2), pages 1-19, August.
    2. Souiden, Nizar & Amara, Nabil & Chaouali, Walid, 2020. "Optimal image mix cues and their impacts on consumers’ purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    3. Baldauf, Artur & Cravens, Karen S. & Diamantopoulos, Adamantios & Zeugner-Roth, Katharina Petra, 2009. "The Impact of Product-Country Image and Marketing Efforts on Retailer-Perceived Brand Equity: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 85(4), pages 437-452.
    4. Franz Hackl & Rudolf Winter-Ebmer, 2020. "Customer reactions to a webshop’s service quality," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 699-731, November.
    5. Pradeep K. Chintagunta & Junhong Chu, 2021. "Geography as branding: Descriptive evidence from Taobao," Quantitative Marketing and Economics (QME), Springer, vol. 19(1), pages 53-92, March.
    6. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, September.
    7. Saeed Samiee & Brian R. Chabowski, 2021. "Knowledge structure in product- and brand origin–related research," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 947-968, September.
    8. Costa, Camila & Carneiro, Jorge & Goldszmidt, Rafael, 2016. "A contingent approach to country-of-origin effects on foreign products evaluation: Interaction of facets of country image with product classes," International Business Review, Elsevier, vol. 25(5), pages 1066-1075.
    9. Shao, Bingjia & Cheng, Zhendong & Wan, Lijuan & Yue, Jie, 2021. "The impact of cross border E-tailer's return policy on consumer's purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    10. Cong Feng & Scott Fay & K. Sivakumar, 2016. "Overbidding in electronic auctions: factors influencing the propensity to overbid and the magnitude of overbidding," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 241-260, March.
    11. Villas-Boas, Sofia B, 2020. "Reduced Form Evidence on Belief Updating Under Asymmetric Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt08c456vk, Department of Agricultural & Resource Economics, UC Berkeley.
    12. Yu, Julie H. & Albaum, Gerald, 2002. "Sovereignty change influences on consumer ethnocentrism and product preferences: Hong Kong revisited one year later," Journal of Business Research, Elsevier, vol. 55(11), pages 891-899, November.
    13. Hsu, Chia-Lin & Chang, Chi-Ya & Yansritakul, Chutinart, 2017. "Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 145-152.
    14. Judy E. Scott & Dawn G. Gregg & Jae Hoon Choi, 2015. "Lemon complaints: When online auctions go sour," Information Systems Frontiers, Springer, vol. 17(1), pages 177-191, February.
    15. Schnettler, Berta & Sánchez, Mercedes & Orellana, Ligia & Sepúlveda, José, 2013. "Country of origin and ethnocentrism: a review from the perspective of food consumption," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17.
    16. Aby Abraham & Sanjay Patro, 2014. "‘Country-of-Origin’ Effect and Consumer Decision-making," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 39(3), pages 309-318, August.
    17. Bauner, Christoph, 2015. "Mechanism choice and the buy-it-now auction: A structural model of competing buyers and sellers," International Journal of Industrial Organization, Elsevier, vol. 38(C), pages 19-31.
    18. Beestermöller, Matthias & Disdier, Anne-Célia & Fontagné, Lionel, 2018. "Impact of European food safety border inspections on agri-food exports: Evidence from Chinese firms," China Economic Review, Elsevier, vol. 48(C), pages 66-82.
    19. Thøgersen, John, 2023. "How does origin labelling on food packaging influence consumer product evaluation and choices? A systematic literature review," Food Policy, Elsevier, vol. 119(C).
    20. Sarah C. Rice, 2012. "Reputation and Uncertainty in Online Markets: An Experimental Study," Information Systems Research, INFORMS, vol. 23(2), pages 436-452, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elcore:v:22:y:2022:i:2:d:10.1007_s10660-020-09404-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.