IDEAS home Printed from https://ideas.repec.org/p/ags/srlewp/112887.html
   My bibliography  Save this paper

Premia For Differentiated Products At The Retail Level: Can The Market Put A Value On The Mountain Attribute?

Author

Listed:
  • Revoredo-Giha, Cesar
  • Leat, Philip M.K.
  • Lamprinopoulou-Kranis, Chrysa
  • Kupiec-Teahan, Beata

Abstract

The purpose of this paper is, by comparing products with a mountain provenance with those from non-mountain areas, to explore whether the market puts a premium on the „mountain attribute‟. First, we present a theoretical framework on attributes and cues that helps answering the question what is “mountain” representing in a products or in other term, is it an attribute or a cue. Second, based on a shelves survey collected as part of the EuroMARC, we analyse for several products (apples, sausages, water and cheese) and countries (Austria, France, Norway, Scotland and Slovenia) using a hedonic price regression approach whether a premium is paid for mountain food products in comparison with identified similar non-mountain food products. The results indicate that the answer is mixed and depends on the product and country. Thus, premia was found only in the case of cheese and for Austria, Norway and Slovenia.

Suggested Citation

  • Revoredo-Giha, Cesar & Leat, Philip M.K. & Lamprinopoulou-Kranis, Chrysa & Kupiec-Teahan, Beata, 2008. "Premia For Differentiated Products At The Retail Level: Can The Market Put A Value On The Mountain Attribute?," Working Papers 112887, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    • Handle: RePEc:ags:srlewp:112887
    DOI: 10.22004/ag.econ.112887
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/112887/files/leergworkingpaper45.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.112887?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
    ---><---

    References listed on IDEAS

    as
    1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    2. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    5. Julie A. Caswell & Mary E. Bredahl & Neal H. Hooker, 1998. "How Quality Management Metasystems Are Affecting the Food Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(2), pages 547-557.
    6. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
    7. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    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. Fabien Santini & Fatmir Guri & Sergio Gomez y Paloma, 2013. "Labelling of agricultural and food products of mountain farming," JRC Research Reports JRC77119, Joint Research Centre.

    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. M. Laura Donnet & Dave D. Weatherspoon & John P. Hoehn, 2008. "Price determinants in top‐quality e‐auctioned specialty coffees," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 267-276, May.
    2. Trestini, Samuele & Giampietri, Elisa & Szathvary, Serena & Dal Bianco, Andrea, 2018. "Insights on the Alleged Imitation of Prosecco Wine Name: The Case of the German Market," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    3. Petjon Ballco & Fatma Jaafer & Tiziana de Magistris, 2022. "Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 885-904, October.
    4. Malorgio, Giulio & Camanzi, Luca & Grazia, Cristina, 2007. "Effectiveness of European Appellations of Origin on the International wine market," 105th Seminar, March 8-10, 2007, Bologna, Italy 7896, European Association of Agricultural Economists.
    5. Sanja Lutzeyer, 2008. "Estimating Hedonic Prices for Stellenbosch wine," Working Papers 15/2008, Stellenbosch University, Department of Economics.
    6. Florine Livat, 2007. "Mesure des interactions de prix : une analyse des modalités de substitution parmi sept vins de Bordeaux," Économie et Prévision, Programme National Persée, vol. 180(4), pages 127-145.
    7. Alessandro Bonanno & Francesco Bimbo & Marco Costanigro & Alfons Oude Lansink & Rosaria Viscecchia, 2019. "Credence attributes and the quest for a higher price – a hedonic stochastic frontier approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 163-192.
    8. Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    9. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2014. "Market penetration of imported agricultural products: A hedonic analysis of the Japanese table wine market," Working Papers e083, Tokyo Center for Economic Research.
    10. Steiner, Bodo E., 2002. "The Valuation Of Labelling Attributes In A Wine Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19718, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Marco Costanigro & Yuko Onozaka, 2020. "A Belief‐Preference Model of Choice for Experience and Credence Goods," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(1), pages 70-95, February.
    12. Charity, Nabwire Ephamia Juma, 2016. "Economic Analysis Of Consumers’ Awareness And Willingness To Pay For Geographical Indicators And Other Quality Attributes Of Honey In Kenya," Research Theses 265574, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Earl, Peter E., 2012. "Experiential analysis of automotive consumption," Journal of Business Research, Elsevier, vol. 65(7), pages 1067-1072.
    14. Sylvain M. Prado, 2009. "The European used-car market at a glance: Hedonic resale price valuation in automotive leasing industry," Economics Bulletin, AccessEcon, vol. 29(3), pages 2086-2099.
    15. Jan-Peter Kucklick & Jennifer Priefer & Daniel Beverungen & Oliver Müller, 2023. "Elucidating the Predictive Power of Search and Experience Qualities for Pricing of Complex Goods – A Machine Learning-based Study on Real Estate Appraisal," Working Papers Dissertations 112, Paderborn University, Faculty of Business Administration and Economics.
    16. Reardon, Thomas & Codron, Jean-Marie & Busch, Lawrence & Bingen, R. James & Harris, Craig, 1999. "Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-15.
    17. Onozaka, Yuko & Saue, Vegar Veseth & Costanigro, Marco, 2018. "The Moderating Effect of Heterogeneous Beliefs on Consumer Preferences for a New Food Technology: The Case of Modified Atmospheric Packaging," 2018 Annual Meeting, August 5-7, Washington, D.C. 274068, Agricultural and Applied Economics Association.
    18. Nicolas Vaillant & Philippe Lesot & Quentin Bonnard & Valerie Harrant, 2010. "The use of expert opinion, quality and reputation indicators by consumers: evidence from the French vaulting stallion semen market," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 739-745.
    19. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).
    20. Erjon Nexhipi, 2022. "The difference in consumer attitudes of locally grown apples with imported apples. the case of Korca Region, Albania:," Technium Social Sciences Journal, Technium Science, vol. 37(1), pages 250-264, November.

    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:ags:srlewp:112887. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/lesacuk.html .

    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.