Assessing consumer response to protected geographical identification labeling

TLDR

Consumers increasingly value quality and cultural identification, driving demand for products tied to specific geographic regions, many of which are protected by European legislation. The study employed a hedonic pricing model to estimate consumers’ willingness to pay for fresh meat labeled as “Galician Veal” in Spain. Results show that the Protected Geographical Identification label yields a price premium on high‑quality cuts, but has no significant effect at either quality extreme, with implications for industry practice. © 2000 John Wiley & Sons, Inc.

Abstract

Consumers' attitudes toward quality and desire for cultural identification have generated a growing demand for agricultural products that carry a strong identification with a particular geographical region. Many of these products are currently protected by European Legislation. A hedonic approach was used in order to calculate consumers' willingness to pay for fresh meat products that carry the Protected Geographical Identification label, "Galician Veal," in Spain. The results indicate that if this label is present on high quality cuts of meat, one can obtain a premium up to a certain level of quality. The label is not significant for either quality extreme. Implications of these results and recommendations for the industry are discussed. © 2000 John Wiley & Sons, Inc.