The effect of information and co-branding strategies on consumers willingness to pay (WTP) for Protected Designation of Origin (PDO) products: the case of pre-sliced Parma Ham

Abstract

The purpose of the paper is to investigate the impact of information and co-branding strategies on consumers WTP for PDO agri-food products. The first part analyses the theoretical background on perception of quality for agri-food products. The second part describes a case study on the effect of information and co-branding strategies on consumer WTP.  The Contingent Valuation Method was used to evaluate WTP for pre-sliced Parma Ham packages displaying different combinations of brands. Results show that the process of value adding and WTP is positively influenced by brands guaranteeing the link with the territory through European quality schemes or association or producer brands rather than through private labels. Such schemes may thus be a key element in competition for producers against the contractual power of large retailers. This is a result that may serve to European policy makers when supporting producer organizations.