Consumers' willingness to pay for geographical origin labels: Evidence from the Turkish table olive
Main Article Content
Keywords
consumer choice, geographical indication, knowledge, protected designation of origin, table olive, willingness to pay
Abstract
Background and aim: A geographical indication (GI) conveys local identity and culture to consumers and has qualities that lead to high purchasing tendencies. Olive producers can reach a high-profit margin by producing GI-labelled products that create added value. However, the low consumption shows that consumers do not fully understand GI. This research aims to reveal geographical indication knowledge, willingness to pay (WTP) for the Protected Designation of Origin (PDO) labelled Gemlik table olive, and how the knowledge of GI effect consumers' consumption and WTP.
Methods: Data was collected from 648 residents in Bursa, Turkey using a public-intercept survey. The study used descriptive analysis. SPSS 22 software package was employed to analyse the data.
Results: The result showed that 59.6% of participants were knowledgeable about GIs, and 56.3% were knowledgeable about PDO labelled Gemlik olive. Only 37.5% of respondents consumed PDO labelled food products, and 32.7% consumed PDO labelled Gemlik olive. Over half (51.4%) of the participants see themselves as average, 31.8% moderately, and 16.8% very knowledgeable about olives. While 79% of the consumers indicated WTP for the PDO label, half could pay 10% or less. The proportion of those who said they could spend more than 25% remained at 11%.
Conclusion: Consumers are willing to pay more for PDO labelled Gemlik olives as their knowledge increases.
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