Quality certification by geographical indications, trademarks and firm reputation

Menapace, Luisa; Moschini, GianCarlo

doi:10.1093/erae/jbr053

Cited by 110 publications

(94 citation statements)

References 29 publications

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“…Reasons for which consumers consider valuable labels are that they inform consumers that the expected quality of the product is provided and they assure the degree of quality and thus reduce the risk connected to the purchase decision (Menapace et al, 2009). By reaching conditions for successful differentiation, and maintaining the image among consumers and preventing imitations of the product, and also owing producers rights, expenses of production can be justified and profit can be achieved (Bramley, 2009).…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing Consumers’ Interest in Protected Designation of Origin Products in Serbia

Panin¹,

El-Bilali²,

Berjan³

2015

AgricultForest

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Typical and traditional products are becoming an important element of the agro-food panorama in Serbia. For keeping and, even, fostering this positive trend an effective strategy for the valorisation of these products is necessary. For that it is crucial to have a clear idea about the perception and attitude of consumers. The paper analyses the main factors that affect consumers' interest for purchasing Protected Designation of Origin (PDO) products in Serbia. A field survey -focusing on two PDOs namely Petrovac sausage and Futog cabbagewas performed in the period July-October 2012 with 251 Serbian consumers. The analysis showed that there are perspectives for PDO products in Serbia, as a large proportion of Serbian consumers are positively oriented towards products with designation of origin and would buy them. Interest for PDO products is connected and influenced by interest in typical products, awareness of PDO/Protected Geographical Indication (PGI) scheme, daily eating habits, education and income level. The main influence of these factors is identified for all sample, as well as for three different groups of consumers obtained by cluster analysis; "consumers with strong interest in PDO products" represents 28.7% of the sample, "consumers moderately interested in PDO products" stands at 41.8% of the sample while 29.5% of the interviewees belong to the third group "consumers poorly interested in PDO products". The fact that more than two thirds of respondents are either strongly or moderately interested in PDO products show that Petrovac sausage and Futog cabbage have good perspectives in the Serbian agro-food market.

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Section: Introductionmentioning

confidence: 99%

Factors Influencing Consumers’ Interest in Protected Designation of Origin Products in Serbia

Panin¹,

El-Bilali²,

Berjan³

2015

AgricultForest

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“…7 All the producers based in the area are entitled to sell their product with the name of the place of origin and, thus, they share the reputation that is a CPR and also depends on how the PDO/PGI is managed (Menapace and Moschini 2012). Stakeholders participating in the PDO/PGI are farmers, processors, firms in charge of the aging process (as it may be the case in the cheese and cured meet industries), and those specialized in the packaging.…”

Section: Supply Chains For Geographical Indicationsmentioning

confidence: 99%

Food supply chains: coordination governance and other shaping forces

Carbone

2017

Agric Econ

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The aim of this paper is twofold. First, it discusses how the functioning and performance of food chains are affected by the way stakeholders are embedded in the chains, by the coordination modes, and by the kind of governance. Second, by depicting six relevant agro-food chains, attention is raised on the kind of the stakeholders that participate in the chain and on the role of each with a special focus on possible drawbacks of an effective functioning of the supply chains. The chains outlined are (i) supply chains driven by a large retailer; (ii) supply chains driven by a global processing company; (iii) supply chains driven by a cooperative; (iv) supply chains for geographical indications; (v) short supply chains; and (vi) supply chains driven by a specialized high quality retailer. Special consideration is given to the positioning of farmers in each of the six chains and to the outcomes they get. It is shown how: (i) going spot on the marketplace may leave them with difficult market access and no bargaining power; (ii) being embedded in supply chains framed in the context of a captive governance may result in a squeeze of their profits as well as in unreliable market access; and (iii) supply chains are populated by reciprocal and pooled relationships and ruled by a more relational kind of governance, beside potentially bringing advantages in terms of decision power and economic benefits, also raises difficulties and drawbacks due to complexity of functioning, heterogeneity of stakeholders, and ambiguity of the nature of relations among them.

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“…As noted by others (e.g., Menapace and Moschini, 2011), GI names can be thought of as collective trademarks and, as noted earlier, the economic value of trademarks is rooted in their ability to improve consumer information. To investigate what we perceive as the critical information issues in this setting, GI promotion is modeled as "informative advertising," following one of the main strands of economic analysis of firms' promotion activities (Bagwell, 2007).…”

Section: Introduction�mentioning

confidence: 79%

Strength of Protection for Geographical Indications: Promotion Incentives and Welfare Effects

Menapace¹,

Moschini²

2014

American J Agri Economics

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We address the question of how the strength of protection for geographical indications (GIs) affects the GI industry's promotion incentives, equilibrium market outcomes, and the distribution of welfare. Geographical indication producers engage in informative advertising by associating their true quality premium (relative to a substitute product) with a specific label emphasizing the GI's geographic origin. The extent to which the names/words of the GI label can be used and/or imitated by competing products-which depends on the strength of GI protection-determines how informative the GI promotion messages can be. Consumers' heterogeneous preferences (vis-à-vis the GI quality premium) are modeled in a vertically differentiated framework. Both the GI industry and the substitute product industry are assumed to be competitive (with free entry). The model is calibrated and solved for alternative parameter values. Results show that producers of the GI and of the lower-quality substitute good have divergent interests: GI producers are better off with full protection, whereas the substitute good's producers prefer intermediate levels of protection (but they never prefer zero protection because they benefit indirectly if the GI producers' incentives to promote are preserved). For consumers and aggregate welfare, the preferred level of protection depends on the model's parameters, with an intermediate level of protection being optimal in many circumstances. Abstract This paper addresses the question of how the strength of protection for geographical indications (GIs) affects the GI industry's promotion incentives, equilibrium market outcomes and the distribution of welfare. We develop a model whereby GI producers engage in informative advertising by associating their true quality premium (relative to a substitute product) with a specific label emphasizing the GI's geographic origin. The extent to which the names/words of the GI label can be used and/or imitated by competing products (i.e., the strength of GI protection) determines how informative the GI promotion messages can be. Consumers in the model are assumed to have heterogeneous preferences, vis-à-vis the quality premium of the GI product, in a vertically differentiated framework. On the production side, both the GI industry and the substitute product industry are assumed to be competitive (with free entry), and to display upward-sloping industry supply functions. The model is calibrated and solved for alternative parameter values of interest. The computational results that we obtain show that the strength of GI protection has clear impacts on GI producers' incentives to promote their product. What strength is best from the aggregate welfare point of view, however, depends on the model's parameters, and an intermediate level of protection might be optimal in some circumstances. Producers of the GI and of the lower-quality substitute good have divergent interests: GI producers are generally better off with full protection, whereas the substitute good's producers pref...

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Quality certification by geographical indications, trademarks and firm reputation

Cited by 110 publications

References 29 publications

Factors Influencing Consumers’ Interest in Protected Designation of Origin Products in Serbia

Factors Influencing Consumers’ Interest in Protected Designation of Origin Products in Serbia

Food supply chains: coordination governance and other shaping forces

Strength of Protection for Geographical Indications: Promotion Incentives and Welfare Effects

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