Consumers’ willingness to pay for origin labelled wine: A Greek case study

Abstract

Quality agricultural products are assuming an increasingly important role in European Union (EU) agricultural and food policies. The potential for differentiating quality products and services on a regional basis has been recognised and legislation has been introduced for protecting the geographical indications and designations of origin for agricultural products and quality foodstuffs. Today, marketing strategies for quality products attempt to explore these new opportunities, trying to build on the products’ reputation and the image of their region of origin. This study employs a dichotomous choice model to identify the socio‐economic characteristics that influence Greek consumers’ willingness to pay for an origin labelled wine. The results indicate that wine consumers’ willingness to pay varies only according to social and demographic characteristics. Furthermore, the mean willingness to pay was estimated using two alternative econometric specifications of the dichotomous choice model. We have found that non‐quality wine consumers are willing to pay double the price of a bottle of normal table wine if the alternative provides for a guarantee of the place of origin of the wine. Their decision is found to be dependent only upon education and affiliation with the place of origin. The model specifications are compared and useful conclusions referring to price policy for origin labelled wines and their marketing are drawn.

Citation

Skuras, D. and Vakrou, A. (2002), "Consumers’ willingness to pay for origin labelled wine: A Greek case study", British Food Journal, Vol. 104 No. 11, pp. 898-912. https://doi.org/10.1108/00070700210454622