Predicting willingness to pay for geographical origin in Albania: a logistic approach
New Medit, vol 15, n.2, (June 2016), pp. 63-69
Jel classification: M31, Q13
This study empirically evaluates the factors that determine willingness to pay a premium for a product’s geographical origin and the effect of socio-demographics in indicating one or another factor. The premium to origin is linked with the traditional aspect, low health risk and high nutritional values. Logistic regression shows that elder, highly educated people buying in dairy shops are less likely to pay a higher premium. Consumers who are more likely to pay more include: those on high incomes who place importance on origin and taste attributes during the buying decision process and, in so doing, link the extra cost with the fact that it comes from a traditional cheese-producing region.
geographical indication, Albania, contingent valuation