Auction Markets for Specialty Food Products with Geographical Indications

We present a first analysis of auction markets for specialty food products. We identify auction prices, trade volume and value for domestic and foreign origin specialty ham with geographical indications (GIs) which were actually sold in online auctions in Germany within a one-month period. Applying hedonic modeling, we examine potential factors that may influence online bidding behavior and final auction prices. We estimate positive auction price effects for weight, bidding activity, and auction length, that the domestic product is sold at a discount, that higher shipping cost have a negative impact on final prices, and that auctions ending on Fridays and Saturdays yield lower prices. The model may be used to estimate the value of GIs. In our example, we estimate relative price differences of 20-30% for the GIs of three specialty hams (Prosciutto di Parma, Jamon Serrano, Schwarzwalder).consumer economics, geographical indications, auctions, information, Marketing, D12, D44, D83,

INTERNATIONAL WINE TRADE: ANALYZING THE VALUE OF REPUTATION AND QUALITY SIGNALS

This research examines the factors behind price differentials based on regional origin. For this purpose, we estimate a hedonic pricing model of premium wines sold in the U.S. We hypothesize that numerous quality signals affect wine prices including expert opinions about sensory quality, maturing potential, and special selections as well as derived indicators that signal a high or low quality producer. After correcting for variety, regional origin, and age, the data confirms that a wine's price is related to producer quality signals, which may even negate regional effects. We conclude that it is problematic to interpret regional premiums as brand value (as opposed to quality premiums) without adjusting them for producer quality signals. Estimated brand values may then be biased. Moreover, a strong positive producer quality signal receives a larger percentage price premium than a comparable negative signal which warrants important marketing implications for producers and entire regions.International Relations/Trade,

A Hedonic Pricing Model for German Wine

We develop a hedonic pricing model for German quality wine. Quality indicators for 4,141 wines are sensory awards received at the annual German wine competition and the legally required quality category as well as a set of control variables including regional origin, color, style, and their age at the time of judging. The data confirms that sensory quality awards have a significant and positive price impact. Moreover, we estimate significant relative differences between quality categories, growing regions and most of the control variables.wine, hedonic pricing models, reputation, Consumer/Household Economics, Demand and Price Analysis, Marketing,

ADVERSE SELECTION IN DEVELOPING COUNTRY FACTOR MARKETS: THE CASE OF FERTILIZERS IN CAMBODIA

We analyze the presence and potential impact of low quality fertilizers, inadequate access to credit and market information on fertilizer market participation and application rates. We explain in theory and show empirically that farmers chose to abstain from the fertilizer market altogether or decrease their application rates below recommended levels because bad quality deters all buyers not willing to pay the market price for the average quality fertilizer available.Crop Production/Industries,

THE GROCERY RETAILING SECTOR IN GERMANY: ECR ACTIVITIES IN COMPARISON TO THE USA

The German food retail sector and food manufacturers are in a state of transition due to a complex mix of technological and market forces. Competition continues to increase due to sluggish demand and increasing consumer mobility. The high degree of domestic and international concentration increases the intensity of competition. The top 20 food retailers obtain far more than two-thirds of total sales. Because of the increased competition among retailers, the number of retail stores will continue to decline. Food manufacturers fear the buying power of retailers in many ways. Distrust and struggle over the terms of trade characterize the relation between retailers and manufacturers. ECR activities in Germany lag behind relative to the US due to various cultural and procedural differences as well as strategic reasons. However, ECR provides a catalog of measures to achieve more efficiency and customer focus.Industrial Organization, Marketing,

Indicators of Individual Wine Reputation for Friuli Venezia Giulia

AbstractThe main objective of this paper is to study indicators of individual wine reputation and how they may affect the price of wines in Friuli Venezia Giulia. The analysis is built on the assumption that consumers base their wine purchase decisions on easily available information such as expert quality ratings and reputation builds on past awards for a wine. We estimate a hedonic pricing model using a data set of 1078 Friulian wines listed in the Gambero Rosso wine guide. The categorical nature of the dependent variable suggests the use of ordered response models. The results not only show that awards for the current quality of a wine carry a positive and substantial premium, but also that having received an award in the past (indicating individual wine reputation) has a positive effect on prices. Moreover, the province of production has a considerable effect on prices and white, older wines tend to be more expensive. The paper confirms the important role of current quality ratings and of individual wine reputation in determining wine prices. An important marketing implication is that wineries and retailers should communicate the current quality of a wine together with any past quality recognitions received as this should foster the reputation of an individual wine in the future

Long-Term Sustainable Development of Tourism in South Tyrol: An Analysis of Tourists’ Perception

Although sustainable tourism concepts are gaining in importance everywhere, related research is quite fragmented with many studies concentrating on environmental sustainability. Seeking to contribute to the general discussion, we first examine the perceptions of sustainability among tourists using a best–worst scaling method applied to important aspects of sustainable tourism. Our results show that experiencing nature in an intense and profound way is considered the most important aspect of sustainable tourism whereas grappling with the culture of the host region is perceived as the least important aspect of sustainable tourism in our sample. Second, we analyze if socio-demographic and/or other factors have significant implications for the propensity to increase expenditures for sustainable holiday offers. Applying a simple regression model, we can show that age has a significant and positive impact on the propensity to spend more on a sustainable holiday offer such as overnight stays in an accommodation that is carbon-neutral. Other socio-demographic variables such as gender, education, and income are not significant. Moreover, hotel stars and average expenditures per person per night are significant and have a positive effect on the propensity to spend more on carbon-neutral housing. Two simple policy implications can be drawn: (1) sustainable tourism experiences should prioritize landscape and natural beauty; and (2) sustainable tourism offers are best suited for higher-priced and/or higher starred hotels