Samuele Trestini, Serena Szathvary, Eugenio Pomarici and Vasco Boatto
This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this…
Abstract
Purpose
This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this paper is to propose methodology for the quantification of reference income when farm structural change occurs and estimate the role of farm attributes on the probability of income loss, offering an ex ante evaluation of farm resilience to risk.
Design/methodology/approach
Based on a balanced Farm Accountancy Network farm-level panel ranging from 2008 to 2014, three hypotheses of reference income calculation are tested to assess whether farms structural changes over the years significantly affect the level of IST indemnification. The role of farm characteristics on the probability of an income reduction is then evaluated by estimating a multinomial logit model.
Findings
Results show that farms’ structural changes significantly affect IST indemnities and need to be considered in calculating the reference income. The estimated model suggests that farm characteristics significantly affect the probability of a severe income drop and hence risk resilience. Extensive livestock systems seem to reduce the probability of an income drop, while farms in upland areas managed by young farmers seem to experience increased risk exposure.
Originality/value
The research provides one of the first attempts to define risk profile of dairy farms by modelling the probability of an income reduction on observable attributes. Indeed, among different sectors, dairy farms emerge as the main candidates for the application of the IST.
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Alice Stiletto and Samuele Trestini
Using a generic cheese as an anchor product, in this study consumers' preferences for different EU quality schemes have been investigated. Specifically, the study aims to…
Abstract
Purpose
Using a generic cheese as an anchor product, in this study consumers' preferences for different EU quality schemes have been investigated. Specifically, the study aims to understand whether “Protected Designation of Origin” (PDO), “Organic” and “Mountain Product” labels are independent or if there are some synergies existing between them, questioning – at the same time – whether this alleged exchange of value plays a positive or negative role in terms of consumers' willingness to pay.
Design/methodology/approach
A discrete choice experiment (DCE) was conducted on 600 Italian consumers performing a random parameter logit model. The respondents were representative of the Italian population in terms of age, gender and geographical distribution. Consumers' preferences for the presence of “Organic” and “Mountain product” labels were assessed in the DCE, together with the effect of price, for both PDO and generic cheeses.
Findings
Consumers are willing to pay a premium in price for “Organic” and “Mountain Product” per se, for cheese with and without the PDO denomination. Considering the interaction effects, results showed that the combined use of “Organic” and “Mountain Product” labels do not decrease consumers' intention to buy. However, when applied on a PDO product, these attributes generate a lower consumers' willingness to pay in comparison with the generic ones, highlighting a possible overlapping between them.
Originality/value
Despite the abundant literature on EU quality schemes in many food categories, this study represents one of the first attempts to measure the interaction effect between different EU quality schemes.
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Alice Stiletto, Elisa Giampietri and Samuele Trestini
The present study aims at analysing consumer preferences for the pomegranate fruit, focussing on the effect of ready-to-eat format (i.e. packaged arils) on the purchasing choice…
Abstract
Purpose
The present study aims at analysing consumer preferences for the pomegranate fruit, focussing on the effect of ready-to-eat format (i.e. packaged arils) on the purchasing choice, together with several products’ attributes as the origin, the packaging typology and the price.
Design/methodology/approach
The paper presents a choice experiment (CE) among 626 Italian consumers from Veneto region through an online survey. The study estimates both a conditional logit (CL) and a latent class logit model (LCM).
Findings
By segmenting the sample based on the heterogeneous preferences of consumers, it can distinguish “eco-friendly consumers”, “time-saving lovers”, “nationalists” and “price sensitive” subjects. Interestingly, the marginal willingness to pay for ready-to-eat arils is positive for the “time-saving lovers” that are mainly young consumers. The Italian origin has always a positive effect on the choice, whereas a negative effect is found for the price. Finally, the eco-friendly package has both a negative and a positive effect.
Research limitations/implications
The sample of this study is not representative of the population and the CE has a hypothetical nature. It follows that further research will link the economic analysis to a consumer test on a more representative sample.
Practical implications
This study can be useful for the pomegranate producers and the industry because it provides original evidence that could drive their business and marketing strategies, for instance, the preference for ready-to-eat arils.
Originality/value
This study is one of the first seeking to determine the factors that affect consumers' preferences for pomegranate arils.
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Vasco Boatto, Edi Defrancesco and Samuele Trestini
This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in…
Abstract
Purpose
This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in different ways in large‐scale retail and specialised shops.
Design/methodology/approach
Tocai wine, which is produced in Northeastern Italian regions and is involved in a dispute with the Hungarian geographical indication Tokaj, is taken as a case study. A hedonic price model has been estimated based on retail prices observed in local markets.
Findings
The research shows that consumers buying at large‐scale retailers are willing to pay a higher price premium for quality signals than those buying in specialised shops, ceteris paribus. For the latter, willingness to pay for quality signals is reduced by the information provided by the specialised shop retailer, which decreases the customer's uncertainty about wine quality; quality signals appearing on wine labels generally have a more relevant positive effect on wine price than brand reputation, confirming the findings available in the current literature.
Originality/value
This paper contributes to the literature by proving, in a real market situation, that consumers are willing to pay a higher price premium for quality signals when information is supplied only by wine labels, as in a large‐scale retail environment, than when it is provided by the assistance of a knowledgeable seller, as in specialised shops. The paper confirms that the information transmitted to the consumer during purchase affects price in a way similar to that reported in the literature for simulated markets in the case of expert consumers.