How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographic Indication?

In the context of the wine industry, we investigate producers' choice between geographic indications and brand advertising to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We show that if this effort is selected, a producer will prefer to rely on brand advertising for promoting its products and set up its own reputation. Despite the sharing of the promotion cost, a geographic indication does not sufficiently reward the effort for improving quality. Finally, the selection of both instruments by producers is examined.


Subject(s):
Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/21310
PURL Identifier:
http://purl.umn.edu/21310
Total Pages:
32
Series Statement:
Selected Paper 156175




 Record created 2017-04-01, last modified 2018-09-27

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