Willingness to pay for origin labelled products : a case study of Greek wine consumers

The European Union has recognised the potential of differentiating quality products and services on a regional basis and introduced Regulation 2081/92 concerning the protection of geographical indications and designations of origin for agricultural products and quality foodstuffs. One of the main objectives of PDOs and PG ls is to enhance credibility of the products in the consumers' eyes. A survey of consumers in the greater Athens area and at the urban centre of the city of Patra collected information about consumer attitudes toward origin labelled wine. A dichotomous choice model is used to identify socio-economic consumer characteristics influencing the willingness to pay for origin wine. Results indicate that wine consumers' willingness to pay vary only according to social and demographic characteristics. Mean willingness to pay was estimated using two alternative econometric specifications of the dichotomous choice model. The results obtained indicate that non-quality wine consumers are willing to pay double the price of a normal table wine bottle if the alternative has a guarantee of place of origin. Their decision is dependent only upon education and place of origin. The models are compared and useful conclusions referring to price policy for origin labelled wines are drawn.