Analysing Purchase Preference Towards Geographical Indications (GIs) Using Consumer Segmentation Approach

Abstract

Consumers of local food products often face a dilemma regarding their purchase decisions due to the non-availability of information that is required to assess the quality of the product. To reduce this information asymmetry, the Geographical Indication Registry in India issues a Geographical Indication tag (GI tag) as a community right to the growers of local special products originating from a region, town or country. The GI tag symbolises uniqueness, curtails counterfeit products' spread, and reduces information asymmetry. This study has taken a select case of Udupi Mattu Gulla Brinjal, a GI horticulture produce grown by a community-based enterprise (CBE) in the Udupi District of South India. This research work aims to study and analyse consumer preference towards Udupi Mattu Gulla Brinjal (GI) using a consumer segmentation approach. The Principal Component Analysis technique has been used to identify statements with discriminatory power. Subsequently, the statements of research importance have been used to identify consumer segments using a two-step clustering approach. The study results have identified three important consumer clusters based on the analysis of consumer preference characteristics. Thereafter, marketing strategies have been proposed after analysing the profile of each segment. The study is undertaken as a response to an initiative from the Sustainable Development Goals (SDGs) Coordinating Centre, Government of India, to partner the development of agriculture in the local area of Udupi District. The objectives of the study are consistent with SDG goal 11 (sustainable communities) and SDG goal 12 (responsible consumption).