Abstract
The effect of origin on consumer choice, which is a pivotal topic for wine and food products, has not been fully explored in relation to the strength of geographical brands. This research provides new insights into geographical brand and country-of-origin (COO) effects in China. It focuses on the power of geographical brands in catalysing consumer expenditure, and the effect of COO in competition with Protected Designations of Origin (PDOs) and Protected Geographical Indications (PGIs) as specific typologies of geographical brands in the EU wine industry. With the help of the Restricted Source Differentiated Almost Ideal Demand System model, the study analyses Chinese still bottled wine imports. The main findings highlight the dual effect of geographical indications as umbrella brands and quality cues, depending on the level of aggregation. PDOs, PGIs and COO are found to have the same expenditure elasticity, and the European PDO policy played an important role to support the competition with the geographical indications of New World countries. The study sheds light on the opportunities and constraints for existing businesses and new entrants operating in the emerging Chinese wine market. The findings may also interest other industries seeking to deepen their COO brand management in China.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.