How taste proximity affects consumer quality valuation of imported varieties: Evidence from the French food sector

Abstract

AbstractConsumer tastes vary by country and influence food trade patterns. While previous literature highlights different cultural elements as either trade promoters or barriers, divergences in consumer tastes may also generate differences in the perception of the quality of products. As a consequence, consumer taste in destination countries is likely to affect the demand for imported products in a different manner according to the origin and the quality of products imported. Based on firm‐product level data on French exports, this study analyses how differences in taste proximity with French consumers across destination markets affect the export revenues of vertically differentiated varieties. To identify taste proximity, we rely on data gathered from TripAdvisor on the type of cuisine offered in restaurants all over the world. The results of this study suggest that quality of French products is more strongly appreciated and consumers are more willing to spend on high‐quality products in countries with a taste similar to that of French consumers.