Purchasing local and non-local products labeled with geographical indications (GIs)

Abstract

The main aim of this study is to determine consumer behavior towards product quality and particularly towards local and non-local products labeled with geographical indications (GIs). In doing so, two GI products were identified, locally and non-locally produced, for the same market (IZMIR) and with the same consumer potentials for both products. In addition, consumer attitudes regarding these two products, a local product (South Aegean Olive Oil) and a non-local product (Ayvalik Olive Oil), were analyzed and then compared. Consumers’ willingness to pay for both cases was estimated and the frequency of buying the products was measured utilizing 271 questionnaires. Factor analysis was run to show the main factors in accordance with consumers’ behaviour. Afterwards, these factors were analyzed by using binary logistic regression to identify the factors influencing consumer characteristics and to study factor interactions. Results demonstrate that consumers behave reliably according to local GI-labeled products. Primarily, quality and origin of the products play significant roles in consumers’ purchase decisions and consumers’ reliance on local products is greater than non-local products.