Viennese consumers' preferences and willingness to pay for raspberries from Arilje, Serbia

Abstract

Raspberries from Serbia have a good reputation and those from Arilje are protected by a geographical indication registration within the state of Serbia. Recently, producers and other stakeholders have been considering promoting this Geographical indication (gi) produce outside of Serbia, and Austria is one of the main target markets. The export of fresh raspberries is, generally speaking, only in its initial phase, and protecting raspberries from Arilje by geographical indication also in the eu is seen as a good opportunity for the whole western area of the country. It is widely recognized that gi labels may work as a quality signal for food products and may be useful to build trust among consumers. In this study, we aim at evaluating the role of a gi label in shaping consumer purchase intentions, using a conjoint choice experiment approach. The attributes we considered were price, punnet size, geographical indications of origin (from major production areas in Serbia, Poland, and Spain), and method of production (organic, integrated crop management). A survey were administered to a sample of 235 consumers in Vienna. The probability of choice was modeled using a discrete choice approach that allowed us to quantify consumers’ preference for different attributes and levels, as well as willingness to pay for raspberries from Arilje, Serbia compared to other areas of origin. Our results suggest that Viennese consumers have a positive attitude towards raspberries from Arilje, Serbia and they are, coeteris paribus, willing to pay more for them compared to other foreign areas of origin. However, willingness to pay is slightly higher for organic raspberries than for gi labeled raspberries. This could imply that a combination of strategies, rather than focusing on gi labeling only, may be more beneficial for Serbian producers.