Jose Maria Gil

MARKET SEGMENTATION AND WILLINGNESS TO PAY FOR ORGANIC PRODUCTS IN SPAIN

In recent years, consumer concerns on environmental and health issues related to food products have increased and, as a result, the demand for organically grown production has grown. Higher costs of production and retailer margins generate a gap between real prices and those that consumers are willing to pay for organic food. In this article, consumer willingness to pay for organic food in two Spanish regions is analyzed. Markets in both regions are segmented considering consumers lifestyles. Results indicate that consumers concerned about healthy diet and environmental degradation are the most likely to buy organic food, and are willing to pay a high premium. Organic attributes are easily identified in perishable products as the premium consumers would pay for organic meat, fruits, and vegetables is higher.

Consumer preferences for wine attributes: a conjoint approach

Examines and compares wine attribute preferences within and between two different Spanish regions, Aragon and Navarra, by means of the weighted least squares approach for conjoint analysis. Uses three attributes in the conjoint design: price, origin and grape vintage year. Among these attributes, Navarra consumers assigned more importance to the origin of the wine, followed by price and grape vintage year. Aragon consumers also considered origin as the most important attribute, followed, in this case, by grape vintage year and price. Comparing the different attribute levels, consumers from Aragon preferred locally produced and cheaper wines, while consumers from Navarra preferred Rioja and more expensive wines. Identifies and characterizes four wine consumer segments. Describes how a market simulation experiment was designed to simulate market shares of three alternative wine profiles.

Consumers’ acceptability of organic food in Spain: Results from an experimental auction market

Organic production and its consumption have grown tremendously in recent years. However, in the case of Spain demand still represents only 1 per cent of food expenditure. The main obstacle seems to be that organic food faces problems related to consumers’ acceptability; lack of food availability and seasonality make it difficult to establish appropriate retailing outlets; also, higher costs of production and retailer margins jointly may result in higher prices than consumers are willing to pay for organic food attributes. Research studies have mostly elicited consumers’ willingness‐to‐pay (WTP) for organic food through contingent valuation. Alternatively, explores, using an experimental second‐price sealed‐bid auction, the value that consumers place on organic food and the effect that information included on ecolabel and physical appearance have on their WTP. This methodological approach involves the use of real money and real products, which, in fact, may overcome the hypothetical bias detected in previous studies. Also discusses the effect on WTP of consumers’ demographic characteristics and lifestyles, as well as attitudes towards food safety and buying behaviour. Results show, that as more accurate information is offered, consumers’ acceptability of labelled organic food products increases; and that WTP is highly correlated with consumption habits variables.

Hedonic prices for Spanish red quality wine

In this paper, market values for most of wine attributes are measured through the estimation of a hedonic price function, which relates the price of a wine to its various attributes. As more expensive wines are also associated with higher recognition of wine attributes, results also reflect consumers’ valuation of wine attributes. Data used in this paper comes from a wine catalogue in which only price categories are available. As independent variables, the following wine attributes have been considered: region of production, the year vintage, grape variety, alcoholic content and expert quality ratings. Due to the nature of available data, the hedonic price function has been estimated in the form of a Multinomial Logit model. Results indicate that the two first variables (region of production and the year vintage) are the main market price determinants while grape variety and the alcoholic contents are not significantly correlated with red wine prices.

Food Safety and Consumers' Willingness to Pay for Labelled Beef in Spain

Abstract The objective of this paper is to assess the quality/safety value for beef consumers, measuring their willingness to pay a price premium for labelled beef. From a survey conducted among food shoppers within the household, consumers are segmented according to their safety perception of specific food products. For each segment, their willingness to pay for labelled beef is calculated. Finally, the main factors explaining such a decision are considered. The results indicate that food scares, the perception of a negative impact of agricultural production on the environment and health concerns are having a major impact on the food consumer purchasing decisions for beef. However, most consumers are not willing to pay a price premium for labelled beef.

Price Transmission in the US Ethanol Market

We use nonlinear time series models to assess price relationships within the US ethanol industry. Daily ethanol, corn, and crude oil futures prices observed from mid-2005 to mid-2007 are used in the analysis. Our results suggest the existence of an equilibrium relationship between the three prices studied. Only ethanol prices are found to adjust to deviations from this relationship. The evolution of ethanol prices in relation to corn and crude oil prices may have important implications for the long-run competitiveness of the US ethanol industry.

Price transmission analysis: a flexible methodological approach applied to European pork and lamb markets

The study of spatial price relationships helps to explain market performance and their degree of integration. Applying only one method of analysis may not be flexible enough to account for the complex interactions of prices in separated markets. This paper complements usual cointegration tests with a description of dynamic features and patterns of causality among price series. The method proposed is applied to study spatial pork and lamb prices relationships within the EU in the period 1988–1995. The results indicate that European markets for both commodities are integrated, not only in the long run but in the short run as well, although the price transmission process is more efficient in the porkmeat industry.

Technical efficiency analysis and decomposition of productivity growth of Spanish olive farms

Spain occupies the first position in worldwide rankings of olive oil production and trade. This analysis assesses the relative technical efficiency with which this sector is operating. The concept of technical efficiency is critical to measuring the performance of a firm, determining the degree of innovative technology adoption and the overall production efficiency. Specifically, the main objective of this study is to assess the relative technical efficiency and to decompose the productivity growth of Spanish olive farms. Technical efficiency effects are assumed to be a function of firm-specific characteristics. Maximum-likelihood methods are applied to the estimation of the model. A primal approach is used to decompose total factor productivity (TFP) growth into its various components. Results indicate that farm location, age of manager, as well as the composition of the workforce affect efficiency levels. Technical efficiency changes and scale effects are found to be the main sources affecting TFP growth.

Forecasting food demand in Tunisia under alternative pricing policies

Abstract Food policy in Tunisia employs mainly consumer price subsidies and programs, all directed to the reduction of poverty. In the new environment of globalization and trade liberalization these consumer subsidies are being questioned. Inefficiency and self-generated inequalities have increased pressure to remove or reduce subsidies. The objective of this paper is to assess the impact of two alternative schemes of price subsidies management. Food demand forecasts are based on estimated parameters from an AIDS model together with some assumptions about the exogenous variables and population projections. Results indicate that a gradual subsidies removal will not affect substantially food expenditure structure. Non subsidized food products would increase their relative position while traditional products would lose slightly. In terms of welfare implications, changes in the subsidy policy would mainly affect low-income groups.

A Dual Response Choice Experiments (DRCE) design to assess rabbit meat preference in Catalonia: A Heteroescedatistic Extreme-Value Model

Purpose – This paper seeks to analyze consumer preferences toward fresh rabbit meat and obstacles and interest in consuming the product.Design/methodology/approach – The paper uses the dual response choice experiment (DRCE) design which allows for analyzing forced and unforced options in choice experiments using the same sample. The heteroscedastic extreme‐value (HEV) model is used due to its relaxation of the restrictive assumption made in the multinomial logit model regarding the identically distributed error term across alternatives. The empirical analysis uses consumer‐level questionnaires to elicit information regarding consumer attitudes toward rabbit meat in Catalonia (Spain).Findings – The results demonstrate a higher preference for rabbit meat from “Catalan” origin followed by higher quality certification information. Convenience and “ready‐to‐eat” products made from rabbit meat may help bolster increased consumption. An effective communication campaign is needed to educate individuals regarding ...