Consumers choices and a willingness to pay for Auvergne cheeses - - PowerPoint PPT Presentation

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Consumers choices and a willingness to pay for Auvergne cheeses - - PowerPoint PPT Presentation

Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Framework Consumers choices and a willingness to pay for Auvergne cheeses under PDO label. An empirical analysis. Umr Territoires,


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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Framework

Consumer’s choices and a willingness to pay for Auvergne cheeses under PDO label. An empirical analysis.

Umr Territoires, IRSTEA-Clermont Jeannot Ngoulma - Doctorant 3e année

 Juin 

1/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Framework

context

In 2011, 970 products registered under PDO or PGI (465 PGI and 505 PDO) by the European Commission 45 PDO cheeses, with 5 in the former region of Auvergne Since 2000, Tonnage of French PDO cheeses is stable (190,000 tons, with a turnover of about 1.4 billion euros) Unfortunately, Auvergne PDO cheeses do not have the same stability at the French national level (Baisse des volumes commercialisés de 46 075 à 40 555 tonnes (-12%)) Regional strategy (3 levers) [code of practise, Marketing Effort, Compulsory voluntary contribution] But...

1/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Framework

context

Auvergne PDO cheeses face many difficulties in terms of price and volumes sold compared to PDO and no-PDO These difficulties, which can be qualified as the “curse of the Auvergne PDO cheeses” Despite these efforts the Auvergne PDO cheeses still has mitigate results It seems that a consumer forsakes these Auvergne PDO cheeses for

  • ther PDO or no-PDO cheeses from other regions

What are the determinants of choice of consumption and what is the willingness to pay of consumers ?

2/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Empirical studies

Krystallis and Ness (2005) "olive oil from Greece". Age, the education and the income Scarpa and Del Giudice (2004) "extra virgin olive oil from Italy". Appearance, price, geographical origin Van der Lans, Van Ittersum et al. (2001) "extra virgin olive oil". Price, the color and the appearance"

3/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Empirical studies

Bonnet and Simioni (2001) "Camembert cheeses from France" Cavicchi, Bailetti et al. (2010) "Cheese Pecorino di Fossa from Italy" Hassan, Monier-Dilhan et al. (2011) "21 cheeses from France" Gracia and de-Magistris (2016). "cheese from Spain". Female, older, a university-level education

4/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Data

Kantar Worldpanel (2008-2010), about 20 000 French households We merge data 58 199 acts of purchases of Auvergne PDO cheeses Following Bonnet and Simioni (2001)

5/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Destriptive staistics 6/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Models

random utility model (RUM) Mixed logit Model (MXL)

1

Does not take into account the Independence of Irrelevant Alternatives (IIA) assumption

2

Authorize a distribution of preferences among the population rather than identifying

  • nly the average preference

Nested logit Model(NL)

1

Does not take into account the Independence of Irrelevant Alternatives (IIA) assumption

2

It allow us to group the modalities into several nests

7/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Econometric specifications

Model 1 : Mixed logit equation ChoiceMixed = αi +βpricePrice +βnitX +βnitZ +εnit We deduce WTP WTPk = − βk

βprice

Model 2 : Nested logit equation ChoiceNested = αi +βpricePrice +βnitX +βnitZ +εnit X : income, age, nberind, CDI, CDD, gender, Single, Couple, Primary-Educ, Secondary-Educ, Superior-Educ Z : Supermarket, Hypermarket, Hard-Discount, Creamer, MDD, sale-promo, Mat-Grasse, Auvergne

8/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Mixed logit results

9/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Mixed logit results (continued)

10/16 Jeannot Ngoulma - Doctorant 3e année

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Mixed logit results (continued)

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Willingness to Pay

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Comparaison

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Nesting structure for the choice of cheese (1 743 896 observations)

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Nested logit results

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Introduction Literature review Descriptive statistics Theoritical Background Empirical Specifications Results

Nested logit results (continued)

16/16 Jeannot Ngoulma - Doctorant 3e année