Journal article

Authors list: Teuber, R; Herrmann, R

Publication year: 2012

Pages: 732-740

Journal: Food Policy

Volume number: 37

Issue number: 6

ISSN: 0306-9192

DOI Link: https://doi.org/10.1016/j.foodpol.2012.08.001

Publisher: Elsevier

Abstract: 
Origin matters. This has been shown by numerous studies using either
discrete choice or hedonic approaches to derive implicit prices for
origin as a product attribute. In most of the hedonic studies, intercept
dummies were introduced for specific regional origins and statistically
significant coefficients of those variables were seen as an indication
of either a superior or inferior reputation, compared to products from
other origins. We argue that hedonic pricing models of this type may be
too simple to detect the true origin effects if assessments of a
product’s sensory quality are available and interact with prior beliefs
about reputation. Based on a supply-and-demand framework to explain
auction prices, a reduced-form hedonic pricing model is suggested that
includes intercept- as well as slope-dummy effects of the regional
origin. Because reputation and the objective product quality are
particularly important for markets of differentiated, high-quality foods
and beverages, we analyze electronic auction markets for specialty
coffees. The findings for the Cup of Excellence data reveal that it is
important to distinguish reputation, sensory quality, and their
interaction as determinants of coffee auction prices, as well as varying
origin impacts across market segments.

Harvard Citation style: Teuber, R. and Herrmann, R. (2012) Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee, Food Policy, 37(6), pp. 732-740. https://doi.org/10.1016/j.foodpol.2012.08.001

APA Citation style: Teuber, R., & Herrmann, R. (2012). Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee. Food Policy. 37(6), 732-740. https://doi.org/10.1016/j.foodpol.2012.08.001