Enhancement of "Mountain product" milk: an exploratory analysis of consumers' purchasing choices

Abstract

In order to promote the sustainable development on mountain areas, the EU introduced the optional quality term «Mountain Product» to food products produced and processed in these areas. Nowadays in Italy, 606 producers have chosen to adhere to this new label. Thus, a key interest lies in identifying the consumer propensity to purchase a «mountain‐type» food. The aim of this study is to estimate the premium price that consumers are willing to pay for a labeled mountain milk. To accomplish this aim, a dichotomous choice contingent valuation, based on a double-bound model, has been applied. Results indicate that consumers’ beliefs about the production process and quality attributes of mountain food affect their WTP a premium to buy these specific products. In addition, mountain products are attracted mainly by health-conscious and local economy-conscious individuals.