RESUMO
Italy is the world leader in the production of pasta and the Italian market is characterized by strong price competition among large industrial producers. Thus, recently, many small and medium firms have started to differentiate their products as a way to achieve higher margins and escape from price competition. Using data on the prices and characteristics of dried pasta sold online in the Italian market and a hedonic price model, we estimated the implicit prices associated with several attributes that are currently available for dried pasta. We find that the "artisanal" statement on pasta labeling is associated with the highest price premium. Also, results show that protected geographical indication, Halal and Kosher certifications, and the use of ancient wheat varieties are valuable features of dried pasta sold in the Italian market. Instead, a positive, albeit limited in magnitude, price premium is associated with dried pasta made using 100% Italian durum wheat semolina, the organic method, enriched with additional ingredients. Findings suggest that producers can differentiate their products by mostly emphasizing their small-scale production methods, the territorial connotation, and the cultural and environmental sustainability of production. Otherwise, certifying dried pasta as Halal or Kosher can represent a complementary or alternative strategy to differentiate the product and achieve a higher price.
RESUMO
This study aims to estimate the market value, or implicit prices, associated with the main craft beer attributes (e.g., beer style, organic, gluten-free, and package-related features) and support producers in detecting the more profitable marketing strategies. For this purpose, we conducted an empirical analysis employing sales data of craft beers from the Italian online market, and we estimated a hedonic price model via ordinary least squares. Results show that the type of package and cup only has moderate effects on price. Furthermore, a moderate premium price is found for gluten-free craft beers, while craft beers with organic labels and Italian origin do not benefit from the higher price. Instead, the beer style adopted strongly affected the product price: the highest premium prices were detected for Barleywine (+49.9%) and Italian Grape Ale (+39.6%) beer styles. Furthermore, relevant premium prices, higher than +25%, were estimated for other beer styles such as Sour, Fruit Beer, and Stout. Results suggest that artisanal breweries can effectively differentiate their product according to the beer style. To the best of our knowledge, the current study offers the first empirical evidence on how beer styles as well as other product characteristics affect the market price of craft beer by using secondary data.
RESUMO
The Italian market of processed tomatoes (whole peeled and unpeeled tomatoes, chopped tomato pulp, tomato purée, and concentrated tomato paste) rose, thanks to the Italian tradition of using such products in many recipes of cuisine, until early 2000; since then, it has declined to date. Moreover, such products are traditionally considered low-price products, and their market is characterized by intense price competition. Thus, recently, producers have started to differentiate their products as a way to achieve higher margins, and escape from competition in price. By using the sales data of Italian processed tomatoes sold in several retail stores and a hedonic price model, we estimated the implicit prices associated with several attributes that are currently available in processed tomato products on the market. We find that a protected designation of origin, organic certification, and flavoring, as well as the indication of tomato variety, are the most valuable features of processed tomato products sold in the Italian market. This implies that product differentiation strategies that could be suggested to producers as the most effective are those aimed at enhancing the territorial link of the product, the environmental sustainability of the production process, and organoleptic product features, as well as its convenience.
