PROXIMITY FIG JAM

Choice Experiment: The impact of proximity labelling on consumer perception and willingness to pay for fig jam

WHAT IS PROXIMITY FIG JAM?

In 2013, the Generalitat of Catalunya implemented the “direct sale” and “short circuit” labels on several foods, but the effects of these on consumers and citizens in general had never been assessed. The PROXMITY FIG JAM project arises as a study to verify the level of awareness of the participants regarding sales labels, focusing especially on those who consume jam. In addition, the initiative will take into account the potential impact of this awareness on purchasing behaviour and the propensity to attribute a higher monetary value to a product with a direct sales or short circuit label.

OBJECTIVES

The main objectives of the project are:

WHY?

Agri-food supply chains are experiencing significant global changes due to factors such as industrialization, urbanization and globalization, which have led to the internationalization of value chains. Particularly in Mediterranean regions, the agri-food sector faces challenges such as access to markets for farmers, food security and adaptation to climate change.

In response to the growing interest in sustainability within agri-food value chains, alternative models such as short food supply chains have emerged, which prioritize quality, respond to environmental and social concerns, and adapt to evolving health and culinary trends. Initiatives such as the “Proximity Sales” seals aim to promote short chain models. Some studies show that there is a positive association between local labelling and consumer preferences, but others show how factors such as price can overcome locality considerations.

METHODOLOGY

To determine whether these labels improve understanding of the impact of direct selling and lead to greater consumer awareness and propensity to pay for them, we have divided the project into a ‘Consumer Choice Experiment’ (Second Price Auction), through which fig jam will be used as an experimental product, and a ‘Consumer Survey’ on the perception of sustainability in consumers, to find out what their preferences are.

DURATION

January 1, 2024 – December 31, 2024

The PROXIMITY FIG JAM project responds to the following Sustainable Development Goals (SDGs):

THE ROLE OF CREDA

TASK

CREDA coordinates the management of the PROXIMITY FIG JAM project and is responsible for carrying out:

Second price auction: making a non-hypothetical analysis of consumer preferences and willingness to pay for fig jam. Monetary incentives will be included to create a realistic auction scenario that overcomes hypothetical bias – the discrepancy between saying and doing. The experiment will be carried out with a sample consisting of 300 participants. The proposed treatments are: the distance (short/long) and the number of intermediaries (direct purchase/with intermediary).
Consumer survey: presentation of a survey to auction participants to better understand consumer preferences and perceptions of sustainability. Factors such as: understandability, credibility, usefulness, approval of labelled and unlabelled products will be evaluated.

In addition, it is responsible for determining whether the acceptance of direct sales and short circuit labels can have effects in supporting public policies that promote regional economic and environmental growth, by promoting local production and consumption.