Consumer's Willingness to Pay for Products Registered with Japan's Geographical Indication Protection System: The Case of the Miyagi Salmon

Abstract

This study adopted the contingent valuation method (CVM) to examine consumers' willingness to pay (WTP) a premium for Miyagi Salmon, a brand of farmed Coho salmon (Oncorhynchus kisutch), which is registered with Japan's geographical indication (GI) protection system. It further identified the characteristics of consumers that may influence their WTP for such products. The results show that consumers may accept a premium of as much as 8.8%. The study also suggests that consumers with a strong WTP have seven common characteristics. These consumers: 1) are less eager to seek bargains when shopping for food, 2) pay attention to certification marks on seafood packages, 3) look for detailed descriptions of where the seafood was produced, 4) are eager to buy food that may help stimulate the local economies of the producing regions, 5) trust the GI protection system, 6) are male, and 7) have high annual household income. Furthermore, the study suggests that an effective way to improve the economic value of Miyagi Salmon would be to increase public awareness of the GI protection system while promoting the benefits of Miyagi Salmon among consumers with these seven characteristics.