Determining consumers’ willingness to pay in view of extrinsic attributes of Erzurum Stuffed-Kadayif with Protected Geographical Indication

Abstract

The aim of the study is to determine consumers’ willingness to pay (WTP) in view of the brand types and food retailers simulations from the product profiles based on the intrinsic and extrinsic attributes of Erzurum Stuffed-kadayif profiles with Protected Geographical Indication, and then to create the marketing strategies for each consumer segment. In order to reach to these goals, the main material composed of the primary data obtained from consumers consuming Erzurum Stuffed-kadayif in Erzurum Province. Based on the data, k-means cluster analysis was firstly used to segment heterogeneous consumer masses according to their consumption frequencies, and choice-based CA model was secondly applied to calculate the total utilities for each consumer segment and then to measure consumers’ WTP for Erzurum Stuffed-kadayif profile simulations. The results of the study highlighted that the light and heavy users’ WTPs with higher premium prices for the local brands and manufacturer outlets calculated as 48.0% and 28.2%, and 40.8% and 26.5% respectively, but the medium users’ WTPs with high premium prices for each product attribute found as 14.5%. Focused on such consumer-oriented attitudes, the market actors should position Erzurum Stuffed-kadayif with local retailer brands sold from the higher premium prices at the manufacturer stores for the light and heavy users, but it should be implemented the product differentiation strategies under the intrinsic and extrinsic food attributes for the medium users.