Evaluating consumer willingness to pay for Chiloé lamb: The impact of geographical indication

Abstract

Chiloé lamb was the first and only geographical indication for meat products from Chile. This study investigated consumer preferences and willingness to pay a premium for this unique product in a comprehensive survey of 630 respondents. A mixed-methods approach that combined quantitative surveys and qualitative interviews provided a detailed understanding of consumer behavior and perceptions. The results indicated that lamb consumption exhibits strong seasonality, which is closely associated with national holidays and vacations, particularly in urban centers such as Santiago and Concepción, where supermarkets are the main sources of lamb meat. Among the respondents, 56 % were willing to pay about 41 % more. That preference was particularly evident among young, independent workers who had higher-than-average incomes. For producers and retailers, however, a significant challenge remains in the form of limited consumer awareness because 78 % of respondents were unaware of the product. To address that challenge and effectively promote Chiloé lamb, robust marketing strategies including educational campaigns and targeted advertising, are imperative. Furthermore, enhancing consumer understanding of origin labeling might make it the primary factor in purchasing decisions, thereby increasing the value of these protected regional products.