Consumers’ willingness to pay for traditional products with geographical indication: a case study on pestil from Gümüşhane, Turkey

The main purpose of this study is to analyze the willingness to pay (WTP) geographical indications (GI)-labelled pestil as a traditional product. Considering the data obtained from a survey conducted with 166 households in Gümüşhane, Turkey were used. Contingent valuation method was taken to determine WTP for GI-labelled pestil (dried fruit pulp). In order to find WTP price amounts Tobit model was used. Tobit model showed that individuals who were in the upper age group, have a high frequency of purchasing pestil, have a high level of knowledge about GI-labelled products, and consume GI-labelled products want to consume more. The average amount that consumers will be willing to pay for 1 kg of price bids ranging from 60-100 TRY has been determined as 68.74 TRY. While establishing a target market, those who are in the upper age group, have a high frequency of purchasing pestil, have a high level of knowledge and consume GI-labelled products should be taken into consideration. Since individuals with a high level of knowledge regarding GI-labelled products are willing to pay a higher amount of extra payment, it is recommended that marketers carry out promotional activities that will increase communute awareness for GI-labelled products.