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An Evaluation of Consumer and Producer Perceptions of Geographical Indications of Karnatak1
An Evaluation of Consumer and Producer Perceptions of Geographical Indications of Karnatak1
INTRODUCTION
In the marketplace, consumers often find it difficult to assess product quality without
experience and normally possess limited information about the valuable attributes of the
product (Kumar, 2020). GIs can help to restore this Information asymmetry by offering
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essential information to consumers on the products’ quality and reputation, which
enhance the economic benefit and satisfaction of consumers.
GIs can be effective marketing tools for gaining a competitive advantage. They are
distinctive signs that permit the identification of products in the market (Zubeyde
Albayram, 2014). GIs make it possible to add value to the natural resources of a country
and to the skills of the population, and they give local products a distinguishable identity.
In the last decade, GI has emerged as one of the important instruments of intellectual
property protection in the agriculture sector.
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GEOGRAPHICAL INDICATIONS: INDIA AND KARNATAKA
Products from Karnataka state with Geographical Indications as per As per Sec 2 (f) of
GI Act 1999
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Monsooned Mysore
Malabar Traditional
Robusta Paintings
Coffee
Coorg Green Ilkal saree
Cardamom
Coorg Orange Navalgund Durries
Malabar Karnataka Bronze
Pepper Ware
Devanahalli Molakalmuru
Pomello Sarees
Appemidi Ganjifa Cards of
Mango Mysore
Kamalapur Karnataka
Red Banana Bronzeware Logo
Udupi Mattu Ganjifa Cards of
Gulla Brinjal Mysore Logo
Coorg Navalgund Durries
Arabica Logo
Coffee
Chikmagalur Guledgudd Khana
Arabica
Coffee
Bababudangir Udupi Sarees
is Arabica
Coffee
Sirsi Supari Mysore Silk Logo
Gulbarga Tur Kolhapuri Chappal
Dal
LITERATURE REVIEW
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Loureiro & McClusky, (2000) Argued that “If the country-of-origin influences the
market for PGI products, then the success of many products will already be conditioned
by the location of the production. Thus, there are many factors in addition to quality of
the product that make the PGI label successful”. In the European market, most research
has reviewed the importance of the special characteristics of regional products; this has
lead to the creation of studies on the economic consequences of PGI and PDO products.
Mangala Hirwade & Anil Hirwade, (2006) The study exhibits the intellectual property
is generated by merging information intangible items that can multiply an infinite
number in different locations around the world. The study provides insights about the
geographical indication act prevailing, status, registration process followed in India. It
concludes intellectual property rights have never been more significant or contentious in
terms of economics and politics. Patents, copyrights, trademarks, industrial designs, and
geographical indications are frequently mentioned in discussions and debates about
public health, food security, education, trade, industrial policy, traditional knowledge,
biodiversity, biotechnology, the Internet, and the entertainment and media industries,
among other topics.
Menapace et al., (2008) This paper investigates the impact of geographical origin labels
on consumers' preferences among the Canadian consumers for extra virgin olive oils
marketed with country-of-origin labels (COOL) and geographical indications (GIs).
COOL specifies the country in which the product is produced; whilst the GI label focuses
on a city or region within that country; for which the producer must comply with certain
requirements. The method of this survey was face-to-face interviews in which the
qualified participants had to be screened first. The results shows that products, such as
extra virgin olive oil, with both COOL and GI labels were seen as high quality, value-
added products. On the other hand, when a comparison was made of consumers’
preferences, COOL labels are proved to influence Canadians more than the GI labels.
Ramona Teuber, (2009) The research outlines economic models for a better
understanding of the welfare consequences of current GI policy. And, more crucially,
literature on modelling work used for progress the present GI policy debate. The research
is based Ex post facto research. The contributions made have documented both good and
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negative aspects. As well as determining the wellness of GI regulation supports concerns
such as biodiversity conservation, traditional knowledge preservation, and authenticity,
further research is needed to determine the effectiveness of GI policy tools in achieving
these objectives.
Ramona Teuber, (2009) This study approaches to evaluate the awareness, attitudes and
perceptions towards the PDO and PGI labels as marketing tool among Hessian
consumers and the evaluation of a regional certification label for this specific product.
The main objective of this study is to understand the motivation of the group of Hessian
apple wine producers to apply for registration of the term “Hessischer Apfelwein” as a
PGI. Online survey is conducted with 741 Hessian consumers was carried out. The
sample is representative for the population in Hesse Chi-square test employed to
investigate whether there are significant differences between consumers claiming to
know at least one label and consumers not being aware of the labels. Binary logit model
analysis employed to know WTP for the product.
A significant difference was found with respect to organic shopping behavior. People
stating to buy regularly organic products have got a significant higher awareness of the
PDO/PGI label than people who are buy organic products rarely or never. The results
suggest that from the consumer point of view, Hessian apple wine is deeply-rooted in the
local culture and tradition, whereas detailed expectations with respect to the product
specification are not widespread. If consumers are convinced that through this
certification scheme the local economy, the local cultural and tradition can be supported,
the protection can result in a higher willingness to pay. Hessian apple wine is well-suited
for such an origin-based differentiation strategy due to its long tradition and strong
connection with the region itself. Hence, even if the results from the supply side indicate
that the producer association primarily pursues a protection strategy a promotion strategy
based on the granted protection seems to be appropriate given the increasing consumer
interest in traditional and authentic products.
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Indications. The consumers’ preference for coffee was studied by surveying 20
wholesalers and roasters participating in weekly coffee auction in the Coffee Board. Nine
orthogonal plan cards generated by conjoint procedure were given to each of them for the
preference rating. In this the additive conjoint model was used. Outcome of this study
reveals that the coffee planters are highly educated and innovative; hence, the
institutional framework to facilitate the GI is crucial in the area. Since the consumers
recognize the quality of Kodagu coffee, this reputation needs to be properly protected
through promotion of Geographical Indications. Although coffee from high elevation is
the most preferred attribute, traders and roasters have used the region of origin of coffee
also as an important attribute to decide on the quality of coffee beans. Finally, the study
concluded that concept of GI for the Kodagu coffee can’t be taken up by individual
planters who are widely spread across the district and as such need concerted efforts of
Coffee Board, which is the promotional body for Indian coffee.
Setiyono et al, (2011).The study analyses the consumers and producers perception of
cashew nut, a potential geographical indication snack. Descriptive research and cluster
analysis were used in this study and observed that consumers and producers have
different perceptions regarding the wonogiri cashew nut. Major results of this study
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reveals that consumer education and monthly income enable two segments, in
comparison produces age, years of working experience and educational level allowed the
two segments of producers to be distinguished. The study found that both consumers and
producers have positive perception about this product and suggest the producers can
adopt different strategies to promote the product to the higher level and finally the
regulatory bodies and producers Association should considered these two segments to
analyse the nature and establish future policies and strategies to encourage greater
adoption of this GI product.
JasnaCacic, (2011) The researcher focuses on the quality and top quality wines with GI
on the Croatian market. There is an lack of information in this field and researcher aims
to concentrate on these issues. The samples selected by the researcher are high qualified
population for reviewing different aspects of wine as a complex product. Stratification
has been made and data were analysed by using univariate, bivariate and multiple factor
analysis and study reveals the results that a high correlation degree between the higher
socio economic status of respondents and preferences for wine with GI and concluded
that the samples are more familiar with wine with GI and also have a higher culture of
wine consumption.
Bilge Dogan & Ummuhan Gokovali, (2012) The study exhibits geographical indicator
is a symbol used on commodities that have a specified geographical origin and exhibit
attributes, reputation, or features that are basically attributable to that origin. It is one of
the intellectual property rights. Champagne, Cuban cigars, Roquefort cheese, Turkish
carpets, and other GIs call attention to product excellence, local identity, and cultural
traditions. Local producers in rural regions benefit from GIs because they offer
differentiated and high-value-added products, and consumers are eager to buy these
traditional items. An effective registration system, as well as an active marketing
strategy, is essential to acquire a place in the domestic and international market, in order
to benefit from the marketing potential of GIs. The goal of this research is to look into
the use of GIs in Turkey, as well as famous instances from across the world, in the
context of rural development and marketing.
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Anson, (2012). The objective of this paper is to analyse the points that differentiates
geographical indication and trademarks in the view of marketing and studied the barriers
in the GI Marketing System. This study involves qualitative research and based on
primary and secondary source of data. Primary data collected through semi-structured
questionnaire from producers and Consumers of GI product. Information was collected
on real barriers and differences between GI and trademark. Secondary data consists of
different case studies which includes agriculture, textile and handicrafts. This study
examines the differences between g GI and trademark and reveals the results that brand
name is created one and GI involves separate marketing strategy. The major findings of
this study is consumers are not much more bothered about what is GI and their
knowledge about the place of origin and its specialities. On the other, producers were
only going with order Sale marketing not using value added and differentiated marketing
strategies.
Aggarwal & Singh, (2014) The objective of this research is to identify intrinsic
deficiencies of the geographical indications (GIs) as protective brands adding to the
premium value of the products as compared to the protection guaranteed to brands under
the trademark route. It also attempted to find means to assign a strong visible identity that
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creates a premium visibility for GIs to help them emerge as strong brands just like the
brands envisaged for the trademarks.
This study qualitative research in nature and based on primary and secondary sources of
data. Consist of statutory provisions of two main acts on GIs and trademarks,
articles/news items available in academic/trade journals and information generated from
Government of India websites. Primary data gathered using face-to-face information
exchanges with practicing advocates and select holders of GIs. Information was collected
on parameters related to efficacy, applicability, enforceability, monitoring, marketability
and legal issues of GIs and trademarks. The study enlightens the issues between
trademark and GI. Since GI Act was enacted to improve the commercial prospects of
manufactured/grown outputs by entities based in a particular geographical limit, it has
not delivered to the extent it was expected. The GI product still faces the challenges of
poor awareness, fratricidal competition and risk of adulterated products. The same
concept under the trademarks is adequately promoted and protected by ensuring visibility
through the logos. And hence, the same can be made mandatorily under the grant of GIs.
The study tries to incorporate best of both the worlds in terms of legal protection and
marketing appeal for the geographical indicators.
Albayra & Konstadinos Mattas., (2014) The article exhibits the customer attitudes on
product quality, particularly with relation to local and non-local products bearing
geographical markers (GIs). The study adopted primary & secondary source of data. The
primary survey is based on 271 questionnaires to evaluate consumers' willingness to pay
in both circumstances and descriptive statistics to study the frequency of purchased the
products. A factor analysis was performed to determine the most important aspects that
influence consumer behaviour. The result finds out two GI goods both locally and non-
locally produced are found in the same market and with the same consumer potential
consumer perceptions of these two items, a local product and a non-local product were
evaluated and contrasted.
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indication (GI). Exploratory research based on qualitative approach is adopted in this
study. Sixteen qualitative interviews with distribution channel gatekeepers were
administered in Austria, Italy, and Switzerland in 2010 using snowball sampling. Content
analysis and concept mapping were used to analyze data. The study was concluded that
European consumers and gatekeepers are aware of the GI concept mainly as it relates to
local or European products because GI products strongly link to territory and traditional
local culture. European consumers have already developed positive perceptions toward
these products and the GI label can therefore be used as a differentiation tool. However,
when dealing with Thai GI products, respondents made many various comments. Most of
the gatekeepers thought that the GI label may not be able to add value to Thai fruit and
coffee products because consumers do not have enough information or experience. Eight
major factors appear to influence European gatekeepers’ decisions to purchase imported
concerning these products: food products: quality, price, food safety, environmental
aspect, social aspect, business relationship, consumer awareness, and preference and
competitors.
Finally, researcher remarked that Thai GI products might be interesting for European
gatekeepers, but the GI attribute alone might not be sufficient to ensure that the product
is successful. Support of consistent information and promotion campaigns and fulfillment
of other gatekeepers’ requirements of both products and suppliers are necessary. The
limitation of this research is that the qualitative research approach could not give
conclusive answers to specific research questions and could .not be generalized in the
market directly. Suggested future research based on this study is test the relative
importance of factors influencing gatekeepers’ purchasing decision in order to accurately
define marketing strategies to introduce these products into the market. Finally, the only
source of information used in this study is the European gatekeepers; the voice and the
point of view of the Thai exporters are not taken into consideration. Therefore, further
research is needed to collect information from the Thai counterparts.
Manjunatha, (2016) The study examines intellectual property acts as the indication for
their products originating from the region. The intellectual property emerged as major
form of GIs tag in India. Out of total registered products under geographical indications
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Karnataka has a major share hence it is been prominent in the study. The study is based
on secondary source. The source of data includes legal books, magazines, and newspaper
articles, reports of World Trade Organisation, Geographical Indication Registry of
Government of India, and United Nations Industrial Development Organization: UNIDO
& Reserve Bank of India. Basic graphical representations like Bar graphs, Pie diagram
for a more effective representation of the data. Moreover simple mathematical techniques
are used to calculate the percentages. The study depicts out of the total registered
geographical indications in India 14.47% accounts from Karnataka. While among the
thirty three geographical indications registered in Karnataka the major fraction is
contributed from Agriculture goods like, Coorg Orange, Mysore Betel leaf, Nanjanagud
Banana, Mysore Jasmine, Udupi Jasmine, Hadagali Jasmine, Coorg Green Cardamom
etc.the study concludes Karnataka’s diverse geographic and physiographic circumstances
have enabled the state to cultivate a wide range of flowers, fruits, and vegetables in
various sections of the state promoting registered geographical indications.
Huibin Zhan, (2017). This paper investigates the loyalty of customers that influences
the development of the GI product industry. In this article the researchers analysing four
Teas and measures the factors that strengthen consumers’ loyalty and examines the
impact of these factors. In this article exploratory research using the grey incidence
analysis model was used and collected the data by questionnaire surveys. The result
shows that ‘producing areas, perceived quality and cognition of the protection of GI are
important factors of customers’ attitude that influences the loyalty towards GI products’.
Kadanali & Demir, (2018) This study aimed at to investigate the factors affecting
consumers’ preferences for purchase place of local food products and comparative
importance of these factors. A Proportional Sampling Method was utilized to select the
sample for the study. Multinomial logistic regression analysis is a method which is used
to determine the relationship between the response variable and explanatory variables
(independent variables) in cases where the response variable has three or more
categories. The study concluded with possibility of evaluation of the purchase place as an
important factor in consumers’ preferences for local food products considering factors
influencing place of purchase, providing producer incentives, in market mix decisions,
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consumers’ expectations and preferences for purchase places and informational activities
towards this sector could prove important.
Kaliappan & Chef Vasanthan Sigamany, (2018) This article aimed at to examine why
India in which has a significant number of regional traditional foods exist but very few
food products are claiming GI tagging. Also discussed how GI functions in India. Study
used interviewing popular producers of local delicacies and well-known foodstuff
manufacturers for comprehend the question of why popularly known foodstuffs are
reluctant to assert GI tagging and discuss how GI tagging helps in empowering
individuals in the time of globalization. And, help tourists around the globe to benefit
from the wealth of knowledge on traditional Indian food of Indian origin taking up
culinary visits and promote gastronomical tourism.
Sharma, (2019) The study depicts the concept of geographical indication in India.
Geographical indication is a new trend which it allows us to identify distinct products
with unique characteristics, trademarks, or attributes that originate from a specific
geographical territory. The study adopted descriptive study .The study is based secondary
data source of data. The secondary data is collected from World Trade Organization, the
World Intellectual Property organization and Geographical Indications
Registry .Descriptive analysis such as tables and charts was used for the purpose of
analysis. According to the findings of this study, Karnataka has the biggest number of
GI-tagged products, with the greatest number of products registered in 2008-09.
Handicraft is the most popular product that has been registered. The study' suggests
theoretical implications are that it gives state-by-state, year-by-year, and product-by-
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product distribution of GI goods in India. This in turn helps customers and producers to
protect the origin name to create a brand name for that product.
Prathap & Sreelaksmi, (2020). The study aims to examine factors influencing purchase
intention of traditional handloom apparel that have Geographical Indication (GI)
certification. For this study a survey was conducted among 202 traditional handloom
apparel consumers in India and the data was analyzed using structural equation modeling.
The study result reveals that quality consciousness positively influences product
diagnosticity (facilitated by the GI label certification) which in turn reduces perceived
information asymmetry. Further, a reduction in perceived information asymmetry was
found to increase the purchase intention of traditional handloom apparel, fully mediated
by the perceived quality and product trust. The customers who are facing a shortage of
information while making purchase of traditional handlooms will be benefited from the
GI certification label which provides authenticity regarding product attributes confirming
quality. Further, the study adds to the theory by establishing the relation between quality
consciousness and perceived information asymmetry. Practical implications – The
findings imply that GI handloom apparel sellers should design marketing strategies that
would project GI certification labels for effectively communicate product quality
attributes, Further, studies may be extended to agricultural products, food stuffs, and
handicrafts that have acquired GI label in India.
MISRA, (2021) In their research study ‘GI as Marketing Product: A Study on Its
Potential in India’ is about the value addition done by Geographical Indications in India,
comparison between brands and GI and its potential in India. This study is conceptual in
nature. And, highlights the differences and compare geographical indications with
brands. Cost-benefit analysis as well the consumer-owner analysis has given the research
a much broader aspect. The suggestions are given for increasing the marketing value of
GI which in turn will help the producer and economy of the nation as a whole.
Patel (2021) The study examines the state wise products registered and geographical
indication applications in India. The study is based on secondary source. The source of
data includes reports of World Trade Organisation, Geographical Indication Registry of
Government of India, and United Nations Industrial Development Organization: UNIDO
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& Reserve Bank of India. Basic descriptive statistics are used to analyse the data &
provide percentile implications of Geographical indication in India. Major findings of the
study reveals Germany had the largest number of GIs in 2018 followed by China &
Hungary at international level. At national level Karnataka state has highest number of
registered products of around 11%.Out of registered 65 products Agricultural,
horticultural, and forestry products and grains have a major share. The study suggests
proper registration details, documents in support with registration & benefits regarding
the GI tag need to be provided.
Rabadán, et al., (2021) The study outlines characteristics that spring fruit buyers
identify with GIs while making purchasing decisions. Furthermore, the effects of
increasing distance between the region of production and the place of consumption on
these relationships were assessed. We looked at two GIs for spring fruits in particular: the
protected geographical indication for Mountain Cherries from Alicante and the protected
designation of origin Logistic regression analysis was used to examine the data. The
findings reveal a strong link in consumers' views between their preference for GI fruits
and the emphasis they place on where they are produced. According to the findings, the
closer a consumer is to the GI region of influence, the more features they identify with
these brands. In this regard, boosting consumer awareness of GI labels outside of their
influence area could raise demand for these products because consumers would be aware
of the various quality qualities highlighted in that label.
Giang Hoang et al., (2021) The study outlines the measures taken to reduce the
imbalance by observing the impact of the GI policy on lengthy rural development in
Vietnam. With a focus on the instance of Cao Phongthe oranges a place-based marketing
was a widely used and recognised approach for adding value at the point of consumption.
The study based on empirical data that are collected and analyzed systematically. The
primary data collection involved 19 qualitative interviews and observations to understand
the GI management process. Indicated that GIs can be used as a policy tool to enhance
the modernization of Vietnamese culture. The major findings of the study are consistent.
It finds an overall positive effect of GI protection on agricultural value added in an Italian
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context. There is a positive impact of the Vietnamese government’s policy on GI
protection and rural development.
RESEARCH GAP
The observations from the review of literature on Geographical Indications reveal that
the studies in India and specifically in Karnataka are very limited and sparse. Most of the
research is done in the western countries. Many studies have attempted to encompass
Geographical Indications (GIs) from a legal perspective, i.e., with reference to protection
of geographical indications through the legal system. The majority of studies are made in
a casual direction and it is related to conceptual issues of geographical indications. It is
also pertinent to note that, there is lack of studies that comprehensively examine the
consumer and producers perception on Geographical Indications. The empirical research
on Geographical Indications in the area of commerce and management is very rare, and
we can say almost absent in the context of India and specifically in Karnataka. There is a
need to fill this gap by embarking an empirical study that looks into consumers’ and
producers’ perception on Geographical Indications in Karnataka.
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prevailing scenario in geographical indication and current academic knowledge. To fill
this gap, there is need of thorough research in this area. Further the proposed study tries
to identify consumers’ awareness, preferences, attitude and willing to pay for origin
based products i.e., GI tagged product. Further this study will make an attempt to unfold
the producers’ awareness and perception about Geographical Indications. Hence, it is
necessary to identify which attributes of GI tagged product influence the consumer to buy
and producer to produce most.
RESEARCH QUESTIONS
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4. Is there any difference in Consumer Perception between various categories of
in Karnataka?
in Karnataka.
Karnataka.
Indications in Karnataka.
RESEARCH HYPOTHESES
H1: The consumers have higher level of awareness towards Geographical Indications
products.
H2: The producers have higher level of awareness towards Geographical Indications.
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H3: There is a significant relationship between place of origin and purchase decisions of
GI products.
H4: Consumer has a positive attitude towards buying Geographical Indications products.
H5: There is a significant difference in Perceived product quality and Actual product
quality of GI products.
H6: There is a significant relationship between price and purchase decisions of GI
products.
H7: There is significant relationship between income level of Consumers and willing to
pay for Geographical Indications products.
H8: There is a significant relationship between perceived product quality and purchase
decisions of GI products.
H9: There is a significant relationship between packaging and purchase decisions of GI
products.
RESEARCH METHODOLOGY:
The study makes use of both primary and secondary sources of information. Secondary
sources of information will be collected from websites i.e., World Intellectual Property
Organization, IP India, ITC, VTPC. Primary source of information mainly includes the
data from the field survey is done through structured questionnaire. And data will be
collected from different stake holders of the Geographical Indication Users.
The sample for the purpose of this study is proposed to be chosen with due emphasis.
Samples are drawn based on Numerical and functional classification of universe i.e.,
Geographical Indications in Karnataka. 48 products got Geographical Indications sign
across the Karnataka. Of these 23 are agricultural products, 2 are food products, 20 are
Handicraft, and 3 are manufacturing products. The study intended to select reasonable
sample size through Krejcie and Margon(1970) formula for sample size determination.
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Geographical Indication based products consumers and producers are selected based
upon convenience sampling.
Data will be collected using structured questionnaires, since this method is generally
recommended for larger survey research (Kothari, 2003). The process of questionnaire
development for this study will follow the most commonly used steps of questionnaire
construction by Sekaran (2000) and Sarantakos (1998). The questionnaire development
mainly focuses on identification of perceptions on GI tagged product.
The questionnaires is proposed to anchor on a five-point Likert scale that ranges from 1
(Strongly Agree) to 5 (Strongly Disagree). The anchored scale design will be intended to
measure the consumers’ and producers’ perception on Geographical Indications.
The proposed study will use relevant statistical tools for analysis and interpretation of
data. Tests of relationship and tests of significance will be employed. Statistical tools to
establish the validity and reliability of results will also be used where required. Mean,
Standard Deviation, Covariance, Karl Pearson Co- efficient of Correlation, Probable
error, ANOVA, Multiple Regressions, and factor analysis would be used to carry out
analysis and interpretation of different data sets.
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LAYOUT OF THE RESEARCH REPORT:
The study report will be presented in six major chapter divisions.
CHAPTER-I, Introduction, will provide the Conceptual background for the study and
explain the technical aspects of research. CHAPTER-II deals with conceptual issues,
which is relating to Geographical Indications current status and different categories of
Geographical Indications in India. Literature Review would be undertaken and research
gaps will be identified under CHAPTER-III. CHAPTER –IV will deal with Data
Analysis and Interpretation. Summary of the research findings and scope for further
research will constitute CHAPTER-V and CHAPTER-VI will include Suggestions and
Conclusion.
REFERENCES
Chiaravutthi., P. S. (2011). Thai Consumers Willingness to Pay for Food Products with
Geographical Indications. International Business Research .
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E.KADANALI, & N.DEMIR. (2018). FACTORS AFFECTING CONSUMERS’
PREFFERENCES FOR PURCHASE PLACE OF LOCAL PRODUCTS. The Journal of
Animal & Plant Sciences , 1523-1531.
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DHARMOJIRAO T Y Prof. T. S DEVARAJA
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