A spatial analysis of geographical indication: the case of the relevant geographical market centred on the production zone

This study proposes a methodology for defining the relevant geographical market (RGM) for a geographical indication (GI) centred on its production zone. The model is inspired by von Thünen’s spatial model of land rent and assumes that various consumer-related variables decline as the distance from the production area increases. The model is applied to an Italian GI product, Prosciutto Veneto Berico-Euganeo, using data from a survey of 563 consumers located at varying distances from its production zone. Eight hypotheses are formulated and tested using the Cochran-Mantel-Haenszel test for categorical variables and linear regression for continuous variables. The results substantiate the model’s validity, demonstrating a gradient for the tested variables (product familiarity, first consumption experience, purchasing frequency, relative consumption, willingness to pay, and price premium) in relation to the distance from the GI production zone. This study provides evidence of non-homogeneous spatial trends for these variables, suggesting that the shape of the RGM deviates from a circular pattern. The main contribution of this research is its novel approach to define the RGM for a GI with a market centred on the production zone. It provides valuable insights for producers and operators to develop effective marketing strategies tailored to different distances and directions from the production zone.