The Impact of PDO and PGI Labels on Consumer Demand: A Comparative Study of Fast Food Advertising Effects in Italy

The increasing interest of consumers in food quality and food origin has increased the importance of products with PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication) labels. These labels protect and secures the intellectual property rights related to geographical origin, and protects the name of a food product originating from a specific region by indicating its authenticity and regional heritage, and ensures that traditional production methods are followed. McDonald's, one of the most preferred fast food chains in Italy, has added many products with geographical indications (GI) to its menus, strengthening their ties with the Italian GI food industry. This study investigates whether the introduction of high-quality GI products in a (perceived) low-quality fast food environment can affect consumer perception and demand of GI products. Using an experimental survey design, two groups of consumers are compared: those exposed to advertising for GI-labeled products at McDonald’s and those not. This approach allows us to examine whether advertising high-quality products in a fast food environment changes consumer perceptions, potentially reducing the perceived value of GIs and decreasing demand. To measure these effects, the Multiple Price List (MPL) method is used, which assesses consumer price sensitivity and WTP for GI-labeled products. By comparing consumer responses in the presence and absence of advertising, this study provides insights into the complex interaction between food quality signals and fast food branding. The findings will inform the GI industry on the potential effects of the strategic choice to sell its products in fast food chains. At the same time, they will inform fast food chains on how to effectively integrate geographically specified products into their marketing strategies. Keywords: Food Advertising, Fast Food Chains, PDO & PGI Labels, McDonald’s Italy, Willingness to Pay (WTP)