Consumer Perception Based Study Of The Relationship Between Geographical Indication And Information Asymmetry

As a kind of special regional brand, geographical indication has played animportant role in promoting the local characteristics agricultural product developmentin recent years. The local agricultural products, which meet the requirements of theproduction area and the quality, register as a geographical indication, the origin ofagricultural products can use the logo, and directly promote the reputation andpopularity, and its great brand effect and economic value is a strong impetus to thelocal agricultural economic development. But there is the phenomenon calledinformation asymmetry in the market, namely the unbalanced information superiority,the buyer the seller holds information disadvantage. So many products cannot getconsumer’s recognition due to the lack of product’s information, or maximizeeconomic value; geographical indication product producers also have such problems.The theory of information economics studies show that brand has the function ofsignal transfer, geographical indication includes two factors: geographicalenvironment and cultural history, they are important external cues of the signaltransmission mechanism.In view of this, this paper adopts empirical research method. Firstly, based on thesummary of related theory, from the perspective of theory we demonstrate theregional brand attributes of geographical indication, and the function of signaltransmission of product’s quality as regional brand, this study also puts forward thatthe two factors: geographical environment and cultural history are the key factors inthe transmission process; in addition, this study proposes that the perceived qualityand perceived image play an important role in information transformation. Secondlythe study put forward the theoretical hypothesis and research model, and selects twokinds of representative product of geographical indication as the sample from Sichuanand Chongqing area for the questionnaire investigation. Finally, according to thesurvey data analysis results: the two factors geographical environment and culturalhistory which geographical indication includes, have effect in the transmission ofproduct’s information, also can significantly reduce the degree of informationasymmetry, and perceived quality and perceived image has mediating effect in theprocess; but the cultural and historical factors also has direct influence in the process,and it is the key factor affecting the information transmission of quality. Combining the theory research, through the analysis of the current situation ofgeographical indication protection and development，this paper also put forward somesuggestions of the protection and brand building for geographical indication.