| Abstract |
This study investigates the influence of the country-of-origin attribute of tobacco leaf on consumer
choices and marginal willingness to pay (MWTP) for cigarette products. A choice experiment
was conducted with 300 adult smokers in Korea, incorporating five attributes—price, country of
origin, flavoring, manufacturer, and nicotine content. Mixed logit models were estimated to capture
preference heterogeneity. The results show that country of origin is the most influential attribute,
with WTP for products made from 100% domestic tobacco being significantly higher than for
those made from foreign tobacco. In contrast, flavored products generated negative WTP, indicating
aversion, while certain foreign manufacturers were perceived negatively. Preferences for nicotine
content varied considerably across consumer groups. By segmenting respondents into four groups
according to their stated origin preferences (domestic, mixed, foreign, and indifferent), the analysis
revealed heterogeneous effects, with stronger support for domestic origin particularly among older
consumers. These findings underscore the central role of origin information in consumer trust and
quality evaluation, providing empirical evidence to support policies that promote the use of
domestic raw materials, strengthen regulations on flavored products, and introduce origin labeling
to ensure consumer rights and informed choices.
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