Consumers’ Intent: In the Organic Food Market

ABSTRACT

This paper examines the determinants that influence consumers' intention to purchase organic products. Ajzen's theory of planned behaviour (TPB) provides the conceptual framework of the research and the appropriateness of the theory is tested. A survey of 144 consumers was used to determine the beliefs which determine consumers’ intent to purchase organic food. Furthermore, attitudes, subjective norm, and perceived behavioral control were examined to determine whether they affect consumers’ intention to make organic products purchases. The findings offer considerable support for the robustness of the TPB in explaining intention in the sample. In addition, empirical evidence suggest that price, availability of organic products, product information and the subjective opinions of others are important determinants of consumers intent to buy organic products. The results are consistent with previous research.     

Convenience,Price, Product

Abstract

This study examines the factors motivating consumers' purchases of specialty food and beverage products via the Internet. While convenience is often cited as a motivating factor, price and product selection have also been identified. This study considered convenience in terms of time, space, and effort. It also identifies several specific sub-categories for price and products. Among respondents who had made a recent online purchase, convenience-related issues were most frequently cited as being relevant to the purchase decision. Product-related factors were important for nearly one-third of the respondents. Price was of relatively little importance.     

The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices

We investigate how need for cognition and cognitive effort associated with multi-dimensional pricing combine to influence demand. Experiment 1 shows that individuals with low (vs. high) need for cognition are less likely to purchase products that list price and relative discount separately. The direction of the effect of need for cognition on demand is found to depend on whether consumers’ inaccurate arithmetic generally leads them to overestimate or underestimate final prices. Therefore, experiment 2 finds that individuals with low (vs. high) NFC are more likely to purchase products that list price and relative surcharge separately. As expected, the effect is eliminated for absolute discounts or surcharges and mediated by recalled purchase prices.     

What Drives Household Choice of Organic Products in Grocery Stores?

This paper studies how households choose organic products on a given store visit. We develop a three-stage purchase incidence/brand choice/purchase quantity model for organic products. Shared random effects parameters link the three stages of the model. We empirically quantify the effects of category variables, marketing mix, and demographic variables on the purchase of organic products using a unique household panel dataset that includes actual organic purchase data from two markets, by over 4,500 households in 25 stores for the period between January 2004 and June 2009. First, we find that the purchase of organic products is greater among the high income, college educated, and older families as well as among consumers holding high-level occupations. Second, households tend not to purchase organic products when buying in concentrated categories. Third, on average, households tend to buy organic store brands more than the organic national brands. Promotions of organic brands (feature ad and display) are less likely to drive households to buy organic brands and so does the organic brand's distribution breadth. Finally, price has an inverted U-shaped effect. We discuss the implications of these results for retailers, manufacturers and researchers.     

Organizational Buyer Behavior of Caribbean Food and Beverage Importers

Abstract

This paper examines the behavior of Caribbean importers with respect to the purchase of branded food and beverage products manufactured in the Canadian province of Ontario. The determinants of the import purchase decision are identified, and the import response of buyers to changes in the importance rating of key purchase criteria is quantified. The study is based on personal interviews with forty-eight Caribbean food and beverage purchasing executives. The results indicate that price and requests from local customers are the most important decision criteria used by Caribbean importers. Also, firms with a recent history of importing Ontario food and beverage products place a higher level of importance on brand image and package design. A one-unit decrease in the importance rating of the packaging design variable was found to increase the odds of a firm importing from Ontario by thirty percent.     

The Role of Retailer Trust and Word of Mouth in Buying Organic Foods in an Emerging Market

ABSTRACT

This study has twin objectives. Firstly, it explores the antecedents of retailer’s trust and its effect on organic food purchase intention. Secondly, it explores the relationship between word of mouth and retailers trust and the effect of word of mouth (WOM) in organic food purchase intention in the context of a developing economy. Cluster sampling method combined with judgement was used for survey in India. 541 usable questionnaires were analyzed. Findings indicated that Trust in retailer develops on the basis of perceived food quality, perceived service quality and perceived fairness in price. Perceived fairness in price is more important for building trust followed by perceived service quality. Both trust and WOM lead to purchase intention of organic foods. Among the two predictors of purchase intention, trust in retailer emerged as a bigger explanatory variable as compared to WOM. The current study adds word of mouth as a significant antecedent in developing purchase intention for organic foods along with the role of retailer trust. Implications for managers and researchers are emphasised.     

Consumers’ Perceived Value and Willingness to Purchase Organic Food

ABSTRACT

The demand for organic products has rapidly expanded worldwide in recent years. However, the organic market remains a niche market in most countries, and research in this area remains limited. Further investigation is necessary to better understand consumer perceptions about organic food and the circumstances in which they are willing to purchase organic food. Accordingly, the authors seek to understand the perceived value that consumers associate with organic food and the factors that impact their willingness to purchase organic food. This study is exploratory in nature and uses a qualitative approach through the use of in-depth interviews. Findings from the study suggest that consumers who perceive a positive value with regard to organic food are more willing to purchase organic food, in which health was the primary perceived benefit. For consumers who perceive a negative value with regard to organic food, they are less willing to purchase organic food. Many did not see any difference between organic food and nonorganic food. Instead, they viewed the prices of organic food as being expensive and argued that more efforts are needed on their part to source for organic food. Implications and recommendations from research findings are also presented.     

The Roles of Price,Quality and Value-Added in Industrial Distributor Purchasing Decisions

Abstract

This article reports the findings of a study of heavy equipment distributors and their decision criteria for purchasing a critical add-on attachment. A key question is the extent to which basic value is the controlling factor, in comparison with value-adding services and capabilities. When customers are segmented according to their importance ratings for price and quality, significant differences in purchase decision patterns are observed. Implications for marketing strategy and tactics are discussed.     

Antecedents of attitude and intention towards counterfeit symbolic and experiential products

Abstract

This paper investigates the impact of price consciousness, perceived risk, and ethical obligation on attitude and intention towards counterfeit products. Data were collected from a sample of 200 respondents via an online questionnaire. A conceptual model was derived and tested via structural equation modelling in the contexts of symbolic and experiential counterfeit products. Findings show differences in the factors (and weight thereof) impacting attitude and purchase intention in the two product contexts. Specifically, ethical obligation and perceived risk are found to be significant predictors of attitude towards both symbolic and counterfeit products, while price consciousness is found to predict only attitude towards experiential products, but not purchase intention in either counterfeit product context.     

College—Age Consumers' Knowledge and Perceptions of Food Irradiation

Abstract

This paper explores consumers of 18—24 years of age and their perceptions of irradiated ground beef products and role of irradiation on their purchase decisions. Data was collected with a survey of college—age consumers. Results showed that the majority of participants would be willing to purchase irradiated food products. Participants were somewhat concerned about impact of irradiation on safety and taste. The term “irradiated” and cost to consumer had a negative impact on participants' willingness to purchase irradiated ground beef products. The identification of the attributes should provide a useful guidance for the beef industry in terms of determining marketing strategies to increase the level of this segment of the consumer groups’ preference for irradiated products.     

Promotional Framing of Green Products: Mediating Role of Sale Proneness

Abstract

The impact of sales promotion in boosting short-term sales is well established in the literature. While there are ample studies on the impact of sales promotion on conventional products in western countries, there is very scant research on the effect of promotions on green products and almost nonexistence research in emerging economies. This research addresses this gap by doing a comparative assessment of economically equivalent bonus pack sales promotion and price discount sales promotions on green versus non-green products through two experiments designed as a 2 (green product motivation: hedonic vs. utilitarian) × 2 (promotional frame: price discount vs. bonus pack) × 2 (discount level: low vs. high) between-subjects study, and 2 ( product types: green, non-green/control) × 2(promotional frame: price discount, bonus pack) between-subjects study. This research further examines the mediating role of sale proneness in the purchase process. The findings of this research indicate that buyers' preferences for promotion are quite varied for the purchase of green versus non-green products, and the price discount increases sale proneness which exerts a negative impact on product purchase willingness. Accordingly, this study has some theoretical and practical implications.     

The Marketing of Organic Products: An Instrumental/Symbolic Perspective

ABSTRACT

The fact that organic products are growing in popularity is indisputable. This article looks at organics from an instrumental/symbolic perspective and discusses the marketing implications associated with this perspective. Additionally, the article identifies a number of issues for future research that should be examined in the context of organic product marketing.     

The Determinants of Pricing Strategies for Industrial Products in International Markets

ABSTRACT

The global marketplace is becoming increasingly complex in which to conduct business. Firms marketing consumer goods have a somewhat easier time than those selling industrial products, since more has been written about them and the international consumer goods have been analyzed for a longer period of time. In addition, the international marketing literature, has looked more at the elements of product, promotion and place than price. This literature gap has created a void in the understanding of marketers as to how to effectively price industrial products in international markets.

The paper identifies the important industrial pricing strategies in international marketing and examines the underlying determinants that affect their outcome. In addition, the specific causal relationships between the determinants and pricing strategies are examined through a logistic regression analysis.     

Lose like a man: body image and celebrity endorsement effects of weight loss product purchase intentions

Abstract

Recent research suggests men are increasingly concerned with their body size, which has led to a corresponding increase in marketing efforts for weight loss products geared toward them. In many cases, these ads include athlete endorsers of the product. Drawing from the match-up hypothesis and social comparison theory, this study employed structural equation modeling to explore relationships between men’s body image, endorser credibility, advertisement believability, and purchase intentions for weight loss products using two advertisements featuring former professional athlete endorsers. Results indicate an inverse relationship between consumer body image and athlete endorser credibility, such that individuals with lower body image perceived the endorsers as more credible. Further, athlete endorser credibility was positively associated with advertisement believability, which itself was associated with purchase intentions. These findings suggest that athlete endorsers are an effective tool in marketing weight loss products to men, particularly those with negative body image. Further implications and directions for future research are discussed.     

The effect of product touch information and sale proneness on consumers' responses to price discounts

Since price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale-prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale-prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.     

Not all organic food is created equal: the role of product type,perceived authenticity,and construal level

Abstract

Consumption of processed organic food is on the rise while fresh organic food still dominates organic food market. Drawing from the literature on authenticity and construal level theory, this study aims to investigate the role of perceived authenticity and message construal level in consumers’ evaluations of two types of organic food (fresh vs. processed). Two experiments were conducted among college students (N = 129, Study 1) and adults 18–70 (N = 249, Study 2). Our findings suggest that consumers’ evaluations of organic food are fully mediated by perceived authenticity of each organic food type. Specifically, compared to processed organic food, consumers perceive fresh organic food more authentic, which leads to more favorable attitudes and higher purchase intention. This research further demonstrates that the indirect effect of organic food type via perceived authenticity is moderated by construal level of marketing messages. That is, when messages are construed at a low level, consumers tend to have more positive attitudes and higher purchase intention toward fresh than processed organic food. By contrast, product type makes no difference when messages are construed at a high level. These findings have clear implications on message development strategy when promoting processed organic food, in particular. Future research directions are discussed.     

Developing trends in the marketing of life insurance

The personal financial services industry is being changed drastically by a number of legislative and other measures. As a result, life assurance companies are having to reappraise their use of marketing methods in a highly competitive environment. This paper investigates the major industry marketing trends which are occurring particularly in the areas of advertising, distribution, new product development and price. The role of IT is highlighted.

The trends are set against a backcloth of an analysis of market penetration by a range of personal financial services products. The paper ends by outlining likely future trends in the use of marketing methods by assurance companies as part of their competitive strategies.

Data are presented from published sources and from a series of personal interviews with marketing executives in the industry.     

Adaptation of Marketing Mix Elements in International Markets

ABSTRACT

This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. The study is based on a survey of executive-level managers in U.S.-based companies that market products internationally. The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is influenced by market factors, price adaptation is influenced by market and industry factors, promotion adaptation is influenced by market factors, and distribution adaptation is influenced by company factors. The results of the research can be used to both understand and manage the extent of adaptation necessary for products in international markets.     

Re-incorporating usage situation in choice models: a base for future developments

Abstract

Understanding the consumer’s tendency to adopt new products is an ever-present essential for successful marketing campaigns. This paper presents the findings from two empirical studies that investigate the relationship between consumer innovativeness, price-prestige sensitivity, and need for emotion. A questionnaire survey was used to collect data in both studies from a sample of 668 respondents in two cities in England. The findings show that consumer innovativeness is determined by an individual’s sensitivity to price and their need for emotion. While innovative consumers are sensitive in relating price to prestige, this dispositional relationship varies across products. Furthermore, the findings suggest that enjoyment, which facilitates emotional openness and receptivity, influences innovative consumers to take the emotional route, besides the price-prestige route, to the adoption of new products. These findings have a number of important implications for marketers, particularly for the success of marketing campaigns targeted at innovative consumers who find enjoyment in using new products and are prestigiously sensitive to price.     

Employing a Dichotomous Choice Model to Assess Willingness to Pay (WTP) for Organically Produced Products

Abstract

This study employs a dichotomous choice model to identify the socio-economic characteristics and attitudes that influence consumers' willingness to pay (WTP) a premium for organically produced products (OPP). Considering consumers' growing interest in quality and safety of food, the study attempts to identify consumers level of awareness on OPP, the intention to buy OPP and the WTP a higher price for OPP. Results highlight consumers awareness and intention, revealing useful information for the development of OPP market. The estimated maximum WTP indicates that consumers are willing to pay a substantial extra price to purchase OPP. Finally, WTP seems to be affected by certain consumer attitudes and socio-economic factors.