Consumer Motives and Purchase Preferences for Organic Food Products: Empirical Evidence From a Consumer Survey in Bangalore,South India

ABSTRACT

Consumer organic food choice motives and purchase preferences were studied in a structured quantitative survey (N = 201) in Bangalore, with the aim of identifying consumer segments based on these motives and preferences. Further, sociodemographic differences between the clusters were studied. Face-to-face interviews were used to sample the data, which were analyzed with factor and k-means cluster analysis (SPSS 16.0). Five latent factors were identified based on the motives, representing a set of consumer concerns labeled here as “food phobia” (health),” “environment,” “humanity,” “healthy eaters,” and “control.” Further, three clusters emerged from these motives representing 38%, 37%, and 25% of the sample size. The factors differ in terms of variance. Here, the records of perceived healthiness (food phobia) were the most important element, explaining 18.37% of the total variance. These clusters were differing in terms of the level and order of motivations. The health factor was a most important motive in two clusters, followed by environment. Further, humanity was the most important motive for the third cluster. This may reflect a heterogeneous nature of consumers in study area. Additionally, five clusters were identified based on the preferences, and profiles of these clusters differed in terms of sociodemographic factors and consumption pattern. Segments were identified based on motivating factors and preferences, and linking them with food choice motives and products preference provides the input needed by marketing professionals and policy makers to calibrate more efficient marketing strategies to better focus and position their products and design their communication strategies for target segments.     

What If You Stop and Think About It? Nutrition Logos and Product Selection Behavior

This study explores the effect of a health involvement manipulation on food choices and how food choices are influenced by front-of-pack nutrition labels. The results show that without health involvement, choice was significantly affected by both nutrition labels and product type, but the product choice with health involvement was affected only by whether the product was selected as the healthier one in the involvement manipulation stage. Moreover, selection of the healthiest product during the manipulation stage was affected by the product type but not the front-of-pack (FOP) labels, potentially because participants relied on their own knowledge or the product perception to assess the healthiness of the product rather than the label information. The implication is that consumers seem to behave differently when pushed into a “choose healthy” state of mind, and their reliance on label information to assess product healthiness may be product and context dependent.     

Green Food Consumption in China: Segmentation Based on Attitudes Toward Food Safety

ABSTRACT

The objectives of this report are twofold: to examine the demographic factors that drive demand for green food and to segment Chinese consumers based on their attitudes toward food safety. An online survey was used to collect consumer behavior information. A total of 402 responses were obtained covering participants who lived in 24 provinces and municipalities in China. Probit modeling, analysis of variance, and cluster analysis are used. Income, education, age, gender, presence of young children, household size, and overseas experience are variables that have an impact on green food purchase. Young, wealthy men, who have young children and live in a small household, are likely to buy green food. The survey shows that Chinese consumers are willing to pay a price premium for green food; however, price will be a major factor restricting the growth of the green food label in China, given market prices. Three segments―the “distrustful consumer,” the “ambivalent consumer,” and the “trusting consumer”―are identified for market segmentation purposes.     

Are Local and Organic Claims Complements or Substitutes? A Consumer Preferences Study for Eggs

This paper provides an analysis of consumer preferences for product claims, specifically about origin and production methods. In particular, it addresses two important questions: i) whether consumers are willing to pay a premium for food products carrying these claims; and ii) whether local and organic claims are complements or substitutes. A choice experiment designed to estimate two‐way interactions was undertaken in Spain for eggs. The findings show first, that consumers are willing to pay a positive premium price for an enhanced method of production (that of barn, free‐range and/or organic instead of cage produced eggs) as well as for the proximity of production (local, regional and national over imported). Second, the findings show that consumer preferences for the claims are heterogeneous with two consumer segments being identified: “origin preference”, the larger segment, and the “production method preference”. Results show that organic and local claims were complements for the larger first segment but that free‐range and local/regional claims were substitutes for the second smaller segment. These results provide the marketing chains with insights applicable for pricing strategies.     

Consumer response evaluation of a greek quality wine

This paper reports on the attempt made to identify consumer response on certified quality wine with a destination of origin (PDO) indication. Given that the current consumer interest in quality food has increased, it is important to measure their level of awareness of and overall behaviour towards these products. Emphasis is given on quality wine, produced in the region of Peza, Crete, which is labeled as a cooperative PDO product with high quality standards. A survey that utilized a self-administered questionnaire was designed to obtain the data needed for the study that took place in the Attiki region. Consumers who participated in the survey were asked to indicate (i) their general level of knowledge on PDO products and on Peza cooperative wine in particular, (ii) their attitudes towards several quality attributes, considered when buying and consuming wine, (iii) their intention to purchase a higher priced Peza cooperative wine with a quality certification and PDO indication label. The results seem to be important for all the market bodies that are involved in the supply chain of this product since they may be a guide to developing production and marketing strategies that instil consumer confidence, assure consumer satisfaction and therefore satisfy demand.     

Country of origin labeling for complex supply chains: the case for labeling the location of different supply chain links

We investigate the value of a country of origin label (COOL) that separately identifies the geographic location of different stages in a food product's supply chain. We estimate the willingness‐to‐pay (WTP) of U.S. consumers for a packaged cereal product where the key grain ingredient may be grown in one country and processed in a second country (multicountry supply chain) and compare it to equivalent products that have both stages located in a single country. We find consumer WTP for products with single‐country and multicountry supply chains are statistically different, meaning that simplifying a multicountry label by listing only the country where the ingredients are grown or only the country where the ingredients are processed can result in different consumer values. We also find that for countries with a poor quality reputation, consumers respond more negatively when that country has the “last touch” than when that country's involvement is limited to upstream supply chain links.     

Market Research for the Optimization of the Consumers Response to the Recent Award of a Protected Geographical Indication to a Local Product,Beans from “La Bañeza-León” (Spain)

Abstract

In Europe several low involvement food products with reduced productions have been awarded with a PGI or PDO during the last few years. The beans from La Bañeza-León (Spain) are an example of this and received a PGI in September 2005. The general objective was to appraise the effect that the award of the PGI to such kinds of food products has in consumers, in order to optimize the managerial and public policies, and to get maximum advantage from the PGI distinction in the commercialization of them. For low involvement products with PGI, the general guidelines should be to keep the prices as low as possible, to develop intensive public information campaigns about the award of the PGI, and to offer the product in medium or high involvement restaurants, in order to reach those consumers willing to pay more for the product, that are mainly in the age range of 36 to 45 years. It is also discussed that the PGI label would have more interest than a private brand. Specifically for beans from “La Bañeza-León,” the PGI Council should urgently tackle a promotional campaign about the product and the PGI award that should reach to most of the consumers in the target markets, taking into account that as the distance from the production area increases the knowledge of the product decreases. This campaign should help the consumer to clearly identify the beans from the PGI by using an attractive logo, and to inform them that the beans from the PGI are superior than substitutive beans in taste and cooking time. Finally, public campaigns that promote the consumption of beans among youth would be necessary.     

Export Crop Marketing in Tropical Africa

Abstract

Recent developments at the consumer and at the farm level have resulted in a renewed interest in short market channels for fresh food. This paper focuses on consumer valuation of purchasing fresh food from short channels in general and on differences between two distinct types of short channel initiatives, i.e., farmers' markets and food teams as examples of supply- and demand-side driven initiatives respectively. The research methodology builds on the Means-End-Chain theory. Data are collected through laddering interviews with 100 respondents. The general hierarchical value map largely supports classical theories of value structures. “Security” is the predominant value type with “Health” as the major value. Further, a distinct “Hedonism” and “Universalism” cluster are discovered, with the first being built on the attribute “Freshness,” the consequence “Taste” and the value “Pleasure,” and the latter including environmental, animal welfare and regional development concerns. Specific motivation structures dealing with farmers' markets versus food teams are reported. Recommendations pertain to organizational and marketing issues, more specifically product positioning, innovation and communication based on the revealed Means-End-Chains or motivational structures.     

Consumer's Responses to the Potential Use of Bovine Somatotrophin in Canadian Dairy Production

The responses of a random sample of consumers to the use of recombinant somatotrophin (rBST) in milk production were elicited using a stated preference methodology. A conditional logit model of consumer choice was developed and tested to analyze consumers' choices of milk with varying characteristics of fat content, price, freshness and rBST treatment. Welfare calculations for a representative consumer indicate welfare losses with the introduction of rBST. Welfare losses were slightly less for a male than a female household food purchaser and were less for food purchasers with higher levels of income and education. There was a small welfare gain when the representative food purchaser was offered a full range of “rBST” and “wn-rBST” milks. The resiilts suggest that making appropriately labelled “rBST-free” milk available to consumers could decrease consumer welfare losses associated with the introduction of rBST in Canada. Nous avons évalueé par une méthodologie des préférences déclarées les réponses d'un panel de consommateurs choisis au hasard envers l'utilisation de somatotropine bovine recombinante (rBst) dans la production laitière. Un modèle logit conditionnel des choix du consommateur est testé pour analyser les choix à la consommation à l'égard de laits de divers niveaux de teneur en matière grasse, de prix et de fraîcheur et provenant ou pas de vaches traitées à la rBst. Les coûts sociaux pour le consommateur représentatif font voir des pertes éonomiques avec l'introduction de la rBst. Ces pertes étaient légèrement moins importantes lorsque l'acheteur d'aliments pour le ménage était un homme plutôt qu'une femme ou que son niveau d'éducation et de revenu était plus élevé. On observait un léger avan-tage économique lorsque le pourvoyeur du ménage représentatif avait accès à toute la gamme des laits avec et sans rBst. Il ressort de ces observations qu'une indication Claire de l'absence de rBst dans le lait sur l'étiquette des produits offerts à la consommation pourrait diminuer les pertes économiques résultant pour le consommateur de l'introduction de la rBst au Canada.     

Information and consumer perception of the “organic” attribute in fresh fruits and vegetables

Using a double hurdle model on panel data from 3,200 Danish households (monthly observations for 2002–2007), we study the effects of health‐related media information on the demand for organic fruit and vegetables. We find that “negative” information about pesticides contained in conventional fruit and vegetables mainly influences the probability of a consumer entering the organic market, not the quantities consumed by households that are already active on the organic market. “Positive” information that links health and the consumption of organic food influences both steps of the decision process. Our dataset includes information about consumers’ media habits, which allows us to disentangle the direct effects of media information from the indirect effects of this information as it is disseminated through the population. Our results suggest that directly obtained information is the main type of information influencing consumers, while information loadings by dissemination through the population have almost no effect on consumption.     

Food values and heterogeneous consumer responses to nanotechnology

Agricultural applications of nanotechnology are at a relatively early stage and little is known about consumer responses to the technology. Canadian consumer responses to food nanotechnology are examined through the lens of the Food Value Scale. Data from a survey of Canadian consumers are used to evaluate the relative importance of eleven food values to food purchase decisions. We find that taste, safety, nutrition, and price are among the most important food values to Canadians, however, consumers exhibit considerable heterogeneity with respect to the priority placed on these values. A discrete choice experiment (DCE) explores the effect of food values on choice behavior. The DCE is positioned as a sliced apple product with non-browning and antioxidant-enhanced features introduced through the use of nanocoating or a conventional coating method. Random parameters logit (RPL) and latent class models (LCM) confirm the existence of significant preference heterogeneity. The LCM identifies three classes of consumers: “supporters,” “doubters,” and “opponents” who differ in their reaction to nanotechnology and in the relative importance placed on food values such as naturalness, novelty, and convenience. The analysis shows that food values provide additional insights into consumers’ food choices and their attitudes toward novel food technologies.     

The Need for a Marketing Reform: The Wines of the Loire Region

ABSTRACT

This article focuses on how the French wine industry and, in particular, the wine-producing Loire region in France is affected by global and domestic factors. An overview of some of the vast regulations prevailing in the French wine industry that prohibit the wine producers to compete efficiently, especially with the wines from the “new world,” is provided. A Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is used as the tool to study the competitiveness of the French wine industry in general and the Loire region in particular. The French wine industry is too fragmented and subjected to too many controls and, as a result thereof, is not flexible enough to respond to market opportunities. French wines have the unique blend of “historical intangibles” of romance and mystery that have been part and parcel of wine for many centuries. This advantage is no longer a major competitive advantage, and the time has come to make decisions on which of the vast range of regulations are worthwhile to maintain to contribute positively to the best interests of the French wine industry.     

A dividing issue: Attitudes to the shooting of rear and release birds among landowners,hunters and the general public in Denmark

Why are organised shoots involving birds that are farm-reared and subsequently released a dividing issue in several countries? As a contribution to answering this question the paper reports a national survey of landowners (n = 1207), hunters (n = 1130) and the general public (n = 1001) in Denmark. While there was broad agreement across all three groups that recreational hunting of naturally occurring “surplus” wildlife is acceptable, the release of farm-reared game birds for shooting was a dividing issue, both within the groups and between them. The majority of participants (51%) in the survey representing the general public were against the practice; a majority of hunters (61%) were in favour of it; and landowner approval rates lay between these two poles. Respondents with a “mutualist” or “distanced” wildlife value orientation according to the definitions by Teel et al. (2005) consistently displayed a more negative attitude to rear and release shooting than those with a “utilitarian” orientation. The differences in attitude could not be explained in terms solely of underlying concerns about nature conservation and biodiversity protection. Concerns about the behaviour of the released birds, and about hunting “culture” and regulatory measures, also informed the participants’ attitudes. The regulatory framework governing shooting based on the release of farm-reared birds could reflect a wider range of concerns than those hitherto acknowledged.     

Green Consumerism and Ecolabelling: A Strategic Behavioural Model

The ethos of “green” marketing is to affect tastes and perceptions so that those individuals for whom the attribute of environmental‐friendliness is significant can signal this preference by choosing the “green” alternative. This paper presents a strategic behavioural model of interactions between two agents, a firm and consumer, under conditions of incomplete information. The outcome of the model is that, unless some restrictive and (arguably) unrealistic conditions apply, some proportion of “green” marketing campaigns will be misleading; “green” marketing is not restricted to “green” products, and “green” consumers only adapt their purchasing habits some of the time. Ecolabelling schemes can be used as a means of ameliorating this inefficiency in information‐transfer. Whether state intervention to make ecolabelling mandatory for “green” products is welfare‐improving depends on the balance between the deadweight losses from the process and the gains in terms of facilitating the expression of “green” preferences.     

Editorial

Organic food (OF) consumers are concerned with health, safety, and quality of food they eat. However, not all OF consumers are equally “organic.” This article aims to offer more insights into the organic consumers’ profile by clustering Canadian OF consumers into market segments based on their usage rate and psychographic characteristics. Results show 3 distinct segments of OF consumers varying significantly in their motivations to buy OF in their lifestyles but not in their demographics. The article also investigates these consumer segments’ willingness to pay (WTP) premium prices for OF products. WTP is thus not only determined by food category but also by type of consumer. Results also point out significant linkages between psychographic characteristics and WTP for OF.     

Eating With Your Eyes: How Packaging Visual Cues Affect Content Estimation and Self-control in Virtue and Vice Food

This research investigates the effects of visual cues depicted on food packaging on consumers’ estimates of the contained amount and consumers’ self-control intentions. Results from two experiments show that the number of product units shown on the package drives perceptions and behavioral intentions in food categories where product size tends to be quite standardized, supporting the “see more, expect more” effect reported by previous literature, but adding a “see virtue, expect more” effect triggered by product type. Instead, when product size tends to vary across manufacturers, picture size has a greater effect on consumers’ content estimations and self-control intention than the number of product units depicted, suggesting the existence of a “see small, expect more” effect according to which consumers estimate larger content when the package portrays smaller product units. Results stimulate awareness of the effects that can be conveyed by images on packaging, on content estimates and consumer self-control.     

When Consumers and Products Come From the Same Place: Preferences and WTP for Geographical Indication Differ Across Regional Identity Groups

ABSTRACT

This article contributes to the existing literature on geographical indications by observing consumers’ stated preference for extra-virgin olive oil in two groups differing in their regional identity. In particular, consumers from two groups were asked to rank products in a contingent ranking survey. One group (“insiders,” Sicilian consumers) shared origin with a good product (Sicilian oil); the other group (“outsiders,” Rome and Milan) presented “no association” consumer-product. Results indicate that insiders are willing to pay more for goods originating from the region they identify with compared with a region associated with outsiders. Identity seems to give a bias by which a local product is not necessarily perceived as superior in absolute terms, but in relative terms: outside products are never considered better than inside options but are either inferior or equal in perceived value.     

贵州茅台酒文化分析与发展策略研究

作为三大世界名酒之一的茅台被称为我国的"国酒"。各国科学家和消费者对茅台酒也是好评如潮。茅台酒中包含着丰富的酒文化,通过研究茅台的酒文化,可以看到中华民族的发展史。因此,要特别重视茅台酒文化的传承与发展。本文主要对贵州茅台酒文化进行对比分析,为未来贵州茅台酒的发展提出一些建议。     

Marketing Biotech Soybeans with Functional Health Attributes

This study investigates possible marketing strategies for biotechnology (biotech) functional foods in the U.S. market. Means‐end chain theory is used to translate consumer product knowledge into self‐knowledge, where knowledge is presumed to be organized in a hierarchy with concrete thoughts linked to more abstract thoughts in a sequence progressing from means to ends. A sample of 60 households was randomly drawn from the population of a Midwest town. The random sample was drawn from a population of females aged 20 to 50 with children and who regularly purchase yogurt products. Eight products with various attributes and production technologies were ranked by the participants prior to a hard laddering interview. The study found that biotech functional foods were generally acceptable to the participants. Functional attributes, such as higher protein, increased calcium, and lower cholesterol, were valued by the consumers. Soy was considered inferior on the basis of taste for some segments of consumers unfamiliar with soymilk. On the other hand, consumers already purchasing soymilk were more willing to purchase functional soy attributes and have more complex purchasing decisions (cognitive maps). These consumers associate soy with attaining values of “better health,”“taking care of family,”“happiness,” and “more choice.” La présente étude a examiné les stratégies de marketing possibles pour les aliments fonctionnels issus de la biotechnologie sur le marchéétatsunien. La méthode de la chaîne moyens‐fins a été utilisée pour traduire la connaissance du consommateur sur le produit en connaissance de soi, où la connaissance est présumée être structurée en hiérarchie d'idées concrètes liées à des idées plus abstraites dans un ordre progressant des moyens vers les fins. Nous avons formé un échantillon aléatoire de soixante ménages d'une ville du Midwest. L'échantillon aléatoire a été sélectionné parmi une population de femmes âgées de 20 à 50 ans qui avaient des enfants et qui achetaient régulièrement du yogourt. Huit produits renfermant des attributs variés et issus de technologies de production variées ont d'abord été classés par les participants avant de procéder aux entrevues effectuées selon la technique du laddering. Les résultats ont montré que les aliments fonctionnels issus de la biotechnologie convenaient généralement aux participants. Les attributs des aliments fonctionnels tels que plus élevé en protéines, les plus élevé en calcium et faible en cholestérol étaient valorisés par les consommateurs. Le soja est arrivé en dernier pour le goût chez certains consommateurs qui connaissaient mal le lait de soja. Par contre, consommateurs qui achetaient déjà du lait de soja étaient plus enclins à acheter les attributs fonctionnels du soja et avaient des décisions d'achats plus complexes (cartes cognitives). Ces consommateurs associaient le soja à des valeurs telles que ? meilleure santé?, ? s'occuper de la famille ?, ? bonheur ? et ? choix élargi ?.