Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

An organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2 × 2 experimental design using real consumers (N = 122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed.     

Labelling genetically modified food products: consumers’ concern in the United Kingdom

An online survey method was used to collect data regarding the concern and attitude of UK consumers towards genetically modified (GM) food labelling. Questionnaires were sent to 9000 participants of the online panel via emails, and 2568 consumers completed the online survey. The response rate was 29%. This study found that more than 75% of the consumers questioned were concerned about the labelling of food products with GM ingredients. Eight perceived risks and benefits of agro‐biotechnology were identified to be associated with consumers’ attitude towards GM food labelling. Among them, three were perceived benefits, such as reduced use of chemicals in crop production, improved nutritional content, and increased yields. The five perceived risks were health risks, environmental risks, moral considerations, image of multinational corporations as the primary beneficiaries of biotechnology, and growing control of multinational corporations over farming. While all five perceived risks from GM food played a statistically significant role in shaping the overall attitude towards GM labelling, improved nutritional content due to application of biotechnology was the only benefit that was statistically significant. Age of the respondents was the only demographic variable playing a statistically significant role in shaping the attitude of respondents towards GM food labelling. Older respondents were more likely to be concerned about the existing GM labelling practices than younger respondents.     

Evaluating the purchase behaviour of organic food by young consumers in an emerging market economy

Promoting consumer purchase behaviour of eco-friendly products is key to environmental sustainability. This research aims to investigate how different factors may enhance or impede young consumers’ intentions to purchase a specific type of eco-friendly product, i.e. organic food. Data were obtained from 289 respondents in an emerging market economy, i.e. Vietnam. Multivariate data analysis using structural equation modelling revealed that food safety concern, health consciousness and media exposure to food messages played integral roles in the formation of attitude towards organic food. Interestingly, consumers’ environmental concern and food taste were of little value in predicting their attitude. Notably, perceived barriers (i.e. high price, inadequate availability, poor labelling and extra time required) significantly impeded both attitude and purchase intention towards organic food. The insights gained from this research extend current knowledge about pro-environmental behaviour in developing countries and they have important practical implications for marketers and other key stakeholders.     

Meat labels: consumer attitude and meat consumption pattern

This paper addressed consumers’ attitude towards food labels and the influence of different aspects of meat labels on beef, poultry and seafood consumption using data from a national survey in the USA. Approximately 70% of the respondents reported that food labels helped in the purchases of beef and other meat products. While 50% thought that the present level of information on meat labels was about right, about 30% thought that it was insufficient. Similarly, 80, 81, 60, and 80% of the respondents thought that it was very important that meat labels contain information regarding nutrition, ingredients, health claim, and production process respectively. Those respondents who thought that nutrition and ingredient information on food labels were very important also thought that meat labels helped them select beef and other meat products. Consumer preferences for nutrition and ingredient information on food labels were positively related with meat consumption frequency.     

The role of food eating values and exploratory behaviour traits in predicting intention to consume organic foods: An extended planned behaviour approach

The extant literature on predicting organic food choice as a consumption behaviour has overlooked the role of food eating values (utilitarian and hedonic values) and individuals exploratory buying behavioural traits (exploratory information seeking and exploratory acquisition seeking). The novelty of the study is the use of food eating values and individuals exploratory buying behaviour traits as an extension to the theory of planned behaviour in predicting attitude and intentions towards organic food consumption with a representative sample of N = 431. Data was collected in two phases. In the first phase, a small qualitative face to face (semi structured) interviews were held from 22 respondents to elicit the utilitarian and hedonic values individuals attach with the organic food consumption. This is followed by the collection of survey data from two Indian metropolitan cities (New Delhi and Chennai) using a mall intercept method from the individuals visiting hypermarkets and supermarkets. The hypotheses were tested using structural equations modelling or SEM in IBM AMOS 24. Attitude to consume organic foods was found to be most dominant in predicting behavioural intention in both basic and the extended TPB model followed by subjective norms. Perceived behavioural control was found to be a significant predictor only in the extended TPB model, suggesting a dual role. Findings also suggested that utilitarian values are more influential than hedonic values in the formation of attitudes towards organic foods.Further, the exploratory information seeking traits are found to strengthen the relationship between a) perceived behavioural control and behavioural intention to consume organic foods and b) attitude to consume organic foods and behavioural intention to consume organic foods whereas exploratory acquisition seeking traits to be strengthening the relationship between attitude and behavioural intentions only. Implications for the policy makers is discussed towards the end of the study.     

Gatekeepers to consumer markets: the role of retailers in international trade

This study explores how recent developments in the retail sector affect trade in consumer goods. It focuses on three developments in the retail sector: (i) internationalization; (ii) market structure; and (iii) the growing market share of retailers' private labels. Using gravity model estimation techniques it is found that the foreign operations of a retailer are positively related to imports from the host to the home country of the retailer. Imports are negatively related to ownership concentration, while the market share of private labels is negatively related to imports of food and positively related to imports of non-food consumer goods. For both product categories private labels shift sourcing towards poor countries. The trade response to trade liberalization is higher both at the extensive and intensive margin in countries with lower retail concentration.     

Sodium content in foods: Brazilian consumers’ opinions,subjective knowledge and purchase intent

This study attempted to gain insights on Brazilian consumers’ subjective knowledge of sodium content in processed and homemade foods and their purchase intent for products with reduced‐sodium content. A questionnaire was distributed to 409 consumers selected by convenience quota sampling. We found that Brazilian consumers were concerned about the amount of salt (sodium chloride) in the products they consumed, regardless of educational levels, income, age, lifestyles, or health conditions. However, they still considered their consumption to be above WHO‐recommended limits and had little subjective knowledge about the term ‘sodium’. While processed products were considered the main contributors of high‐sodium intake, participants were not concerned about addition of salt at the table and salt in homemade food. The majority of respondents rarely read the sodium content on food labels; however, men and older individuals were more likely to read label information on sodium content. Products with reduced sodium were found to have market appeal, which justifies investments in research to develop these products. Therefore, in addition to the efforts to reduce sodium in the processed‐food industry, it is necessary to promote awareness about the importance of food labelling, especially sodium content, and the need to reduce salt in homemade food and additions during meals.     

The Impact of a Third-Party Assurance Seal in Customer Purchasing Intention

ABSTRACT

Although e-commerce is evolving at an incredible speed, asymmetric information and opportunism have increased online purchasing risks and market inefficiencies. The lack of face-to-face contact and the inability of the customer to touch and feel tangible products necessitate that online business must provide customers with reliable information and convince customers of their trustworthiness. While the research on Third-Party Assurance Seals (TPAS) is not new, the effectiveness of TPAS has not been persuasively addressed by empirical studies. Our study is different from previous efforts in that it is comprehensive because it combines consumer trust, perceived risk, and influences of TPAS in the B2C e-commerce context. The results of the study show that (1) the effects of TPAS on perceived risk are channeled through perceived trustworthiness, thus demonstrating the mediating role of perceived trustworthiness in B2C e-commerce, (2) perceived risk, perceived usefulness of website, and subjective norm appear to be significant predictors of intention to purchase from the website, (3) a third-party assurance seal strongly affects online shoppers' perceived trustworthiness toward online retailers, while the seal appears to have little effect on perceived risk directly; perceived risk is strongly associated with intention to purchase from the website.     

Nutrition information in the market: food labelling as an aid to the consumer

This research was conducted in order to find out how consumers perceive and use the information given on food labels. It included two different studies: (i) a pilot study consisting of in-depth interviews with the help of an interview guide in 25 households, (ii) a consumer survey of personal interviews with a representative sample of the Norwegian population, 1050 persons over 15 years of age. The data showed that, even though the food labels were perceived as difficult to understand, there were nevertheless many consumers who made use of them. The typical pattern was occasional use; 46% read them very or rather often. The typical reader is a women between 30 and 59 years of age, and with a high education. Of all the substances listed on the food labels, most people looked for the additives (60%) and amount of fat (58%). Only 10% reported that they were very satisfied with the food labels as they appear today, whereas about 40% were rather satisfied. Suggestions from the respondents to make the food labels more satisfactory are discussed.     

Investigating psychosocial determinants in influencing sustainable food consumption in Italy

Italy, one of the most involved countries in organic farming, represents a European case in the Mediterranean area concerning the sustainable food market, mainly based on organic food. The aim of this study is to investigate the theory of planned behaviour extended to past behaviour with particular attention to social pressure, in the context of sustainable food products across Italy. Data were collected on a regional basis and across different age classes and analyzed using structural equation modelling for a representative sample of approximately 3000 self‐reporting respondents who account for a remarkable percentage (69%) of sustainable food products purchasing. The strongest intention to buy these products was found in Northern and Central Italy while the South and the Insular macro‐regions exhibited the highest perceived purchasing barriers. The complexity of social pressure in predicting the intention to buy highlighted a clear and significant role of the Italian family in making sustainable food choices. However, the other social referent others, such as important people, friends, society, differentiated their contribution to these choices at territorial level. An exception to this latter trend was found for the society concept that completely failed its support as subjective norm predictor of intention. This may possibly be due to the fact that no sustainable food market policy is univocally identified in Italy, not even with legal certification unless it regards the organic sector. Nevertheless, past rewarding purchasing experience seemed to be the most effective motivation for buying sustainable food products in Italy. In conclusion, efforts both from the supply chain and political side should be made mainly in terms of rewarding purchasing experience and legal certification on sustainable food products.     

Effects of shared characteristics between eco-labels: A case for organic and local food

Food labels are created to reduce information asymmetry and help consumers make better food choices. However, the labels may have unanticipated effects, especially when they share common characteristics that may introduce confusion in making food choices. This study investigates how perceived relationships between different food labels may affect the price premiums of organic and local attributes for milk and fresh strawberries. Results show that the impacts of perception vary by product and label, and different food labels could positively affect price premiums on organic and local products. Results provide policy implications for better labeling and educational programs to reduce inadvertent confusion and improve consumer decision-making.     

Antecedents of Perceived Value and Repurchase Intention of Organic Food

The rise of the natural and organic products market follows a global trend of increasing demand largely due to the growth of environmental awareness and the concern of having a healthier diet. Thus, the objective of this study is to propose and test a theoretical model based on antecedent constructs of perceived value and repurchase intention on the consumption of organic products. The results, based on 256 consumers of organic products, confirm the positive relationship between environmental awareness and perceived quality, healthy consumption, and perceived price fairness. Moreover, they underpin the influence of healthy consumption, perceived price fairness and perceived quality on perceived value, and lastly, the influence of perceived value on repurchase intention. Therefore, this study can help practitioners and consumers comprehend in a more systematic way the buying behaviour of this food category.     

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.     

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.     

The Effects of Nutrition Label Comparison Baselines on Consumers' Food Choices

Recent legislative changes in the European Union have mandated nutrition labeling for the majority of pre‐packaged foods. This research compared effects of several nutrition labeling formats on consumers' food choices (i.e., the nutrition table, GDA 100 g/ml, and GDA portion). We primarily focused on whether nutrition label information was standardized to a fixed or varying comparison baseline. Fixed baselines (e.g., 100 g/ml) allow consumers to make direct, relative comparisons of products, while varying baselines (e.g., portion size) often require consumers to undertake complex mathematical calculations. Findings suggest that consumers' food choices are likely to be healthier when nutrition label information is presented on a fixed baseline. Gender was found to moderate these effects such that women made healthier choices—but only when the nutrition label baseline was fixed. Thus, the type of comparison baseline is an important characteristic of nutrition labels for public policymakers, public health officials, and academic researchers to consider.     

Measuring consumer's willingness to pay for organic and Fair Trade products

Previous research has extensively studied consumer's environmental and social concerns. However, measuring the value of the environmental or social dimension of a product remains a challenge. This paper proposes to partially fill this gap by measuring the double ‘Fair Trade and organic’ labels' value using an experimental method – the Becker‐DeGroot‐Marschak's mechanism. Two ‘organic and Fair Trade’ and two conventional chocolate products were tested on a sample of 102 consumers. Results show that organic and Fair Trade labels increase consumers' willingness to pay, and allow the identification of three consumers clusters. The first cluster represents people insensitive to the label. For the second cluster, the ‘organic and Fair Trade’ labels' influence on the improving image of the products is positive and important. And finally, for the third cluster, the valuation of the ‘organic and Fair Trade’ label is determined by the product's taste. Our research contributes to a better understanding of consumers' valuation of Fair Trade and organic labels, leading to our conclusions, which offer managerial implications with respect to this market (importance of taste and usefulness of double labels).     

Consumers' awareness,acceptance and attitudes towards functional foods in Turkey

The aim of the present study was to investigate consumers' awareness, acceptance and attitudes towards functional foods in Turkey. Eight hundred and eight people participated in this study: aged between 20 and 80 years, 38.5% were male and 61.5% were female. Participants were given a questionnaire and were asked to fill it in by themselves to minimize the influence of the interviewer. Results indicated that socio‐demographic characteristics such as age, education level and income level are important indicators of consumers' awareness and consumption of functional food. The results show that the female respondents were 2.987 times more aware of functional food than the male respondents. Similarly, the likelihood of respondents having awareness of functional food was 1.431 times greater among those who had a higher educational level than among those with a lower educational level. Consumers who used vitamin supplements were 1.228 times more aware of functional food than other consumers. The results show that older respondents were 3.395 times more aware of functional food than younger respondents. Respondents with a history of familial diseases were more likely than others to have consumed margarine with plant sterol, fruit juices fortified with vitamin C, and breakfast cereals fortified with vitamins and minerals. Those with a diet‐related problem were more likely to have consumed cholesterol‐lowering products than those without a problem. As a conclusion, this study has shown that socio‐demographic characteristics such as age, education and income levels, and prices are important indicators that influence consumers' awareness and consumption of functional food. These results suggest that this type of knowledge could affect consumers' interest in functional foods, and therefore educational strategies might be necessary to encourage the consumption of functional foods.     

Local Versus Visitor Perceptions of Farmers’ Markets

There has been an increasing focus on the local food movement and farmers’ markets that supply this food. Most studies have focused on profiling the consumer or motivations for purchasing local food; however, few have focused on the differences in those who frequent such tourism offerings. The purpose of this research study, therefore, was to examine differences between visitors and residents regarding motivations and preferences for buying local and organic food at farmers’ markets. There has been an increasing focus on the local food market due to food security awareness, consumer responsibility, and food trends such as the 100-mile diet and preference of local and organic. Using 322 completed surveys, responses were analyzed to examine significant differences. The results show a difference in motivations of visitors and locals in regard to their frequenting of farmers markets, as well as the frequency of their use. Increasingly within tourism there has been a focus on the local or authentic tourism experience; therefore, understanding the differences in visitor preferences may help both destinations and the markets themselves to cater to different preferences among their clientele.