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.     

How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference

We conducted a nationwide choice experiment to gauge Canadian consumers’ willingness to pay (WTP) for local beef assigned with various mileage and geopolitical connotations. Results revealed that consumers are mostly indifferent between products labeled generically as “local” and as “local: from within 160 km,” implying that the 160‐km radius fits perception of local of the representative consumers. Additionally, consumers are willing to pay significantly more for home‐province products over products generically labeled “local.” We also found significant positive WTP for enhanced bovine spongiform encephalopathy tested beef as well as for grass‐ over grain‐fed beef.     

Effects of Product Origin and Selected Demographics on Consumer Choice of Red Meats

A multinomial nonlinear nested logit model is used to test data from a stated preference questionnaire to examine the potential effect of identified product and consumer characteristics on the probability of afresh meat product being purchased. The target market of the study is western Canada, and the questionnaire is directed to randomly selected households in major cities in this region. Fresh beef products from Alberta are generally preferred by these consumers over fresh beef products from other parts of Canada. For pork, consumers are indifferent between products of Alberta and those of other Canadian origin. However, fresh beef and pork products from Canada are preferred to products from the United States. The results support origin branding of Alberta beef, but not Alberta pork. Consumer age, household income and family size all have an effect on meat choices.     

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.     

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.     

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.     

Exploring the Impact of Customer Satisfaction on Food Retailers' Evolution: Managerial Lessons From Austria

Many studies have shown that customer satisfaction affects customer behavior and loyalty. There are, however, relatively few studies that examine the impact of customer satisfaction on store repatronage behavior by store-type choice. This study examines why Austrian consumers choose a certain store type (i.e., supermarket or bakery) for purchases in a particular product category (i.e., baked goods). Moreover, it assesses the impact of customer satisfaction on customer loyalty (i.e., the repatronage intention). The study found that customers valued different attributes for each store type. It also suggested that customer satisfaction and customers' intention to recommend varied by store type. Additionally, the bakery customers' tendency to spend more is positively related to their satisfaction level. Managerial implications for both types of stores are provided.     

Demand,challenges, and marketing strategies in the retail promotion of local brand milk

This article addresses the demand and challenges for local brand milk and focuses on the marketing strategies for retail promotion. While federal and state government make efforts to promote local food purchases and consumption at the farm level, local foods face significant distribution challenges in grocers, especially in larger retail stores. Limited shelf space and high pricing by retailers impedes consumers’ purchases and results in weak competitiveness for local brands. Therefore, it is essential for local producers and “buy local” programs to understand what types of promotion and marketing strategies might be more effective in stimulating demand in retail outlets. Using 2010-2011 Nielsen Retail Scanner data in the Northeast region, we estimate a random-coefficient discrete choice model of demand to determine the effects of nutritional characteristics, price, packaging, and distribution strategies on the consumers’ choice to purchase locally branded milk. Results show that local brand milk faces significant demand challenges in addition to high prices and limited outlets in competing with lower-priced products. Marketing strategies, such as price cut, one-gallon package offering, and expanded presence in retail stores, can significantly stimulate the demand for locally branded milk, with one-gallon package offering being the most effective strategy.     

Decomposing Preference Shifts for Meat and Fish in the Netherlands

The changing preferences of Dutch consumers for meat and fish are investigated using a switching almost ideal demand system. Structural change in demand between January 1994 and May 1998 is decomposed into underlying trends, temporarily irreversible preference shifts triggered by the BSE crisis of March 1996, and a “panic” reaction against beef in the month of the crisis itself. Preference shifts due to the BSE scare reduced expenditure shares for beef, minced meat and meat products by 2.5, 3.3 and 7.9 percentage points respectively. There were offsetting gains in the shares of pork, prepared meat and fish. Taking underlying trends also into account, changing preferences over the whole period reduced beefs share by 4.9 percentage points and increased those of poultry, prepared meat and fish by 4.1, 4.9 and 5.2 percentage points respectively.     

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.     

Willingness to Pay for Quality Labeled Meat in a Rural Area

The aim of this study is to identify consumer perceptions and attitudes toward quality labeled pork and beef using cross-sectional consumer data. Given the dramatic changes over the last years in the meat sector as a result of the recent food scares, the study can facilitate better communicating with consumers and gaining insight into their perceptions and behavior toward meat products. A consumer survey was conducted in the rural region of Thessaly in Greece in order to investigate (a) food quality perceptions, (b) attitudes toward pork and beef quality labels, and (c) intentions to purchase higher priced certified pork and beef. The findings suggest that sociodemographic and personal characteristics have an impact on consumer willingness to pay for such products and different market segments can be targeted by marketers and food policymakers.     

Consumers' Preferences for Nanotechnology in Food Packaging: A Discrete Choice Experiment

We examine consumers' preferences for chickens under different levels of foodborne health risk, animal welfare and pric attributes. We analyse how their preferences vary according to the risk reduction method. Our comparison is between risk reductions achieved by conventional improvements in the meat supply chain system (e.g. more stringent regulations and inspection regimes), and risk reductions achieved by food packaging nanosensors. Our comparison uses a two‐treatment discrete choice experiment in which each treatment sample is only presented with one of the risk reductions: either nanotechnology or conventional methods. We also investigate heterogeneity in preferences for two consumer groups: (i) consumers who usually buy conventional raw, whole chickens, and (ii) consumers who usually buy niche, welfare‐improved chickens, such as free‐range and organic. Our results show evidence of heterogeneity in preferences and willingness‐ to‐pay values of the both consumer groups. We find that consumers, on average, prefer raw, whole chicken with a lower risk of food poisoning, better animal welfare, and lower costs, regardless of the presence of nanosensors. Although consumers in general showed no strong preferences towards or resistance to nanotechnology, those who buy chickens with better animal welfare, on average, showed higher WTP for food risk reduction and animal welfare relative to conventional chicken consumers.     

Marketing Organic and Conventional Potatoes in Germany

We apply a bivariate probit model and cluster analysis to German household survey data to evaluate factors influencing consumption of conventional and organic potatoes. Results show there is a positive but insignificant correlation between the consumption of conventional and organic potatoes and consumers associate organic potatoes with healthy ingredients, trusted origin, and food safety. Furthermore, consumers' sociodemographics such as education and children in households affect their choice of potatoes. Cluster analysis results group potato consumers into the market segments “Industry trusting,” “Healthy diet oriented,” and “Price oriented.” These results suggest an adoption of different marketing strategies to promote fresh potatoes to the different market segments.     

Consumer Preferences for Organic Food and for the Shares of Meat and Vegetables in an Everyday Meal

Abstract

It is well established that consumers with positive preferences for organic products generally also tend to have healthy eating habits involving many fruits and vegetables but less meat. While most studies are based on single product comparisons, this study investigates consumer preferences for organic ingredients and content of meat and vegetables in the context of an everyday evening meal. Moreover, we address heterogeneity in preferences. The study is based on an online survey including a choice experiment with 506 consumers. Using principal component and latent class analyses, we identify three segments of consumers that differ with respect to preferences for organic production and content of meat and vegetables in their meals. Our findings may be valuable for authorities promoting healthy food consumption just as they provide valuable input to the catering industry and other suppliers of dinner dishes in the development and marketing of both organic and non-organic ready meals.     

German and British Consumer Willingness to Pay for Beef Labeled with Food Safety Attributes

The European Union has implemented some of the most stringent food safety policies for beef globally, ranging from banning growth hormones to mandating country of origin labeling. Using choice experiments and random parameter logit models, we examine German and British consumer willingness to pay (WTP) for American, Canadian, Argentinian, French, German and British beef, quality assurance seals, hormone‐free beef production and a gourmet label. We also determine how consumer WTP for these food safety and quality attributes is affected by the extent to which consumers consider food safety issues (FSI). Results indicate that British consumers had the lowest WTP for beef from Argentina and German consumers had the lowest WTP for beef from Great Britain. The hormone‐free label was the relatively most preferred label by consumers in both countries, and by those who considered FSI to affect their meat consumption patterns.     

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.     

Consumers’ Valuation of Rice‐Grade Labeling

The current Korean rice‐grading system has a “no test” option that allows rice to not be graded in the market. This study examines Korean consumers’ valuation of a rice‐grading system without the “no test” option. We apply a nonhypothetical experimental auction to elicit consumers’ willingness to pay for each rice grade and identify the impact of the provision of additional grading information on product valuation. We then use contingent and inferred valuations to obtain consumers’ valuation of a mandatory rice‐grading system without the “no test” option. We find that Korean consumers are willing to pay an additional premium for each rice grade and that rice‐grading information is the most important factor that differentiates the rice products. Rice consumers in Korea also strongly prefer a mandatory rice‐grading system without the “no test” option.     

Organic‐ and Animal Welfare‐labelled Eggs: Competing for the Same Consumers?

To understand the market for sustainable foods, it is important to allow for heterogeneous preferences. However, most studies of consumer preferences for sustainable foods only investigate average consumer preferences. They do not take into account that some consumer segments attempt to purchase as much sustainable food as possible, others are almost indifferent to the notion of sustainable food, and still others consider sustainable food a complete hoax. The aim of this study is to explore the preferences for various types of premium eggs across three consumer segments. We conduct a choice experiment including 900 Norwegian consumers and perform a behavioural segmentation based on the frequency of organic food purchase. We find that the segment purchasing the most organic food is, as expected, willing to pay a significant premium for organic eggs over eggs displaying only enhanced animal welfare. However, most consumers, who only occasionally purchase organic products, are unwilling to pay more for organic eggs than for enhanced animal welfare eggs, suggesting diminishing marginal utility for additional attributes. We find that a third consumer segment attempts to avoid organic eggs, even when they cost the same as other eggs. Our findings suggest that organic products will be unsuccessful in acquiring a larger share of the market as long as most consumers are unwilling to pay a premium for organic products with all their cost increasing sustainable attributes over products that have only a single sustainable attribute, in our case enhanced animal welfare.