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.     

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.     

Economic Effects of the Consumer‐oriented Genetically Modified Products in Markets with a Labelling Regime

This paper builds on the literature on the economic effects of the second‐generation, consumer‐oriented genetically modified products (GMPs). It analyses the market and welfare impacts of the introduction of these new products in markets, like the EU, that mandate the segregation and labelling of the first‐generation, producer‐oriented GMPs. Developing an empirically relevant model of heterogeneous consumers and producers, the study determines the effects of the consumer‐oriented GMPs on the markets of conventional, GM and organic products, and the welfare of consumers and agricultural producers. Analytical results indicate that the market effects of the new GMPs are case specific and depend on: (i) the consumer valuation of the quality‐enhancing attribute of the new GMP; (ii) the level of consumer aversion to GMOs; (iii) the strength of consumer preference for organic products; and (iv) the production costs and marketing margins in the different supply channels. The policy on the labelling of the first‐generation GMPs does not affect the impacts of the second‐generation GMPs on the quantities and market shares of the different products. However, it does affect their price effects and welfare implications. The introduction of consumer‐oriented GMPs under a mandatory labelling regime can result in losses for some GM consumers and all producers of the conventional product.     

Perceptions of “Organic” Food: A View Through Brand Theory

Globally, the organic food industry has experienced impressive growth rates, especially in the United States and Europe, yet still accounts for a relatively small portion of total food sales. In the United States, it constitutes less than 5% percent of food sales despite a decade of support by the U.S. National Organic Standard. Using the United States as a context, the authors show through survey data and confirmatory factor analysis that when “organic” is examined through the lens of brand theory, it is clear that it has yet to attain brand equity. There is evidence of brand awareness and perceived quality, suggesting that the industry has moved in the right direction. Yet negative perceptions of value and no evidence of brand loyalty undermine the industry’s goals. Because “organic” carries different significance to different consumers, the industry will have to develop a cohesive strategy to reestablish “organic” in a unified way. For country markets of similar experience with organic food, and for markets just beginning to consider consumer interest in organic food, these lessons from the United States offer guidance for policy and marketing strategy.     

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.     

What Is It About Organic Milk? An Experimental Analysis

Auction experiments were used to examine demand relationships and willingness to pay (WTP) for organic, rBST-free, no antibiotics used, and conventional milk. Elasticities showed strong substitute and complement relationships between organic, rBST-free, and no antibiotics varieties. The sum of the latter two's premiums were not significantly different than the organic premium, suggesting diminishing marginal utility for added attributes. Results from a two-stage heteroskedastic tobit model demonstrated that WTP premiums for the varieties differ significantly by demographics and beliefs regarding the conventional version. These suggest market segments for rBST-free and no antibiotics versions could succeed alongside organic, benefiting consumers and producers.     

基于质量功能展开与卡诺模型的零食酸奶新品开发

通过调研发现,越来越多的消费者将杯装酸奶作为一种休闲食品食用.通过顾客需求(VOC)收集和反馈,分析出各层需求的重要度和用户的六大需求.通过卡诺(KANO)模型问卷调研和分析最终确定了产品的魅力指数,并形成了最终的质量规划.通过关系矩阵对VOC和技术指标(CTQ)进行强弱相关性分析,通过一级质量屋中的信息,形成与客户需...     

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.     

Food-Related Lifestyle Segments in Ireland with a Convenience Orientation

Abstract

This paper reports on an investigation into the convenience orientation of various food-related lifestyle segments in Ireland. The food-related lifestyle instrument developed by the Centre for research on customer relations in the food sector (MAPP Institute in Denmark) provided a valuable framework for the development of this analysis.

This instrument was applied in Ireland in 2001, with a nationally representative sample of one thousand Irish consumers. Six distinct food-related lifestyle segments were identified (Ryan, 2002). The lifestyle instrument grouped consumers in terms of their attitudes towards the purchase, preparation and consumption of food products in general.

This research investigates the degree to which these food-related lifestyle segments are convenience-oriented by investigating their attitudes towards convenience and their purchase frequency for a range of convenience foods. The convenience element was developed following a review of the Irish convenience food market, which highlighted a number of convenience-related food issues driving this market. This study identified the food-related lifestyle segments that were particularly convenient oriented. These segments were further explained by relating their purchase frequency for a range of convenience products.

The attitudes of the various food-related lifestyle segments towards convenience foods and purchase frequencies for convenience foods differed. Three of the food-related lifestyle segments were identified as having a convenience orientation, namely the hedonistic, the extremely uninvolved and the adventurous segments.     

Attitudes and Preferences of Kosovar Consumer Segments Toward Quality Attributes of Milk and Dairy Products

ABSTRACT

The dairy market is one of the fastest growing agri-food sectors in Kosovo, yet the farm structure is fragmented. The level of productivity is lower compared with European Union levels and shows potential for improvements. The consumption of dairy products is expected to rise due to income growth and segmentation of consumers that would reflect different preferences for low-fat or zero-fat products, products with natural additives, and so on. On the market level, a significant share of the consumed milk and dairy products is imported. This study aims to better understand attitudes and preferences of Kosovar consumer segments toward milk and dairy products. A quantitative survey with 300 consumers was conducted in major Kosovo cities. Applying a reduced version of the Food Related Lifestyle instrument identified three distinct consumer segments: the conservative consumer segment, the socially oriented foodie, and the information-seeking eco-consumer. The latter two segments are especially open to trying new food products and actively search information about food. All three consumer segments show strong consumer patriotism by believing that domestic milk and cheese are safer than imported products and are of higher quality. This indicates the strong market potential for dairy farmers and companies in the Kosovo, which should develop new food products having these segments in mind. The authors explore the strategies that farmers and companies should use to better target these consumer groups and gain greater access to desirable segments.     

Segmenting Irish Food Consumers Using the Food-Related Lifestyle Instrument

Abstract

This paper reports on the food-related lifestyle (FRL) segments identified in Ireland, based on a nationally representative sample of one thousand households. The objectives are to use the food-related lifestyle instrument developed by the Centre for research on customer relations in the food sector in Denmark (MAPP) to segment Irish food consumers based on attitudes towards the purchase, preparation and consumption of food products and to profile these segments by attitudes and socio-demographic variables. The sixty nine FRL items were scored and scale reliability tested. The structure of the FRL dimensions was tested with exploratory factor analysis using principal component analysis and varimax rotation. Hierarchical cluster analysis (HCA) using Wards method was employed for market segmentation. Profiles of the clusters (segments) were achieved by comparing the mean scores on the dimensions for each segment with the population mean scores on the same dimensions.

Six distinct food-related lifestyle segments were identified. The hedonistic segment, representing 28 percent of consumers was the largest group, followed by conservative consumers (21%), extremely uninvolved consumers (16%), enthusiastic consumers (14%), moderate consumers (13%) and adventurous consumers (8%). The segments were found to have different attitudes towards food and different socio-demographic profiles.     

The Impact of Sustainability Aspects in the Meat Sector: A Cluster Analysis Based on Consumer Attitudes and Store Format Choice

Several consumer studies have shown considerable market potential for sustainable meat products, however, their markets shares are still marginal. In Germany, the sustainable aspects “organic,” “local origin,” and “animal welfare” are of special interest. To obtain a precise overview of potential target groups for these meat categories and their choice of store format, 620 German consumers were surveyed on their attitudes toward sustainable meat production and their shopping behavior. First, target groups based on consumers’ attitudes were identified by cluster analysis, taking into account possible overlaps. Consumers were also clustered by their store format choice and their preferred type of meat packaging. A cross tabulation of the results then provided insights into which store format and type of meat packaging is preferred by the target groups for sustainable meat products. Due to overlaps found in the target groups, the existence of important subgroups was shown. Amongst the target groups, only a slight preference for unpackaged meat products was found. Basically, the offer of sustainable meat products appears of interest for all store formats, with particular emphasis on supermarkets. The results of this study can support producers and retailers developing new and tailored marketing strategies for sustainable meat products.     

Consumers’ Perceptions and Behaviors Regarding Organic Fruits and Vegetables: Marketing Trends for Organic Food in the Twenty-First Century

ABSTRACT

Organic food market is very challenging in Europe and developing rapidly with different rates between the western and eastern parts. The objective of this report is to gain knowledge about attitudes toward organic fruits and vegetables among Slovenian consumers. Results indicated that organic buyers tend to be younger and higher educated than those who do not buy them. In addition, consumers’ trust in the authenticity of the goods and price are also issues. However, the main barrier to increase the market share of organic products is consumer information. According to the research results an important task for the producers will be to increase consumers’ knowledge of what an organic product is and how to differentiate it in the marketplace. Along with knowledgeable and educated consumers, consumption could be raised on another level. The results of the research could be used for planning further marketing activities.     

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.     

The Influence of Trust and Attitudes on the Purchase Frequency of Organic Produce

Growth in organic food sales is mainly due to consumers becoming more aware of health issues and environmental concerns. Understanding the drivers of organic consumption is crucial to predict future market outcomes. In this analysis, the authors expand previous research by including general and institutional trust variables in addition to consumer attitudes to examine organic food purchases. Food production is unobservable and hence, consumers need to exhibit trust with respect to organic production and certification. A bivariate ordered probit model applied to U.S. survey data confirms that organic purchases are determined by health, nutrition, and taste. In some cases, general trust and trust in media are statistically significant. Trust in institutions that are involved in the organic certification process is not statistically significant. A hierarchical cluster analysis grouping consumers based on trust and attitudes shows that (dis)trust in the organic certification and supply chain does not hinder organic food market growth.     

The Effects of Extrinsic Cues on Olive Oil Price in Brazil

Over the past two decades, world olive oil consumption registered an impressive growth. Although olive oil consumption remains concentrated in the main producer countries surrounding the Mediterranean Sea (“traditional” markets), it is also growing rapidly in many other countries all over the world, where olive oil is still largely perceived as a novelty food (“nontraditional” markets). This study focuses on the Brazilian market of olive oil, which is one of the most important nontraditional markets in terms of both its dimension and growth rates. A hedonic price model has been used to evaluate whether, and to what extent, extrinsic cues impact on the retail price of olive oil. Data were collected via direct observation of several e-shops where Brazilian consumers could purchase olive oil. Results show that the retail price of olive oil is highly influenced by extrinsic cues such as branding, labeling, and packaging.     

Willingness to pay for brands: a cross‐region,cross‐category analysis

Using survey data collected in multiple locations (California and Texas in the United States and Revohot in Israel), we quantify category‐ and location‐specific variations of consumers’ willingness to pay (WTP) for brand products after controlling for consumer characteristics. We find that consumers have a similar qualitative assessment of brand value in different product categories across different locations. That is, consumers have a stronger preference and higher WTP for brands in consumer electronics, followed by clothing and then processed food, and the lowest in fresh produce. Furthermore, we simulate price premiums and market shares of brands relative to generic products in different categories. Simulation results suggest that brands in fresh produce have the highest price premium but lowest market share. Despite the similarities, the magnitude of WTP for brands as well as the simulated price premium and the corresponding market share in the same product category are location variant. The similarities and dissimilarities suggest validity of having global brand strategies adapted to local conditions, that is, the so‐called “thinking globally and acting locally” strategy.     

信任对城市居民有机食品消费行为的影响机理分析

[目的]揭示不同信任水平消费者在有机食品消费行为上的差异及其内在逻辑,从而为有效破解有机食品市场提供新的思路。[方法]文章以价值感知和食品安全意识为中介调节变量,构建信任影响消费行为的分析框架,并基于全国1 113位城市居民的微观调查数据,采用Ologit模型进行实证检验。[结果]信任水平正向影响居民有机食品消费行为和价值感知,价值感知在信任对消费行为的影响中发挥中介效应;同时,居民食品安全意识在信任与价值感知之间起调节作用,从而价值感知对信任与消费行为之间关系的中介效应也会受到食品安全意识的调节,即产生了被调节的中介效应。[结论]信任是决定消费者有机食品消费行为的重要因素,信任缺失会限制消费者的购买行为。利用有效的信号揭示和传递机制能缓解市场信息不对称,增进消费者信任,从而促进有机食品消费市场发展。与消费者信任相比,价值感知是影响消费者购买行为的更为直接的因素,不同消费者信任水平导致的购买行为的差异,在一定程度上是通过影响消费者价值感知实现的。因此,提供差别化的产品与服务、加强消费者的良性社交互动,普及和传播食品安全知识,有效提升消费者的价值感知水平和食品安全意识,都有利于有机食品市场培育。     

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.