Assessing consumer willingness to pay for Arctic food products

The food industry increasingly seeks to differentiate food products based on sustainability assurances, the use of traditional or ‘authentic’ production methods, a unique origin, or an association with a distinct cultural identity, often relying on certification to enhance the credibility of a quality claim. The natural conditions of the Arctic circumpolar region, its pristine environment, and the relational tie to Indigenous cultures in many circumpolar Arctic nations, distinguish Arctic foods from other commercially available foods, however, little is known about how consumers respond to foods from the Arctic. This paper examines consumers’ perceptions of and willingness to pay (WTP) for foods originating from the Canadian Arctic, and their receptivity to certification for sustainability, authenticity, and origin in the presence of multiple credence attributes. Data from an online survey of 1342 Canadian consumers show that preferences for Arctic foods are driven by the unique geographic origin and a connection with Indigenous cultures and traditions, as well as a desire to improve social and economic conditions in northern Canada. A discrete choice experiment featuring Arctic char elicits consumers’ WTP for attributes related to origin, certification, wild vs farmed fish, and Indigenous vs non-Indigenous fishers. Random parameters logit and generalized mixed logit models allow for both preference and scale heterogeneity. The analysis informs strategies to promote the Arctic food system, both from a Canadian regional economic development context and across the broader Arctic circumpolar region. Limitations imposed by the current seafood labelling regulatory environment in Canada are noted.     

The household wasteful behaviour framework: A systematic review of consumer food waste

Every year one third of the food produced globally is either lost or wasted along the food supply chain (FSC) causing significant economic, environmental and social damages. In the developed countries household food waste is a major concern, which is manly triggered by poor food-related behaviour. Due to the importance and magnitude of the phenomenon, the UN has set the global goal of halving food loss and waste by 2030. However, to the best of our knowledge, to date no systematic literature review has been conducted on household food waste and little comprehensive explanation has yet been offered for wasteful household behaviour. Therefore, the aim of this study was to carry out a systematic review of the literature produced over an eighteen-year period (2000–2018) in order to gain a deeper understanding of multiple, complex facets of the food waste phenomenon at consumer level. Drawing on the results of the systematic literature review and of the behavioural and marketing theories, we propose a new theoretical framework “The Household Wasteful Behaviour Framework”, with the aim of better explaining food waste behaviour at household level. Results can be useful to better target social norm and educational campaigns both at private and public level.     

A consumer segmentation study with regards to genetically modified food in urban China

The objective of this study is to identify the underlying subgroups of Chinese consumers in terms of their perceptions and attitudes toward GM foods. In particular, we address the following specific questions: may researchers segment Chinese urban consumers in terms of their attitudes and perceptions toward GM foods? Are there any relationships between segmented consumer groups and other factors – such as their exposure to GM knowledge and socio-demographics? And, what policy implications can be drawn from this research to the future biotech development in China? Based on a large-scale survey data collected by the authors in 2002 and 2003 in 11 cities of China, this research applies consumer research methodologies. The combination of factor and cluster analysis enables us to identify successfully and consistently four Chinese consumer clusters based on their perceptions and attitudes toward GM foods, which include a food safety cluster, a nutritional technologist cluster, a GM skeptic cluster, and a cluster of GM for non-food promoter.     

Genetically modified food labeling: The impacts of message and messenger on consumer perceptions of labels and products

We analyze responses to a survey designed to elicit consumer reaction to various approaches to labeling genetically modified (GM) foods. Consumers were shown sample labels that differed with respect to claims concerning the presence and potential effects of GM ingredients and the agency that certified these claims. A sample of 1898 US consumers rated 3681 labels with regard to the credibility and adequacy of the information content, with regard to perceived health and environmental impacts of the product and with regard to purchase intent. Simple claims that a product contains GM ingredients are viewed as most credible while simple claims of no GM content are viewed as most adequate. Label claims certified by the US Food and Drug Administration (FDA) are, in general, viewed as most credible and adequate and products with FDA certified claims are perceived to have fewer long-term health problems. Several practical policy implications of the results are discussed, including how different label messages may impact consumer reactions in markets involving GM products.     

A consumer segmentation of nutrition information use and its relation to food consumption behaviour

Consumers need information such as nutrition tables to assess the nutritional value of a food product. Although a broad range of studies has examined consumers’ attention, perception and use of nutrition tables, relatively little is known about what types of consumers use what kind of nutrition information. Therefore, using data from the Swiss Food Panel, we conducted a cluster analysis of nutrition information usage and health and nutrition interest to determine whether consumers could be segmented into specific groups. We identified four segments, which we labelled Official Information Users, Internet Users, Moderate Users and Uninterested. We then determined the segments’ demographics, food frequencies and perception of food. Based on our findings, we provide suggestions for targeted interventions that stimulate healthy food choices among these four segments. Our findings imply that nutrition education or the improvement of nutrition labels is unlikely tostimulate nutrition information usage among all consumer types; some consumers may rather benefit more from environmental cues that prime healthy food choices.     

A theory-based evaluation of food waste policy: Evidence from Italy

Italy recently reformed its food waste policy by introducing innovative measures, such as the possibility of donating food after the best-before date (BBD) and a significant simplification of the bureaucracy of donations. These measures are advocated by food waste specialists and are thought to increase donations almost automatically. The article performs a theory-based evaluation using the method of realist synthesis to investigate the two measures, test their implicit assumptions, and provide a more complete picture of how the policy works. The results highlight the marginal importance of bureaucratic procedures in the cost structure of donations, the diverse responses of different donors and food rescue organisations, and the importance of considering the capacity and preferences of charities when an increase in donations is expected. Further, the analysis uncovers severe reputational risks that limit both the supply of and demand for food past the BBD, despite legal provisions promoting its donation.     

A welfare measure of consumer vulnerability to rising prices of food imports in the UAE

The recent and expected continuing rise in food prices has re-ignited concern and discussion in the United Arab Emirates about the country’s vulnerability to food supply shocks. Defining vulnerability as the compensating variation relative to household income, we find that although UAE households in the lowest income quintile spend on food on average less than a quarter of what households in the highest income quintile spend, the former are 3.5 times more vulnerable to rising prices of food imports than the latter.     

A general model to compute activity-based waste disposal costs for health care products

ABSTRACT

Hospitals are large producers of solid waste, of which some is benign, some is extremely hazardous, and much is in between. The cost of segregating and disposing of products in these waste streams is high, and studies have shown there is considerable potential to reduce these costs while simultaneously decreasing environmental impact. In this article we develop an activity-based costing method that assigns waste disposal costs proportionally to each product. By providing disposal cost information at this level of aggregation it is possible to directly influence purchasing decisions, identify priority products for focused interventions, and determine the ratio of a product's purchasing cost to disposal cost. The method is tested on products with different purchasing costs, disposal costs, physical characteristics, and disposal processes.     

Combining two wrongs to make two rights: Mitigating food insecurity and food waste through gleaning operations

Two concurrent social issues in the United States are food insecurity and food waste. The practice of gleaning offers a mechanism for combining these problems to create a synergistic solution. We develop a stochastic optimization model to determine the schedule that maximizes the volume of excess crops rescued from farm fields for the purpose of feeding food-insecure households, thus maximizing social impact. We model gleaning as a service operation where donation calls arrive randomly requesting to be scheduled within a limited time window. The feature that distinguishes gleaning operations from other service settings is that there is uncertainty in both when donations will arrive and the attendance of the gleaners who are volunteers that are not obliged to attend gleaning trips. We apply our model to the gleaning operation of the Food Bank of the Southern Tier in New York State, focusing on five major crops produced in the region. By characterizing how the gleaning operation behaves, our model allows us to optimize the gleaning schedule to maximize the expected total volume gleaned and determine under which conditions different operational strategies can be most useful for improving the performance of the gleaning operation. This in turn enables us to identify conditions under which alternative policy interventions (e.g., farm donation tax credits and government grants to strengthen operational capacity) are more effective for scaling up gleaning programs.     

From food availability to nutritional capabilities: Advancing food security analysis

This paper has a threefold objective. First, it provides a comprehensive review of different approaches to analysing food security. Second, it highlights the added value provided by the capability approach and the human development paradigm. Third, it proposes a methodology to assess food security through this approach. Our proposal entails three basic steps: (1) analysis of food entitlements; (2) analysis of nutritional capabilities and (3) analysis of the capability to be food secure. In this way, we can move beyond income, entitlement or livelihood related frameworks, and identify the root causes of food insecurity. Food insecurity can be the result of a lack of education, health or other basic capabilities that constitute people’s wellbeing. This, therefore, allows situating the study within the broader area of wellbeing and development.     

Reducing food waste through digital platforms: A quantification of cross-side network effects

To fight food waste, retail stores have begun selling perishable food close to the expiration date at discounted prices. To render this form of last-minute discounting effective, digital platforms have been developed with the major aim to connect local retail stores and their consumers by sharing information about these discounts. To sustain digital platforms, platform leaders need to ensure both consumers and retail stores remain active on it. To provide platform leaders with advice on how to create a sustainable digital platform, we examine how retail store activity on the digital platform affects consumer activity, and vice versa (also known as cross-side network effects). By combining a PVAR model and an impulse response function, along with data from a digital platform aimed at food waste reduction, we find that the effect of consumer activity on retail store activity is stronger and more long-lasting than the effect of retail store activity on consumer activity. We discuss the implications of our findings for both retail stores and digital platform leaders.     

Marketing supplementary food products in LDCs: A case study in Morocco

Developing country governments as well as a number of international agencies have become directly involved in the past two decades in the production and marketing of supplementary food products. This article discusses the Moroccan government's involvement in introducing a weaning food targeted for elaborates on the factors which contributed contributedm to the failure of this and other similar ventures, while drawing attention to the important low-income Moroccan children. It role that marketing plays in launching socially desirable food products in developing country environments.     

Corporate governance antecedents to shareholder activism: A zero‐inflated process

Research summary: Shareholder activism has become more widespread, yet the role of corporate governance as antecedent to shareholder activism remains equivocal. We propose a new conceptual model that characterizes the stochastic of observable shareholder activism as a compound product of two latent components representing (1) shareholder activists' propensity to target a company and (2) executives' propensity to settle activists' demands privately. Our model explicitly decouples corporate governance expectations for the two latent components embedded in activism process, and thus allows us to relax assumptions of homogenous shareholder interests and constrained managerial discretion where corporate managers are expected to negotiate privately and settle only value‐creating activist demands. Bayesian analysis of zero‐inflated Poisson regression reveals that corporate governance relationships with activism vary across shareholder demands and private settlements. Managerial summary: Increasing shareholder activism has generated debates as to whether activism promotes managerial accountability and responsibility or instead encourages managerial short‐termism. Our research model allows for heterogeneous interests among a company's shareholders. We theorize and empirically investigate a broader role of corporate governance: governance mechanisms need to ensure that executives are not (1) ignoring activists' value‐increasing demands or (2) accommodating activists' value‐decreasing demands in a private, opaque manner that disenfranchises other shareholders. Our results indicate that corporate governance implications differ for visible shareholder demands in contrast with private activism. A plausible application of our model is that it provides estimates of the probability of the numbers of shareholder demands to be received by a firm and the probability of privately settling a demand. Copyright © 2015 John Wiley & Sons, Ltd.     

Consumer trust in the food value chain and its impact on consumer confidence: A model for assessing consumer trust and evidence from a 5-country study in Europe

In order to measure consumer trust in food chain actors and its impact on consumer confidence in food and the technology with which it has been produced, a model was developed relating social trust, beliefs in trustworthiness, overall trust in food chain actors, and confidence in both the supply of food products and food technologies. Data were collected via an online survey in five European countries. Analysis provided support for the model and showed that consumer confidence is largely determined by consumer beliefs about the trustworthiness of food chain actors. In particular the beliefs about openness, and especially about the openness of food manufacturers, are strongly related to consumer confidence. Some national differences in trust and confidence exist. This instrument is shown to be suitable for monitoring the development of, and changes in, trust across countries over time.     

Speed isn't everything: A multi-criteria analysis of the broadband consumer experience in the UK

In this paper, we demonstrate that there is more to consumer experience than just broadband access speed. We identify and describe a complex and dynamic set of interactions that occur between different factors that collectively determine consumer experience. We suggest that the relationship between broadband speed and consumer experience follows an inverted U-shape. Access speed is necessary to provide consumers with a good experience, but it is not sufficient. Based on our findings, a more nuanced understanding of the market for broadband Internet access products is outlined and a foundation for deriving valuable policy implications is developed.     

Food waste,catering practices and public procurement: A case study of hospital food systems in Wales

This article aims to address the need for more comprehensive studies on sustainable food systems through a case study of hospital food waste in Wales, UK. Based on a mixed-method research approach that focused on the links between hospital food waste, catering practices and public procurement strategies, the article shows that the hospital meal system, in the case studied, is responsible for overall levels of food waste that greatly exceed the official percentages provided by the Health Board. In addition to showing the theoretical benefits of research that accounts for the complex interrelations between different stages of the food chain, the study raises the need for a more integrated political approach that mobilizes all actors in the food system around a shared vision for sustainable development.     

Monetary policy and food inflation in South Africa: A quantile regression analysis

Although optimal monetary policy stabilizes food inflation theoretically, empirical studies remain limited not only in the context of volumes and the estimation approaches, but are focused on selected advanced and emerging countries to the neglect of Africa where poverty and dominance of food in the consumption basket are more pronounced. We provide empirical evidence in the context of South Africa using quantile regressions. Rising food prices are destabilized even further by restrictive monetary policy; a finding that has ramifications for inflation targeting, especially given that a quarter of the country’s population is food poor.     

Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient,processed organic food products

In response to dramatically increasing adoption in consumer markets, the National Organic Program (NOP) initiated novel labeling standards for food products in the US in 2002. This program is a particularly relevant standardization effort for multi-ingredient processed foods. Rather than a simple binary message (organic or not), gradations of organic content are now codified. No existing published study evaluates consumer willingness to pay or motivation to purchase in response to such a rich organic label. This article presents evidence of the impact of the NOP through analysis of data collected in seven central Ohio, USA grocery stores. Results suggest that consumers are willing to pay premium prices for organic foods, even those with less than 100% organic ingredients. The magnitudes of WTP premia varied significantly among consumer groups, suggesting that targeted marketing may be effective for organic merchandisers.     

Examining the link between food prices and food insecurity: A multi-level analysis of maize price and birthweight in Kenya

In developing countries where many poor people rely on rainfed, locally produced food for the majority of their caloric intake, shifts in climate and weather patterns can dramatically reduce agricultural productivity. The reduction in agricultural productivity reduces overall food availability and ultimately impacts food accessibility, putting millions of people at risk for malnutrition. In this project we focus on Kenya where roughly a third of households are food insecure. We examine the relationship of the price of maize and low birth weight to help quantify the impact of local food prices on one outcome of household food insecurity. Using spatially referenced data from recent Kenyan Demographic and Health Survey datasets, price data, livelihood information, and a remotely sensed-based measure of local growing season productivity, we develop a dataset linking pregnancies occurring from 2001 to 2008 to the spatially and temporally relevant maize price data. We construct several regression models to examine the impact of local maize prices and remotely sensed based estimates of crop production on infant birth weight – specifically low birth weight. The results of the models highlight the importance of including community crop production to evaluate maize price impacts on low birth weight outcomes. Also, because of the positive correlation between pre-pregnancy maize prices and birth weight, the results suggest that some households may benefit from high prices or that high prices may impact the number of conceptions. More generally, our work demonstrates that multilevel models that account for community-level variation are important for disentangling these complex relationships and can contribute to the discussion of how to design more effective food policies.     

Consumption and corpulence in China: A consumer segmentation study based on the food perspective

This paper combines two of today’s most salient phenomena in contemporary China: the remarkable rise of China as a consumer society and the related mounting overweight epidemic, which now includes about 200 million overweight people. Relatively little is understood about the many factors which contribute to the expanding waistlines of the Chinese. Within the nutrition transition framework, this paper concentrates on food consumption with a special focus on the adoption of energy-rich high calorie diets. Four consumer segments have been identified according to consumption of various food products – i.e., the food perspective. These groups are labeled Yellow Earth, Green Water, Newly Affluent, and Western Adopters, and differ significantly with respect to body mass index (BMI) and socio-demographic factors. The consumption of specific food products appears to be related to the extent of overweight among different consumer clusters. By undertaking a consumer segmentation based on food consumption, this study aims to contribute to our understanding of corpulence in a fast-changing China. This paper concludes that the growing impact of the overweight and obesity epidemic in China merits the attention of food policymakers.