How the interplay between consumer motivations and values influences organic food identity and behavior

This study develops a baseline model specifying expected relationships between consumer motivations (health, environmental, and social consciousness), organic food identity, and organic food behavior. Based on an online survey of 1176 Danish food consumers, we investigate whether these relationships are influenced by different levels of personal values (self-transcendence, openness to change, self-enhancement, and conservation). We find that health consciousness has a higher positive influence on organic food identity with higher levels of all four investigated personal values. When openness to change is low, health consciousness has a positive effect on intentional organic food behavior through organic food identity, whereas social consciousness has a negative effect on intentional organic food behavior through organic food identity. Our results provide guidance to those seeking to segment organic food markets based on consumers’ motivations and values.     

Consumer perceptions of best practice in food risk communication and management: Implications for risk analysis policy

As a consequence of recent food safety incidents, consumer trust in European food safety management has diminished. A risk governance framework that formally institutes stakeholder (including consumer) consultation and dialogue through a transparent and accountable process has been proposed, with due emphasis on risk communication. This paper delivers actionable policy recommendations based on consumer preferences for different approaches to food risk management. These results suggest that risk communication should be informed by knowledge of consumer risk perceptions and information needs, including individual differences in consumer preferences and requirements, and differences in these relating to socio-historical context associated with regulation. In addition, information about what is being done to identify, prevent and manage food risks needs to be communicated to consumers, together with consistent messages regarding preventative programs, enforcement systems, and scientific uncertainty and variability associated with risk assessments. Cross-cultural differences in consumer perception and information preferences suggest a national or regional strategy for food risk communication may be more effective than one applied at a pan-European level.     

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.     

Health information and consumer learning in the bottled water market

This paper examines the impact of health information in different media outlets on bottled water consumption through consumer learning. We develop a random coefficient discrete choice model with Bayesian learning process to capture consumers’ learning of health information and changes in their beverage choices over time. Consumers are assumed to have initial prior beliefs about the health effect of different beverages and to update their beliefs using health information received from different media types. Empirical results show that consumers’ perceived quality of bottled water kept increasing during our sample period, and this learning process accounted for 24.44% of the industry’s revenue, which is about 4.8 billion dollars per year. Comparing the effectiveness of different media outlets, we find that the sales impact of traditional media (TV and radio) is greater than online sources. Our findings highlight the contribution of health information to the bottled water industry and provide policy makers with a new direction to reduce high-calorie food consumption and improve public health.     

European consumer preferences for beef with nutrition and health claims: A multi-country investigation using discrete choice experiments

The European Union (EU) nutrition labelling policy aims to facilitate consumers’ food choice, stimulate innovation and facilitate the circulation of foods bearing claims across countries. However, the beef industry has not fully taken advantage of utilizing nutrition and health claims based on the EU nutrition labelling policy to differentiate beef products in the market. This study investigates consumer preferences for nutrition and health claims on lean beef steak. Two choice experiments were conducted among 2400 beef consumers in four EU countries (Belgium, France, the Netherlands, United and United Kingdom). Multinomial logit and error component models were estimated. Our results generally suggest that consumer valuation of nutritional and health claims varies across countries. In Belgium, the Netherlands and France, nutrition and health claims on saturated fat yielded higher utilities than claims on protein and/or iron, while the opposite was found among consumers in the UK. The results imply that marketing opportunities related to nutrition and health claims on beef are promising, but that different nutritional marketing strategies are necessary within different countries.     

The character of demand in mature organic food markets: Great Britain and Denmark compared

We investigate the organic food market in two selected European countries, Great Britain and Denmark, identifying main differences and similarities. We focus particularly on consumer perceptions and priorities, labelling schemes, and sales channels as a basis for assessing market stability and prospects for future growth. We employ a unique set of household panel data that includes information on stated values and concerns as well as registered purchasing behaviour. Most organic food on both markets is produced and processed by large-scale industrialised units and distributed through mainstream sales channels, consumer confidence being sustained at present by organic labelling schemes that appear to function well. However, a parallel market, based on the supply of goods through various direct sales channels to heavy users, prevails. We find that organic food purchase decisions are primarily motivated by ‘private good’ attributes such as freshness, taste and health benefits, attributes that may be perceived as being compatible with modern production and sales structure. Mature markets for organic foods nevertheless appear to be vulnerable to consumer dissatisfaction, particularly among heavy users of organic food products.     

Co-evolution of trust and dependence in customer–supplier relationships

The relational and dynamic aspects of interfirm trust and dependence produce a crucial, but insufficiently addressed, challenge for successful relationship coordination. In this paper we concentrate on this issue by examining how trust and dependence co-evolve in customer–supplier relationships. Building on a case study, we develop propositions and a model that illustrates how interorganizational trust and dependence co-evolve through the different phases of customer–supplier relationships and how we may distinguish cooperative and trustworthy actors from those who will behave opportunistically. Theoretical and practical implications are offered.     

Modeling heterogeneity in consumer preferences for select food safety attributes in China

Food safety issues often arise from asymmetric information between consumers and suppliers with regards to product-specific attributes. Severe food safety scandals were observed recently in China. These events not only caused direct economic and life losses, but also created distrust in the Chinese food system domestically, as well as internationally. While much attention has focused on the problems plaguing the Chinese government’s food inspection system, little research has been dedicated to analyzing Chinese consumers’ concerns surrounding food safety. In this paper, we measure consumer preferences for select food safety attributes in pork and take food safety risk perceptions into account. Several choice experiment models, including latent class and random parameters logit, are constructed to capture heterogeneity in consumer preferences. Our results suggest that Chinese consumers have the highest willingness-to-pay for a government certification program, followed by third-party certification, a traceability system, and a product-specific information label. The results of this study call for the direct involvement of the Chinese government in the food safety system. A stricter monitoring system will not only improve consumer well-being in the short-run, but also restore consumers’ trust leading to a social welfare increase in the long run.     

The impact of consumer protection in the digital age: Evidence from the European Union

We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts’ evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.     

A consumer-oriented model for analysing the suitability of food classification systems

The main function of food classification systems is to regulate the market and inform it (consumers above all) about the different types of products and their characteristics. However, the reality is that many of these systems give rise to confusion and prevent consumers from obtaining a clear idea of them, making the purchasing process more difficult. The objective of this study was to propose a method that can be used as a basis or reference framework for analysing the suitability of any food classification system, based on maximising consumer comprehension and learning, before introducing it into the market. The model proposed establishes the procedure and the necessary indicators for identifying the advantages and drawbacks of each of the different systems, making it possible to compare their suitability. The model was tested empirically by comparing the current classification of orange juices and Iberian ham with two different proposals, in an experiment conducted with an online consumer panel, and using MANCOVA to analyse the differences between the six indicators related to consumer learning results. It was concluded that the model is suitable for assessing the suitability of the classification systems, as it shows technical viability, ease of introduction in practically any situation and the ability to facilitate and guide the process of drawing up consumer-oriented food classification systems.     

Nutrition,agriculture and the global food system in low and middle income countries

The entire food value chain and diet of low and middle income countries (LMICs) are rapidly shifting. Many of the issues addressed by the nutrition community ignore some of the major underlying shifts in purchases of consumer packaged foods and beverages. At the same time, the drivers of the food system at the farm level might be changing. There is a need for the agriculture and nutrition communities to understand these changes and focus on some of their implications for health. This rapid growth of the retail sector will change the diets of the food insecure as much as that of the food secure across rural and urban LMIC’s. This short commentary contents that current research, programs and policies are ignoring these rapid dynamic shifts.     

Market integration and price transmission in consumer markets of developing countries

World prices for agricultural commodities surged in 2006–08, and then again in 2011–12. In many developing countries, consumer prices for staple foods, such as bread and rice, mirrored these movements. This paper examines whether prices in urban consumer markets within developing countries are co-integrated with prices in world agricultural commodity markets. Using a single equation error correction model, we examine the response of consumer prices for wheat, rice, maize, and sorghum to changes in world market prices and exchange rates in urban centers of the developing world. Analyzing over 60 country/commodity pairings, we find that developing countries’ consumer markets are co-integrated with world markets. Yet, we also find that the transmission of changes in both world prices and real exchange rates to domestic consumer prices is not high, and that the movement of domestic consumer prices to new equilibrium with world prices after a shock to the latter is relatively slow.     

The role of power and trust in spreading sustainability initiatives across supply networks: A case study in the bio-chemical industry

This paper investigates how sustainability spreads across supply networks. Adopting an Industrial Marketing & Purchasing (IMP) Interaction Approach (Håkansson, 1982), we seek to understand sustainability spread as a change process that affects different supply network actors and the impact of power and trust on the spreading process. The paper reports on an in-depth case study of the development of a sustainability initiative in the bio-chemical industry, based on data collection with multiple supply network actors across several tiers, providing unique and rich insights into understanding sustainability spread in a supply network and the perceptions of multiple supply network actors on the role of power and trust on the spreading process. Data collection comprised 20 semi-structured interviews spanning eight supply network actors, supported by secondary data such as archival records. The case study indicates that both coercive and non-coercive power as well as trust, significantly impact the actors' engagement in sustainability initiatives and its wider spread in supply networks. The paper contributes to the literature on sustainable supply chain management and IMP research on sustainability spread and, in particular, provides insights on the impact of power and trust on the process of sustainability spread across dyadic relationships into the wider supply network.     

Chinese consumer demand for food safety attributes in milk products

Little is known about emerging demands for food safety among consumers in developing countries. This study presents results of an investigation of consumer awareness, willingness to pay, and price premiums for milk products manufactured using Hazard Analysis Critical Control Point (HACCP) management, a quality management system used to reduce food safety risks. Chinese food processors initially sought HACCP certification to access export markets, but now HACCP is rapidly being adopted for domestic products and HACCP logos have begun to appear on labels in China. A survey of Beijing consumers found that less than one in five respondents was aware of HACCP, and most who had heard of HACCP had learned about it within the previous year. After receiving information on HACCP nearly all respondents were willing to pay a modest price premium for HACCP-certified products. Products with HACCP labels in Beijing supermarkets sold at a price premium of about 5% over products without such labels, holding other product attributes constant. The results indicate that demand for food safety is emerging as an attribute demanded by Chinese consumers.     

Reducing food waste and food insecurity in the UK: The architecture of surplus food distribution supply chain in addressing the sustainable development goals (Goal 2 and Goal 12.3) at a city level

The paradox that tonnes of food is wasted while people go hungry has raised concern from national and international authorities. In developed countries, reducing these problems has focused on surplus food distribution as a ‘win-win’ solution contributing to sustainable development goals. While the existing literature acknowledges the role of third-sector organisations, research on the supply chain of surplus food distribution and the coordination among actors is limited. This research explores actors and organisations in the value chain of surplus food distribution at the city level. Based on semi-structured interviews and participant observation, our findings highlight the need for a coordinated effort between actors as an essential arrangement to capture the value of surplus food. Despite the close cooperation, hierarchical power relationships exist between organisations in the supply chain. We unpack challenges in the surplus food supply chain, such as lack of a legislative framework for food donations and organisational sustainability issues that have forced third-sector organisations to work independently to reduce the uncertainties of food quality and quantity. We shed light on the practical implications by highlighting how multiple stakeholders could improve the efficiency of surplus food distribution.     

The role of supplier performance in building customer trust and loyalty: A cross-country examination

Building trust in buyer–seller relationships is a focal issue in relationship marketing. However, there are mixed results concerning the performance outcomes of trust. Also, no attention has been given to linking supplier performance aspects to the development of trusting relationships. In this study we propose a conceptual model of supplier performance drivers and customer loyalty consequences of trust in supplier–organizational customer relationships. We test the model relationships using data from three different countries, namely, France, Hungary, and the U.K., in an effort to assess the extent to which the development and outcomes of trust are consistent across different countries. The results suggest that supplier performance in product quality and sales service quality is conducive to trust building across all three countries. Supplier performance in technical repair service support enhances trust in the market contexts of France and Hungary, but has no significant effect in the case of the U.K. Nonetheless, supplier performance in complaint handling has a positive effect on trust in the U.K. and French contexts, but no link is established in the context of Hungary. Further, the results show that trust enhances customer loyalty across all countries. Moreover, we find that firm size negatively moderates the trust–loyalty relationship in all the countries, with this link being not significant among larger firms in France and Hungary. The results have important theoretical and practical implications for international relationship marketing.     

The role of trust and relationship structure in improving supply chain responsiveness

In order to reduce cycle times between supply chain entities, managers must work to create new relational forms that rely on trust to a greater extent. We present a model suggesting that to build relationships based on trust, suppliers must invest in site-specific and human assets, and buyers must judiciously apply contracts to control for relative levels of dependence within the relationship. Our model also suggests that buyer-dependence, supplier human asset investments, and trust are all positively associated with improved supply chain responsiveness, defined in this study as the supplier's ability to quickly respond to the buying party's needs. This model is tested with data gathered from a sample of purchasing managers in North American manufacturing firms. The results suggest that even in cases when buyers do not have a great deal of control over their suppliers, working to build trust within the relationship can improve supplier responsiveness.     

Estimating consumer surplus in the mobile telecommunications market: The case of Korea

This paper estimates consumer surplus in the Korean mobile telephone services (MTS) market. The Korean mobile telecommunications market has grown rapidly since 1997 when competition was introduced and Code Division Multiple Access (CDMA) technology was commercialized. Because consumer surplus is relevant to the controversy over establishing an appropriate price level between consumers and service providers, the need for a robust measurement of benefit from MTS is increasing. The measured net consumer surplus estimated by means of elasticities of demand reached about US$48.8 billion in the period 1996–2004 and the changes amounted to about US$8.8 billion during the same period. In particular, after competition was introduced into the market with an accompanying price decrease and increase in the number of subscribers, consumers have benefited greatly. Therefore, it can be inferred that a facility-based competition policy and the reduction in price of access such as handset subsidies all played a positive role in the early diffusion of MTS in Korea. The estimated consumer surplus in this paper does not include network externality (option externality); if this were considered, the total social welfare of the consumer would be larger.     

An industry viewpoint on the role of farm assurance in delivering food safety to the consumer: The case of the dairy sector of England and Wales

Food safety, alongside food quality, remains a primary concern of both consumers and those along the whole food supply chain, leading to regulation by government alongside private third party certification. Much has been written about the value of these systems primarily from the perception of the consumer. This paper reports on a study that examined industry perceptions on the regulatory and assurance systems within the dairy sector of England and Wales. It found that the primary producer found value in both systems, although from a food hygiene focus regulation was seen to be more rigorous. Other stakeholders along the dairy food supply chain saw the assurance scheme as more rigorous. All stakeholders recognised the need to reduce duplication in delivering food safety through combining key elements of both systems with the added potential for better communication of both food safety and quality to the final consumer.