Labelling wool products for animal welfare and environmental impact

The notable growth of the market in recent years indicates apparel consumers' interest in organic fibre products. Yet less is understood about how apparel consumers would respond to labelling for other credence attributes associated with animal‐fibre products, such as animal welfare or eco‐friendliness. An online survey of 507 US consumers was used to compare consumers' reactions with a variety of labelling schemes for wool product attributes, including animal‐friendly, organic and environmentally friendly production. Consumer segments were created based on frequency of label choice, and analysis of variance and multinomial logit regression were used to identify and characterize the demographics and psychographics of the consumer segments that found labelling for animal welfare or environmental concerns appealing. The study identified a segment of consumers (19% of the sample) who were motivated to purchase apparel products labelled for animal welfare. These animal‐focused consumers could be identified with relatively high accuracy from the demographic and psychographic variables in the model. The model variables, which included familiarity with organic products and self‐perceived knowledge about environmental damage related to apparel production, were not effective in identifying the environment‐focused apparel consumers. The results also demonstrated the ability of a general belief in animal rights to motivate the apparel consumers in the sample, suggesting that acting on a concern for animals could be a more powerful motivation for consumer behaviour than acting on a concern for the environment.     

Consumer ethnocentricity and preferences for wool products by country of origin and manufacture

Labelling on apparel products usually focuses on the country where manufacturing takes place, rather than where the raw materials were obtained. A choice experiment of consumers in three southern US states was conducted to determine preferences and marginal willingness to pay (mWTP) for wool blend sweaters based on fibre origin and country of manufacture. Fibre origin choices were Australia, US and US State, with the latter to investigate consumer interest in local over simply domestic. Manufacturing had two possibilities, US and China. Survey questions were used to determine an average consumer ethnocentric tendency (CET) score for each consumer, and a median split was used to place each into a High or Low CET group. Nested logit models were analysed for both groups, and mWTP estimates were computed from the coefficients. Both CET groups were willing to pay significant premiums for State‐produced wool over US wool, and for US wool over Australian wool. However, the Low CET group exhibited lower premiums for fibre origins than their High CET counterparts. Ethnocentric consumers, unlike Low CET consumers, were additionally willing to pay significant premiums for wool blend sweaters knitted in the US vs. those knitted in China. Results suggest that labelling fibre by State or by US origin may allow producers to obtain substantial premiums for their apparel products. Promotion of domestic manufacturing though may only be effective for a smaller set of consumers.     

Local and/or organic: a study on consumer preferences for organic food and food from different origins

This paper gives a deeper insight into consumer preferences for different food products of varying place of origin (i.e. local, Germany, neighboring country, non‐EU country) and production practices (i.e. organic vs. non‐organic). Consumer surveys combined with choice experiments were conducted with 641 consumers in eight German regions. Mixed logit models were estimated to draw conclusions on consumers’ preferences for different product attributes. The Stimulus‐Organism‐Response model was applied to theoretically frame the key findings. Results reveal that consumers prefer locally produced food to organic food. However, conclusions on consumers’ preferences should not be generalized as they vary depending on product type and consumers’ place of residence. When looking at the willingness‐to‐pay estimates for ‘organic’ and ‘local’ while distinguishing among consumers from different regions of Germany, results indicate that consumers living in rural areas and consumers living in the eastern part of Germany are less willing to pay a premium for organic products than urban consumers and consumers from other parts of Germany. As preferences for origin attributes and organic production vary between different food products and in different regions of Germany, market actors should design marketing activities accordingly. This study adds to the international research on consumers’ preferences for organic and/or local food. The results provide better insights into preference structures, as more than one product has been included and surveys were conducted in different regions across Germany.     

The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis

Many companies have made significant investments in socially responsible production practices for their products. Environmentally safe cleaning products, fair trade coffee, and sustainable seafood are just a few examples. In this paper, we conduct a meta-analysis of over 80 published and unpublished research papers across a large number of product categories to better understand differences in willingness to pay (WTP) for socially responsible products. In particular, we are interested in whether the beneficiary of the social responsibility program—humans, animals, or the environment—affects WTP. We use two dependent variables: the percentage premium people are willing to pay and the proportion of respondents who are willing to pay a positive premium. We find that the mean percentage premium is 16.8 percent and that, on average, 60 percent of respondents are willing to pay a positive premium. Importantly, across both dependent measures, we find that WTP is greater for products where the socially responsible element benefits humans (e.g., labor practices) compared to those that benefit the environment. Implications for retailers, manufacturers, and future research are discussed.     

Willingness to Pay for Non‐biotech Foods in the U.S. and U.K.

This study uses closed‐ended and payment card formats to elicit willingness to pay for breakfast cereals made from non‐biotech ingredients. U.S. consumers were willing to pay a 10%∼12% premium to avoid biotech breakfast cereals, whereas U.K. consumers were willing to pay a 19%∼35% premium. Risk perceptions about agrobiotechnology proved to be an important factor shaping willingness to pay a premium for non‐biotech breakfast cereals. If consumers perceived risks to human health or environments from the use of biotechnology in crop/food production, or affiliated biotech foods unfavorably with morality or multinational corporations, they were more likely to pay a premium. Conversely, if consumers associated agrobiotechnology with various benefits (i.e., reduction in chemical use in crop production, mitigation of world food shortages, and improved nutritional content), they were less likely to pay a premium.     

The effect of information on consumers' willingness to pay for natural and organic chicken

This study examined the effect of definitions for organic and natural on willingness to pay a premium for organic over natural chicken. Data were collected using surveys and experimental auctions that were conducted before and after information was presented. Before information, approximately two‐thirds of participants inaccurately equated the requirements of natural with those for organic. After information, nearly 50% increased their premium, while 30% decreased their premium. Logistic regression results showed that consumers who had overestimated the requirements for natural were most likely to have an increased premium after information, with significantly higher bids for organic. For those who decreased their premium after information, awareness of consuming genetically modified (GM) foods was a key variable. The non‐genetically modified (non‐GM) requirement of organic appears to be of low value to some consumers. Overall, consumer confusion regarding organic and natural standards may be having substantial impacts on the two markets.     

Consumer attitude toward US versus domestic apparel in Taiwan

This study investigates whether or not consumer attitudes toward domestic‐ vs. US‐made apparel differ among consumers in Taiwan. Variables to be examined include (1) apparel attributes; (2) self‐concept; and (3) demographics. The Fishbein attitude model was used to measure consumer attitudes. The mall‐intercept method was used to collect most data in four major cities of Taiwan. A total of 485 Taiwanese consumers completed and returned useable questionnaires. Results indicated that consumer attitudes toward Taiwan vs. US‐made apparel differed significantly among consumers in Taiwan. Consumers had an overall more positive attitude towards US‐made apparel compared with Taiwan‐made apparel with regards to care instruction label, colour, quality, apparel fibre content, fashionableness, attractiveness, brand name, and comfort apparel attributes. For self‐concept variables only modest/vain and thrifty/indulgent had a significant difference between consumers who preferred US‐ over Taiwan‐made apparel. Demographic factors of age, gender, education, residence area, travelled abroad and country‐of‐origin preference had a significant relationship with consumer attitudes toward apparel. This study is aimed at understanding Taiwanese consumers’ attitudes toward foreign‐made apparel. Overall, Taiwanese consumers preferred US‐made apparel; however, the apparel attribute of size range needed improvement to increase customers’ satisfaction.     

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

We used both stated preference and revealed preference data to estimate willingness to pay (WTP) for shade‐grown coffee as compared with conventionally grown coffee. Stated preference data was collected using contingent valuation studies. Revealed preference data came from an experiment where all survey participants received a personally identifiable voucher redeemable for a free bakery item when the holder purchased a coffee. We compared estimates of mean and median WTP a price premium for shade‐grown coffee from stated preference data with similar estimates from revealed preference data. We used a logit model to evaluate the effect of explanatory variables (measures of environmental attitudes, personal norms for pro‐environmental behaviour and demographic variables) on respondents’ WTP a price premium for shade grown coffee. Model parameters were estimated using the maximum likelihood approach. Respondents with higher scores on measures of environmental attitudes and personal norms for pro‐environmental behaviour were, on average, willing to pay more for shade‐grown coffee. While this paper examined a specific case, purchase of shade‐grown coffee, our results confirmed that stated environmental concern was a good predictor of pro‐environmental behaviour. We found that mean and median WTP estimates from stated preference methods were higher, but not significantly different than mean and median WTP estimates from actual purchases, indicating convergent validity between stated and realized preference methods. The majority of individuals both stated WTP a price premium and purchased shade‐grown coffee at a price premium. We did, however notice some interesting behaviour at the individual level where stated preferences under‐predicted realized preferences at low price‐premia and over‐predicted realized preferences at high price premia.     

Effects of social responsibility labelling and brand on willingness to pay for apparel

This study examined changes in consumer willingness to pay (WTP) for apparel products as labour‐related information and brand were added. Tobit analysis of auction bids from 121 university students for t‐shirts showed men, Hispanics and consumers who believe in social responsibility and fair trade had significantly higher WTP once labour‐related labelling was added. The amount and complexity of information did not matter, leaving substantial leeway to companies in crafting their message. Adding brand significantly increased WTP for two better‐known brands while not changing WTP for the social responsibility messages. Results suggested brands can benefit from stressing social responsibility‐related attributes of products.     

Consumer Willingness to Pay for Local Designations: Brand Effects and Heterogeneity at the Retail Level

This study examines consumer willingness to pay (WTP) for packaged ice cream with local, private label, and national brands at the retail level. Data were collected through in-person surveys conducted at retail grocery outlets in Utah in 2012. Study results suggest that shoppers are willing to pay significantly more for the national and local brands over the retailer’s private label brand. In fact, the local brand with the state-sponsored designation (Utah’s Own) had a WTP equal to that of the national brand. The use of local designations or labels is important as shoppers were not willing to pay a premium for the local brands in absence of the locally produced or state-sponsored designation label. Additionally, consumer WTP for different brands and the degree of response to local designations varies substantially by consumer attributes. These differences suggest that locally designated products do not compete directly with private label products in the market. This study provides clear evidence of the value of state-sponsored designations, as well as locally produced labeling for food products marketed in a traditional retail setting.     

Consumer concern,knowledge and attitude towards counterfeit apparel products

The purpose of this paper was to explore the relationship of three variables (concern with apparel industry issues, knowledge about counterfeiting and attitude towards counterfeit apparel products) with consumer willingness towards paying a premium for non‐counterfeit goods. The intent of the research was to develop a theoretically based foundation from which educators and apparel industry leaders can develop policy regarding counterfeit goods. Will consumer concern and knowledge influence the behavioural intent of paying more for non‐counterfeit goods? We surveyed 244 undergraduate students within a fashion and apparel programme at a large Midwestern university. In this study, willingness to pay more for non‐counterfeit goods increased directly with greater concern, knowledge and attitude towards counterfeit apparel goods.     

Consumer preferences for sustainable production methods in apple purchasing behaviour: a non‐hypothetical choice experiment

Increasing concern for potential risks on human health related to the overuse of chemicals in farming has promoted the research of alternative production methods. This paper contributes to the current literature by presenting a non‐hypothetical choice experiment study that investigates apple consumers' preferences for alternative production systems moving from a conventional to organic production, passing through an integrated pest management and an innovative technique that uses biocontrol agents. Other investigated attributes are appearance, origin and low greenhouse gas emission practices. The non‐hypothetical choice experiment was carried out in supermarkets by asking respondents to pay out of their own pocket for the chosen product. Most of interviewed people stated to have cut‐off values in mind when purchasing apples and their choices have been modelled according to the Swait soft cut‐off approach. Non‐compensatory model estimations confirm previous evidence that ignoring thresholds in data sets that contain them leads to significant errors in terms of willingness to pay. Results suggest that respondents, besides preferring organic production, seem to not perceive the potential benefits of other sustainable production methods.     

Factors Influencing Consumers’ Willingness to Pay for Organic Fruits and Vegetables: Empirical Evidence from a Consumer Survey in India

Numerous consumers confronted with increasing environmental problems, food safety issues, and augmentative health problems increasingly desire to have healthier and more natural foods grown in an eco-friendly manner. Hitherto organic foods only partly benefit from this increasing market environment, and their market share stays rather low despite high growth rates. This article aims to investigate consumers’ willingness to pay (WTP) for organic fruits and vegetables and relevant factors affecting consumers WTP. The contingent valuation method was selected to estimate WTP. Empirical data was drawn from a 250-consumer survey conducted in Bangalore during February 2013. A binomial logistic regression model was applied to obtain the value of WTP and determine the factors influencing it. The results indicated that about 90% of the consumers were willing to pay a premium price ranging between 5% to more than 100% in order to acquire better-quality fruits and vegetables; factors such as family income, size of the family, gender, and other opinion variables such as chemical residue in conventional foods, trust on retailers, taste, and environmental concerns significantly influence consumers’ WTP. More than 87% of the consumers indicated that high price, lack of availability, narrow range, and irregular supply are the major barriers for them to buy these products. The results provide useful evidence to pertinent governmental agencies in terms of assisting in the design of policies for the promotion of organic food production and marketing and reaching the target public. Furthermore, firms involved in the organic foods business may also see benefits when drawing information in order to calibrate marketing strategies.     

Employing a Dichotomous Choice Model to Assess Willingness to Pay (WTP) for Organically Produced Products

Abstract

This study employs a dichotomous choice model to identify the socio-economic characteristics and attitudes that influence consumers' willingness to pay (WTP) a premium for organically produced products (OPP). Considering consumers' growing interest in quality and safety of food, the study attempts to identify consumers level of awareness on OPP, the intention to buy OPP and the WTP a higher price for OPP. Results highlight consumers awareness and intention, revealing useful information for the development of OPP market. The estimated maximum WTP indicates that consumers are willing to pay a substantial extra price to purchase OPP. Finally, WTP seems to be affected by certain consumer attitudes and socio-economic factors.     

Willingness to pay for organic products: Differences between virtue and vice foods

Faced with growing environmental problems, food safety issues, and increasing obesity rates, many consumers desire healthier, less processed natural foods that are less harmful to the environment. Yet organic foods only partially benefit from this market environment, and their market share remains quite low despite high growth rates. The usual explanation for this discrepancy is that consumers are not willing to pay the price premium prompted by an organic claim. In this paper, we explore the reasons behind consumers' (un)willingness to pay for organic food and investigate whether it differs between virtue and vice food categories. The results indicate that in vice food categories, organic claims are associated with lower quality, which seems to be only partly compensated by higher prosocial benefits. The lower-quality perceptions translate into a decreased consumer willingness to pay (WTP). We supplement the empirical results with data on organic purchases in the Dutch food market. These data show that market shares of organic food are indeed lower for vice categories of organic food.     

Consumers' willingness to pay for conventional,organic and functional yogurt: evidence from experimental auctions

This research is aimed at investigating consumers' willingness to pay (WTP) for conventional, organic and functional yogurts in two different information treatments. The basic information treatment provided respondents with yogurts labelled conventional, organic or functional while the second treatment included additional information. To elicit values for these specific products, 100 Italian consumers participated in an experimental auction using the Vickrey fifth‐price sealed‐bid mechanism. Findings reveal that providing additional information through a specific health claim increases consumer's perceived value of the functional yogurt, while for the organic counterpart additional information on organic regulation does not add much to the premium. Moreover, our study shows that specific socio‐demographic variables (as gender, age, presence of kids in the household and the need to follow a specific diet) positively affect WTP for functional and organic yogurts.     

Consumer Preferences for ‘Localness’ and Organic Food Production

While organic food is based on well-defined production criteria, the criteria for ‘local’ food are less clear. This study investigates the preferences and trade-offs of distinct consumer segments relative to organic production and several dimensions of local food (sales channel, size of company, and geographical location of animals used in the production). The analysis is based on a quantitative survey of 505 Danish consumers and a choice experiment involving beef salami. Data were analyzed in a principal component and a latent class analysis. We identify five consumer segments whose preferences for organic and local product attributes differed substantially. Most respondents considered geographical proximity in the raising of cattle to be the most important attribute and a third of the consumers were willing to pay a premium for organic salami. The segmentation provides more detailed information about stated consumer behavior than what is typically elicited when considering only average consumer behavior.     

Willingness-to-Pay for Multiple Units of Eco-Friendly Wheat-Derived Products: Results From Open-Ended Choice Experiments

A non-hypothetical open-ended choice experiment with a multi-unit elicitation format was conducted to elicit Italian consumer willingness-to-pay (WTP) and demand schedule for new wheat-derived products that were produced by adopting an ecologically friendly post-harvest technique (high heat-treated, HHT). A sample of 270 Italian consumers were surveyed in Bologna, Catania, and Palermo in June 2014. Data were analyzed using a double hurdle model. Results suggest Italian consumers are willing to pay premium prices for HHT flour, while they prefer to pay for HHT packed bread at the same price as a conventional one. Consumers’ WTP for the second, third, and more units are lower than their WTP for the first unit of product. While factors that influence consumers’ decision to buy these two new products are the same, factors that affect their desired product units differ among each products. In conclusion, Italian consumers’ preference for an eco-friendly label depends on the types of products.     

Does environmentally responsible purchase intention matter for consumers? A predictive sustainable model developed through an empirical study

Rapidly increasing demand for eco-friendly products is an example of responsible purchasing intention of customers. That responsible behaviour forces businesses not only to understand their responsible purchase intention, but also helps them to sustainability in the market for the long term. In this regard, very little discussion is available in current literature, especially in the context of apparel product consumption. Therefore, to contribute to literature in this field, this work aims to build a predictive sustainable model through an empirical study to examine the relationships among different factors such as attitude, social norms, perceived behaviour control, environmental consciousness, willingness to pay (WTP) premium and consumer purchase intention for environmentally friendly apparels. The data of two hundred and thirty-two respondents were analysed by structural equation modelling (SEM). With the help of the findings, it can be concluded that Indian consumers are aware of green apparels, have a positive attitude to them and show a responsible purchase intention to protect the environment. This is in contrast to the old saying that Indians are price sensitive given the emergence of higher WTP premiums for green apparel products. Other factors such as subjective norms, perceived behaviour control and environmental consciousness are also positively affecting consumer purchase intention. From the study findings, retail managers can benefit through more focused strategies for environmental protection to make a reduction in apparel material while educating their consumers about green apparel.     

Price Acceptance for Organic Milk in Beijing,China

This study examines Chinese consumers’ acceptance and price willingness to pay for organic fluid milk. We used questionnaire data gathered in 2014 to analyze the impact of price and milk knowledge, as well as consumer age, gender, education and income on organic milk choice. The results indicate that: 1) young females with a strong educational background have shown the strongest consumption desire for organic milk; 2) those who shop for the family tend to support organic milk and are willing to pay more for the milk; 3) shoppers with more disposable income are willing to pay a premium price for organic milk.