Evaluating the purchase behaviour of organic food by young consumers in an emerging market economy

Promoting consumer purchase behaviour of eco-friendly products is key to environmental sustainability. This research aims to investigate how different factors may enhance or impede young consumers’ intentions to purchase a specific type of eco-friendly product, i.e. organic food. Data were obtained from 289 respondents in an emerging market economy, i.e. Vietnam. Multivariate data analysis using structural equation modelling revealed that food safety concern, health consciousness and media exposure to food messages played integral roles in the formation of attitude towards organic food. Interestingly, consumers’ environmental concern and food taste were of little value in predicting their attitude. Notably, perceived barriers (i.e. high price, inadequate availability, poor labelling and extra time required) significantly impeded both attitude and purchase intention towards organic food. The insights gained from this research extend current knowledge about pro-environmental behaviour in developing countries and they have important practical implications for marketers and other key stakeholders.     

Consumers' perceptions of individual and combined sustainable food labels: a UK pilot investigation

Consumers are faced with an increasing number of sustainable food labels. These different labels may be complementary or add to the increasing competition of product information in consumers' minds. We investigate: (1) the perceptions that consumers in the UK have about sustainable labels vs. other labels, such as origin or nutrition labels; and (2) consumers' reactions to combinations of different sustainable labels. Overall, the findings from two focus groups conducted in the UK indicate that consumers have positive perceptions of organic and fair trade labels but tend to be sceptical about unfamiliar labels and general claims such as ‘climate friendly’. The results also indicate the importance of familiarity, trust and fit between combinations of labels as well as between associating a label with a brand. While the combination of certain labels can enhance the value of a food product, this study also indicates that other label combinations (e.g. private and sustainable label) can detract from a label's value. Implications and recommendations are suggested for managers to counter the image of greenwashing, and for policy makers to facilitate sustainable food choices.     

Consumer understanding of food labels: toward a generic tool for identifying the average consumer

The ‘average consumer’ is referred to as a standard in regulatory contexts when attempts are made to benchmark how consumers are expected to reason while decoding food labels. An attempt is made to operationalize this hypothetical ‘average consumer’ by proposing a tool for measuring the level of informedness of an individual consumer against the national median at any time. Informedness, i.e. the individual consumer's ability to interpret correctly the meaning of the words and signs on a food label is isolated as one essential dimension for dividing consumers into three groups: less-informed, informed, and highly informed consumers. Consumer informedness is assessed using a 60-question test related to information found on a variety of Danish everyday food products and divided into factual questions and informedness about signpost labels. A test was made with 407 respondents who participated in four independent studies on fairness in consumer communication, and the average score for all was 57.6% of correct answers. A score of 64% and beyond would place a consumer in the upper quartile (the group of highly informed consumers), whereas a score of 52% or below would place the individual in the lower quartile (the group of less-informed consumers). Female respondents performed better than males on label recognition, and those around 40 years of age irrespective of gender performed best on factual knowledge, whereas those aged around 30 performed best on label recognition. It is foreseen that independent future studies of consumer behavior and decision making in relation to food products in different contexts could benefit from this type of benchmarking tool.     

Competing in an emerging market: antecedents and consequences of market orientation and the role of environmental factors

Adoption of market orientation is an investment decision involved with benefit and cost considerations. How environmental factors influence the adoption of market orientation has received scant attention in the literature. This study fills the void by investigating the environmental antecedents to market orientation. In addition, the research explores the role market orientation and customer satisfaction play for firms operating in an emerging market in search of growth and prosperity. Based on data collected from India, one of the BRIC nations and an important emerging market, results show that turbulent and dynamic market conditions foster an adoption of market orientation, which leads to high levels of customer satisfaction, and in turn leads to customer loyalty. Managerial implications and future research directions are discussed.     

Ease of reading of mandatory information on Canadian food product labels

Food product labels present individual product information, safety, nutrition, electronic inventory, container and environmental information, in various formats, languages and images. Some information is mandatory; much is promotional. The food label is an essential tool for regulators of safe food handling, nutrition policy and fair competition. Mandatory information on food labels in Canada is required to be presented in both English and French, readily discernable, prominently displayed and legible. This study examines the ease of finding and reading of mandatory label components on selected Canadian food products. A validated typographical scoring system assessed the lists of ingredients on a purposive sample of 100 food labels representing foods in all groups in Canada's Food Guide. Seven percent of the ingredient lists were easy to read; 26% were difficult to read and 67% were very difficult to read. Well‐educated resourceful readers in consumer focus groups examined food labels for key elements that influence ease of finding and reading information. Focus groups and typographical scoring identified: colour contrast, case, print style, print size, space between the lines, reverse print, organization, justification, type of surface, hyphenation and print reproduction as factors that affect ease of reading. Print that curves around a container, lack of paragraphing or point form organization make reading difficult; text blocks at right angles to each other make comparisons difficult; separation of the nutrition facts table from the list of ingredients makes decision making tedious. Inadequate spacing between lines of print creates problems for readers of English and exacerbates problems for readers of French. Words placed over illustrations, busy backgrounds or watermarks increase reading difficulty. Hazard statements, instructions and storage information imbedded in other information without added space or appropriate heading is difficult to find and read. Canadian consumers echo consumers in 28 European countries who find label information difficult to find and to read and want clear guidelines/regulations on the placement and the typography of mandatory food label components     

Animalizing India: emerging signs of an unruly market

Focusing on recent artistic and photojournalistic portraits of India as an animal – an elephant or tiger – that wanders alone or sometimes with another animal companion – dragon or panda bear – called China, this article analyzes the ways in which India's potential as an emerging market and a rising power is being conjured in the popular aesthetics of magazine and nonfiction book covers. Even as an outpouring of verbal discourse from business and policy experts has hailed an India that is transitioning from a peripheral Third-World nation to a rising power, a steady stream of visual illustrations, including, those that deploy animal avatars, has sought to illuminate the vicissitudes of India's newfound economic recognition. Ultimately, my article's tracking of the visual semiotics of India's animal imprints seeks to get inside an economy of appearances in which zoological embodiments arbitrate this non-Western nation's prospects for entering economic globalization's newly minted scale of “emerging market.”     

Usage and understanding of food labels among Lebanese shoppers

Food labelling is a population‐based approach to health education that enables consumers to make better choices by providing information at the point of purchase. This study aimed to assess the food label usage and understanding and factors affecting them among Lebanese supermarket shoppers. A cross‐sectional study was conducted among 748 supermarket shoppers in Lebanon between December 2013 and February 2014 using a pre‐coded structured questionnaire. About 29.3 of the shoppers check the food labels every time they buy a food product and 15.7% never do it. Shoppers who do not read food labels identified the long time needed in reading them as top reason (34.9%), while 9.8% answered that they do not understand them. About 55.4%of the surveyed shoppers read the food labels at the supermarkets. About 44.4% of participants agreed that reading food labels is very important, while 30.3% read the food labels depending on the purchased product. Then 19.4% of participants complained that food labels contain too much information and 13.8% claimed that food labels are difficult to understand. About 60.3% think that food labels have helped people in changing their eating habits, while health and nutrition claims affected the product selection among 59.8% of participants. The food label knowledge score average was 63.1%. Older, obese shoppers having kids, suffering from chronic illness or allergies, following a specific diet and residing in big cities scored significantly (p < .05) higher. The low knowledge score necessitates the nutrition education on how to read and use the food labels. Groceries would be the perfect place to reach out mass consumers.     

CSR: Consumer responses to the social quality of private labels

This paper investigates the responses of French consumers to the communication of the “social quality” of private labels (PL) in terms of perceived quality of the PL and intentional loyalty to the brand and the retailer. It also treats the role of some individual variables in these responses. Using experimentation with two independent groups, we show that communicating the “social quality” of the PL improves his perceived quality and the consumer′s intentional loyalty to the brand and the retailer. We also suggest through some individual variables a profile of the most sensitive consumers to the socially responsible PL.Few papers treat the relational potential of the socially responsible private label (PL) in the retailer′s strategy. This paper, through experimentation (N1=N2=400), studies this aspect on three levels: (a) consumers′ response to PL′s social quality in terms of perceived quality, (b) loyalty towards the socially responsible PL and the retailer, (c) and the role of individual variables in these responses. The findings reveal that (a) the communication of the PL′s social quality improves the perceived quality of the PL, (b) it also improves consumers′ intention of loyalty towards the PL and the retailer. It studies also (c) individual characteristics of consumers sensitive towards PL′s social quality.     

The Effect of Organic Food Labels on Consumer Attention

This paper aims to reveal consumer perceptions of organic food with a special emphasis on the labelling of organic products. The objectives were to find out, whether or not a significant difference between men´s and women´s perception existed. Two groups (88 subjects in the experimental group, 59 subjects in the control group) were shown various food labels; with organic product labelling (experimental) and without (control). Results suggest the importance of organic labelling using eye-tracking data and additional in-depth interviews to discover the importance of the labelling for participants. Based on eye-tracking data, the greatest visual attention was paid to product brand, graphic elements and organic labelling claims with additional information, such as a quantity or flavour, also being important. Additional in-depth interviews discovered that labelling, particularly of the origin, is important for most consumers. Contrary to what was expected, eye-tracking showed very little difference in the perception of organic product labelling based on gender. Although organic food is being purchased by more people, 50% of participants mentioned, during interviews, that they buy organic food only occasionally. The combination of eye-tracking and in-depth interviews shows that organic product labelling can play a role in decision-making, but regardless 27% of participants do not care about the organic quality labels or don’t pay attention to them.     

Consumers' valuation of food quality labels: the case of the European geographic indication and organic farming labels

This paper assesses consumers' preferences and willingness to pay for European Union geographical indication quality labels [Protected Designation of Origin (PDO) and Protected Geographical Indications (PGI)], organic farming label and other product quality cues. Using a choice experiment, random parameter logit model and olive oil as product of interest, results suggest that respondents are willing to pay the highest premium price for a product with a PDO label, followed by organic farming label, a quality cue describing the product as extra‐virgin olive oil and then a PGI label.     

Applications of the behavioural homogeneity evaluation framework: The predictive ability of consumer involvement for international food market segmentation

Abstract

This article proposes a framework of alternative international marketing strategies, based on the evaluation of intra- and inter-cultural behavioural homogeneity for market segmentation. The framework developed in this study provides a generic structure to behavioural homogeneity, proposing consumer involvement as a construct with unique predictive ability for international marketing strategy decisions. A model-based segmentation process, using structural equation models, is implemented to illustrate the application of the framework.     

Consumer acceptance of food irradiation: a test of the recreancy theorem

Consumers living in both developed and developing nations rely upon foods that have been produced and processed in many countries and in a wide variety of ways. Therefore, it is not surprising that they express concerns about the safety of their food supplies. A technology proposed to improve consumer trust in food safety is irradiation. Despite extensive education efforts and endorsements given by many health‐related organizations worldwide, food irradiation has been slow to gain widespread acceptance. This ineffectiveness of diffusion efforts might indicate a need to broaden our theoretical perspectives of consumer acceptance of controversial technologies. Most theoretical approaches explain acceptance primarily as a function of perceived risks associated with a technology. The recreancy theorem, in contrast, explains acceptance as a function of public trust in societal institutions to effectively manage a technology. This study investigated the extent to which the recreancy theorem explained acceptance of food irradiation by US consumers, while statistically controlling for perceived risk and social‐demographic variables. The study used a longitudinal field design to survey one adult each in 116 households located in the Minneapolis, Minnesota area during the first large‐scale market test of irradiated food. The results indicate that the recreancy theorem might provide a valid conceptual approach to gaining a broader understanding of consumer acceptance of controversial new technologies.     

Assessing the needs of international markets against an emerging market company's capabilities: A tool for internationalization

Senior managers in emerging markets often strive to ensure that their companies develop sufficient capabilities to confront the needs they encounter in international markets. However, extant research and practice remain unclear as to how senior managers in emerging market companies can approach assessing the needs of their international markets against their own company's capabilities, to aim for a balance between both. This article offers an innovative approach for assessing the needs of international markets against an emerging market company's capabilities. Based on the assessments of 100 senior managers leading emerging market companies, we explain how this approach can provide two key insights. First, evidence of a balance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is focused; or evidence of an imbalance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is either vulnerable or overqualified. Second, an understanding of where the gaps between the needs of international markets and an emerging market company's capabilities are, that enables improving the company's competitive position by closing these gaps. Drawing on this approach, we offer an open access tool that allows senior managers in emerging markets to identify and improve their own company's competitive position for internationalization. Using this tool, senior managers can lead their emerging market companies toward a focused competitive position in international markets, providing better chances of successfully capturing potential benefits.     

Sustainable market orientation: a competitive strategic tool in an emerging economy context

The purpose of this research is to test the effect of sustainable market orientation (SMO) as a strategic tool on banks’ sustainable balanced firm performance (SBFP) in an emerging economy. The research data was collected via the survey approach through self-administered questionnaires to 445 bank employees. Exploratory Factor Analysis was employed to establish the dimensionality of the research constructs, whereas multiple linear regressions were utilised to test the research hypotheses. Results suggest that SMO is positively and significantly related to sustainable balanced performance of banks. The study confirms the SMO concept promulgated in prior studies. Employees’ opinions on bank Managers incorporating sustainability management variables into market orientation as a strategy are encouraged by scholars to engender SBFP. Strategic approaches of this kind leads to balance performance of organisations and the larger society which is central to all stakeholders. This study may be the initial quantitative investigation into SMO and SBFP in the strategic marketing literature.     

Local contexts and organizational learning for innovation in an emerging economy: the case of two Malaysian firms in Indonesia

Organizational learning for innovation is critical for the success of multinationals. In this study, we examine two multinationals and their learning and innovation, when operating in Indonesia as the host country. As research on organizational learning has largely overlooked the influence of regional contexts, we examine the role of contextual conditions of the host country with regard to its economic, political and competitive conditions, and the changing customer demands, on organizational learning and innovation. We also consider organizational learning process, taking into account organizational factors that influence such process. The implications, contributions and limitations of the study are then discussed.     

An exploration of the influence of food labels on South African consumers' purchasing behaviour

New labelling legislation in South Africa is expected to help consumers sustain a healthy lifestyle through the food choices they make. This study was undertaken to explore a sample of South African consumers' reasons for reading labels and the influence of food labels on their purchasing behaviour. The study was conducted using focus group discussions held with label reading consumers in Potchefstroom in the North West Province of South Africa. Findings suggested that these participants read food labels to assess the nutritional value, personal benefits, health attributes and product quality. Various purchasing influences were also identified, suggesting that consumers are in some cases motivated by food labels to purchase a product, or may be unresponsive to the label or indifferent by being aware of the information but not reluctant to buy a product that does not indicate essential information. Several indirect consideration factors such as situational factors (e.g. family), extrinsic (e.g. price) and intrinsic (e.g. taste) may contribute to the purchasing behaviour of some consumers. These findings are useful to propose a perceptual model of the way in which food labels influence purchasing behaviour of a sample of South African consumers and explain the role of food labels in the purchasing decision of label‐reading consumers. This information is especially significant for new packaging and labelling initiatives as it highlights the reasons why label‐reading South African consumers read label information.     

Inheriting the DNA of emergingness: Strategies of advanced market firms under emerging market ownership

Despite growing concerns about emerging market firms (EMFs)' acquisitions in advanced markets, the influences of emerging market ownership on advanced market firms (AMFs) as targets remain largely underexplored. This study aims to conceptually advance our understanding of the environmental adaptation strategies of AMFs under emerging market ownership, focusing on the strategic implications of the “emergingness” encapsulated in the resource transfer from EMF acquirers to AMF targets. Drawing on the institution-based view and resource-based view, this conceptual piece develops an Institution-Resource-Strategy framework and proposes two types of strategies for AMFs under emerging market ownership, namely arbitrage and avoidance, each comprising three varying tactics. We illustrate our propositions using three cases of Japanese firms under Chinese ownership. This study adds to the literature on internationalizing EMFs, the institution-based view of global strategies, and cross-border mergers and acquisitions and offers managerial implications for emerging and advanced market stakeholders.     

Role of consumer health consciousness,food safety & attitude on organic food purchase in emerging market: A serial mediation model

The study aimed to investigate the direct and indirect impact of health consciousness (HCN) on the purchase intention (PIN) of organic food products in India – a rising hub of organic food consumption. For the indirect effect of health consciousness on the purchase intention, the study added the serial mediation of consumer attitude (ATT) (based on the Theory of Planned Behaviour) and food safety concern (FSC) as major constructs. There is a lack of empirical evidence on the mediating role of FSC in the impact of HCN on ATT or their PIN. Further in a developing country like India, there lacks a comprehensive study considering all the above four factors on organic food consumption. 438 useable responses were collected using the mall intercept method from purchasers frequenting five exclusive organic food stores in a metropolitan city in India. The hypotheses on direct and indirect effect of HCN on PIN and the serial mediation of FSC and ATT was tested using Structural Equation Modelling (SEM). CFA/SEM analysis upon establishing the conceptual model's goodness-of-fit, revealed the insignificance of FSC having direct impact on ATT and PIN and having any mediating role in the impact of HCN on ATT. There was also no significant impact of HCN on FSC. ATT too showed no significant mediating role in the impact of FSC on PIN. Nevertheless, both FSC and ATT together as serial mediators significantly influence the impact of HCN on PIN. Retailers and marketing professionals need to devise strategies based on the study's findings, emphasizing on the details of health benefits and improvements consumers will obtain upon consuming their organic products. Practical implications and theoretical contributions are discussed.     

Sovereign risk and procyclical fiscal policy in emerging market economies

This study develops a dynamic stochastic general equilibrium model to account for the differences in fiscal policy stance over the business cycle between developed and emerging market countries, and, in particular, for the volatile and procyclical government consumption and transfer payment in emerging market countries. Two models with and without default option in sovereign borrowings replicate the contrasting cyclical behaviors indicating that the default option is responsible for procyclical fiscal policy. Further, augmented model with third-party bailouts, together with the stochastic trend income process, successfully predicts high volatilities of fiscal expenditures. These imply that procyclical fiscal policy, entailed by default option, may exacerbate the business cycle in emerging market countries.     

Assessing consumer logistics functions in grocery shopping: Evidence from an emerging market

Abstract

Consumer logistics (CL), focuses on the role of consumers in the logistical processing of goods for the purpose of consumption from point of acquisition to the point of disposal. The objective of this study is to test and validate the CL scale as introduced by Bahn, Granzin, and Tokman for grocery shopping in a previously unexplored country setting, namely in Turkey. Our findings show in contrast to Bahn et al. only six CL functions: information search, transportation management and materials handling, storage management & inventory needs assessment, contingent inventory operations & product acquisition, intra-household communication, and interdependent transportation operations. These six CL functions are more applicable for an emerging market, such as Turkey. These findings are consistent across the different socio-demographic characteristics in our sample.