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.     

The Garden of the Self-Service Store

Abstract

As a result of the increased competition between self-service chains, retail managers to an increasing degree try to strengthen store identity and customer loyalty. Based on a broad range of consumer choice and environmental psychology theories, this article discusses a number of reasons why the fruit and vegetable department can be one of the keys to differentiating retail chains and creating positive store image. The article describes the results of two empirical studies (a focus group and a survey) which explore customer-perceived quality dimensions of the fruit and vegetable department and the extent to which these dimensions influence customer attitudes towards the fruit and vegetable department and store image in general.     

Consumer Expectations for Geographical Origin: Eliciting Willingness to Pay (WTP) Using the Disconfirmation of Expectation Theory (EDT)

ABSTRACT

This study explores the impact of geographical origin in consumer expectations. Willingness to pay (WTP) for geographical origin was measured in three different information conditions (blind, labeled, and both blind and labeled) using an open ended technique of contingent valuation (CV) in the framework of expectations-disconfirmation theory (EDT). The results from the EDT show that a product with a positive reputation and highly preferred by the consumer is losing continuously the premium price paid for it. The decrease of the WTP in full information condition for the most preferred origin is probably due to the lowered consumer expectations and to the damages of the good image as a result of unfair competition, usurpation, and the misappropriation of the name. Geographical indications (GIs) may offer a solution to these problems by preserving the predictive value of origin information, maintaining high consumer expectations, and also preserving the good reputation of the product.     

Re-incorporating usage situation in choice models: a base for future developments

Abstract

Understanding the consumer’s tendency to adopt new products is an ever-present essential for successful marketing campaigns. This paper presents the findings from two empirical studies that investigate the relationship between consumer innovativeness, price-prestige sensitivity, and need for emotion. A questionnaire survey was used to collect data in both studies from a sample of 668 respondents in two cities in England. The findings show that consumer innovativeness is determined by an individual’s sensitivity to price and their need for emotion. While innovative consumers are sensitive in relating price to prestige, this dispositional relationship varies across products. Furthermore, the findings suggest that enjoyment, which facilitates emotional openness and receptivity, influences innovative consumers to take the emotional route, besides the price-prestige route, to the adoption of new products. These findings have a number of important implications for marketers, particularly for the success of marketing campaigns targeted at innovative consumers who find enjoyment in using new products and are prestigiously sensitive to price.     

Marketing Novel Fruit Products: Evidence for Diverging Marketing Effects Across Different Products and Different Countries

The purpose of this study was to compare the influence of four different marketing claims and price information on consumers’ product choices for novel fruits and novel fruit products, using a choice experiment. In total, 1,652 people in Greece (n = 400), the Netherlands (n = 419), Poland (n = 423), and Spain (n = 410) participated in the study. The marketing claims entailed (1) information about scientific findings concerning health benefits, (2) social norm information, (3) information about the products’ naturalness, and (4) information about the products’ time-until-expiration. The results showed that all four marketing claims and price information influenced consumer choice, but the effect of naturalness depended on the specific novel fruit product being advertised, and the effect of time-until-expiration depended on both country and fruit product. These results suggest that marketing communications should be tailored to different national markets and to specific fruit products.     

The effects of competitive context on consumer response to price changes

ABSTRACT

This paper aims to understand how a brand’s price level, relative to its competitors, will affect consumers’ responses to price changes of the brand. The study uses experiments to examine brand choice responses to price increases and decreases across contexts differing in competitor brands and their respective prices. These experiments are conducted with six consumer goods categories. The research identifies three key factors that affect the size of responses to brand price changes – (1) passing a competitor brand’s price, (2) narrowing versus widening the price gaps with competitors, and (3) whether competitors are predominantly higher or lower priced brands.     

Consumers' Perception and Evaluation of Fresh Cut Buying Attributes: A Survey on the Italian Market

Abstract

During the last twenty years, consumer choice in high income countries is no longer merely dictated by price and the organoleptic characteristics of a product, but also by other features some of which are not patently tangible. The growing importance of such attributes in the process of consumer choice is not only due to income increase, but also to changes in lifestyle such as migrations from the countryside, a generalized urbanization and consequential city life style, female emancipation and work outside the domestic walls for women, the drastic decrease in hard physical labor and the process of internationalization. The present survey study aims to explore the importance that Italian consumers give to fresh cut buying attributes and which of these attributes should be taken into consideration by industries in order to satisfy the needs of the most critical shoppers. Where possible, market and survey data for fresh cut products will be compared with those for cooked products and before presenting the results and conclusions of the study, the technical issues of processing will be highlighted owing to the fact that they affect the marketing of these products, the recent market situation with regard to consumption will be illustrated and the methodology used will be described.     

Ethnic Differences in Nigerian Consumer Attitudes Toward Foreign and Domestic Products

Abstract

This paper uses conjoint analysis to investigate ethnic differences in the importance of a product's country-of-manufacture relative to other attributes in the Nigerian consumer choice. It was found that the country-of-manufacture was more important to Yoruba than Hausa respondents, price was more important to Ibo than Yoruba respondents, and reliability was more important to Hausa than Ibo respondents. Additional analyses indicated that prestige was important to Yoruba respondents in the preference for foreign cars while it was important to Ibo and Hausa respondents in the choice of foreign TV sets. Implications for foreign marketers, domestic governments and domestic manufacturers are discussed.     

Traditional bazaar or supermarkets: A probit analysis of affluent consumer perceptions in Hanoi

Abstract

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.     

Quality Factors Influencing Consumer Demand for Small Fruit by Focus Group and Sensory Test

ABSTRACT

The market of berries is a niche of high value in Italy. Small fruit’s healthy properties are well known in the international market, but little is known about the reason for a low commercialization rate of fresh small fruit in Italy. The objective of this study was to assess consumer preferences in Italy for selected berry species. Moreover, the study aims to identify the relevant attributes of berries that affect the demand for this produce according to consumers and to compare these attributes. We assessed relevant attributes affecting the demand for fresh berries for different consumers’ profiles and compared berries’ attributes rankings. The results reveal high concordance between blackberries and raspberries; price is the attribute that constrains more purchases because it is deemed too high. Consumers prefer small fruit because of the rising interest in their nutraceutical value, and they have a higher willingness to pay because of this important attribute.     

Adaptation of Marketing Mix Elements in International Markets

ABSTRACT

This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. The study is based on a survey of executive-level managers in U.S.-based companies that market products internationally. The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is influenced by market factors, price adaptation is influenced by market and industry factors, promotion adaptation is influenced by market factors, and distribution adaptation is influenced by company factors. The results of the research can be used to both understand and manage the extent of adaptation necessary for products in international markets.     

Telecommunications in the Information Age. Singleton,Loy A. Cambridge: Ballinger Publishing Co., 1983, 239 pp. $19.95

Abstract

A telephone survey was conducted among a national probability sample of 330 adults to determine consumer attitudes toward the use of subliminal stimulation techniques in a self-improvement product. Additionally, those most favorable toward the product concept were profiled. The study found consumers to be skeptical toward the use of subliminal messages for the purpose of self-improvement and concerned about being influenced to do something they did not want to do. Those consumers most favorable toward the subliminal technique had prior experience with computers and video equipment, were less educated, and had some family problems. Comparisons are made with prior studies of consumer attitudes toward subliminal advertising.     

Understanding Customers' Intention to Seek for a Better Deal in Electronic Marketplace: The Role of Tolerance for Sacrifice Gap

ABSTRACT

Online consumers make frequent use of the Internet to search for product and price information. In this study, an online model is proposed and empirically tested in investigating the role of tolerance for sacrifice gap in understanding customers' intention to seek for a better deal. Data was collected through an online survey. Structural equation modeling was employed to test hypotheses. The results show that tolerance for sacrifice gap was not only a strong predictor of intention for continuing search but also itself being related to consumer product knowledge, perceived control, and consumer product involvement. Direct relationship between another construct “perceived reduction in sacrifice gap” and “intention to seek for a better deal” was also found. Theoretical and managerial implications are discussed.     

Food Safety and Consumers' Willingness to Pay for Labelled Beef in Spain

Abstract

The objective of this paper is to assess the quality/safety value for beef consumers, measuring their willingness to pay a price premium for labelled beef. From a survey conducted among food shoppers within the household, consumers are segmented according to their safety perception of specific food products. For each segment, their willingness to pay for labelled beef is calculated. Finally, the main factors explaining such a decision are considered. The results indicate that food scares, the perception of a negative impact of agricultural production on the environment and health concerns are having a major impact on the food consumer purchasing decisions for beef. However, most consumers are not willing to pay a price premium for labelled beef.     

Beyond concern: socio-demographic and attitudinal influences on privacy and disclosure choices

ABSTRACT

The co-option of consumers as unwilling agents in their own surveillance has enabled significant abuses of consumer privacy. Previous studies have largely used privacy concern as a proxy for overall privacy attitudes. In this study, we implement a choice experiment in combination with measures adapted from Communication Privacy Management theory to enable a broader exploration of the influences of privacy attitudes by contextualising privacy as a negotiation about accessibility over contextual boundaries. Key findings suggest individuals’ social media disclosure decisions are influenced at least in part by their privacy attitudes, particularly with respect to information categories which may cue other personal information. Findings are also presented on consumers’ willingness to pay for privacy, with implications for alternative revenue streams not built on consumer surveillance.     

An Exploratory Study of the Impact of Non-Commodity-Specific Agricultural Promotion Campaigns on Consumer Purchasing Patterns

Abstract

The purpose of this study was to explore the possible impact of the “California Grown” campaign on consumer purchasing patterns. This advertising and public relations program was designed to encourage residents of the State to purchase more agricultural products grown in California.

The analysis reviewed the results of various market research studies conducted before, during, and after the Campaign and evaluated the extent to which the Campaign may have resulted in increased purchasing of agricultural products grown in California. The findings suggest that the advertising and public relations efforts had favorable/positive impacts on consumer attitudes, preferences for, purchase intent, and purchase action among those who were aware of the Campaign.     

Consumers' SKU choices in an online supermarket: a latent class approach

Abstract

This study examines the effects of loyalty and e-marketing mix variables on the choices of online consumers at the stock-keeping-unit (SKU) level. Using a panel dataset from an online supermarket, we estimate a discrete choice model of a frequently purchased product; generate the refined smoothing constants of the loyalty variables for brand, size, and SKU; and adopt the latent class approach to address consumer heterogeneity. The findings suggest that SKU loyalty is a better predictor of consumer choices than brand and size loyalty. Although online consumers are not sensitive to the net prices of SKU alternatives, they are attracted to price promotions. While webpage display has little effect on SKU choices, speedy delivery has a positive impact. The latent class approach significantly improves model fitness and classification accuracy. Analysing consumer choices at the SKU level can help online supermarkets with promotion planning and inventory and distribution management to improve customer satisfaction and profitability.     

Helping You to Waste Less? Consumer Acceptance of Food Marketing Offers Targeted to Food-Related Lifestyle Segments of Consumers

ABSTRACT

Consumer households and consumer behavior have been identified as the major cause of food waste in the supply chain. Food marketing might offer products and services that help consumers to reduce their food waste or reduce the consumer-related food waste at the consumer–retailer interface. However, such strategies require consumer acceptance and targeting the right customers. Through an online survey of 800 Danish consumers and a measure of food-related lifestyle, four clusters of consumer segments are identified. The segments are compared with regard to their acceptance of a number of actions consumers can take to reduce food waste or their acceptance of food marketing services they would need to pay for. Acceptance differs with food involvement and the role of the price criterion, as well as with gender, education and age. The findings show how food marketing can help consumers to reduce food waste, through actions targeted to specific segments of consumers characterized by food-related lifestyle differences.     

The Effect of Price Promotions on Repeat Purchase Behavior

Abstract

While there is general agreement that price promotions generally have an immediate positive impact on the sales of consumer nondurables, there is little agreement about their repeat-purchasing effects. Promotion usage effects may exist in which brand repurchase rates are negatively affected by the fact that a promotion was used to make a purchase.

Using scanner data, this study examines the effect of price promotions on brand repurchase rates in four product categories. Findings indicate that repurchase rates are generally higher after non-deal purchases, however, this seems largely attributable to differences in household pre-purchase probabilities.     

Consumer Preferences and Willingness to Pay for Bundled Fresh Produce Claims at Farmers’ Markets

This study uses a conditional logit with systematically varying parameters model to analyze consumer survey data collected at farmers’ markets in Utah. The purpose of this study is to examine consumption preferences and willingness to pay for differentiated fresh produce among farmers’ market shoppers in Utah. Three primary differentiating claims, namely conventionally grown of unknown origin, conventionally grown local (in-state), and organically grown of unknown origin, are investigated. Results indicate that consumer preferences and willingness to pay are higher for the conventionally grown local origin claim, emphasizing the importance of local origin labeling for directed marketed fresh produce. This claim was especially preferred among frequent farmers’ market shoppers and those who spend above average. Those who receive WIC and/or food stamp benefits show lower preferences for fresh produce. The shoppers are significantly sensitive to price increases. This study implies that marketing strategies and policy regulations aiming at promoting local, organic, labeling, and reinforcing repeated farmers’ market customers can positively impact purchasing preferences and willingness to pay for production-method-based and origin labeled products.