Consumer Attitude towards Organic Labeling Schemes in Japan

ABSTRACT

Japan is the most lucrative organic market in the Asian region and is projected to account for about 80% of the Asian market revenues by 2009 (Kuhlmann and Jones, 2006). This study identifies Japanese consumer preference and interest in two major labeling information- source of organic certification/traceability and country of origin for organic food products. Stated preference method (SPM) based survey data was collected from two major cities in Japan in order to develop Japanese consumers' organic food choice model. Findings show that Japanese consumers are willing to pay 10% price premium for the organic food products compared to conventional products that have no specific labeling, suggesting a significant profit margin to be possibly captured by the organic producers and marketers. The Japanese consumers have perceived value of the JAS label in their stated preference and showed willingness to pay a price premium for this quality certification system, which validates the importance of government-regulated mandatory labeling. Regarding the country origin labeling issue, the Japanese consumers showed clear preference for the domestic organic products to the imported products, while showing no preference for any particular country origin for imported organic products. For private-voluntary organic labeling, the consumer organization-led organic label is considered to be more reliable source than the retailer-guaranteed organic label.     

Consumers' Perception of Food Product Quality in Tunisia

Abstract

This paper investigates consumers' perception of food quality in Tunisia. In fact, the development of quality standards is driven by government regulations and mostly in response to export markets regulations. The role of consumers in this process is quite missing. This paper first highlights the current food safety and quality programs undertaken by the Tunisian government. Second, we use a sample of 150 consumers chosen at random at two of the largest hypermarkets in Tunisia to analyze consumers' behavior regarding quality. The paper shows strong concerns about hygiene among other quality attributes and strong awareness about quality and quality assurance schemes in general. Consumers are also motivated by habits of consuming home made products for hygiene and taste reasons. If appropriate quality systems were implemented to assure consumers about such attributes this would boost up demand for quality products.     

A Pre-Purchase Model of Consumer Choice for Biological Foodstuff

Abstract

The present study examines the way consumers form their purchase intentions for organic products using the concepts of perceived quality and value. A model of relationships among quality cues, evaluative judgments, and willingness to buy for organic foodstuff is then developed and explored empirically with respect to biological olive oil. The data provide support for the critical importance of perceived value on consumers' purchase intention. The discussion centres on theoretical and especially managerial implications for organically and naturally produced food.     

信任对城市居民有机食品消费行为的影响机理分析

[目的]揭示不同信任水平消费者在有机食品消费行为上的差异及其内在逻辑,从而为有效破解有机食品市场提供新的思路。[方法]文章以价值感知和食品安全意识为中介调节变量,构建信任影响消费行为的分析框架,并基于全国1 113位城市居民的微观调查数据,采用Ologit模型进行实证检验。[结果]信任水平正向影响居民有机食品消费行为和价值感知,价值感知在信任对消费行为的影响中发挥中介效应;同时,居民食品安全意识在信任与价值感知之间起调节作用,从而价值感知对信任与消费行为之间关系的中介效应也会受到食品安全意识的调节,即产生了被调节的中介效应。[结论]信任是决定消费者有机食品消费行为的重要因素,信任缺失会限制消费者的购买行为。利用有效的信号揭示和传递机制能缓解市场信息不对称,增进消费者信任,从而促进有机食品消费市场发展。与消费者信任相比,价值感知是影响消费者购买行为的更为直接的因素,不同消费者信任水平导致的购买行为的差异,在一定程度上是通过影响消费者价值感知实现的。因此,提供差别化的产品与服务、加强消费者的良性社交互动,普及和传播食品安全知识,有效提升消费者的价值感知水平和食品安全意识,都有利于有机食品市场培育。     

Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach

We examine heterogeneous consumer preferences in Chinese milk markets. Using a discrete choice experiment, we examine how the brand, quality certification, traceability label and price influence consumers' milk choices. We identify four consumer segments using a latent class model: price conscious (9.8%), balanced thinking (19.8%), health conscious (57.5%), and environment conscious (12.9%) consumers. These four segments have distinct preferences: price conscious consumers prefer green certification; balanced thinking consumers have the highest willingness to pay for traceability labels; health conscious consumers have strong brand awareness; and environment conscious consumers prefer organic certification and traceability labels and use price as a quality signal. Such diversity of consumer preference can be explained by four psychological factors: price consciousness, food safety concerns, health consciousness and environmental concerns.     

PDO Olive Oil Products: A Powerful Tool for Farmers and Rural Areas

Abstract

Nowadays, consumers’ quality awareness and health consciousness drive the agri-food market towards a consumer-response food market. As a result, many producers and firms in the Euro-Mediterranean countries have opted for several quality and origin assurance schemes. Among them, a prevalent role is played by the Protected Designation of Origin (PDO) certification that constitutes a successful differentiation tool for agricultural products, and it is also widely used by Euro-Mediterranean olive oil producers due to effective contribution in promoting high-quality olive oil. After going through previous studies of PDO olive oil, this review paper investigates the general aspects and prospects of PDO olive oil products and EU relevant regulations, highlighting the socio-economic dimensions and impacts upon producers, consumers, and rural areas, and determining the gap between literature and practice with regards to PDO’s implementation and the expected benefits. Finally, the paper concludes with the main points and recommendations for further research.     

Consumer Acceptance of Food Biotechnology

Abstract

Using data from a national survey, this study examines public acceptance of food biotechnology by modeling consumers' willingness to buy genetically modified foods. Empirical results suggest that younger, white, male and college educated individuals are more likely to accept food biotechnology. However, consumers' views about scientists and biotechnology companies, and their trust and confidence in government regulators, have greater impacts on their acceptance of genetically modified foods than their economic and demographic attributes. Overall, consumers view food biotechnology as a risk-benefit issue rather than an ideological issue. There is some evidence of regional differences in the acceptance of bioengineered food products.     

Sensory Experiences and Expectations of Italian and German Organic Consumers

We explore sensory experiences and expectations of Italian and German organic consumers when purchasing and eating organic food. Ten focus group interviews were performed and the results were analyzed using qualitative content analysis. Outcomes indicated that although sensory attributes are not the main purchase drivers, flavor and odor are the most important in driving consumers' choice. Findings also suggested that training consumers' sensory abilities offers new market opportunities to organic marketers. From a marketing perspective, Italian consumers seem to equally appreciate nonsubjective as well as subjective marketing information about organic products, whereas in Germany non subjective aspects appear to be predominant.     

Predicting Consumers' Acceptability of Pesticide-Free Fresh Produce in Canada's Maritime Provinces

ABSTRACT

This study examines consumers' willingness to purchase pesticide-free fresh produce (PFFP) in Canada's Maritime Provinces. Households' decisions in purchasing organic foods are reflected in their willingness-to-pay (WTP) a premium for obtaining these types of products. WTP was modeled as a function of a series of explanatory variables including sociodemographic, socioeconomic, media, and public awareness about the impact of pesticide use on health and environment. Results suggest that Maritimes' consumers tend to pay the premium because they believe that the use of pesticide in conventional farming is life threatening. In addition, males and individuals with bachelor degrees are more willing to pay the premium, but those who visit farmers' markets on a regular basis are less likely to pay a premium for pesticide-free fresh fruit and vegetables. Finally, results show that media have no impact on consumers' decisions to purchase pesticide-free fresh produce.     

Consumers' Preferences Toward Attributes of Manufactured Halal Food Products

Consumers' buying decisions are invariably influenced by their religion and culture. In Islam, the foods they consume must be halal or permissible according to the Islamic principles. However, there are other food attributes such as brand, price, promotion, and safety assurance that may also influence consumers' decisions. This article aims to evaluate consumers' preferences toward various attributes of the manufactured halal food sold in supermarkets. The focus is on halal certification because consumers, especially Muslims, need the assurance that the food they purchased is really halal. Two hundred eighty-eight people agreed to participate by providing their perceptions and preferences toward food product attributes. Certified halal food product gained the highest utility score and was the most important attribute.     

How can trade partners be chosen when facing food scandals? China's milk scandal as a natural experiment

Using China's milk scandal as a natural experiment, this paper explores whether the countries of origin and export destinations have the same responses to the original country's food scandal. Our difference-in-difference estimation shows that the outbreak of China's milk scandal had asymmetric impacts on China's total imports (increased by 23.4%) and exports (sharply dropped by 65.8%). The results further show that China's milk scandal contributed to import increases from European and Oceanian countries. Moreover, China's milk scandal worsened exports, mainly those going to neighbouring Asian regions but increased exports to Oceania. A product quality index is constructed to explain this finding. Intuitively, consumers' perceived quality of Chinese products declined, and they tended to consume products from other countries. The lower the product quality was with those in China, the lower the perceived quality and safety, thereby affecting demand. During the scandal, Chinese consumers tended to buy high-quality dairy products from Europe and Oceania rather than the perceived unreliable dairy products produced by China or neighbouring countries. We conclude that product quality plays a key role in imports and exports when facing food scandals.     

Combining Stated and Revealed Preferences on Typical Food Products: The Case of Dry‐Cured Ham in Spain

An extensive body of research concerns the valuation of EU certification schemes of quality based on the origin of food products. This literature focuses mainly on stated preferences (SPs) and reported behaviours by the consumers. We combine consumers’ SPs, obtained through a conjoint ranking experiment, with revealed preferences (RP), obtained through a retail scanner database. We evaluate SPs as predictors of RP, and investigate whether SPs and RPs are consistent. Dry‐cured ham in Spain is chosen as the anchor product, mainly because of its broad customer base and long history of origin certification. A ‘trick’ nested logit model with non‐identical and identical samples of consumers is estimated to answer each of the objectives. Results show that, irrespective of the analysed samples, SP can predict general market trends and choices but not accurately predict market shares, and that consumers’ actual behaviour is partly consistent with their SPs. We find that consumers prefer ham produced in Teruel, compared with unspecified Spanish origin. Quality Certification and a Distributor’s Brand are preferred over the alternatives of no quality label or identified with a brand owned by the producer. Interestingly, SPs for the Quality Certification and the distributor’s brand lead to an over‐ and under‐estimation, respectively, of the market share.     

The Survey of Heterogeneity on Organic Products Consumers’ Preferences Using Mixed Logit and Latent Class Models

Abstract

Today, the importance of consumption of organic products has become more evident to the consumer due to the great benefits of these products. The aim of this study is to investigate the factors affecting the preferences of organic tea consumers in Tehran by considering the heterogeneity of consumer’s preferences. For this purpose, mixed logit and latent class model were used. The required information were collected through field surveys by completing a questionnaire from 405 respondents from Tehran citizens in 2016. Results from estimating mixed logit and latent class models confirm the heterogeneity of preferences between consumers. Different levels of income, education, age, history of poisoning and awareness of organic products were identified as heterogeneous factors. The results of the estimation models showed the maximum willingness-to-pay is related to the attribute of the disease and long-term effects. According to the findings of the study, it is suggested to help increase people's awareness of the characteristics of organic products and the use of targeted-oriented strategies to encourage consumers to consume organic products.     

Information Asymmetries and Consumption Decisions in Organic Food Product Markets

Organic agriculture is a rapidly growing segment of most developed agricultural economies around the world. To stimulate growth and circumvent supply‐side market failures that emerge when organic products are not segregated, governments have introduced regulations concerning the certification and labeling of organic food. While certification and labeling satisfy market demand for information provision, the introduction of these activities creates incentives for the mislabeling of conventional food as organic. Despite the incentives for, and the incidence of, mislabeling in organic food product markets, this issue has not been analyzed systematically. In fact, the possibility of mislabeling has been customarily neglected by economic studies of markets for credence goods in general. This paper addresses the issue of product type misrepresentation in organic food product markets and develops a model of heterogeneous consumers that examines the effect of mislabeling on consumer purchasing decisions and welfare. Analytical results show that, contrary to what is traditionally believed, while certification and labeling are necessary, they are not sufficient for alleviating failures in organic food product markets. The effectiveness of labeling depends on the level of product type misrepresentation. Consumer deception through mislabeling affects consumer trust in the labeling process and can have detrimental consequences for the market acceptance of organic products. When extensive mislabeling occurs, the value of labeling is undermined and the organic food market fails. L'agriculture biologique est un secteur qui prend rapidement de l'expansion dans la plupart des pays agricoles industrialisés. Pour stimuler la croissance de ce secteur et éviter les problèmes d'offre qui surviennent quand il n'y a pas ségrégation des denrées, les gouvernements ont adopté des règlements sur la certification et l'étiquetage des produits biologiques. Même s'ils satisfont la demande d'informations sur le marché, la certification et l'étiquetage ouvrent la porte à l'usage abusif du terme “biologique” sur l'étiquette des denrées ordinaires. Or, bien que les producteurs soient tentés d'utiliser le terme à tort et à travers et en dépit des incidences d'un tel comportement, le phénomène n'a jamais été analysé de manière méthodique. De fait, les analyses économiques sur le marché des denrées alimentaires, en général, négligent souvent la possibilité de fausses déclarations sur l'étiquette des produits. L'article que voici aborde ce problème sur le marché des aliments biologiques et propose un modèle qui tient compte des effets d'un étiquetage fallacieux sur les achats et le bien‐être de consommateurs hétérogènes. Les résultats de l'analyse indiquent que, contrairement à ce qu'on croit, la certification et l'étiquetage, bien que nécessaires, ne suffisent pas à atténuer les problèmes observés sur le marché des aliments biologiques. En effet, l'efficacité de l'étiquetage dépend du nombre de fausses déclarations. La déception qui résulte d'une fausse déclaration ébranle la confiance des consommateurs dans le système d'étiquetage, si bien que les produits biologiques sont mal accueillis sur le marché. Quand les fausses déclarations se multiplient, l'étiquette perd sa valeur et il devient impossible de commercialiser les denrées biologiques.     

Product Labeling and Economic Value of Milk Market Segmentation

Abstract

This study explores the economic benefit from labeling milk and milk products and its impact on the supply and demand for fluid milk. The empirical estimate measures the economic value of milk market segmentation based on consumers' willingness to pay for hormonefree milk. The study uses survey data from Kansas households and applied a Probit model for willingness-to-pay and an ordinary least square model for demand analysis. The empirical results show that as long as consumers are willing to pay a higher price for bSTfree milk society would benefit from milk market segmentation.     

Consumer Behavior Toward Goat Milk and Its Processed Products in Malang,Indonesia

The study was carried out in Malang East Java, Indonesia. The purpose was to investigate how consumers behave with regard to fresh goat milk or its processed products and to examine determinants that influence this behavior. One hundred respondents were selected using a convenience sampling method and interviewed using a structured questionnaire. Logistic regression analysis was used to analyze consumer behavior toward fresh goat milk or its processed products. This study could contribute to a better understanding of consumers' demand toward this food. Consumers often purchased fresh goat milk or its processed products whereas only a small number rarely bought this food. Consumers frequently demanded fresh goat milk or its processed products as they had more family members and perceived the importance of the availability, many choices, and the affordable price of this food. On the contrary, consumers with high education and concern about the importance of income, the existence of cow milk and its product, and consumers' perception about fresh goat milk and its processed products as special foods might seldom purchase these foods.     

Study of the Main Motivations and Discouraging Factors for the Implementation of ISO 9000 Standards in Spanish Agribusiness Sector

Abstract

The implementation and certification of ISO 9000 quality assurance systems in Spanish agribusiness companies is a recent although rapidly growing phenomenon. In spite of the extensive biography available on ISO standards few works have been published on the experience from the companies' point of view. This article carries out an empirical analysis of the main motivations that encourage companies to set up an ISO 9000 quality assurance system and also the reasons that discourage them from doing so. The analysis of this latter aspect, using multivariate methodology, allows an in-depth examination of the series of problems that agribusinesses face.     

Valuing Consumer Perceptions of Olive Oil Authenticity

Nowadays, while the authenticity of agri-food products becomes a major concern for consumers, given the increasing rate of food fraud reports across the world, olive oil records the highest adulterations. The high selling price of olive oil is the main reason for conducting adulteration, which is often caused through false indications on the packaging (mislabeling). On the other hand, consumers are well aware of the alteration, and they are looking for authenticity signals during the purchase process. Authenticity, therefore, becomes an evaluation and decision-making criterion that guides consumer choices. The aim of this paper was twofold: to highlight the attributes in which Greek consumers attach great importance during the evaluation of olive oil’s authenticity, and second, through consumers’ demographic segmentation, to gain more detailed knowledge about the attributes that consumers evaluate in olive oil authenticity. CUB (Covariates in a mixture of Uniform and Binomial random variables) models are employed for the interpretation of ordinal data due to the ability of comparing and clustering the rating distributions consumers express about olive oil features, and due to the ability of detecting significant similarities and differences in consumer responses. Moreover, with the introduction of respondents’ social, demographic, and financial characteristics, CUB models allow the measurement of the influence that the consumers’ profile has upon the attributes of olive oil authenticity. The results showed that consumers attached great importance to taste, acidity, country and region of origin, olive variety, color, organic production, and regional certification in the evaluation of olive oil authenticity. In addition, secondary school graduates tend to use taste and olive variety, also indicating confidence in the authenticity of organic olive oil.     

Consumer Interest in Fish Information and Labelling

Abstract

Consumers' cognitive mechanisms and their perception of product properties are markedly affected by information. This paper focuses on consumers' information needs and interests related to fish. The objective is to explore consumers' use of internal and external information sources and their use of information cues with regard to fish. Qualitative exploratory research was performed in May 2004 through focus group discussions in two European countries: Belgium and Spain. Personal sources are found as the most important information sources with regard to fish. Although a majority of consumers use mandatory information cues on fish labels, they express doubts whether information provided on the labels can be trusted. People who are more experienced and have higher familiarity with fish, seem to be more efficient insearching and using information. Instead of providing one message for the consumers, segmentation and targeted information provision is recommended.