The organic industry in Australia: Current and future trends

Accurate information is critical for investment, policy alignment and to support agricultural development. In Australia information relating to the size, growth, current and future value of the organic sector has been incoherent and, in some cases, contradictory. This study seeks to address this gap by synthesising industry and government data with the results of an online quantitative survey as well as a series of in-depth interviews to capture the value added component of the organic industry in Australia. By sub-dividing the total organic industry into thirteen categories which makes for meaningful analysis and interpretation, we aimed to estimate the compound average growth rate, the current value added and future trends in the Australian organic industry. This has resulted in some interesting findings, hence the methodology could potentially serve as a benchmark for the reporting of organic food growth globally. The findings also have important implications for various stakeholders including, growers of organic products, investors, land use policy makers and industry operators.     

Consumer Behavior Toward Eco-Labeled Minimally Processed Fruit Product

The authors proposed an analysis of the determinants of purchase intentions and willingness to pay for minimally processed fruit. For this purpose, on-field research was conducted that involved 589 consumers. A questionnaire, gathered in Italy and based on a Likert scale, was administered to investigate intentions to purchase minimally processed fruit from environmentally sustainable farms, simulating a minimally processed product with an eco-label. Via structural equation modeling, the authors develop propositions representing a theoretical approach in the context of purchasing food products. By analyzing two different types of consciousness (health and green), the deduced managerial implications make it possible to assess that the green consciousness influences the attitude and affects the choices and behaviors of consumers. The potential adoption of an eco-label on this kind of food product could be seen as a useful marketing tool for new markets.     

Pseudo panel data estimation technique and rational addiction model: an analysis of cigarette,alcohol and coffee demands

We use a pseudo‐panel data approach to analyze the relationship between the consumptions of cigarettes, alcohol, and coffee in a rational addiction framework. We find that while cigarette and coffee demands fit well with the rational addiction model, alcohol demand conforms to a model with inventory effects. The results suggest that alcohol consumption increases the marginal utility derived from consumption of cigarettes. Increasing alcohol prices would decrease not only the consumption of alcohol, but also the consumption of cigarettes. On the other hand, increasing cigarette prices do not have the same effect on consumption of alcohol. The cross‐price elasticity of coffee with respect to cigarette price is positive and significant which suggests that coffee substitutes for cigarettes when cigarette prices increase. The cross‐price elasticity of alcohol with respect to coffee price is found to be negative and significant. On the other hand, Morishima elasticities of substitution indicate that cigarette, alcohol and coffee substitute each other along the indifference curve when relative prices change.     

Adoption of Online Grocery Shopping: Personal or Household Characteristics?

This article analyzes how sociodemographic characteristics impact the adoption of online grocery shopping, and relies on the Motivation-Opportunity-Ability (MOA) model to explore what these sociodemographics actually capture and how they are linked with consumer motivations. The researchers exploit a survey among 468 customers of Belgian supermarket chain Colruyt. Their logistic regression shows that while variables at the personal level do affect adoption of the online channel, consumers’ motivations to adopt in fact lie on the household level. In particular, the effect of age disappears or becomes less strong when it is combined with household characteristics. An examination of respondents’ self-reported motivations confirms that age does not only capture a person’s ability to use the technology but also its usefulness for that person’s household, in that age is correlated with the presence of young children and the working situation in the household.     

Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment

This article uses a novel experimental approach to measure consumer willingness to pay (WTP) for wine attributes. We invited customers of a local supermarket who had selected a bottle of wine to purchase to participate in a valuation experiment. Integrating their original wine choice into the experiment, each participant evaluated six alternative wines, generating a rich set of data on willingness to pay and consumer characteristics. The data from the experiment allow us to compare standard shelf price‐based wine attribute valuation estimates with estimates using WTP data and an increasing amount of information about individual consumers. The full model employs individual fixed effects to estimate WTP parameters without bias from consumer sorting or supply side influences. Our WTP estimates for wine attributes differ markedly from previous attribute value estimates. Consumers in our sample display clear and stable preferences for wine varieties, but less clear preferences for appellations. Our results suggest caution is needed in using market prices to estimate parameters of the consumer valuation function for product attributes.     

Capital,credit constraints and the comovement between consumer durables and nondurables

Evidence indicates that consumer durables are more flexibly priced than nondurable goods and services. In otherwise standard two-sector neoclassical sticky-price models with flexible durable prices, following monetary tightening, nondurables decrease but consumer durables increase. Friction in lending between households can resolve the comovement problem if durable prices are sticky. However, if durable prices are flexible, friction in lending fails to generate joint decline. This paper resolves the co-movement problem by adding capital into a model with flexible durable prices and friction in lending. When capital is needed in production, monetary tightening reduces the relative price of durables which induces investment and decreases firms' real profits in the short run. Due to fewer profits remitted from firms, savers have a lower disposable income and cannot increase expenditures on consumer durables as much as otherwise. As a consequence, aggregate consumer durables decrease and there is a joint decline of nondurables and consumer durables.     

Understanding the effect of personal and social value on attitude and usage behavior of luxury cosmetic brands

The growth of the luxury market has been phenomenal in recent years, especially in the emerging markets such as India. This research studied luxury value aspects (personal and social) of luxury cosmetic brands and their impact on consumer attitudes and usage behavior, with a focus on women consumers. Data was collected in the form of a survey from 372 women luxury cosmetic users. Structural equation modeling was used to analyze the framework. Hedonism and status value were found to have high significant relationship towards attitude whereas usage behavior was influenced by materialism and status value. Hence the symbolic and psychological traits among consumer will show their willingness to buy and preferences on luxury cosmetic brands. The findings of this study provide valuable insights to marketers and managers to understand consumer trends, attitudes and behavior in the luxury cosmetic market and develop marketing strategies to successfully market their products.     

Intrinsic factors affecting impulsive buying behaviour—Evidence from India

The goal of this research is to examine the effect of five intrinsic factors, namely, personality, culture, materialism, shopping enjoyment tendency, and impulsive buying tendency on impulsive buying behaviour. Using structural equation modeling, responses from 508 consumers in the different parts of India’s National Capital Region were analysed and results showed that while the three constructs of materialism, shopping enjoyment tendency, and impulsive buying tendency had significant positive relationship with impulsive buying behaviour, the cultural construct of collectivism and two personality constructs of extraversion and conscientiousness too showed significant relationship.The study assumes immense significance because it not only presents useful insight regarding the behaviour of Indian consumers in an ever developing retail sector in India, but also considering the fact that this is the first time an attempt has been made to assess the simultaneous impact of these five intrinsic factors on impulsive buying behaviour. Importantly, the findings also revealed that the influence of intrinsic variables on impulsive buying behaviour did not vary across gender.     

The influence of self-construal and co-consumption others on consumer complaining behavior

Consumers show great individual variability in complaining behavior even after experiencing similar service failures. The present study examined the effect of self-construal and co-consumption others on consumer complaining behavior following a service failure. Based on an experimental study with a sample of 202 in a restaurant context, MANCOVA results revealed significant effects of self-construal on voice response and switching behavior. The results also showed a significant interaction effect of self-construal and the presence of co-consumption others on switching behavior. The findings shed light into the intrapersonal and interpersonal dynamics at work when consumers react to service failures. Theoretical and managerial implications of the findings are also discussed.     

Test for the real option in consumer behavior

Consumers become indecisive when facing too many choices. Economic analysis suggests that when a decision involves uncertain outcome, can be delayed and is irreversible, there will be a real option in the cost–benefit analysis. For example, the option to keep alive a consumer's purchasing decision has a significant value. It allows the consumer to take advantage of any future advantageous deals while avoiding the bad choices. This renders the consumer more hesitant. When a consumer decides to exercise his buying decision, he demands a compensation for the loss of this option. Hence, the benefits of a purchase must be over and above its costs by a wide margin (the option value). Data from a survey at a Turkish university on hypothetical purchase decisions confirmed the existence of this real option. We conclude with marketing policy recommendations and future research directions. Connection to the Prospect Theory is briefly explored.Note: Although the 3rd person singular pronoun he/his was used throughout to describe the consumer, he was intended to be gender-neutral.