Dairy Products Market Segmentation: The Effects of Country of Origin on Price Premium and Purchase Intention

This study examines the impact of country of origin and other marketing factors on perceived price premium and purchase intention of dairy products. Applying factor analysis and 2-step cluster analysis, the article finds that there are 4 segments in the Thailand dairy market. The respondents in each segment perceive quality of products from 6 countries (or regions) differently. Three segments that consider country of origin have their evaluation of price premium and purchase intention of products from each country higher than the remaining segment. The applications to market strategy of international food companies and agribusiness industries are discussed.