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Third party labeling and the consumer decision process
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The objective of this research is to explore the decision-making process of consumers when faced with food products that have values-based labels.
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While farmers in rural areas of northern Ghana find it difficult to obtain sufficient organic soil amendments to keep their soil healthy, there is not enough demand for city compost factories attempting to clean cities of organic solid waste to sustain composting rate at waste-clearing levels. In this study, 398 farmers in rural communities were surveyed in order to estimate the willingness-to-pay for different quality and access attributes of municipal solid waste (MSW) compost and examine how demand for it can be boosted among such farmers. Several specifications of the generalized multinomial logit (G-MNL) model, using farmers’ choice data, revealed that the compost quality and market access attributes surveyed in the study significantly affect farmers’ decision to buy MSW compost. The results also showed that preferences for the attributes vary widely among the farmers, mainly due to some unobserved personal factors. On average, the empirical estimates indicate that for a 50 kg compost bag, farmers are willing to pay GHS 9.43 for brand/label, GHS 5.76 for pelletized compost, GHS 4.49 for delivery in the community, and GHS 2.49 for sales when they have their cash windfall. Farmers face an average disutility of at least GHS 33.36 for deciding not to buy compost, regardless of its attributes, indicating that besides the attributes captured by the study, other factors important to farmers influence their purchase decisions. Significantly discounted prices together with improved compost quality increase the probability of compost purchase. Thus, overall the findings highlight the need to subsidize MSW compost by more than 50 per cent, to sell it in pelletized form and branded/labelled packages while making it accessible to rural farmers during their cash windfall.
Evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value. Propositions about the concepts and their relationships are presented, then supported with evidence from the literature. Discussion centers on directions for research and implications for managing price, quality, and value.
In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators. (46 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Après avoir décliné la typologie des caractéristiques des produits en termes d'attributs de recherche, d'expérience et de croyance, les auteurs soulignent les mécanismes susceptibles d'assurer l'efficacité des transactions marchandes. Afin de cerner les enjeux liés à la loyauté des transactions dans le cas des attributs de croyance, ils montrent à l'aide d'un jeu simple, le caractère crucial des phases de définition, de vérification et de signalement, ces dernières nécessitant généralement l'intervention d'agents extérieurs à la transaction marchande.
The authors develop a new survey-based method for measuring and understanding a brand's equity in a product category and evaluating the equity of the brand's extension into a different but related product category. It uses a customer-based definition of brand equity as the added value endowed by the brand to the product as perceived by a consumer. It measures brand equity as the difference between an individual consumer's overall brand preference and his or her brand preference on the basis of objectively measured product attribute levels. To understand the sources of brand equity, the approach divides brand equity into attribute-based and nonattribute-based components. The method provides the market share premium and the price premium attributable to brand equity. The survey-based results from applying the method to the toothpaste and mouthwash categories show that the proposed approach has good reliability, convergent validity, and predictive validity.
The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i.e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research.
The ability of three advertising cues-third-party product endorsement, brand popularity, and event sponsorship-to affect consumer perceptions with regard to product quality, uniqueness, manufacturer esteem, and corporate citizenship is the focus of this study. A factorial experimental design, with cue level as either present or absent, yields eight cells with a total of 185 respondents. Results suggest significant main effects for both endorsement and sponsorship cues, with endorsement affecting perceived quality, uniqueness, and esteem, and sponsorship affecting only citizenship, The popularity cue lacks a significant main effect. The three cues do not significantly interact with each other.
The authors report results of a mall-intercept study regarding the effects of health claims on consumer information search and processing behavior. Results suggest that the presence of health and nutrient-content claims on food packages induces respondents to truncate information search to the front panel of packages. Respondents who either truncate information search or view claims provide more positive summary judgments of products and give greater weight to the information mentioned in claims than to the information available in the Nutrition Facts panel. The presence of a claim also is associated with a halo effect (rating the product higher on other health attributes not mentioned in the claim) and, for one of the three products tested, a magic-bullet effect (attributing inappropriate health benefits to the product). The authors discuss the policy implications of these results for Food and Drug Administration health claim regulations.