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Consumer Heterogeneity in the Willingness to Pay for Local and Organic Food
Abstract
Due to growth and changing distribution channels for organic food in Germany, there is some concern that organic food is losing authenticity. Contrarily, local food production is seen as a new trend and is gaining market share. This article analyzes whether those alternative concepts of organic and local food production rather support or threaten each other in consumers’ choice. Results of a Bavarian survey, including a choice experiment for bread, beer, and milk on the attributes price, brand, local, and organic, are analyzed using a mixed logit model. Willingness-to-pay estimations confirm the importance of local production to the surveyed consumers, especially in interaction with organic production, leading to the conclusion that the two production methods can support each other in achieving price premiums. The estimated standard deviations show significant heterogeneity of the parameters for all three products for most attributes.
... Furthermore, the ethical attributes in our experiment are not linked to the explicit use of labels, certifications or brands, as in previous studies (Hasselbach and Roosen, 2015;Illichmann and Abdulai, 2013;Klein, 2011;Wägeli et al., 2016). This is because there is no existing label for these ethical attributes (except for regional origin) in Germany and they have not been covered in valuation studies. ...
... As Hensher et al. (2015, p. 52) note: "Treating constants as generic parameters…should only be done if, empirically, the ASCs for two or more alternatives are found to be statistically equivalent." Furthermore, an ASC can be used to test for systematic bias, where respondents might tend to select the first alternative in a choice set (Hasselbach and Roosen, 2015)." ...
... In general, respondents show greater support for small, below-average income farms. Apart from contributing to environmental protection, by buying regional products, consumers typically want to support the local economy (Hasselbach and Roosen, 2015;Menapace and Raffaelli, 2016) and thus may focus more on supporting all farms in their region. Another possible reason for this result might be confounding of dropped interaction effects, which as mentioned earlier might be a limitation of the experimental design. ...
Payments for ecosystem services (PES) and agri-environmental schemes (AES) are often introduced with the goal to counteract overexploitation of natural habitats and biodiversity loss in forests and agricultural landscapes. Their ecological effectiveness and cost-effectiveness have been, however, repeatedly questioned in the literature. One way of increasing the cost-effectiveness of such schemes is spatial differentiation of payments, which reflects regional differences in conservation benefits and costs and thus maximizes the ecological effect achieved with available financial resources. Another major critique for PES and AES is that they often pursue poverty alleviation and rural development objectives, which can compromise their cost-effectiveness. As the Tinbergen rule in economic theory suggests, each policy goal requires a separate policy instrument. However, as other policy instruments, PES and AES have distributional effects. Especially in developing countries, where governments are often weak and less able to successfully implement multiple policies, the distributional effects might not be adequately addressed. The distributional implications of PES and AES could even have an adverse effect on the cost-effectiveness of the schemes, if due to low acceptance among the potential ecosystem service (ES) providers, participation rates in these voluntary schemes are lower than optimal or if transaction costs are affected. From an economic perspective, if distributional goals are important for the design of PES and AES, the fairness preferences of potential ES buyers should be considered. This thesis uses three case studies to address selected aspects of distribution and fairness in PES and AES from different perspectives. It provides insights into the preferences of potential ES buyers in Germany for distribution and other fairness aspects in PES and AES using two choice experiments and analyses possible distributional effects of cost-effective homogeneous and regionalized payments in AES. The surveys among potential ES buyers suggest preferences for maximin and equal distribution of payments, and preferences for animal welfare and biodiversity conservation (for local as well as for distant biodiversity), which could be directions for improvement of AES and PES. Regarding distributional impacts of AES, a trade-off between equality and cost-effectiveness is confirmed. Equity generally increases with improved cost-effectiveness of homogeneous payments. Spatially differentiated payments improve the cost-effectiveness substantially, by aligning the payments to the regional costs and the measures to the regional specifics and potential ecological benefits. However, they have substantial redistribution effects, poorer regions are adversely affected. This shows the importance of analyzing the distributional implications of cost-effective AES and PES on different spatial levels and calls for a holistic approach in policy evaluation and implementation.
... Second, the authenticity of a brand might help in achieving consumers' identity and experience-related benefits (Beverland and Farrelly, 2010;Chhabra and Kim, 2018;Gundlach and Neville, 2012;Lalicic and Weismayer, 2017;Leigh et al., 2006;Thompson et al., 2006;Thyne and Hede, 2016). Third, it increases consumers' willingness to purchase (Fritz et al., 2017;Ilicic and Webster, 2014;Napoli et al., 2014); their inclination to pay a price premium (Assiouras et al., 2015;Beverland, 2005a,b;Hasselbach and Roosen, 2015;Moulard et al., 2015a); and their brand loyalty (Choi et al., 2015;Lalic and Weismayer, 2017;Mody and Hanks, 2017). Lastly, recent studies have highlighted its positive effects on brand love (Manthiou et al., 2018;Mody and Hanks, 2017), brand engagement (Preece, 2015) emotional brand attachment (Choi et al., 2015;Guèvremont and Grohmann, 2016;Kowalczyk and Pounders, 2016;Morhart et al., 2015) and Word of Mouth (WOM) (Assiouras et al., 2015;Morhart et al., 2015). ...
... Brands should offer genuine brand promises and, most importantly, there should be coherence between the brand promise and its delivery, especially in the service industry (Charmley et al., 2013;Pattuglia and Mingione, 2017;Sirianni et al., 2013). In reflecting the constructivist nature of subjective authenticity, research has suggested that brand authenticity is socially constructed (Aitken and Campelo, 2011;Brown et al., 2003;Charmley et al., 2013;Corciolani, 2014;Kates, 2004;Leigh et al., 2006) Existential lenses imply the inclusion of the following dimensions: morality, integrity, and ethicality (Beverland and Farrelly, 2010;Beverland et al., 2008;Choi et al., 2015;Girardin et al., 2013;Hasselbach and Roosen, 2015;Leigh et al., 2006;Morhart et al., 2015). This form of authenticity derives from the self and embraces post-modernist thinking (Leigh et al., 2006). ...
... Significant contributions of the current study stem from findings related to existential sources by highlighting their vital role when brands aim at building an authentic (wine) brand. Traditionally, academics have conceived the existential source rooted in moral, ethical and integral principles (Beverland and Farrelly, 2010;Beverland et al., 2008;Choi et al., 2015;Girardin et al., 2013;Hasselbach and Roosen, 2015;Leigh et al., 2006;Morhart et al., 2015), which find their expression in Antonelli's care for the brand ecosystem, including people, the terroir and the entire location. Thus, these lenses shed light on a potential connection between being sustainable and being authentic (Alhouti et al., 2016;Beckman et al., 2009;McShane and Cunningham, 2012). ...
Purpose of the paper: The purpose of this study is to explore the sources of brand authenticity of a well-known Italian vineyard through the digital age lens and an organizational perspective.
Design/methodology/approach. This study adopted a qualitative single case study design. Antonelli San Marco, an Italian brand with an estate located in Montefalco was selected. Eleven interviews with members of the family who own and manage the business, as well as their employees, were conducted. After transcribing and translating the interviews when needed, they were coded and their content analysed.
Findings. Findings confirmed the dimensions of brand authenticity of previous studies in the wine industry. This study also confirmed the objective, subjective, and existential sources of brand authenticity from previous research. Remarkably, the existential source, which was traditionally linked to integrity elements, emerged here as the result of Antonelli's care for the brand ecosystem, including people, the terroir and the entire location. In addition, a new category of brand authenticity was found, in relation to a brand's competitive side, to be fundamental in competing in the digital age and focused on the importance of narrating the real brand story while engaging in collaborative relationships and carefully managing eco-capabilities, technological skills, and digital capabilities.
Originality/value. The framework that is presented in this paper provides an original view on wine brand authenticity from a managerial standpoint, highlighting new challenges that must be faced to successfully compete in the digital era while maintaining brand authenticity over time and across diverse stakeholders.
... Studies of Bosworth et al. (2015) report that consumers show a willingness to pay more for local and national products compared to retailers' private labels. Other studies also indicate that estimates of willingness to pay confirm the importance that consumers place on local production (Hasselbach, Roosen, 2015). ...
... Small scale operations are associated by consumers with a smaller sprawl, congestion, habitat loss, and pollution (Why buy local?, 2023). Some studies indicate that estimates of willingness to pay confirm the importance that consumers place on local production (Hasselbach, Roosen, 2015). ...
With growing awareness of the risks of consumption for the ecosystem and intense changes in consumer values, green alternatives to consumer fast-moving goods are increasingly being offered by
manufacturers. These products are supplied to the market by companies of different nature – both
large corporate brands implementing green lines and local craft producers offering naturally and
handmade green products. The purpose of the experimental study is to verify whether the nature of
the company producing a green product (big corporate vs. small local) affects willingness to pay premium for the green product. Additionally factor such perceived environmental friendliness is tested
as a moderator of such potential relationship. The survey experiment was conducted with a sample
of 160 consumers representing different level of environmental responsibility. Finding indicates that
the type of the manufacturer does not have a significant effect on willingness to pay more for a green
product. However, the study found that people with high level of environmental responsibility are
willing to pay more for a product from a local manufactory compared to those with medium and
low environmental responsibility level. The results will allow the development of conclusions of particular value to companies communicating the environmental friendliness of the product offered.
Contribution of this study to the academic and practice is discussed.
... Additionally, interest in information about quality, traceability, sustainability, and origin also influences consumers' purchase intentions of organic food [8][9][10]. All of this raises the question of whether organic and local origin are competing or independent attributes, when it comes to food purchasing [4,5,[11][12][13]. Recent studies have not provided a clear answer to this question. ...
... Recent studies have not provided a clear answer to this question. In fact, some studies show that organic consumers are attracted to origin claims and consumers of local food are attracted to environmental claims [13,14], while other studies show that consumers prefer to buy local rather than organic food [5] or that consumers who perceive the benefits of organic products prefer both organic and local origin foods, while those who perceive the benefits of local origin do not necessarily prefer organic food [11]. There are different definitions of attitudes towards food of local origin-in consideration of cognitive, affective, and behavioral components. ...
As no study on attitudes towards local food has compared “organic” and national quality scheme consumer segments, this study aimed to provide further insights and clarifications on the issue of consumer segmentation in terms of trust towards organic food and food of selected quality perceived as local, along socioeconomic characteristics, and other important determinants of this complex interaction. The research examines consumers’ attitudes and perceptions related to two quality schemes for special Slovenian foods: “Organic”, which relates to production methods; and “Selected Quality”, which relates to quality attributes. The study focused on two segments of consumers, who exhibit a high level of trust towards the two quality schemes. Comparative analysis of the consumer segments looked for the potential differences with respect to their sociodemographic profiles, as well as to their understanding of the definition of local food, attitudes towards local food, trust in actors and institutions, and willingness to purchase local food. The study combined qualitative approaches and a quantitative survey with a general population sample. The results showed that both consumer groups have similar understandings of local food, with region-based interpretations outperforming country-based interpretations. The “Organic” group was more cosmopolitan and supportive of the local community, regardless of geographic proximity, than the “Selected Quality” group. Older consumers occupy a larger share of both segments, with professionals and individuals with higher incomes more likely to be in the “Organic” group and retirees and students more likely to be in the “Selected Quality” group. To increase the consumers’ interest in food with the “Organic” and “Selected Quality” schemes, more specific product propositions should be developed.
... Ditlevsen et al. (2020) point out that the debate between complementarity and substitution remains active. While Denver and Jensen (2014) or Hempel and Hamm (2016b) suggest two profiles of local products consumers (those who prefer organic and those who do not), other research (Adams and Salois, 2010;Hasselbach and Roosen, 2015) found a strong positive interaction effect, meaning that the willingness to pay for organic was markedly higher, if the product was also local. ...
... However, these studies also underscore the ambiguity that surrounds buyers' interpretation of the different production practices labels and between production practice and origin. As noted by Hasselbach & Roosen (2015), the potential to get a higher premium might also emerge from the combination of a local origin and the indication of production practice. ...
Labeling strategies are often discussed in the context of direct-to-consumers marketing for small family farms. Substantial research has been conducted in order to identify preferences for different labeling strategies. Some studies have also highlighted the substitution or complementarity effect that may occur across the different labels. Using a large choice experiment with 1820 respondents across six southern states, we assess buyers' preferences for co-labeling strategies based on the association of a production practice and certification (USDA Organic and Certified Naturally Grown, CNG) and six different production locations (Local area to imported). We focus on pint baskets of cherry tomatoes since these are popular items among purchasers of fresh produce. Based on the results provided by a Bayesian Mixed Logit model, we derived the respondent-specific posterior distribution of the partworth associated with each production location and regressed each of those against demographic indicators. We find that most buyers substitute organic and CNG while a few would consistently choose the same production practice option. Our findings also underscore that price or an indication of origin predominantly guide nearly half of buyers' choices. Additionally, we find that the premium for CNG is superior to the organic one. Lastly, older respondents and respondents with a higher degree of education value produce grown in and around "their area" over state and country origins.
... However, the two most broadly known movements are frequently referred to as one set: local and organic foods. This phenomenon might be natural because many studies have noted that consumers with a positive perception of organic products also have a relatively positive preference for products that are locally produced (e.g., Denver and Jensen, 2014;Hasselbach and Roosen, 2015a;Hempel and Hamm, 2016). Organic food consumers might be local food lovers and vice versa. ...
... From the angle of consumers, Hempel and Hamm (2016) also argued that local food production complemented organic food production in a group of organic-minded consumers. Furthermore, a WTP estimation by Hasselbach and Roosen (2015a) confirmed that the two production methods can support each other in achieving price premiums. ...
Two alternative food movements (AFMs)-local and organic-frequently appear together as "local organic food" in real settings as well as in academic studies. Why have the two AFMs been dealt with together despite their obviously different objectives? Through a review of the existing studies that have referred to the interactions of the two realms, I attempted to elucidate the overlap and identified nine factors linking the two AFMs: diversity in local food, bifurcation of organic food, sales channels to be expanded, substitutability, complementarity, competition in markets, trust on different levels, integration of society with nature, and community tradition.
... The products that are considered "naturally healthy," such as organic food products or functional foods, are becoming popular (Aschemann-Witzel et al., 2013;Guilabert & Wood, 2012;Mellentin, 2013;Willer & Lernoud, 2016). There may be found numerous studies have focused on the role of food naturalness in shaping consumer intention or consumer behavior toward the consumption of organic food (Asioli, Canavari et al., 2014;Bäckström et al., 2004;Chen, 2007;Hasselbach & Roosen, 2015a;Lockie et al., 2002Lockie et al., , 2004Lyerly & Reeve, 2015;Mouta et al., 2016;Onwezen et al., 2013;Urala & Lähteenmäki, 2007).In Pakistan's context, consumers have always been trying to seek naturalness in food products. The concept of naturalness is considered imperative in the current study context because certain quail and poultry farms in Pakistan claim to be rearing the birds free from antibiotics. ...
... The revealed information on the label serves as a source of trust and quality of food products Lassoued & Hobbs, 2015). The perception of naturalness as perceived by consumers may also lend support to the consumer in building trust in organic food products as several studies have established a positive relationship between food naturalness and consumer intention or behavior to consume organic food products food (Asioli, Canavari et al., 2014;Bäckström et al., 2004;Chen, 2007;Hasselbach & Roosen, 2015a;Lockie et al., 2002Lockie et al., , 2004Lyerly & Reeve, 2015;Mouta et al., 2016;Onwezen et al., 2013;Urala & Lähteenmäki, 2007). The trust leads to the food safety of the product (Chen, 2008), concern for safety (Sapp & Bird, 2003), and consumer confidence (De Jonge et al., 2007, 2008. ...
The study’s objective is to explore the predictors of organic food purchase intention in a nascent organic market in one of the developing countries in South Asia. Further, the study also attempts to establish the mediating role of trust in organic food purchase intention. The quantitative data is collected from two cities of Pakistan through a structured questionnaire. A total of 325 responses are collected, out of which 312 responses are considered for further analysis. Structural equation modeling technique is used to test the hypothesis. “Personal attributes” is found to be a more significant predictor of organic food purchase intention than other attributes. Trust in organic food partially mediate personal attributes and product attributes with organic food
purchase intention. The study contributes to understanding the primary attributes responsible for the purchase of organic
food in a nascent organic market and establishes trust. This study also provides guidelines for the policymakers to shift their
focus to organic farming, which will bring considerable benefits to health and the environment and a profitable business
because consumer’s intentions coincide.
... The products that are considered "naturally healthy," such as organic food products or functional foods, are becoming popular (Aschemann-Witzel et al., 2013;Guilabert & Wood, 2012;Mellentin, 2013;Willer & Lernoud, 2016). There may be found numerous studies have focused on the role of food naturalness in shaping consumer intention or consumer behavior toward the consumption of organic food (Asioli, Canavari et al., 2014;Bäckström et al., 2004;Chen, 2007;Hasselbach & Roosen, 2015a;Lockie et al., 2002Lockie et al., , 2004Lyerly & Reeve, 2015;Mouta et al., 2016;Onwezen et al., 2013;Urala & Lähteenmäki, 2007).In Pakistan's context, consumers have always been trying to seek naturalness in food products. The concept of naturalness is considered imperative in the current study context because certain quail and poultry farms in Pakistan claim to be rearing the birds free from antibiotics. ...
... The revealed information on the label serves as a source of trust and quality of food products Lassoued & Hobbs, 2015). The perception of naturalness as perceived by consumers may also lend support to the consumer in building trust in organic food products as several studies have established a positive relationship between food naturalness and consumer intention or behavior to consume organic food products food (Asioli, Canavari et al., 2014;Bäckström et al., 2004;Chen, 2007;Hasselbach & Roosen, 2015a;Lockie et al., 2002Lockie et al., , 2004Lyerly & Reeve, 2015;Mouta et al., 2016;Onwezen et al., 2013;Urala & Lähteenmäki, 2007). The trust leads to the food safety of the product (Chen, 2008), concern for safety (Sapp & Bird, 2003), and consumer confidence (De Jonge et al., 2007, 2008. ...
The study’s objective is to explore the predictors of organic food purchase intention in a nascent organic market in one of the developing countries in South Asia. Further, the study also attempts to establish the mediating role of trust in organic food purchase intention.
The quantitative data is collected from two cities of Pakistan through a structured questionnaire. A total of 325 responses are collected, out of which 312 responses are considered for further analysis. Structural equation modeling technique is used to test the hypothesis. “Personal attributes” is found to be a more significant predictor of organic food purchase intention than other attributes. Trust in organic food partially mediate personal attributes and product attributes with organic food purchase intention. The study contributes to understanding the primary attributes responsible for the purchase of organic food in a nascent organic market and establishes trust. This study also provides guidelines for the policymakers to shift their focus to organic farming, which will bring considerable benefits to health and the environment and a profitable business because consumer’s intentions coincide.
... The studies generally use two methodological approaches: non-hypothetical experiments (in-store surveys, including auctions) or hypothetical choice experiments. In most studies, survey respondents are better educated and with higher income levels than the average local population (Brown, 2003;Carpio and Isengildina-Massa, 2009;Carroll et al., 2013;Giraud et al., 2005;Grebitus et al., 2013;Hasselbach and Roosen, 2015;James et al., 2009;Kiss et al., 2020;Loureiro and Hine, 2002;Nganje et al., 2011;Onken et al., 2011;Onozaka and McFadden, 2011;Schneider and Francis, 2005;Willis et al., 2016). Hence, WTP estimates are only valid for this type of respondents (i.e. ...
... Moreover, buying habits (e.g. experience with buying local or organic food), selling venues and the specific product and quantity bought influence consumers' WTP for local food (Adalja et al., 2017;Brown, 2003;Campbell et al., 2010;Carpio and Isengildina-Massa, 2009;Carroll et al., 2013;Chang et al., 2013;Fan et al., 2019;Giraud et al., 2005;Gracia et al., 2012;Grebitus et al., 2013;Hasselbach and Roosen, 2015;Hempel and Hamm, 2016;Hu et al., 2012;Kiss et al., 2020;Loureiro and Hine, 2002;Nganje et al., 2011;Onken et al., 2011;Printezis and Grebitus, 2018;Tempesta and Vecchiato, 2013;Umberger et al., 2009;Vapa-Tankosić et al., 2020;Willis et al., 2016;Yue and Tong, 2009). Printezis and Grebitus (2018) highlight differences in WTP for local food products based on the distribution channel usedon average, consumers in Phoenix and Detroit (USA) are willing to pay a premium for local food, but not when it is sold at farmers' markets or purchased directly from an urban farm (i.e. ...
CONTEXT
Food systems worldwide are under enormous pressure. Over the past decades, local food systems have been promoted by governments and civil society organisations as a lever for change towards more inclusive, resilient and sustainable food systems based on the belief of their many purported benefits.
OBJECTIVE
The goal of this article is to test eight common beliefs on local food systems – from a consumer, farmer, community and environmental perspective – against scientific evidence, with a focus on North America and Europe.
METHODS
We conduct a systematic multi-disciplinary literature review and identify 123 peer-reviewed studies on local food systems.
RESULTS AND CONCLUSIONS
We find that the impact of local food systems on different social, economic and environmental factors highly depends on the type of supply chain under assessment, with important differences across product types and countries. Hence, our review refutes the idea that local food is inherently good. In addition, we highlight the confusion surrounding the definition of a local food scale and point out a critical lack of cross-country comparable data hindering the possibility of drawing generalisable conclusions on the benefits and drawbacks of local food systems.
SIGNIFICANCE
A comprehensive review of multi-disciplinary scientific evidence confirming (or refuting) claims on local food systems was missing, leading to possible counter-productive policies. Based on our findings, we suggest that policy-makers should invest in cross-country comparable data collection on local food systems (especially in Europe), which would allow the scientific community to perform robust causal analyses on their impacts on society.
... In contrast to the previous studies, our study makes several contributions regarding organic food consumption by examining a theoretical model on the associations between food safety concerns and health consciousness with the customers' involvement that leads to their purchase intentions. Past research studies on organic food consumption behavior focused on developed regions such as Europe and America (Hasselbach & Roosen, 2015a;Heerwagen et al., 2015;Lockie et al., 2002;Załęcka et al., 2014). Although the consumption of organic food largely belongs to advanced countries, nonetheless, people in developing countries have started prioritizing organic foods over conventional foods (Al-Swidi et al., 2014). ...
... Recent studies have indicated that consumers are gradually becoming more conscious about their health and they often prefer to purchase natural and healthy food products (Hasselbach & Roosen, 2015a, 2015b. In this regard, organic foods are generally considered healthier than conventional foods (Raza et al., 2019). ...
The organic food market is speedily growing in the current era; organizations in this industry, therefore, need to understand consumer motivations, perceptions, attitudes, and behavioral intentions of purchasing organic food. Based on a survey of 268 respondents, we investigated the relationships between individuals’ food safety concerns and health consciousness with their purchase intentions of organic food. The findings of our study reveal that individuals’ health consciousness and food safety concerns are positively related to their intentions of purchasing organic food products through consumer involvement. In addition, consumers’ ecological motive has been found as a boundary condition on the direct and indirect relationships described above such that the associations are stronger at the higher levels of ecological motive.
... But it is unclear from their study whether this interest translates into a willingness to pay (WTP) for the localness of the input or for the information on its origin. To our knowledge only the studies of Hasselbach and Roosen (2015) and Hart (2018) focused on consumer valuation of local beer. Hasselbach and Roosen (2015) found that Bavarian beer consumers preferred a national brand to a brand "Quality certified Bavaria", while Hart (2018) observed that consumers, who were interviewed at a beer bar in California, were willing to pay a price premium when the craft beer under consideration was locally owned and independently produced. ...
... To our knowledge only the studies of Hasselbach and Roosen (2015) and Hart (2018) focused on consumer valuation of local beer. Hasselbach and Roosen (2015) found that Bavarian beer consumers preferred a national brand to a brand "Quality certified Bavaria", while Hart (2018) observed that consumers, who were interviewed at a beer bar in California, were willing to pay a price premium when the craft beer under consideration was locally owned and independently produced. ...
In this study we aim at exploring consumer valuation for craft beer brewed locally and made with locally grown hops. The research is motivated by the fact that, although existing literature shows that consumers generally pay a price premium for locally produced foods or those made with local ingredients, it is still unclear how consumers value localness of production (i.e., brewing location) over localness of inputs (i.e., hops origin) and whether consumers value these attributes as either complements or substitutes. Moreover, little is still known regarding consumer preference for local ingredients in beer. Thus, we address these research questions by means of a choice experiment survey on craft beer consumers in the State of Indiana, United States. Results show that consumers have the highest willingness to pay for craft beer brewed in-state, but preferences over hops origin are heterogeneous. We find evidence of complementarity between brewing and hops origins among frequent craft drinkers and evidence of substitution between these claims for casual drinkers. Segmenting consumers based on how they define local beer, we find one consumer segment that has the highest willingness to pay for beer brewed in-state and made with hops that are grown in-state. These results can inform product differentiation, marketing, and pricing strategies. They are also relevant to state policymakers supporting local hops production and local brewing.
... Previous researchers have suggested that various values influence organic food purchase decision. These values are related to 'taste' (Magnusson et al., 2001;Stobbelaar et al., 2007;McEachern and McClean, 2002;Roddy et al., 1996;Schifferstein and Oude Ophuis, 1998; It is to be noted here that the superior taste of organic foods than conventional produce has been contested by Hannahan, 2013 andFillion andArazi, 2002), security (Shin et al., 2019;Pham et al., 2019;Hansen et al., 2018;Teng and Lu, 2016;Smith and Paladino, 2010;Chen, 2009;Michaelidou and Hassan, 2008;Chekima et al., 2017;Hasselbach and Roosen, 2015;Rahnama, 2017), health concern (Nedra et al., 2015), environmental concern, environmental attitude and environment protection (Aertsans et al., 2009;SC Grunert and Juhl, 1995;Schifferstein and Oude Ophuis, 1998;Lea and Worsley, 2005;Nedra et al., 2015;Moser, 2016;Pomsanam et al., 2014;Janssen, 2018;Magistris andGracia, 2008 &Chen, 2009;Thøgersen and Zhou, 2012;Thøgersen et al., 2015). Apart from this, both altruistic and egoistic values are also found to influence intentions to purchase organic foods in the past (Yadav, 2016). ...
... The recruits were briefed about organic foods and the the overall objectives of the study. The respondents were then presented with a list of utilitarian and hedonic attributes associated with organic foods based on previous studies (Aarset et al., 2004;Dean et al., 2006Dean et al., , 2008Guido et al., 2010;Krystallis et al., 2006b;Padel and Foster, 2005;Shepherd et al., 2005;Zanoli and Naspetti, 2002;Harper and Makatouni, 2002;Thøgersen et al., 2015& Rahnama, 2017Hasselbach and Roosen, 2015;Chekima et al., 2017& Anisimova, 2016, Audebert et al., 2006Pohjanheimo et al., 2010;Lea and Worsley, 2005;Homer and Kahle, 1988) which are found to affect consumption decisions. Refer to Table 1 for list of values. ...
A B S T R A C T The extant literature on predicting organic food choice as a consumption behaviour has overlooked the role of food eating values (utilitarian and hedonic values) and individuals exploratory buying behavioural traits (exploratory information seeking and exploratory acquisition seeking). The novelty of the study is the use of food eating values and individuals exploratory buying behaviour traits as an extension to the basic theory of planned behaviour in predicting attitude and intentions towards organic food consumption with a representative sample of N = 431. Data was collected in two phases. In the first phase, a small qualitative face to face (semi structured) interviews were held from 22 respondents to elicit the utilitarian and hedonic values individuals attach with the organic food consumption. This is followed by the collection of survey data from two Indian metropolitan cities (New Delhi and Chennai) using a mall intercept method from the individuals visiting hypermarkets and supermarkets. The hypotheses were tested using structural equations modelling or SEM in IBM AMOS 24. Attitude to consume organic foods was found to be most dominant in predicting behavioural intention in both basic and the extended TPB model followed by subjective norms. Perceived behavioural control was found to be a significant predictor only in the extended TPB model, suggesting a dual role. Findings also suggested that utilitarian values are more influential than hedonic values in the formation of attitudes towards organic foods. Further, the exploratory information seeking traits are found to strengthen the relationship between a) perceived behavioural control and behavioural intention to consume organic foods and b) attitude to consume organic foods and behavioural intention to consume organic foods whereas exploratory acquisition seeking traits to be strengthening the relationship between attitude and behavioural intentions only. Implications for the policy makers is discussed towards the end of the study.
... Over the last decades, food culture has shifted in advanced economies, often driven by both environmental and health concerns [11], to a more balanced and broad variety of food choices, such as organics. To satisfy these concerns, consumers show an increased appetite for different food attributes, such as quality [12], ascribed health benefits [13], or locality [14], and are prepared to pay a premium for these attributes [15]. One food attribute that has been somewhat less frequently studied in the context of food in advanced economies-except for food-scare crises-is that of safety. ...
... Risk perception RP1: When eating beef I am exposed to a great deal of risk. 12 Note: 1 = strongly disagree, 7 = strongly agree. ...
As the COVID-19 pandemic brings about sudden change in societies across the globe and likely heralds the start of a recession, we examine the pandemic’s impact on consumer food safety perceptions. Due to its origin, COVID-19, likely spurring from an animal-to-human transmission in the context of a wet market, may impact consumer food perceptions in similar ways to the avian flu (H5N1) and the swine flu (H1N1). We examine this effect by studying preferences for beef meat in a consumer survey in the United States (n = 999) using a choice-based experiment. We compare our findings to Lim et al. (2014), who elicited consumer beef willingness to pay (WTP). Additionally, we investigate the impact of the looming recession by analyzing several attributes and their effect on consumer preferences. Our findings suggest that food safety concerns have become more important. As a result, production standards and the country of origin have lost importance. Additionally, we show that the socioeconomic impact for some respondents impacts their shopping preferences. Finally, we outline potential areas for future research as well as managerial implications.
... According to [12], LF and OF productions can support each other consumers' choices. The willingness to pay (WTP) estimations show that consumers are interested in LF production, especially when it interacts with OF production. ...
Food demand and food supply have been heavily affected by the COVID-19 pandemic. To understand changes in households’ behavior related to the pandemic, we investigated the will- ingness to pay for local organic apples before and during the COVID-19 pandemic. We assessed the changes that occurred within families, estimating separate models for the two members of a couple. Our findings show that respondents have a positive price premium for local organic apples, whose consumption helps reduce the environmental costs associated with food production. The median estimated values during the pandemic ranged from 34% to 250%. Overall, respondents show a positive mean willingness to pay, which increased with the pandemic. The socio-economic variables are the most important in explaining the willingness to pay, while the behavioral variables have more heterogeneous results, even if lifestyle and the request for information through the label are also important variables. The pandemic tended to narrow the gaps in preferences between members of a couple. In conclusion, the local and organic dimensions are embodied in the short chain, in which knowledge and trust in the producer are crucial elements in the consumer’s choices.
... Over the last decades, many studies examined the relevant factors and issues on organic food consumption behavior, summarized in Table 1. These incorporate the role of personal, social, cultural and psychological factors (Najib et al., 2022), normative triggers and motivators (Khan et al., 2022), environmental concern (e.g., Hassan et al., 2023;Hansmann et al., 2020;Koklic et al., 2019;Le-Anh & Nguyen-To, 2020), health and food safety concern (e.g., Talwar et al., 2021;Hansmann et al., 2020;Liang & Lim, 2020;Pandey et al., 2019;Sreen et al., 2021;Talwar et al., 2021;Tandon et al., 2021), purchase intentions (e.g., Liang & Lim, 2020;Pandey et al., 2019;Singh & Alok, 2022;Talwar et al., 2021;Watanabe et al., 2020), profiling of organic buyers (Hansen et al., 2018;Nandi et al., 2016), motivations for buying organic food (Hansen et al., 2018;Petrescu et al., 2017;Scalvedi & Saba, 2018;Sobhanifard, 2018), consumer willingness to pay premium (Hasselbach & Roosen, 2015;Lim et al., 2014), ecological and political value (Nosi et al., 2020;Tandon et al., 2021), subjective norms (Dangi et al., 2020;Aitken et al., 2020), and consumer attitudes toward consumptions (Aitken et al., 2020;Dangi et al., 2020;Liang & Lim, 2020;Tandon et al., 2020). ...
Consumer behavior in the food industry has undergone significant changes in recent years, largely driven by growing consumer awareness of environmental, technological, religious, and social concerns. As a result, organic food has emerged as a popular alternative to conventionally produced food. Many emerging nations, including Bangladesh, promote its consumption due to its perceived health and safety benefits. Despite this growing trend, there remains a need for more understanding of consumer behavior, particularly concerning their motivations for continuous purchases toward mobile organic food delivery applications. In order to fill this knowledge gap, this study looks at how six indirect predictors (emotional support, informational support, environmental consciousness, religious consciousness, trust, and technological consciousness) affect customer loyalty through the intention to use organic food. This study employed a purposive sampling technique (i.e., judgmental sampling) and collected data from 386 respondents across three cities in Bangladesh. Data analysis was conducted using SmartPLS 3 software. The study found that all predictors, except for technological consciousness, significantly influenced behavioral intention, which, in turn, significantly influenced loyalty. Additionally, the study revealed that the five predictors, excluding technological consciousness, indirectly influenced loyalty through behavioral intention. The results of this study add to the existing literature on organic food by extending social support theory to include consumers' primary motivations, such as environmental, religious, technological, and social consciousness, as predictors of loyalty to use mobile organic food delivery applications. The study highlights the importance of sustainable food consumption in promoting environmental protection, ensuring social justice, creating economic success, and providing valuable insights for implementers looking to expand the organic food market.
Graphical abstract
... Recent studies have indicated that consumers are gradually becoming more conscious of their health, and they often prefer to purchase natural and healthy food products (Hasselbach & Roosen, 2015). ...
Food safety is one of Asian consumers' primary concerns (Latip et al., 2020), and it has a significant impact on consumers’ buying decisions in countries where food safety and health are prioritized (Prentice et al., 2019). This study investigates the determinants of buying intention towards food safety in Hanoi, Vietnam, through a modification of the theory of planned behavior. Drawing on an online questionnaire survey from 179 respondents in Hanoi city during 2022, the empirical results revealed that attitude toward food safety (Att), attention to the environment (Ev), and health care (He) significantly affect intention to buy safe food (Int). Implications and guidelines are discussed for policymakers and practitioners. The findings of this article are of special value for public and private organizations that manage and market food safety.
... Although Hempel and Hamm (2016) reported that consumers' willingness to pay for local food products was higher than for organic varieties, Hasselbach and Roosen (2015) pointed out a strong positive interaction effect, meaning that consumers' willingness to pay a price premium for organic food products was markedly higher if the product was also local. It seems that the notion that "local has become the new organic" has been followed by food marketing researchers (e.g. ...
The main topic of our paper is consumer preferences towards local food products of women’s cooperatives. Using the best-worst scale technique, we elicit the relative importance consumers attach to attributes of local food products from women’s cooperatives. Recognizing that consumers are not homogeneous, a latent class mixture model is employed to allow preferences to vary across different consumer segments. With data from 300 consumers, we find that the most important attributes of local agricultural products are quality, the handmade process and support for women’s cooperatives. Yet, our mixture model results indicate a four-cluster solution. Quality is the most critical attribute for approximately 80% of the respondents, indicating the significance of the quality attribute for both homogeneous and heterogeneous consumer preferences.KeywordsBest-worst scale (BWS)Latent class analysis (LCA)Women’s cooperativesLocal food products, Greece
... In other words, an increase of organic farming is associated with supply change of organic, conventional, and total agricultural goods. In addition, consumers pay more on organic foods compared to conventional one (Hasselbach & Roosen, 2015;Krystallis et al., 2006), which implies the demand shift from organic to conventional agricultural products. In turn, an increase in organic farm production and consumption is expected to affect both prices of conventional and organic agricultural goods significantly (Table 1). ...
Kim, Soo-Eun & Seok, Jun Ho (2022). Price transmission between GMO-free organic and conventional milk in Austria. Bulg. J. Agric. Sci., 28 (2), 205-211 This study investigates a milk price relationship between organic and conventional milk in Austria. We employ a vector error correction model, Johansen co-integration, and threshold co-integration test to establish whether organic and conventional milk markets are integrated and have asymmetric price relationships. Our results show no existence of threshold co-integration compared to linear co-integration. Our findings also present a price leadership of organic on conventional milk in a long-run. In a short-run, our results indicate while organic milk price has a positive effect on conventional milk price, conventional milk price does not have a significant effect on conventional one price.
... Typically, Discrete Choice Experiment food studies are used to estimate the money individuals are willing to pay to purchase their preferences for food product attributes (Willingness to Pay) (e.g., Hensher et al., 2005). Research using DCEs showed that individuals were willing to pay more for organically produced food products (e.g., Batte, Hooker, Haab, & Beaverson, 2007;Hasselbach & Roosen, 2015;Van Loo et al., 2011). ...
Individuals perceive organic food as being healthier and containing fewer calories than conventional foods. We provide an alternative way to investigate this organic halo effect using a mirrored method to Choice Experiments applied to healthiness judgments. In an experimental study (N = 415), we examined whether healthiness judgments toward a 200g cookie box are impacted by the organic label, nutrition information (fat and sugar levels), and price and determined the relative importance of these attributes. In particular, we assessed whether food with an organic label could contain more fat or sugar and yet be judged to be of equivalent healthiness to food without this label. We hoped to estimate the magnitude of any such effect. Moreover, we explored whether these effects were obtained when including a widely used system for labeling food healthiness, the Traffic Light System. Although participants' healthiness choices were mainly driven by the reported fat and sugar content, the organic label also influenced healthiness judgments. Participants showed an organic halo effect leading them to consider the organic cookie as healthy as a conventional one despite containing more fat and sugar. Specifically, they considered the organic cookie as equivalent in healthiness to a conventional one, although containing 14% more of the daily reference intake for sugar and 30% more for fat. These effects did not change when including the Traffic Light System. This effect of the organic label could have implications for fat and sugar intake and consequent impacts on health outcomes.
... The local food system is also a useful tool to improve employment and incomes in the community; therefore, it should be understood clearly (Martinez, 2010). From this financial perspective, local food, as an alternative food consumption choice, has a chance to achieve price premiums (Hasselbach & Roosen, 2015). ...
... The local food system is also a useful tool to improve employment and incomes in the community; therefore, it should be understood clearly (Martinez, 2010). From this financial perspective, local food, as an alternative food consumption choice, has a chance to achieve price premiums (Hasselbach & Roosen, 2015). ...
... To nevertheless guide consumers' decision-making towards greater sustainability, the sustainability of food products has to be evaluated on a case-by-case basis. Currently, consumers' motivation for buying local food is based on a range of assumptions about nonsensory and credence attributes of such products, or on associations they make between the quality of local food and values they hold (Hasselbach & Roosen, 2015;Mugera et al., 2017) In this context, introducing a mandatory labelling scheme that reflects products' performance with regard to different aspects of sustainability could be a solution. Such a scheme could communicate to consumers explicitly which food products (including local food products) perform better on which sustainability criteria. ...
View-only version: https://rdcu.be/clkgs or access article via: https://hal.archives-ouvertes.fr/hal-03681013 || Abstract: In the political discussion, the promotion of local food systems and short supply chains is sometimes presented as a means to increase the resilience of the food system, e.g. in the context of the COVID-19 pandemic, and it is also suggested as a means to improve the environmental footprint of the food system. Differentiating between local food systems and short supply chains, a review of the literature on the environmental, social and economic dimensions of sustainability is carried out. “Local food” cannot simply be equated with “sustainable food”; in most cases, it neither can ensure food security nor does it necessarily have a lower carbon footprint. For the environmental sustainability of food systems, many more factors matter than just transportation, not least consumers’ dietary choices. In terms of social sustainability, local food systems are not necessarily more resilient, but they can contribute to rural development and a sense of community. In terms of economic sustainability, selling via short supply chains into local markets can benefit certain farmers, while for other producers it can be more profitable to supply international markets.
... Similarly, type of farming is not related to interest for GFB, suggesting that consumers do not believe that organic farming is superior to conventional farming in line with previous research reporting that beer consumers are statistically indifferent between a beer with an organic label and a similar beer without an organic label [35] or stating that consumers are unwilling to pay high price premiums for organic vice products, such as beer. [46] Previous study by this research team has reported on the negative attitude towards organic beer in the Italian market and shown that organic alcoholic beers were largely penalized by Italians. [39] Concerning health claims, the consumers were scarcely interested in fibre, antioxidants, vitamins, and minerals overall. ...
This study explored the interest for Gluten-Free Beer (GFB) in a panel of beer drinkers. The authors adopted a conjoint rating experiment and the respondents were given sixty-four beer concepts to evaluate and score on a 9-point scale of interest. Each concept included eleven factors (alcohol content, colour, type of malt, beer price, drinking location, drinking occasion, bottle size, label claims, type of farming, type of brewer, and bottle closure) varied at different levels. The results showed that the consumers placed greatest importance on alcohol content (30.8%), followed by beer colour (18.3%), price (13.8%), type of brewer (9.5%), drinking occasion (9.5%) and bottle closure (6.5%). The label claim “rich in” and the factors drinking location, malt type, bottle size, and type of farming were judged as being of little importance. Average consumers’ interest for GFB was moderate (5.48 on a 9-point scale) and oriented towards a blond small-scale brewed beer with a %ABV > 7.0. This beer was priced in the 1.51-2.50 Euros range per 0.33 L bottle and was suitable for drinking in the evening after dinner. Differences in interest between genders, age classes, and patterns of beer consumption are reported and discussed. These results support new GFB development and ensure R&D processes are tailored to the target consumer.
... Indeed, one-third of the sample was willing to pay up to 30% more for grass-fed milk than for conventional fresh milk available from large-scale retailers. These consumer attitudes and the estimations of how much they would be willing to pay confirm the expectancy value of grass-fed milk as organic milk and another premium foodstuff [56][57][58][59][60]. ...
This paper aims at analyzing the consumers’ perception of grass-fed milk so as to understand if a production based on a sustainable business model could represent a response to new and emerging needs in consumption. The sample of the study was constituted by a total of 750 Italian members of the International Association Slow Food. A Principal Component Analysis (PCA) was used to summarize the quantitative variables, which, grouped in “dimensions”, were used as input for multivariate statistics (HCA, MCA) in order to define and explain consumer profiles. Our data confirm an in-progress change in milk consumption: Consumers were more oriented towards quality, local supply chains, traceability, and are characterized by an increasing propensity to a higher expense for grass-fed milk. Further research will enlarge the proposed panorama covering a sample of more general consumers. The study was a preliminary market analysis that could be used as the basis for a production, distribution, and consumption chain grass-fed-based model. Grass-fed milk is a product linking individual and societal needs for more sustainable production and entrepreneurship that creates a higher value product aligned with market needs.
... Recently, there has been an increase in local food studies, specifically related to consumer consumption (Choe & Kim, 2019;Lang & Lemmerer, 2019;Sthapit et al., 2017;Y.G. Kim & Eves, 2016), consumer intentions (Kumar & Smith, 2018;Lu & Chi, 2018;Rahman et al., 2018;Shin et al., 2018), local food impact on tourism (Alderighi et al., 2016;Bjork & Kauppinen-Raisanen, 2016;Boesen et al., 2017), willingness to pay more Frash et al., 2015;Hasselbach & Roosen, 2015), and sustainable tourism (Bristow & Jenkins, 2018). ...
The current study assessed the relationships between Corporate Social Responsibility (CSR), perceived quality, price fairness, satisfaction, and conative loyalty in the context of local food restaurants. Given the demand of customers for CSR and local foods in restaurants, stakeholder theory, and social identity theory were used to assess whether promoting these practices add value to organizations. There were 557 surveys collected through an online survey panel that showed there is a significant relationship between CSR and perceived quality, price fairness, and satisfaction. The relationship between CSR and perceived quality has the largest influence of the relationships. Another key finding was that satisfaction and CSR, through the use of local foods, has the strongest influence on conative loyalty. Implications for academics and practitioners are discussed.
... Since RPL allows random preferences, the decision needs to be made as to whether each parameter should be random or fixed, and-for random parameters-what distribution they should follow. Initially, we assume that preferences for each attribute (except price, which is specified as fixed) vary following a normal distribution, in line with previous literature (e.g., Hasselbach & Roosen, 2015;Janssen & Hamm, 2012;Lusk & Schroeder, 2004;Revelt & Train, 1998;Van Loo, Caputo, Nayga, Meullenet, & Ricke, 2011). 6 We choose the normal distribution, assuming that decision-makers value each label positively or negatively. ...
This study examines consumer preferences and willingness to pay (WTP) for organic wheat products exhibiting single labels, as well as multiple labels, including organic. The additional labels considered are related to the organic label (non-genetically modified organism [non-GMO]) or perceived as health-promoting (gluten-free, low-carb, sugar-free). Study data were collected using a consumer survey conducted online in 2017 across 16 U.S. western states and analyzed using random parameter logit models. Findings show that organic-labeled wheat products with additional claims were valued equally or less than the organic only version. Overall, consumer higher objective and subjective knowledge of organic standards, as well as preferences for gluten-free products, increased their WTP for organic wheat products. Consumers unfamiliar with organic standards valued the non-GMO label over the organic label. Additionally, consumer WTP for health-related claims on hedonistic products was low or even negative. Hence, multiple labels on organic products generally provide no additional consumer benefit and are likely ignored. Study findings suggest that using the claim that most distinguishes the product, or is most salient, may improve product pricing. Also, non-GMO certification rather than organic certification should be considered for some markets. Finally, consumers with preferences for gluten-free products represent a potential market for organic wheat products.
... We estimated a model with three alternative specific constants (ASCs) variables for the first, second and the status quo alternatives. ASCs were included to improve model fitness and reduce systematic bias resulting from respondents' tendency to choose the first alternative (Hasselbach and Roosen, 2015, and for an application, Markova-Nenova and Wätzold, 2018). ...
Climate change impacts pose a great challenge to agriculture in sub-Saharan Africa as droughts become more frequent and more severe. A major roadblock to implementing climate change adaptation measures is poor governance. Given their experience with governing organizations, farmers are highly suitable to assess the appropriateness of different governing organizations to implement adaptation measures on the ground. We surveyed 283 farmers in Makueni County in Kenya applying the choice experiment method to assess their preferences in relation to different attributes of a sand storage dam project – including the organization governing the dam construction. We find that farmers prefer an NGO as the governing organization, followed closely by a farmer network and, with some distance, a government institution. For the whole of Makueni County, we find that benefits of $ 320,426 are lost if farmer networks are the governing organizations instead of NGOs and $ 1,779,596 if government institutions govern the dam construction instead of NGOs. On a methodological level, our study contributes to improving the application of choice experiments in developing countries as it draws attention to the importance of carefully selecting the payment vehicle for successful project implementation.
... The price of green products is higher than traditional products. Earlier research indicated that consumers are willing to pay for products by judgments variety criteria including being eco-friendly [57], food quality and safety [94], and health [95]. Positive attitudes for green products concern the interest in paying extra for green products or services [96]. ...
Consumers are paying close attention to green products to reduce the environmental impact on health issues. As the scope of this research, this current study focuses on determining consumers' purchase decisions regarding green products using a survey conducted in a fast-growing developing country. This research was descriptive and considered a conceptual framework for extending the Theory of Planned Behavior (TPB), which was selected as the primary theoretical model. The significant contributions and main objectives of this study are as follows-to explore the present scenario of green marketing in Bangladesh with previous studies, and to fill a research gap regarding green purchase decisions by applying the TPB model with adding additional constructs, such as environmental concerns, green perceived quality, and future green estimates. A range of qualitative and quantitative techniques were adopted to collect data from the target groups, where a sample of young educated Bangladeshi consumers (n = 638) was used to consider the measurement and structural models by applying a partial least squares-structural equation modelling (PLS-SEM) method. The empirical findings show that consumers' environmental concern (EC), green perceived benefits (GPB), green awareness of price (GAP), green willingness to purchase (GWP), and future estimation of green marketing (GFE) have a strong positive influence on consumer' green purchase decision (GPD). Still, the green perceived quality (GPQ) has a negative influence on green purchase decisions (GPD). To inform consumers about green or eco-friendly products, this study provides valuable suggestions to companies, marketers, and policymakers for designing green marketing tools such as green advertising, green branding, and eco-labels. Based on these findings, it gives some managerial insights for the promotion of green products and green marketing.
... Most obviously, the decision to utilise stated WTP as the dependent measure could be seen as limiting. Although a popular and established method of gauging preferences towards a range of products and issues, including environmentally preferable food products (e.g., Hasselbach & Roosen, 2015;Tait, Saunders, Guenther, & Rutherford, 2016), some researchers have aired concerns about their use when assessing preferences for unfamiliar stimuli (e.g., Mould Quevedo, Contreras Hernández, Garduño Espinosa, & Salinas Escudero, 2009). For example, participants were required to make judgements based upon the provision of only a small amount of information (i.e., a product image and key comparative product details). ...
Background:
Overuse of unnecessary services, screening tests, and treatments is an ongoing problem for national health care systems. Overuse is at least partly driven by patient demand.
Purpose:
This study examined whether altering patients' emotional state and appealing to patient altruism would reduce demand for three commonly overused UK health services.
Methods:
In an online experiment, 1,267 UK volunteers were randomized to anxiety, compassion, or neutral conditions before viewing three overuse vignettes. In each vignette, use of the health service was recommended against by the doctor and participants were further randomized to one of three altruism frames, emphasizing the impact of overuse on the self, the self and others locally, or the self and others nationally. Participants rated the likelihood that they would pursue the health service and, assuming that they did not, how long they would be willing-to-wait for it.
Results:
Altruism frame had a small effect on intentions to use the health service. Those in the local or national (vs. self) frame were 4.7 and 6.1 percentage points, respectively, less likely to ask for the service. Emotion induction had no direct effect on outcomes. However, self-reporting higher levels of anxiety or compassion post-induction was associated with a small, greater likelihood in intentions to ask for the health service or willingness-to-wait, respectively. No interactions between frame and emotion were observed.
Conclusions:
As a low-cost initiative, emphasizing the benefits to the self and local or national communities could be embedded in appeals designed to appropriately reduce health care overuse in the UK.
... Third, there is growing evidence on the role that local food consumption plays in tourism experiences as a source of authenticity (Sims 2009) which is also a motivation for local food consumers (Hasselbach and Roosen 2015). Local food is seen as a connection with place and territory (Cassia et al. 2012) leading visitors to experience culture through local food (Sengel et al. 2015). ...
Agritourism—visiting a working farm for education or recreation—may serve as a tool to increase local food consumption as it often includes opportunities to purchase local food on-site. Yet, the influence of agritourism on consumers’ local food purchasing behavior remains underexplored. Thus, this study measures the impact of agritourism experiences on consumers’ intentions to purchase local food. To do so, visitors were surveyed at six agritourism farms with similar agritourism activities (e.g., U-pick, educational displays, and on-site market) located across North Carolina (USA) before (pre) and after (post) their visits ( n = 328). Data, collected during the 2018–2019 peak agritourism season, were analyzed using repeated measures multivariate analysis of variance. Findings indicate that agritourism experiences effectively increase consumers’ intentions to purchase local food. These findings advance the scholarship of agritourism. They also provide useful information to design effective marketing campaigns to promote the purchase and consumption of local food and strengthen local agricultural systems.
... These may include cost savings from reduced input use (Brewers Association, 2017b). Brewers may also be responding to consumer preferences, as demand for environmental sustainability is increasing for food in general (Hasselbach & Roosen, 2015;Van Loo et al., 2015;Vecchio & Annunziata, 2015) and for related goods (e.g., wine; Schäufele & Hamm, 2017). ...
Commercial and regional brewers are increasingly investing in environmental sustainability equipment that reduces input use, operating costs, and environmental impacts. These technologies often require prohibitively high upfront costs. One potential solution for these brewers is to market their product as sustainable and charge a premium to offset some of the costs. We undertake a stated preference choice experiment targeting a nationally representative sample of beer buyers and elicit preferences for multiple attributes related to environmental sustainability in beer. We find that, on average, beer buyers are willing to pay $0.70/six‐pack for beer produced using water and wastewater reduction technologies, $0.85 for carbon reduction practices, and $0.98 for landfill diversion practices, though water sustainability practices appeal to a largest share of beer buyers. We also find that preferences for sustainability attributes are widely distributed among beer drinkers, largely irrespective of sociodemographic characteristics. The positive price premiums across sustainability attributes suggest beer buyers value sustainable brewing, and brewers could attract new consumers by simultaneously communicating their commitment to sustainability and differentiating their product [EconLit Citations: D12, L66, M31].
... As reported in our analysis, as well as in several studies [58,59], organic certification represents an important factor that affects consumer preference towards local food. However, nowadays, consumers are pushed to buy local products regardless of whether they are organic [53,60], as they blend the concept of local food with other alternative food concepts, such as organic products [61]. ...
Local products and their distribution through short supply chains play a key role in the sustainable development of many rural areas, as affirmed by the 2030 Food and Agriculture Organization of the United Nations (FAO) Agenda. Moreover, in the last years, more and more consumers have shown a specific interest towards local production, pushed by the need for healthy eating, protecting the environment, and boosting the local economy. However, the cultivation of local fruit varieties or ecotypes has considerably decreased in the last decades because of their low production potential. As a result, many farmers have been forced to replace local orchards with few worldwide grown cultivars, causing a loss of genetic agrobiodiversity. For instance, in Italy, the loquat market is composed of imported cultivars and local grown autochthonous fruits (ecotype). Therefore, the aim of this study is to analyze the chemical–physical and sensory qualities, as well as the determinants of Italian consumer preference towards local ecotype of loquat fruit compared to imported varieties. Results show that local ecotypes result in excellent physico-chemical and sensory attributes, and that place of purchase and taste are the most important factors influencing consumers’ preference towards local loquats. Therefore, the cultivation of loquat ecotypes, together with effective marketing strategies, could increase the competitiveness of certain Italian rural areas, where this crop has always played a significant role in the economy.
... Similarly, Spanish consumers were willing to pay 9.2% more for organic bread, biscuits and sweets, but significant differences were found among consumer segments (Ureña et al., 2008). Consumers in Germany were not willing to pay more for organic bread unless it was produced locally (Hasselbach and Roosen, 2015). Finally, UK consumers were not willing to pay more for organically produced bread, but one consumer segment was willing to pay a premium for organic bread with a functional ingredient (Bitzios et al., 2011). ...
Purpose
This paper examines determinants of consumer interest in organic versions of wheat products by analyzing differences in selected factors among groups of consumers, distinguished by their likelihood of purchasing organic wheat products. The analysis is performed for bread and cookies to examine whether the findings are different for virtue and vice food categories.
Design/methodology/approach
A consumer survey was conducted across the western United States in 2017. Latent class modeling is used to identify groups of “very likely,” “likely” and “unlikely” consumers of organic wheat products, based on preferences for organic wheat products and attitudes toward organics in general.
Findings
Consumer preferences and willingness to pay (WTP) for organic foods depend on product type. Additionally, significant differences are found across consumer groups—regardless of product type—in the importance they place on labels and product characteristics, WTP, reasons for (not) purchasing organic products and consumption limitations.
Research limitations/implications
The group of organic consumers may be underrepresented in the sample. In addition, since actual behavior was not observed—respondents provided only stated preferences or responses to hypothetical questions—the results should be interpreted carefully.
Originality/value
Few studies have examined preferences for organic wheat products across consumer groups. This study is also the first to examine the connection between wheat/gluten intolerance/avoidance and preference for organic versions of wheat products. Finally, this study adds to the limited literature on consumer preferences for organic virtue and vice food products.
Government programs promoting locally produced foods have risen dramatically. But are these programs actually convincing consumers to pay more for locally produced food? Studies to date, which have mostly relied on hypothetical stated preference surveys, suggest that consumers will pay premiums for various local foods and that the premiums vary with the product and presence of any geographic identity. This study reports results from a large field experiment involving 1,050 adult consumers to reveal consumers’ willingness to pay (WTP) premiums for “locally produced” foods – mushrooms and oysters. Despite strong statistical power, this study reveals no positive effect of the locally produced label on consumer WTP. These null results are contrary to most of the existing literature on this topic. The finding that consumers are not willing to pay more for local foods has important implications for state and federal agencies that promote labeling campaigns that seek to increase demand and generate premiums for locally produced foods.
Food waste in the United States was valued at $285 billion in 2019, representing 70% of all food surplus; dairy and eggs alone represented 15.90% of food surplus. Milk is the fifth most consumed beverage in the United States, and therefore its contribution to food waste has significant economic and environmental ramifications. Smart labels that provide precise spoilage information for fluid milk may help reduce food waste in fluid milk, but it is unclear if consumers will accept or pay for this novel technology. This paper examines consumer preferences for high temperature, short time pasteurized fluid milk shelf life and smart date labels and tests how information about the environmental impact of fluid milk food waste affects consumers' acceptance and willingness to pay. We used a choice-based conjoint study administered in an online survey, along with a between-subject experiment to measure preferences under different information treatments about the environmental impact of food waste. Our results suggest that consumers' valuations of extended shelf life and an ecolabel is positive; however, using the smart label creates disutility for consumers, thereby hindering acceptance of new labeling technology that may facilitate food waste reduction in the milk industry. These findings imply that retailers should find alternative means to enhance the communication of precise shelf life information and its role in reducing food waste.
Purpose
This study aims to examine the most influential drivers, both product-specific and consumer-specific, affecting Asian consumers' willingness to pay (WTP) for organic olive oil.
Design/methodology/approach
To individuate the most influential drivers of WTP for organic products and to assess their effect, in terms of configurational paths and consumer profiles, this study sequentially employs explorative factor analysis approach and a fuzzy-set qualitative comparative analysis method. The survey is carried out in different areas of Asia (e.g. Pakistan, Vietnam and China).
Findings
The results suggest that Asian consumers' WTP for organic products is described by consumer-specific drivers (gender, occupation and household size) as well as product-specific drivers (product authenticity and sustainability, consumer ethnocentrism and food fraud risk perception).
Originality/value
The findings of the study permit the identification of different drivers that move consumers' WTP for organic olive oil. The study contributes to setting the ground for companies to propose and implement efficacious marketing strategies for organic olive oil in importing countries, such as Asia.
The popularity of local foods is increasing among the masses, especially tourists, and this has led to the inception of ‘locavorism’ where the consumers – termed locavores – look for sustainable local foods. We gauge tourists’ ideology of locavorism through the lens of agritourism in India as we found it crucial to highlight and enhance local foods as an addition to the tourists’ palate. A pre- and post-survey was conducted using repeated measures multivariate analysis of variance (MANOVA) to empirically assess 8 Agritourism farms’ tourists’ behaviour towards locavorism. Data was collected among tourists by using a self-report questionnaire during two phases (check-in and check-out; n = 344). Findings underscore that tourists’ intention to buy local food increases considerably after experiencing Agritourism. This study is the first of its kind to understand the perception of tourists towards India’s ethnic cuisine, its role in augmenting tourist experience, and in figuring out better ways to sustain local foods. The impact that Agritourism has on tourists’ behaviour towards locavorism and its continuing effects on the local economy needs to be studied by researchers. Future research can extend the concept of locavorism to service providers by understanding their perception of producing and marketing sustainable local foods.
Purpose
The purpose of this paper was to determine the profile of dairy product consumers in the organic market.
Design/methodology/approach
The study was based on a survey questionnaire developed by the author and administered to a total of 1,108 respondents. The statistical analysis (including descriptive statistics, the analysis of the discriminative function and the Chi2 test was performed with the use of Statistica 13.1 PL. The respondents’ gender was the factor behind the differences in how they behaved.
Findings
The consumers indicated the channels they rely upon to find information on organic dairy products; in addition to trusting the opinions of their family members and experts, they also use web platforms. Further, they specified their preferred locations for buying favorite products during the pandemic: specialized organic food shops, large distribution chains and online stores.
Practical implications
These outcomes will help in identifying target consumer segments and information channels for specific information and advertising messages. They also form an important resource for developing some potential strategies which the supply chain stakeholders could implement to promote organic consumption of dairy products.
Originality/value
This study identifies consumers’ preferred dairy products; motives for purchasing organic dairy products; barriers that consumers believe exist in the market; sources of knowledge about products purchased by consumers; and consumers’ preferred channels for purchasing organic dairy products. To the best of the author’s knowledge, this is the first study of dairy product consumers in the organic market in Poland.
Farmstead dairies produce, process, and market their milk locally under their own brands. Farmstead dairy brands (FDB) are thus competing against private labels and manufacturer brands, whose milk often comes from different areas and which are sold nationwide. Even though FDB cannot benefit from industrial economies of scale, they represent a small but successful and growing segment where demand has been rising for years, even though the demand for milk in general has been rather stagnant. Based on data from a German household panel it is evident that marketing of FDB milk through retail stores meets the trend for regional products and some consumers are increasingly willing to pay for local and regionally produced food. The results of a zero‐inflated negative binomial model revealed that middle‐aged, high income, and organic buying behaviors significantly influenced the purchase frequency of FDB milk in food retail. [EconLit Citations: Q130, D120, C23].
This research aims to assess British and Russian tourists’ consumer attitudes and preferences concerning Cretan cuisine as a driving force for selecting Crete for vacations, evaluating at the same time the overall gastronomic experience. For this purpose, we clarified crucial factors leading to the aforementioned final choice. Taking into consideration relative previous studies, a bilingual three-part questionnaire was created (British and Russian), and distributed to 249 respondents, of whom 126 were British, and 123 were Russian tourists. The vast majority of Russian and British tourists were satisfied with the island’s overall gastronomic experience. More specifically, the most significant factor, extracted from the Principal Component Analysis (PCA), for selecting Crete as a final destination for vacation, was the Cretan cuisine. British tourists are more willing to experience it and visit local restaurants. However, Russian visitors had a better knowledge of Cretan cuisine and gastronomy issues and were more ready to order a dish they had never tried before. Russian tourists expressed their intention to adopt Cretan foodstuff and recipes in their homeland and revisit Crete in the near future. This is not the case for the British at the same intention level. The educational level of the respondents is significantly interrelated with the importance of Cretan cuisine and an alternative gateway to get in touch with the traditions and culture of the island. Finally, it is evident that Russians emphasize the aforementioned issues more than the British.KeywordsConsumer behaviourFoodTourismCretan cuisinePrincipal Component AnalysisAgriculture
Zusammenfassung Bio-Lebensmittel müssen aus dem Ausland importiert werden, um die heimische Nachfrage zu decken. Das Programm BioRegio 2030 im Freistaat Bayern hat das Ziel den Anteil der Bio-Landwirtschaft auf 30% zu erhöhen, um damit die Landwirtschaft umwelt-und klimafreundlicher zu machen und die regionale Wertschöpfung zu fördern. Bereits 2015 wurde das Bayerische Bio-Siegel eingeführt, um den Konsumenten 1 bei der Suche nach heimischen Bio-Lebensmitteln Orientierung zu geben und die Nachfrage zu steigern. Im Dezember 2019 wurde im Auftrag der Agentur für Lebensmittel-Produkte aus Bayern (alp Bayern) eine Befragung in der bayerischen Bevölkerung durchgeführt, um die Bekanntheit des Bayerischen Bio-Siegels und die Wahrnehmung seitens der Verbraucher zu überprüfen. Die Daten wurden als Grundlage für eine Hauptkomponenten-und eine Clusteranalyse herangezogen. Die drei daraus resultierenden Konsumentengruppen ("die Preissensitiven", "die gemäßigt Nachhaltigen" und "die bewusst Nachhaltigen") wurden auf signifikante Unterschiede untersucht und entsprechend charakterisiert. Hinsichtlich der soziodemografischen Merkmale zeichnet sich die Gruppe der "bewusst nachhaltigen Konsumenten" durch einen größeren Anteil an Frauen, Vegetariern und Großstädtern aus. Diese Gruppe zeigt ein größeres Interesse an regionalen, ökologischen und saisonalen Produkten, kennt entsprechende Siegel häufiger, kauft bewusst nachhaltig ein und gibt signifikant häufiger an, Bio-Produkte in Naturkostläden, auf Wochenmärkten und direkt beim Erzeuger zu kaufen. Da diese Konsumentengruppe bereits vermehrt Bio-Lebensmittel kauft und auf Regionalität achtet, könnte sie eine potentielle Käufergruppe für Lebensmittel, die mit dem Bayerischen Bio-Siegel gekennzeichnet sind, darstellen.
Previous empirical studies reveal conflicting results of estimating the price differential between locally produced foods and their imported counterparts. This study aims to identify possible key determinants of these diverse findings under the 5W1H conceptual scaffold. We conduct a meta-analysis of the empirical evidence on price premiums or discounts of local food, based on a sample of 80 estimates obtained from 42 studies. Our findings show that studies using actual market prices generate a lower price premium of locally produced food than those using a willingness-to-pay value. Furthermore, our results reflect that consumers are increasingly more interested in local food over time.
Purpose
This paper measures German customers' label-depending preference and willingness to pay for organic and local food.
Design/methodology/approach
The sample covers 325 survey respondents from 12 out of the 16 German federal states. Data was collected through convenience sampling in December 2019. A choice-based conjoint analysis was operated.
Findings
Customers value local food from their federal state most, thereby accepting a price premium of no less than 200%. The label moderates the influence of organic production conditions on price acceptance significantly.
Research limitations/implications
Based on self-reported data from a convenience sample, the demographic distribution of the sample differs from that of the German population. Moreover, the willingness to pay was found to be product-specific, limiting general applicability.
Practical implications
Marketers should focus on local and local organic food in the assortment. Marketing strategies should include information campaigns. Producers may sell their products regionally or cooperate with local retailers. Introducing a separate official “local organic” label is suggested.
Originality/value
The study provides detailed evidence on the preference of German costumers and suggests a significantly higher willingness to pay for organic and local food than previous literatures.
Organized milk producers may use marketing mechanisms in response to price and policy variability. While adopted by numerous milk producer co‐operatives across the world, the farmer‐owned label is not yet used in the Dutch consumer marketplace. We estimate the viability of the farmer‐owned label in the Netherlands with a branded choice experiment. We observe a significant and positive willingness‐to‐pay for the farmer‐owned label, but only given the disclosure of additional information in terms of profit allocation to farmers as opposed to investors. Further variation in the willingness‐to‐pay across attributes is indicative of its complex position in the crowded landscape of marketing mechanisms. [EconLit Citations: C25, D83, D91, Q13].
The literature on the effect of organic labels on consumers’ perception of food products has grown significantly over the last two decades. Since the number of empirical studies has also increased greatly, a literature review revealing the operational definitions of the organic label effect (OLE), which have evolved among researchers, has become necessary. Accordingly, in the current article, 82 studies are reviewed. It was found that studies cluster around two interpretations: they define the OLE either as a change in the evaluation of a given product or as a change in the evaluation of the difference between an organic and a conventional product resulted from organic labeling. We term the first approach the absolute OLE and the latter the relative OLE. Our analysis shows that, when applied separately, these two interpretations might lead to significantly different measurement results, but they can be merged into one concept. We argue that organic labeling affects not only the evaluation of products receiving the organic label but the evaluation of competing products without such a label as well. We reveal that the relative OLE is equivalent to the difference between the absolute effects of organic labeling on the labeled and on the unlabeled products.
Consumers often have heterogeneous valuations for a product. However, no study has analyzed how this heterogeneity impacts firms’ profit, particularly when consumers’ purchase decisions depend on not only their own valuation but also their peers’ product choices. This study fills that gap by theoretically examining the role of consumer valuation heterogeneity in a firm’s profit. We demonstrate that when there is no peer influence among consumers, a firm’s profit decreases when consumers are more variant in their product valuations. However, when peer influence is strong, a certain level of valuation heterogeneity can increase the firm’s profit. This is because valuation heterogeneity gives the firm an opportunity to charge a higher price when it can rely consumers who highly value the product to influence the remaining consumers’ purchase intention. Although this higher price will initially result in a lower adoption rate, the firm will eventually achieve a higher profit with intense peer influence.
Consumers habitually support local food and drink, but locally grown products often come from less developed value chains with lower quality control standards; something suppliers must consider. Using data from Michigan craft breweries, we describe the determinants of a brewer's decision to purchase local hops. Utilizing generalized linear models, we determine how factors-including perceived consistency and attitudes towards localness-impact hop purchasing decisions. Results indicate that hop consistency is a leading factor, and beliefs about localness stimulating the economy or helping the environment may not be enough to drive local purchasing.
In times of rising organic food popularity, both producers and retailers are faced with the question of how to appropriately price their products. In this paper, we discuss the drivers that influence consumer willingness to pay (WTP) for organic food based on a systematic review of the literature in this field over the past two decades (1999–2019). Based on the identified sources, we cluster these WTP drivers into three categories: consumer-related, product-related, and purchasing venue-related factors. Additionally, we review and discuss the methodologies employed in eliciting WTP for organic food. Finally, we attempt to outline potential areas for future research as well as managerial implications.
Demand for local food in the US has significantly increased over the past decade. In an attempt to understand the drivers of this demand and how they have changed over time, we investigate the literature on organic and local foods over the past few decades. We focus our review on studies that allow comparison of characteristics now associated with both local and organic food. We summarize the major findings of these studies and their implications for understanding drivers of local food demand. Prior to the late 1990s, most studies failed to consider factors now associated with local food, and the few that included these factors found very little support for them. In many cases, the lines between local and organic were blurred. Coincident with the development of federal organic food standards, studies began to find comparatively more support for local food as distinct and separate from organic food. Our review uncovers a distinct turn in the demand for local and organic food. Before the federal organic standards, organic food was linked to small farms, animal welfare, deep sustainability, community support and many other factors that are not associated with most organic foods today. Based on our review, we argue that demand for local food arose largely in response to corporate co-optation of the organic food market and the arrival of ‘organic lite’. This important shift in consumer preferences away from organic and toward local food has broad implications for the environment and society. If these patterns of consumer preferences prove to be sustainable, producers, activists and others should be aware of the implications that these trends have for the food system at large.
This paper integrates and synthesizes the findings of published research on organic food consumption. We identify several themes that reflect the various rationales used by consumers when deciding to purchase organic food. The literature clearly indicates that the word “organic” has many meanings, that consumers of organic foods are not homogeneous in demographics or in beliefs, and that further research could help better describe the various constituencies that are often lumped together as “organic food consumers”. The organic and broader food industries must better understand the variety of motivations, perceptions, and attitudes consumers hold regarding organic foods and their consumption if their own long-term interests, as well as those of other stakeholders of food marketing, are to be best served. We conclude with implications and suggestions for further research.
Copyright
This book describes the new generation of discrete choice methods, focusing on the many advances that are made possible by simulation. Researchers use these statistical methods to examine the choices that consumers, households, firms, and other agents make. Each of the major models is covered: logit, generalized extreme value, or GEV (including nested and cross-nested logits), probit, and mixed logit, plus a variety of specifications that build on these basics. Simulation-assisted estimation procedures are investigated and compared, including maximum simulated likelihood, method of simulated moments, and method of simulated scores. Procedures for drawing from densities are described, including variance reduction techniques such as anithetics and Halton draws. Recent advances in Bayesian procedures are explored, including the use of the Metropolis-Hastings algorithm and its variant Gibbs sampling. No other book incorporates all these fields, which have arisen in the past 20 years. The procedures are applicable in many fields, including energy, transportation, environmental studies, health, labor, and marketing.
Organic foods and local foods have come to the forefront of consumer issues, due to concerns about nutrition, health, sustainability, and food safety. A conjoint analysis experiment quantified the relative importance of, and trade-offs between, apple search and experience attributes (quality/blemishes, size, flavor), credence attributes (conventional vs. organic production method, local origin vs. product of USA vs. imported), and purchase price when buying apples. Quality is the most important apple attribute. Production method—organic versus conventional—had no significant impact on preferences.
In models with unobserved taste heterogeneity, distributional assumptions can be placed in two ways: (1) by specifying the
distribution of coefficients in the utility function and deriving the distribution of willingness to pay (WTP), or (2) by specifying the distribution of WTP and deriving the distribution of coefficients. In general the two approaches are equivalent, in that any mutually compatible
distributions for coefficients and WTP can be represented in either way. However, in practice, convenient distributions, such as normal or log-normal, are usually
specified, and these convenient distributions have different implications when placed on WTP’s than on coefficients. We compare models that use normal and log-normal distributions for coefficients (called models in
preference space) with models using these distributions for WTP (called models in WTP space). We find that the models in preference space fit the data better but provide less reasonable distributions of WTP than the models in WTP space. Our findings suggests that further work is needed to identify distributions that either fit better when applied in
WTP space or imply more reasonable distributions of WTP when applied in preference space.
Purpose
– This paper inquires into the tendency of German food retailers to market organic products as private‐label (PL) products.
Design/methodology/approach
– After a review of the literature, results of a survey of retailers and processors, are presented.
Findings
– Interviewed processors of the 62.7 per cent produce organic PL. Retailers sell organic PLs, because they care about “food safety”, “retail as a brand” and “health”, hoping to reach new customers. Requests for entry fees, investment grants and equipment allowances are less important for processors of organic PLs than for those not producing PLs. However, PL producers have to meet other conditions imposed by retailers and feel slight more dependent on few customers.
Originality/value
– The results present the first survey of the competitive relation between organic manufacturers and retailers in Germany.
Purpose
The purpose of the paper is to explore the values that underlie consumers purchasing decisions of organic food.
Design/methodology/approach
The paper draws on data from focus groups and laddering interviews with a total of 181 regular and occasional consumers of organic food that were contrasted with survey results of other studies.
Findings
The results show that most consumers associate organic at first with vegetables and fruit and a healthy diet with organic products. Fruit and vegetables are also the first and in many cases only experience with buying organic product. The decision‐making process is complex and the importance of motives and barriers may vary between product categories.
Research limitations/implications
While further research would be required to facilitate full understanding of the consumer‐decision making process with regard to organic produce, this work indicates the complexity of the process and the likelihood of variation between different product categories. Future research should consider tradeoffs that consumers make between values and product as well as consumer segmentation.
Originality/value
Prior research concerning the consumer decision‐making process with regard to organically produced food is limited. Theses findings have implications for future sector‐based communications to consumers and, potentially, for product development and labelling.
Like the market for organics, the gluten-free products market is expanding rapidly. Rapid expansion in the organic foods market led to changes in the regulatory structure, which in turn, made possible the transition of organics from something considered exclusive and value-laden, to something that is conventional and void of many of the original substantive characteristics. Moreover, this process of conventionalization has contributed to a decline in product literacy. Despite a standardized label, consumers generally know less about the products' attributes once conventionalization has occurred. Using the case of organics, we show how the current governance structure for gluten might also be in the process of conventionalization. Yet, this trajectory is not inevitable. Transmutation of the market, which is accomplished via critical analysis and consumers' active engagement in defining “gluten-free,” may provide an antidote to product dilution and may improve product literacy for those who need or desire gluten-free products most.
Within a freight transport context, the origin-destination distance and the weight of the shipment play an important role in the decision of the most preferred transport service and in the way logistics managers evaluate the transport service's attributes. In particular, the attributes commonly used in order to describe a freight transport service in a stated choice framework are cost, time, punctuality and risk of damages, respectively. This paper investigates the role of origin-destination distance and weight of freight transport services introducing a conditioning effect, where the standard utility function is conditioned on the freight transport distance. We refer to this model form as a heteroskedastic panel multinomial logit (panel H-MNL) model. This model form outperforms the underlying unconditioned model and suggests that an appropriate conditioning effect leads to an improved understanding of the derived measures, such as measures for marginal rates of substitution.
The mixed logit model is considered to be the most promising state of the art discrete choice model currently available. Increasingly researchers and practitioners are estimating mixed logit models of various degrees of sophistication with mixtures of revealed preference and stated choice data. It is timely to review progress in model estimation since the learning curve is steep and the unwary are likely to fall into a chasm if not careful. These chasms are very deep indeed given the complexity of the mixed logit model. Although the theory is relatively clear, estimation and data issues are far from clear. Indeed there is a great deal of potential mis-inference consequent on trying to extract increased behavioural realism from data that are often not able to comply with the demands of mixed logit models. Possibly for the first time we now have an estimation method that requires extremely high quality data if the analyst wishes to take advantage of the extended behavioural capabilities of such models. This paper focuses on the new opportunities offered by mixed logit models and some issues to be aware of to avoid misuse of such advanced discrete choice methods by the practitioner.
This paper examines environmental and health consciousness, as well as behavioural costs and their effects on the purchase of organic products. The consumption of organic products is regarded as an investment in individual health. The low-cost hypothesis takes environmental attitudes and behavioural costs into account and is applied to organic food consumption. The survey conducted in three German cities in 2006 using self-administered questionnaires (n = 521) does not investigate willingness to pay but rather self-reported behaviour. The results of the regressions using the Heckman correction show that income does not affect the regularity of organic food consumption but that it does influence individual expenditure on organic food. Furthermore, there is an inverted u-shaped relation between age and the purchase of organic products. Although health consciousness has a stronger association with organic food consumption than does environmental concern, the interaction between behavioural costs and health or environmental consciousness shows no effect. Thus, the low-cost hypothesis is not supported.
Different approaches to modelling the distribution of WTP are compared using stated preference data on Tanzanian Clinical
Officers’ job choices and mixed logit models. The standard approach of specifying the distributions of the coefficients and
deriving WTP as the ratio of two coefficients (estimation in preference space) is compared to specifying the distributions
for WTP directly at the estimation stage (estimation in WTP space). The models in preference space fit the data better than
the corresponding models in WTP space although the difference between the best fitting models in the two estimation regimes
is minimal. Moreover, the willingness to pay estimates derived from the preference space models turn out to be very high for
many of the job attributes. The results suggest that sensitivity testing using a variety of model specifications, including
estimation in WTP space, is recommended when using mixed logit models to estimate willingness to pay distributions.
In recent years, a growing number of consumers in Finland have started to show interest in the origin of the foods they eat. Although the concept of local food has been launched to describe food produced near the consumer, it is not yet well-defined and consumers may understand it in different ways. The aim of the study was to establish the personal values, meanings and specific benefits consumers relate to local food products by comparing two different qualitative interview techniques: laddering and word association methods. Product names, presented as cards for participants, were used as stimulus material. In the word association (n = 25), four product categories (general term, fresh pork meat, marinated pork slices, and pork sausage) and of four types of production method or production location (locally, organically, conventionally and intensively produced) were presented. In laddering (n = 30), the production methods were the same as in the word association method, with the exception that there were only two product categories, instead of four. The content analysis of the participants’ responses resulted in very similar categories in both studies, such as “quality”, “locality”, “vitality of rural areas”, “short transportation distances”, “freshness”, and “animal well-being”. Only the laddering study, however, revealed cognitive structures, i.e., links between such constructs as “short transport” and “animal welfare”. Word association was found to be an efficient and rapid method for gathering information on consumer perceptions of local foods. Laddering interviews, which were time-consuming and required laborious analysis, provided us with important information on the relationship between perceived attributes and the reasons for choices.
This paper examines the relevance of additional ethical attributes of organic food for consumers’ purchase decisions. By means of an Information-Display-Matrix (IDM) and an accompanying consumer survey, the information acquisition behaviour of consumers regarding seven additional ethical attributes and the product price of organic food was investigated in five European countries. The ethical attributes, ‘animal welfare’, ‘regional production’ and ‘fair prices to farmers’ turned out to be the most important. The results also show that the vast majority of consumers of organic food was willing to pay higher prices for organic products with additional ethical attributes. Contrasting the results with those from direct inquiry by means of a ‘single source approach’ revealed considerable differences between both methods, particularly regarding the preferences for the product price relative to some of the ethical attributes. This may serve as evidence for higher external validity of the IDM with respect to social desirability bias.
Discrete choice models are now used in a variety of situations in applied econometrics. By far the model specification which is used most often is the multinomial logit model. Yet it is widely known that a potentially important drawback of the multinomial logit model is the independence from irrelevant alternatives property. While most analysts recognize the implications of the independence of irrelevant alternatives property, it has remained basically a maintained assumption in applications. In the paper we provide two sets of computationally convenient specification tests for the multinomial logit model. The first test is an application of the Hausman [10] specification test procedure. The basic idea for the test here is to test the reverse implication of the independence from irrelevant alternatives property. The test statistic is easy to compute since it only requires computation of a quadratic form which involves the difference of the parameter estimates and the differences of the estimated covariance matrices. The second set of specification tests that we propose is based on more classical test procedures. We consider a generalization of the multinomial logit model which is called the nested logit model. Since the multinomial logit model is a special case of the more general model when a given parameter equals one, classical test procedures such as the Wald, likelihood ratio, and Lagrange multiplier tests can be used. The two sets of specification test procedures care then compared for an example where exact and approximate comparisons are possible.
German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000-2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument. [JEL-Code: D12, Q11]. © 2008 Wiley Periodicals, Inc.
Recently there is much interest among horticultural producers concerning the marketing of organically- and locally- produced food. Here we developed a consumer survey that asked respondents to choose an applesauce product from a list of products differentiated by price and four attributes. The products were differentiated by labels that described fat content, nutrition content, and whether the product was grown organically and/or locally. The survey was distributed to 3,000 residents in rural Pennsylvania and over 1,500 responses were collected yielding a response rate of 56%. Survey results were used to assess consumers’ willingness to pay for the product attributes in applesauce, and we found that consumers were willing to pay more for locally-grown applesauce compared to applesauce that was labeled organic or low fat and low sugar. Furthermore, the analysis incorporated the effects of consumer characteristics on the demand for applesauce attributes and we find evidence that increased knowledge of agriculture decreases the willingness to pay for organically- and locally-grown applesauce.
This paper argues for the use of a simulation methodology to examine the distributions of elasticities that, in turn, are complex, non-linear functions of estimated parameters. Linear approximations are often used in this context but are shown to be poor substitutes for the suggested procedure.
Using results from the 1999 Eurobarometer survey and a parallel telephone survey done in the United States in 2000, this study explored the relationship between levels of knowledge, educational levels, and degrees of encouragement for biotechnology development across a number of medical and agricultural applications. This cross-cultural exploration found only weak relationships among these variables, calling into question the common assumption that higher science literacy produces greater acceptance (whether or not mediated by lower perceived risk). The relationship between encouragement and trust in specific social institutions was also weak. However, regression analysis based on "trust gap" variables (defined as numerical differences between trust in specific pairs of actors) did predict national levels of encouragement for several applications, suggesting an opinion formation climate in which audiences are actively choosing among competing claims. Differences between European and U.S. reactions to biotechnology appear to be a result of different trust and especially "trust gap" patterns, rather than differences in knowledge or education.
This study uses mixed logit models to reconsider the findings of choice experiment surveys with a focus on heterogeneity among consumers. The motivation is that these techniques allow the researcher to segment the market better. This is critical because it is not the average attitude or preference that is important, but the size of the groups who will be prepared to accept the product under certain circumstances. The causes of heterogeneity within the sample are investigated and the proportions of consumers willing to buy GM foods at various discounts are simulated. Copyright 2005, Oxford University Press.
Provides two sets of computationally convenient specification tests for the multinomial logit model. The first test is an application of the Hausman specification test procedure. The basic idea is to test the reverse implication of the independence from irrelevant alternatives property. The second set of specification tests is based on more classical procedures. Considers a generalization of the multinomial logit model which is called the nested logit model. Since the multinomial logit model is a special case of the more general model when a given parameter equals one, classical test procedures such as the Wald, likelihood ratio, and Lagrange multiplier tests can be used. -from Authors
To date, the most widely used method for empirical analysis of multiple alternative qualitative choices has been an extension of binary logit analysis called conditional logit analysis. Although this method is extremely attractive because of its computational simplicity, it is burdened with a property termed the "independence of irrelevant alternatives" that is quite unrealistic in many choice situations. We have proposed in this paper a computationally feasible method of estimation not constrained by the independence restriction and which allows for a much richer range of human behavior than does the conditional logit model. An important characteristic of the model is provision for correlation among the random components of utility and, as a by-product, the explicit allowance for variation in tastes across individuals for the attributes of alternatives. We have demonstrated the model and compared it with the logit one by analyzing the travel mode choice decisions of commuters to the central business district of Washington, D.C. Substantial differences are found in predictions based on the two models. The example allows three alternatives. Extension to four or five is quite feasible.
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