Ethical food labels in consumer preferences

2017 ◽  
Vol 119 (8) ◽  
pp. 1801-1814 ◽  
Author(s):  
Katharina Bissinger ◽  
Daniel Leufkens
Keyword(s):  
Willingness To Pay ◽  
Consumer Behaviour ◽  
Consumer Preferences ◽  
Methodological Approach ◽  
Price Premium ◽  
Average Price ◽  
Food Labels ◽  
Data Set ◽  
Content Type ◽  
Ground Coffee

Purpose Since fairtrade labels are upcoming market instruments, the purpose of this paper is to identify and quantify consumers’ willingness to pay for fairtrade coffee products and tea. Thereby, this paper contributes to the discussion in favour of a non-private regulation of ethical food labels (FLs). Moreover, the paper provides information about the consumer behaviour of the German buying public. Design/methodology/approach The empirical analysis is based on homescan panel data of 13,000 representative German households, which includes actual purchase data of ground coffee, single-serve coffee, espresso, and tea for a five-year sample period from 2004 to 2008. As a methodological approach, the hedonic technique is used to model coffee and tea prices as a function of time, store, and product characteristics. Findings Regarding the variables of interest branding a product leads to an average price premium of 22.1 per cent, while the organic FL achieves an average price premium of 34.3 per cent. The highest average price premium of 43.1 per cent is ceteris paribus paid for fairtrade labels. In the case of fairtrade labels, tea products earn the highest implicit prices with 74.0 per cent, followed by ground coffee (54.9 per cent), espresso (24.7 per cent), and single-serve coffee (18.9 per cent). Originality/value The present analysis supplements the discussions around the willingness to pay for fairtrade certified products by the German buying public, a product differentiation between coffee products and the introduction of labelled tea. As the data set includes daily purchases, it allows analysis of consumer behaviour on a disaggregated level, given detailed information on prices, stores, origins, FLs, and so on.

scholarly journals Analysis of Consumer’s WTP for Cowpea Varieties in Osun State, Nigeria: the Hedonic Pricing Approach

2018 ◽  
Vol 6 (9) ◽  
pp. 1120 ◽  
Author(s):  
Rabirou Kassali ◽  
Abayomi Yusuf Oyewale ◽  
Olufemi Adedotun Yesufu
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Sampling Technique ◽  
Hedonic Pricing ◽  
Primary Data ◽  
Price Premium ◽  
Price Variation ◽  
Cowpea Varieties ◽  
Breeding Programmes ◽  
Almost All

Analysis of consumer preferences for cowpea varieties in Osun State was carried out with a view to identifying attributes that determine price variation among cowpea varieties and the effect on consumer’s willingness to pay for those varieties. A multistage sampling technique was used to randomly select 240 respondents for the study, comprising 180 cowpea consumers and 60 retailers. Primary data were collected on cowpea varieties, their attributes and the consumer’s willingness to pay for cowpea varieties using well structured questionnaire. Data collected were analysed using both descriptive and inferential statistics. The results showed that out of thirteen varieties found in the area, only nine varieties of cowpea were common in the market. The quality of each variety differs which explained variation in their price. In terms of preference the Oloyin variety is preferred most by 78% of consumers. Weevil resistance had the highest rank among the cowpea attributes. Oloyin had the highest WTP followed by Milk and Drum with ₦303, ₦237 and ₦213 per kg, respectively. Hedonic pricing methods provide a statistical estimate of premiums and discounts for cowpea attributes. Results indicated that weevil resistance was the most important attribute to consumer. Cowpeas with weevil damage tolerance, brown colour, large grain size and short cooking time commanded price premium for almost all the varieties. The consumer discounted prices for insect damage, small size, white colour, smooth skin and grain colour mixed together. The study concludes on the need for breeders and research institutes to incorporate these cowpea attributes that attracted price premium into their cowpea breeding programmes.

Factors influencing touristic consumer behaviour

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vasco Santos ◽  
Paulo Ramos ◽  
Bruno Sousa ◽  
Nuno Almeida ◽  
Marco Valeri
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Critical Reflection ◽  
Consumer Behaviour ◽  
Methodological Approach ◽  
Scientific Development ◽  
Content Type ◽  
Practical Applications ◽  
Tourism Marketing ◽  
Tourist Behaviour

PurposeThis paper aims to present a content analysis of two major constructs among tourism settings, namely involvement and emotions, strictly related to tourist behaviour, due to the fact that there are still some critical gaps in the knowledge about tourists' emotions and involvement.Design/methodology/approachAn in-depth content analysis of involvement and emotions was adopted as the methodological approach. This methodology addressed an amalgam of different definitions, frameworks, mixed theoretical and practical applications and approaches, results, comparisons as well as a blend of a set of scales of involvement and emotions by confrontating of authors.FindingsThe major findings state that emotions and involvement demonstrate greater progress and scientific development to the level of tourism, marketing and consumer behaviour, representing an important issue for the integrated tourism experiences.Originality/valueThis study presents a critical reflection on the importance of emotions and involvement in specific contexts of leisure and tourism.

Price premium of private placement: evidence from India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Supriya Katti ◽  
Naval Verma ◽  
B.V. Phani ◽  
Chinmoy Ghosh
Keyword(s):  
Emerging Market ◽  
Least Square ◽  
Price Premium ◽  
Group Affiliation ◽  
Data Set ◽  
Content Type ◽  
Equity Issues ◽  
Private Placement ◽  
Ordinary Least Square Regression ◽  
Binary Probit

PurposeThis study identifies the factors responsible for obtaining price premium on privately placed equity in a developing market.Design/methodology/approachWe examine a unique data set of a special case of private placement of equity, Qualified Institutional Placement (QIP) in India purchased at a premium. The study analyzed 188 equity issues offered between September 2006 and December 2014. On average, we find that QIP issues received a price premium of 4.38%. The study employed binary probit and ordinary least square regression models to analyze the probability and magnitude of the premium.FindingsThe study attributes the price premium of QIP to certification effect through group affiliation, signaling through promoters' ownership and monitoring effect through existing institutional investors. These factors influence the probability of premium for QIP issues. However, group affiliation and institutional ownership do not significantly influence the magnitude of the premium.Originality/valueThe private placement of equity is usually offered at a discount. Our findings contribute to the existing literature by evaluating the premium obtained on private placement as a unique scenario in emerging market supported through certification hypothesis, monitoring hypothesis and signaling.

B2B services: linking service loyalty and brand equity

2009 ◽  
Vol 23 (3) ◽  
pp. 175-186 ◽  
Author(s):  
Papassapa Rauyruen ◽  
Kenneth E. Miller ◽  
Markus Groth
Keyword(s):  
Theoretical Model ◽  
Willingness To Pay ◽  
Brand Equity ◽  
Purchase Intentions ◽  
Price Premium ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Service Loyalty ◽  
The Relationship ◽  
Business To Business

PurposeA significant way of achieving high profitability is to retain existing customers who contribute to the service provider's revenue by continuously purchasing and paying more for products and services and building brand equity to the provider. The main objective of this study is to empirically examine and extend the knowledge underlying the linkage between service loyalty and brand equity performance outcomes in the context of business‐to‐business markets. It aims to develop and empirically test a theoretical model examining the antecedents and the outcomes of service loyalty in a business‐to‐business context. The model also aims to examine the relationship between service loyalty and customer share of wallet and price premium, as well as the links between the proposed antecedents (habitual buying, trust in the service provider, and perceived service quality) and service loyalty.Design/methodology/approachThe theoretical model was empirically tested with a sample of 294 Australian small‐ to medium‐sized enterprises (SMEs), using online and paper‐and‐pencil surveys. Respondents were owners of SMEs, financial controllers, and managers who are decision‐makers in the selection and use of courier service providers for their businesses.FindingsFindings provide support for the theoretical model in linking drivers of service loyalty with two types of loyalty, purchase intentions (i.e. behavioural loyalty) and attitudinal loyalty. Furthermore, the two types of loyalty are differential predictors of brand equity outcomes in that customer share of wallet is mainly driven by purchase intentions, whereas willingness to pay a price premium is mainly driven by attitudinal loyalty.Originality/valueThe paper examines the relationship between service loyalty and willingness to pay a price premium as one key indicator of brand equity.

Brand image and customers' willingness to pay a price premium for food brands

2014 ◽  
Vol 23 (2) ◽  
pp. 90-102 ◽  
Author(s):  
Johan Anselmsson ◽  
Niklas Vestman Bondesson ◽  
Ulf Johansson
Keyword(s):  
Willingness To Pay ◽  
Price Competition ◽  
Main Tool ◽  
Price Premium ◽  
Social Image ◽  
Content Type ◽  
Grocery Retailing ◽  
Packaged Food ◽  
Corporate Social ◽  
Practical Implications

Purpose – The aim is to understand customers' willingness, or unwillingness, to pay a price premium in the market for consumer packaged food and what kind of images brands can use in order to achieve a price premium. Design/methodology/approach – The study is based on a quantitative survey of brand images found in food and branding literature and their impact on loyalty as well as customers' willingness to pay a price premium for consumer packaged food. Findings – The survey shows that quality is a significant determinant of price premium, but adding other image dimensions doubles the predictability and understanding about price premium. The strongest determinants of price premium are social image, uniqueness and home country origin. Other significant determinants are corporate social responsibility (CSR) and awareness. Practical implications – The results help brand managers to recognise the importance of incorporating price premium and to develop a better understanding of what drives price premium in addition to more traditional dimensions as quality and loyalty. Originality/value – In grocery retailing, the competition for customers, margins and price premiums between manufacturer and private labels is fierce. Traditionally, the literature on this competition has focused on quality and product improvements as the main tool for creating distance to low priced competition. This study looks into other more branding related dimensions to distance from price competition.

scholarly journals Determining Consumer Perceptions of and Willingness to Pay for Appalachian Grass-Fed Beef: An Experimental Economics Approach

2011 ◽  
Vol 40 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Jason R. Evans ◽  
Gerard E. D'Souza ◽  
Alan Collins ◽  
Brown Cheryl ◽  
Mark Sperow
Keyword(s):  
Willingness To Pay ◽  
Experimental Economics ◽  
Consumer Preferences ◽  
Consumer Perceptions ◽  
Market Potential ◽  
Price Premium ◽  
Nutritional Content ◽  
Appalachian Region ◽  
Experimental Auction ◽  
Auction Mechanism

The focus of the current study was on the market potential for grass-fed beef in the Appalachian region, given that these products embody observed, experiential, nutritional, and process attributes that may appeal to a large consumer base. An in-store variant of the Becker-DeGroot-Marschack experimental auction mechanism was employed in the region to determine consumer preferences and willingness to pay. A majority of respondents preferred the grass-fed product over conventional grain-fed samples and were willing to pay a price premium to obtain it. Preferences for grass-fed were rooted largely in the associated superior nutritional content and core observed attributes.

Which wine do you prefer? An analysis on consumer behaviour and brain activity during a wine tasting experience

2019 ◽  
Vol 32 (5) ◽  
pp. 1149-1170 ◽  
Author(s):  
Letizia Alvino ◽  
Rob van der Lubbe ◽  
Reinoud A.M. Joosten ◽  
Efthymios Constantinides
Keyword(s):  
Consumer Behaviour ◽  
Consumer Preferences ◽  
Brain Activity ◽  
Theoretical Background ◽  
Substantial Contribution ◽  
High Temporal Resolution ◽  
Content Type ◽  
Product Experience ◽  
Product Consumption ◽  
Consumer Neuroscience

Purpose The purpose of this paper is to assess whether or not electroencephalography (EEG) provides a valuable and substantial contribution to the prediction of consumer behaviour and their preferences during product consumption. In this study, the authors especially focus on individual preferences during a wine tasting experience. Design/methodology/approach A consumer neuroscience experiment was carried out with 26 participants that evaluated different red wines while their brain activity was recorded with EEG. A within-subjects design was employed and the experiment was carried out in two sessions. All participants took part in a blind taste session (no label session), in which information about the wine was not disclosed, and a normal taste session (label session), during which the bottle and its label were visible. Findings The findings suggest that EEG is a useful tool to study brain activity during product experience. EEG has high temporal resolution, low costs, small dimensions and superior manoeuvrability compared to other consumer neuroscience tools. However, it is noticed that there is a lack of solid theoretical background regarding brain areas (e.g. frontal cortex) and brain activity (e.g. brain waves) related to consumer preferences during product experience. This lack of knowledge causes several difficulties in replicating and validating the findings of other consumer neuroscience experiments for studying consumer behaviour. Originality/value The experiment presented in this paper is an exploratory study. It provides insights into the possible contribution of EEG data to the prediction of consumer behaviour during product experience.

Do consumers care about European food labels? An empirical evaluation using best-worst method

2017 ◽  
Vol 119 (12) ◽  
pp. 2698-2711 ◽  
Author(s):  
Tiziana de-Magistris ◽  
Azucena Gracia ◽  
Jesus Barreiro-Hurle
Keyword(s):  
Animal Welfare ◽  
Rating Scales ◽  
Consumer Preferences ◽  
Empirical Evaluation ◽  
Added Value ◽  
Food Labelling ◽  
Food Labels ◽  
Content Type ◽  
Food Miles ◽  
Labelling Schemes

Purpose The purpose of this paper is to investigate Spanish consumer preferences for several food-labelling schemes on semi-cured, pasteurised sheep milk cheese. In particular, the authors used three labels regulated by the European Union regulation (European organic logo, protected denomination of origin (PDO) and nutritional fat content), and the remaining four have been introduced to the European food market by private initiatives (local, carbon footprint, food miles and animal welfare). Design/methodology/approach A Best-Worst Discrete Choice approach was applied in Spain during Fall 2011 by administrating a survey to 549 consumers. Findings The results suggest that the most valued labels are the PDO, followed by the organic logo and the nutritional panel. The least valued are food-miles labelling and carbon foodprint labels, while local-origin labels and animal welfare are in the middle position. Originality/value This study is the first to value consumer preferences for cheese products bearing several public and private European food-labelling schemes since literature on consumer preferences for food labels has only dealt with a comparison of a few (two or at most three) food-labelling schemes. In addition, the added value of this paper is also the use of the BWC approach that has the advantage of providing the best way to discriminate the degree of importance given by respondents to each food labels by overcoming the problem of bias caused by differences in the use of rating scales.

Consumers’ willingness to pay for tomatoes carrying different organic labels

2015 ◽  
Vol 117 (11) ◽  
pp. 2814-2830 ◽  
Author(s):  
Mo Chen ◽  
Shijiu Yin ◽  
Yingjun Xu ◽  
Zhiwei Wang
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Individual Characteristics ◽  
Strategy Development ◽  
The European Union ◽  
Heterogeneous Preferences ◽  
Content Type ◽  
Positive Effects ◽  
Significant Difference ◽  
Organic Label

Purpose – The purpose of this paper is to determine consumers’ willingness to pay (WTP) for tomatoes carrying different organic labels. Design/methodology/approach – The data were collected from 878 randomly selected consumers in Shandong Province, China, using the Becker-DeGroot-Marschak auction experiment. The authors used the multivariate probit (MVP) model to analyze the factors influencing consumer preferences. Findings – Results indicated that consumers’ WTP for tomatoes carrying the European Union (EU) organic label was significantly higher than those carrying the Chinese organic label. However, no significant difference was found between consumers’ WTP for tomatoes carrying the EU organic label and that for tomatoes carrying both Chinese and EU labels. The results of the MVP model analysis demonstrated that the consumers with different individual characteristics had heterogeneous preferences for organic labels. Food safety consciousness and organic knowledge both had positive effects on consumers’ WTP, meanwhile, environmental awareness had no prominent effect on consumer preferences. Originality/value – This research is of academic value and of value to policy makers and suppliers. To satisfy diverse market requirements, governments, and manufacturers should consider consumer preferences for different certification labels in strategy development.

The problem of heterogeneity between protected geographical indications: a meta-analysis

2018 ◽  
Vol 120 (12) ◽  
pp. 2843-2856 ◽  
Author(s):  
Daniel Leufkens
Keyword(s):  
Willingness To Pay ◽  
Meta Analysis ◽  
Data Set ◽  
Content Type ◽  
Marginal Willingness To Pay ◽  
Great Heterogeneity ◽  
Long Time ◽  
Heterogeneity Analysis ◽  
The Individual ◽  
First Time

Purpose For a long time the European geographical indication (GI) regulation has been of great interest to economists and policymakers. To justify exclusive European regulation it is necessary to prove the positive value of a GI quality signal (i.e. label), which is often achieved by quantifying its monetary value for the consumers. But even though a large number of literary contributions already deal with this question, they lack the evaluation of overall effect sizes for the GI label. The purpose of this paper is, therefore, to quantify and evaluate the overall marginal consumer willingness to pay for the European GI label. Design/methodology/approach To reach this aim, a meta-analysis is used for which a literature survey had been carried out in order to determine the GI label effects (LEs). In addition to previous works, this paper not only includes a meta-analysis, but also implements a heterogeneity analysis to distinguish between the LEs of individual GI standards. To eliminate study- and product-specific determinants of heterogeneity, moderator variables are used. Findings The empirical results indicate that consumers have a highly significant and positive marginal willingness to pay for GIs. However, the marginal willingness to pay differs significantly between the individual GI standards and indicates great heterogeneity between the protected products. Originality/value As an extension to previous studies and meta-analysis; this paper includes the most extensive GIs meta-data set so far, and conducts for the first time an independent heterogeneity analysis to distinguish between the LEs of individual GI standards and implements a moderator analysis to eliminate study- and product-specific determinants of heterogeneity from the GI effects.

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