Organic Label Rules and Market Tensions: The Challenge of Satisfying Buyers

2016 ◽  
pp. 55-61
Author(s):  
Lynn Clarkson
Keyword(s):  
Organic Label

Wine consumers’ reaction to prices, organic production and origins at the point of sale: an analysis of household panel data

2018 ◽  
Vol 35 (3) ◽  
pp. 261-273
Author(s):  
Isabel Schäufele ◽  
Ulrich Hamm
Keyword(s):  
Stated Preference ◽  
Organic Production ◽  
High Price ◽  
Price Sensitivity ◽  
Price Setting ◽  
Data Set ◽  
Major Barrier ◽  
Quality Signal ◽  
Organic Label ◽  
Organic Wine

AbstractPrice premiums are considered as major purchase barriers for organic products and therefore may prevent organic market growth. For wine, however, prices take a double and conflicting effect: they also serve as quality signal for consumers. Therefore, it is of high relevance to examine if price is a major barrier for organic wine as well.Even though many studies already examined price behavior for organic wine through surveys and experiments, it is still to be clarified how consumers’ react to price changes in a real market context. So far, no study analyzed consumer preferences for organic labeled wine in daily shopping situations. Through the analysis of the GfK household panel—a high-frequency data set of extensive population coverage—implications for price setting and price promotions in different market segments can be given.In contrast to previous studies, consumers’ overall price sensitivity was found to be low for organic wine and consumers’ preferred organic over conventional wine. The effect of price as quality cue or purchase barrier and the effect of an organic label on consumers’ behavior varied between price categories. Organic wine was valued highest in the low-price category, whereas no price premium for the organic label was examined in the high-price segment. Price sensitivity was extremely high for organic wine in the low-price segment, while price functioned as quality signal in the premium segment for organic and conventional wine similarly.This study verified previous stated preference studies on organic wine through the analysis of actual purchase data. Moreover, new insights for price setting in different price categories were generated through the examination of a large amount of disaggregated data on single consumer purchases.

Participatory organic certification in Mexico: an alternative approach to maintaining the integrity of the organic label

2009 ◽  
Vol 27 (2) ◽  
pp. 227-237 ◽  
Author(s):  
Erin Nelson ◽  
Laura Gómez Tovar ◽  
Rita Schwentesius Rindermann ◽  
Manuel Ángel Gómez Cruz
Keyword(s):  
Organic Certification ◽  
Alternative Approach ◽  
Organic Label

scholarly journals Consumer’s Willingness to Pay a Premium for Organic Fruits in China: A Double-Hurdle Analysis

2019 ◽  
Vol 16 (1) ◽  
pp. 126 ◽  
Author(s):  
Lijia Wang ◽  
Jianhua Wang ◽  
Xuexi Huo
Keyword(s):  
Willingness To Pay ◽  
Risk Attitudes ◽  
Adequate Knowledge ◽  
Market Monitoring ◽  
Factors Influencing ◽  
Positive Attitudes ◽  
Double Hurdle ◽  
Organic Label ◽  
Socio Economic Variables

The aim of the paper was to assess how consumers evaluate organic labeled fruits and to what extent they are willing to pay a premium for fresh fruits with organic labels. A double-hurdle model is applied to data obtained by interviewing 407 fresh fruit consumers in nine Chinese cities. Willingness-to-pay a premium was modeled as a function of a series of demographic, socio-economic variables, plus fruit attributes, perceptions of fruit safety, and risk attitudes. Results indicate that the most important factors influencing willingness to pay a premium involved positive attitudes toward organic label, attention to fruit safety, the perception of importance of fruit attributes. Moreover, the more income consumers earn, the more likely they would be willing to pay a premium for organic fresh fruits. The recorded consumer interest in safety and quality of fresh fruits reveals that a promising market for organic fruits could be developed by an adequate knowledge on organic label and an effective market monitoring system.

scholarly journals Understanding the 'USDA Organic' Label

EDIS ◽  
2008 ◽  
Vol 2008 (6) ◽  
Author(s):  
Danielle D. Treadwell ◽  
Mickie E. Swisher
Keyword(s):  
Government Regulation ◽  
Organic Food ◽  
Food Products ◽  
Fact Sheet ◽  
History Of ◽  
Organic Label ◽  
National Organic Program

HS-1146, a 6-page illustrated fact sheet by Danielle D. Treadwell and Mickie E. Swisher, briefly outlines the history of the USDAs National Organic Program (NOP), summarizes for consumers the benefits of government regulation of organic food products, and provides a guide for interpreting labels on products with organic ingredients. Includes references. Published by the UF Department of Horticultural Sciences, August 2008.

scholarly journals Exploring young consumers’ trust and purchase intention of organic cotton apparel

2018 ◽  
Vol 35 (5) ◽  
pp. 522-532 ◽  
Author(s):  
Xiao Tong ◽  
Jin Su
Keyword(s):  
Purchase Intention ◽  
Negative Impact ◽  
Perceived Quality ◽  
Purchase Intentions ◽  
Consumer Trust ◽  
Product Price ◽  
Content Type ◽  
Young Consumers ◽  
Organic Label ◽  
Corporate Social

Purpose The purpose of this study is to examine the effects of corporate social responsibility (CSR) reputation, product price and organic label on consumers’ perceptions of quality, trust and purchase intentions of organic apparel products by surveying American young consumers. Design/methodology/approach An intercept survey approach was used to administer a written questionnaire to a sample of college students. The experiment is a 2 (CSR reputation: poor vs good) × 2 (price: low vs high) × 2 (organic label: absent vs present) factorial design. Findings The results of our study suggest that retailers’ CSR reputation had a significant positive effect on perceived quality, consumer trust and purchase intentions, and price had a negative impact on consumers’ purchase intentions. Results also revealed a significant three-way interaction among the three independent variables on perceived quality and consumer trust. Originality/value This research is the first empirical effort to investigate the key factors that may influence young consumers’ perceptions of quality, trust and purchase intentions of organic products by considering joint use of CSR reputation, product price and an organic label, which represents a realistic buying condition. Consequently, the findings of this study represent an important step forward in better understanding consumers’ buying behavior toward green products.

How Product Type and Organic Label Structure Combine to Influence Consumers’ Evaluations of Organic Foods

2020 ◽  
pp. 074391562092287
Author(s):  
Jeffrey R. Parker ◽  
Iman Paul ◽  
Ryan Hamilton ◽  
Omar Rodriguez-Vila ◽  
Sundar G. Bharadwaj
Keyword(s):  
Product Type ◽  
Psychological Process ◽  
Organic Foods ◽  
Product Level ◽  
Negative Effect ◽  
Feature Based ◽  
Organic Label

This research finds that how a firm conveys a food’s organic nature through an organic label impacts consumers’ evaluation of that food. Consistent with previous research, adding organic labels to foods is detrimental to evaluations of vice (but not virtue) foods, but simple changes to the structure of the organic label attenuate the negative effect of such labels on evaluations of vice foods. Specifically, whereas product-level organic labels (e.g., “organic burrito”) result in lower evaluations of vice foods, ingredient-level organic labels (e.g., “burrito with all organic ingredients”) do not. No effect of organic label structure is found for virtue foods. The authors draw on theories of feature-based categorical typicality and fluency to suggest one psychological process by which organic label structure can impact consumers’ evaluations of vice foods.

THE EFFECT OF ORGANIC LABEL AND TRACEABILITY ON PURCHASE INTENTION OF SUSTAINABLE PRODUCTS

2018 ◽  
Vol 2018 ◽  
pp. 1510-1510
Author(s):  
Eung Jin Lee ◽  
◽  
Joonheui Bae ◽  
Kyung Hoon Kim
Keyword(s):  
Purchase Intention ◽  
Sustainable Products ◽  
Organic Label

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.

Chinese consumer trust and preferences for organic labels from different regions

2019 ◽  
Vol 121 (7) ◽  
pp. 1521-1535 ◽  
Author(s):  
Mo Chen ◽  
Yiqin Wang ◽  
Shijiu Yin ◽  
Wuyang Hu ◽  
Fei Han
Keyword(s):  
Design Methodology ◽  
Mixed Logit ◽  
Chinese Mainland ◽  
Consumer Trust ◽  
Mixed Logit Model ◽  
The European Union ◽  
Content Type ◽  
Chinese Consumer ◽  
Organic Label ◽  
Positive Effect

Purpose The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for tomatoes carrying these different labels. Design/methodology/approach The data came from real choice experiments conducted in Shandong Province, China. A mixed logit model was used to analyze consumer willingness to pay (WTP). Findings Results indicated that, among the four organic labels considered in this study, the highest WTP was expressed for organic label from the European Union, followed by Hong Kong’s organic label, Japanese organic label and, lastly, by the Chinese mainland organic label. Consumer trust has a positive effect on their WTPs for the four organic labels. Providing consumers with information on organic can significantly lift their WTPs, and reduce the gaps between WTPs for different organic labels. Originality/value This research is of academic value and of value to food suppliers. International food marketers are recommended to equip their products with proper organic labels and initiate additional consumer education.

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