Product labelling in the market for organic food: Consumer preferences and willingness-to-pay for different organic certification logos

2012 ◽  
Vol 25 (1) ◽  
pp. 9-22 ◽  
Author(s):  
Meike Janssen ◽  
Ulrich Hamm
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Organic Food ◽  
Product Labelling ◽  
Organic Certification

scholarly journals Is Organic Certification Important to Farmers’ Market Shoppers or Is Eco-friendly Enough?

HortScience ◽  
2020 ◽  
Vol 55 (11) ◽  
pp. 1822-1831
Author(s):  
Kynda R. Curtis ◽  
Tatiana Drugova ◽  
Trevor Knudsen ◽  
Jennifer Reeve ◽  
Ruby Ward
Keyword(s):  
Willingness To Pay ◽  
Prunus Persica ◽  
Consumer Preferences ◽  
Farmers Markets ◽  
Logit Models ◽  
Farmers Market ◽  
Organic Certification ◽  
Cost Of Production

This study examines consumer preferences and willingness to pay (WTP) for organic and eco-friendly peaches, Prunus persica L., over conventional peaches in Utah. Data were collected at farmers’ markets across Utah, including actual peach purchases coupled with an in-person survey and analyzed using logit models. The results show that farmers’ market shoppers are willing to pay a premium for organic and eco-friendly peaches of $2.10 and $1.41 per pound, respectively. The importance of selected sustainability attributes positively impacted shopper preferences for eco-friendly peaches, while attitudes and lifestyle were associated with stronger shopper preferences for organic peaches. The distinct differences between shoppers who prefer organic and those who prefer eco-friendly, as well as the disparity in premiums, imply that growers should strongly consider their markets and cost of production differences when choosing organic certification over other less expensive differentiation schemes.

scholarly journals Assessing consumer preferences and willingness to pay for organic tomatoes in Albania: a conjoint choice experiment study

2017 ◽  
Vol 15 (3) ◽  
pp. e0114 ◽  
Author(s):  
Engjell Skreli ◽  
Drini Imami ◽  
Catherine Chan-Halbrendt ◽  
Maurizio Canavari ◽  
Edvin Zhllima ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Latent Class ◽  
Consumer Preferences ◽  
Organic Food ◽  
Product Attributes ◽  
Agriculture Sector ◽  
Production Type ◽  
Conjoint Choice ◽  
Conjoint Choice Experiment

Albania has potential for developing the organic agriculture sector; however, it is a new industry and constraints abound including lack of consumer preferences information for organic food. Knowledge on consumer preferences and behaviour toward organic (bio) products is crucial for market development benefiting potential entrepreneurs and government policies. They need to know the preference for preferred product attributes and willingness to pay. Tomato, which is the most important vegetable in terms of consumption and production in Albania, is the subject of this study. A conjoint choice experiment with the most important product attributes: production type (bio vs. conventional), production system (open field vs. greenhouse), origin and price were used to design the choice surveys. Four distinct classes have been identified as significant using latent class analysis. The classes are summarized as: bio-ready consumers, price sensitive consumers, variety seeking consumers and quality seeking consumers. Origin played a small influence on preference. Education and income did show some influence on preference for organic tomatoes. Although the organic food market in Albania is in its infancy stage, organic tomatoes are clearly preferred and many consumers are willing to pay a premium price.

scholarly journals Consumer Preferences and Willingness to Pay for Locally Grown Organic Apples: Evidence from a Conjoint Study

HortScience ◽  
2010 ◽  
Vol 45 (3) ◽  
pp. 376-381 ◽  
Author(s):  
Qingbin Wang ◽  
Junjie Sun ◽  
Robert Parsons
Keyword(s):  
United States ◽  
Willingness To Pay ◽  
Food Industry ◽  
Consumer Preferences ◽  
Organic Food ◽  
Production Method ◽  
The United States ◽  
Important Food ◽  
Consumer Valuation ◽  
Locally Grown

Although organic food has rapidly emerged as an important food industry in the United States and many other countries, farmers and fruit growers need more information on consumer preferences and willingness to pay for locally grown organic food products to make better production and marketing decisions. This article presents the findings from a conjoint study on consumer valuation of major attributes of fresh apples (production method, price, certification, and product origin) and the tradeoffs between price and other attributes. Analysis results based on data from 382 respondents, or 3056 observations, in the state of Vermont suggest that there is likely a significant niche market for locally grown organic apples, and many consumers, especially people who had purchased organic food, are willing to pay significantly more for organic apples produced locally and certified by the Northeast Organic Farming Association. This study also suggests that there are significant differences in preferences between respondents who had purchased organic food and respondents who had not purchased organic food, although both groups showed a strong preference and willingness to pay for locally grown apples as compared with apples from other regions.

Third-party certification labels for organic food: consumers' purchase choice and willingness-to-pay

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yong You Nie ◽  
Austin Rong-Da Liang ◽  
En Ci Wang
Keyword(s):  
Willingness To Pay ◽  
Product Information ◽  
Organic Food ◽  
Third Party ◽  
Private Institutions ◽  
Food Labels ◽  
Content Type ◽  
Non Profit ◽  
Organic Certification ◽  
Organic Rice

PurposeThe purpose of the present study is to examine the effect of organic food certification labels of different third-party verification institutions on consumers' choice of organic food in terms of willingness-to-pay (WTP) using cue utilization theory.Design/methodology/approachThe study conducted an experiment in which organic rice and organic certification labels were presented to 360 valid participants.FindingsWith different organic rice labels issued by various third-party verification institutions, including (1) foundations, (2) associations, (3) university certification centers and (4) private businesses, results indicate that consumers had different preferences and WTP for certain labels. The institutions preferred organic food labels issued by non-profit organizations. In addition, consumers showed different WTP as a result of different purchase motivations (e.g. health vs environmental protection).Originality/valueThese results imply that consumers might not have confidence in the organic labels issued by associations and private institutions. Therefore, different types of certification institutions can have significantly different impacts on consumers' WTP. The study further proposes that the extrinsic attributes of food products (i.e. the cues used in making a purchase decision) must be incongruent with the image of third-party certification institutions in order to develop more efficient communication of product information and to encourage consumers to give positive comments regarding organic food.

Drinking biodiversity: a choice experiment on Franciacorta sparkling wines

2020 ◽  
Vol 122 (8) ◽  
pp. 2531-2549 ◽  
Author(s):  
Giordano Ruggeri ◽  
Chiara Mazzocchi ◽  
Stefano Corsi
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Agricultural Practices ◽  
Environment Friendly ◽  
Specific Product ◽  
Content Type ◽  
Organic Certification ◽  
Consumption Frequency

PurposeConsumers' concerns about the environmental impacts of food production have been increasing over the last years, and several certification systems for environment-friendly food products have been created. This research investigates wine consumers' preferences for a certification that guarantees the use of agricultural practices that better protect the biodiversity in the vineyard during the production of grapes.Design/methodology/approachUsing a choice experiment, we investigate consumer preferences and willingness to pay for biodiversity-friendly wines on a sample of 334 wine consumers. The experiment was carried out by direct interviews at a wine-tasting event in an Italian winery located in the Franciacorta area, in northern Italy. A between-subject design and two different questionnaires were used, one presenting the Brut bottle and one the Satén bottle.FindingsEstimates from a mixed logit model reveal that consumers are generally willing to pay a higher price for biodiversity-friendly wines, but they have stronger preferences for organic certification and quality indications. When consumers perceive a specific product as having high quality, i.e. Satèn, they might be less willing to pay for further environment-friendly certifications. Moreover, preferences depend on sociodemographic and attitudinal variables such as gender, wine consumption frequency, wine education and knowledge degree of the labels.Originality/valueThis paper broadens the knowledge about consumer preferences and willingness to pay for biodiversity-friendly wines, focusing on a specific market segment of Italian sparkling wines.

scholarly journals Chinese consumer preferences for organic labels on Oolong tea: evidence from a choice experiment

2021 ◽  
pp. 1-18
Author(s):  
Xiaoke Yang ◽  
Qiuhua Chen ◽  
Nenmei Lin ◽  
Mengzhu Han ◽  
Qian Chen ◽  
...  
Keyword(s):  
Choice Experiment ◽  
Consumer Preferences ◽  
Organic Food ◽  
Consumer Preference ◽  
Chinese Government ◽  
Chinese Consumers ◽  
Factors Affecting ◽  
Organic Certification ◽  
Oolong Tea ◽  
Positive Attitudes

Repeated food scandals in China have prompted growing consumer consciousness on food safety and health. Organic food, considered to be of higher quality, is being increasingly demanded by Chinese consumers. This study examines preferences for organic labels to provide insight on the sustainable development of the Oolong tea industry. Research was conducted using the choice experiment (CE) method in Fujian and Guangdong Provinces. The results demonstrate that place of origin, organic label, and brand attributes are all significant factors affecting the purchase of Oolong. Also, people demonstrated significantly positive attitudes toward organic labels and preferred Oolong tea from Fujian Province to those from Guangdong Province and Taiwan. Increasing trust can enhance consumer preference and willingness to pay (WTP) for organic labels. Contrary to previous studies, people have a higher WTP for Chinese organic labels than Japanese and American ones. This is probably because respondents are more familiar with domestic Oolong tea and trust more in Chinese organic certification. This provides an opportunity for domestic producers to tailor their organic food labels and better satisfy consumer demands. These findings suggest that the Chinese government should take more responsibility for reducing food-related fraud and thus improve consumer trust regarding organic food.

scholarly journals Consumer Preferences for Private Label Brand vs. National Brand Organic Juice and Eggs: A Latent Class Approach

2021 ◽  
Vol 13 (13) ◽  
pp. 7028
Author(s):  
Ellen J. Van Loo ◽  
Fien Minnens ◽  
Wim Verbeke
Keyword(s):  
Orange Juice ◽  
Latent Class ◽  
Consumer Preferences ◽  
Latent Class Model ◽  
Organic Food ◽  
Food Products ◽  
Organic Production ◽  
Private Label ◽  
National Brand ◽  
Major Barrier

Many retailers have expanded and diversified their private label food product assortment by offering premium-quality private label food products such as organic products. With price being identified as the major barrier for organic food purchases, private label organic food products could be a suitable and more affordable alternative for many consumers. While numerous studies have examined consumer preferences for organic food, very few organic food studies have incorporated the concept of private labels. This study addresses this research gap by studying consumer preferences and willingness to pay for national brand and private label organic food using a latent class model. Specifically, this study analyzes consumer preferences for organic eggs and orange juice and the effect of national branding versus private label. Findings show heterogeneity in consumer preferences for production method and brand, with three consumer segments being identified based on their preferences for both juice and eggs. For eggs, about half of the consumers prefer private label and organic production, whereas one-quarter clearly prefers organic, and another quarter is indifferent about the brand and the organic production. For orange juice, the majority (75%) prefer the national brand. In addition, one-quarter of the consumers prefers organic juice, and about one-third values both organic and the national brand.

scholarly journals Consumer Preferences and Willingness to Pay for Potting Mix with Biochar

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Product Information ◽  
Consumer Preferences ◽  
Market Potential ◽  
Marginal Costs ◽  
Consumer Demographics ◽  
Market Shares ◽  
Potential Market ◽  
Dedicated Energy Crops

Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.

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