scholarly journals Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes

2009 ◽  
Vol 38 (3) ◽  
pp. 357-370 ◽  
Author(s):  
Jennifer S. James ◽  
Bradley J. Rickard ◽  
William J. Rossman

Recently, there has been much interest among horticultural producers concerning the marketing of organic and locally produced food. A consumer survey was administered that asked respondents to choose an applesauce product from a list of products differentiated by price, and by labels that described fat content, nutrition content, and whether the product was grown organically and/or locally. Our analysis indicates that consumers were willing to pay more for locally grown applesauce compared to applesauce that was labeled USDA Organic, Low Fat, or No Sugar Added. Furthermore, we find evidence that increased knowledge of agriculture decreases the willingness to pay for organic and locally grown applesauce.

HortScience ◽  
2013 ◽  
Vol 48 (2) ◽  
pp. 200-208 ◽  
Author(s):  
Bridget K. Behe ◽  
Benjamin L. Campbell ◽  
Charles R. Hall ◽  
Hayk Khachatryan ◽  
Jennifer H. Dennis ◽  
...  

Some consumers are becoming more interested in and purchasing products that are locally grown and/or ecologically friendly. Market segmentation and product targeting are efficient methods to allocate a firm’s scarce marketing resources to supply heterogeneous markets. This study’s objective was to identify consumer segments, focusing on their gardening purchases, to determine whether there were differences in consumer preferences for provenance and environmental attributes for transplant purchases. Using a consumer survey of U.S. and Canadian consumers, we found that participants who purchased different plant types had distinct preferences for varying environmental attributes and provenances. We profiled nine consumer segments, identifying their plant purchases and preferences for local and sustainably grown products and plant containers. Results provide plant producers and retailers with market segments that can be identified and targeted and provide a basis for customizable marketing communications to enhance profits.


2017 ◽  
Vol 34 (1) ◽  
pp. 50-61 ◽  
Author(s):  
Trent Blare ◽  
Jason Donovan ◽  
Cesar del Pozo

AbstractUrbanization, changes in the retail sector and economic growth in developing countries may offer new opportunities to build connections between urban consumers and nearby farmers. The design of strategies to build such connections will require deeper insights into the food preferences of urban consumers. This paper presents a choice experiment of the preference of locally grown apples, avocados and pears vis-à-vis nonlocal equivalents with 300 consumers in a traditional market in Cusco, Peru. Willingness-to-pay estimates are derived from a multinomal logit analysis. We found that consumers who are younger and more educated and those with young children tend to be willing to pay more for locally produced apples, avocados and pears. The paper concludes with a discussion on the implications of the research for advancing efforts to localize food systems in developing countries and opportunities for future research.


Author(s):  
Lingling Xu ◽  
Xixi Yang ◽  
Linhai Wu

Against the backdrop of the continuous large-scale growth of imported milk in China, in this research 310 consumers in Shanghai were used as a sample, and a choice experiment was conducted to study consumer preference and willingness to pay for imported milk. The following product attributes were included: nutrition claim, fat content, flavor, country of origin, and price. Our results show that, excepting price, consumers consider flavor the most important attribute, followed by nutrition claim, fat content, and country of origin. Consumers can be delineated into four segments based on consumer preference for the attributes of imported milk: “nutrition claim seekers” are willing to pay the highest price for imported milk with nutrition claims, “indifferent” consumers pay little attention to imported milk attributes, “flavor-oriented” consumers have a strong preference for strawberry-flavored imported milk, and “price-sensitive” consumers weigh the price when choosing imported milk.


2011 ◽  
Vol 40 (1) ◽  
pp. 33-47 ◽  
Author(s):  
Kathryn A. Onken ◽  
John C. Bernard ◽  
John D. Pesek

A choice experiment of Mid-Atlantic consumers was conducted to determine marginal willingness to pay for the attributes organic, natural, locally grown, and state marketing program promoted for strawberry preserves. The influence of purchasing venue on willingness to pay was also examined. Results indicated a price premium when purchased at a farmers market across all five states and versions. Organic was preferred to natural in only one state. Preference ordering between local and state program promoted varied. Consumers in Maryland and Pennsylvania clearly preferred local, while those in New Jersey seemed most likely to prefer the state program version.


2017 ◽  
Vol 19 (2) ◽  
pp. 231-251 ◽  
Author(s):  
Andrew Biro

The market for bottled water is growing and increasingly segmented. How do we explain not just the willingness to pay for a substance (water) that is almost free but also the increasing discernment in a drink generally considered tasteless? We argue that bottled water market segmentation is a leading edge of processes of water commodification, associated with the crisis of Fordism and rise of consumerist capitalism, where the assertion of status through commodity consumption is increasingly necessary. The extensive Ray’s & Stark water menu is analyzed to show how the taste for bottled waters is cultivated. In the menu, references to gustatory sensation are limited. Instead, the tastefulness of water inheres in the distance from anthropogenic influence, made visible through scientific (geological) discourses. The tension between the desire to consume unmediated nature and the scientific abstraction necessary to recognize it reveals the social character of the taste for bottled waters. The highly refined sense of taste that the water menu’s readers are presumed to have is a reflection of consumerist capitalism’s distinctive ways of reproducing socio-economic inequality and metabolizing non-human nature.


Author(s):  
Violeta Bashova ◽  

Development in the spa industry is going through difficulties caused by the world situation of tourism recovery. In days of compliance with anti-epidemic measures and social distance, the restoration of the spa offer will be based on innovative solutions for diversity in the spa services and products. This is the challenge of more enterprising and resourceful professionals in business to avoid the struggle for survival. One of their main fulcrums is reorientation towards non-price competition, which is based on the distinctive features of the product. Either it consists of innovative product design or mere market segmentation, product differentiation typically involves externalities across competitors, which clearly play an important role in firm's competitive incentives to invest in differentiation. The purpose of this report is through research and analysis of supply and development in spas, to prove the hypothesis that the diversity of spa products and services is fundamental to recovering in a highly competitive and further financially aggravated, current environment in tourism.


2013 ◽  
Vol 22 (2) ◽  
pp. 234 ◽  
Author(s):  
Thomas P. Holmes ◽  
Armando González-Cabán ◽  
John Loomis ◽  
José Sánchez

In this paper, we investigate homeowner preferences and willingness to pay for wildfire protection programs using a choice experiment with three attributes: risk, loss and cost. Preference heterogeneity among survey respondents was examined using three econometric models and risk preferences were evaluated by comparing willingness to pay for wildfire protection programs against expected monetary losses. The results showed that while nearly all respondents had risk seeking preferences, a small segment of respondents were risk neutral or risk averse. Only respondents who had personal experience with the effects of wildfire consistently made trade-offs among risk, loss and cost and these respondents were willing to pay more for wildfire protection programs than were respondents without prior experience of the effects of wildfire. The degree to which people with prior experience with the effects of wildfire can effectively articulate an economic rationale for investing in wildfire protection to other members of their own or other communities facing the threat of wildfires may influence the overall success of wildfire protection programs.


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