Consumers’ attitudes and willingness to pay for organic eggs

2019 ◽  
Vol 122 (2) ◽  
pp. 678-692 ◽  
Author(s):  
Osman Inanç Güney ◽  
Luca Giraldo

Purpose The purpose of this paper is to understand consumer attitudes toward organic eggs by identifying their profiles and estimating the degree of their willingness to pay (WTP) for eggs with different attributes in order to evaluate the position of organic eggs. Design/methodology/approach Empirical data were collected from a face-to-face cross-sectional market survey, which involved a choice experiment design and a series of questions related to respondents’ attitudes and preferences in terms of organic egg consumption. A total of 552 consumers who are responsible for their household purchases were sampled, while the survey was performed in the major cities of seven regions of Turkey. The gathered data from the questions on consumer attitudes and preferences were analyzed using ordered probit, while the choice experiment data were analyzed through the use of conditional logit and mixed logit models. Findings Consumers perceive organic eggs to be healthy, nutritious and delicious food. In the study, we obtained three consumer groups (collectivist consumers, individualist consumers and reluctant consumers) with different characteristics in relation to organic egg consumption. When the motivations for organic egg consumption were analyzed, it was found that individual benefits have a greater impact than collectivist benefits on consumers’ choice to purchase organic eggs. According to the results of the regression analysis, consumers are willing to pay ₺0.76 more per egg for organic eggs compared to conventional eggs. Overall, consumers are reluctant to pay a premium in view of the functionality aspect of eggs. Research limitations/implications The results will help the actors within the egg industry to develop production and market-planning processes for differentiated egg markets according to consumer preferences and in terms of having the opportunity to select their ideal customer segments. Originality/value The research is the first study that analyses the motivations and the willingness of Turkish consumers to purchase organic eggs through using a choice experiment design and regression models. Original findings include the segmentation of consumers according to personal beliefs and norms. The research is also important in terms of comparing two regression model results in methodical terms. The similarity among the obtained results from the regression analysis increased the reliability of the study.

2020 ◽  
Vol 122 (8) ◽  
pp. 2531-2549 ◽  
Author(s):  
Giordano Ruggeri ◽  
Chiara Mazzocchi ◽  
Stefano Corsi

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.


2019 ◽  
Vol 122 (8) ◽  
pp. 2621-2638
Author(s):  
Simona Naspetti ◽  
Francesca Alberti ◽  
Massimo Mozzon ◽  
Sara Zingaretti ◽  
Raffaele Zanoli

Purpose The purpose of this paper is to explore the role of information about alcohol content, organic labelling and packaging on consumer preferences and willingness-to-pay (WTP) of non-alcoholic sparkling mock wines. Design/methodology/approach In a two-step study, the consumer’s expectations and overall liking of two novel brands of mock wines were investigated by focus groups followed by a common hedonic test combined with a choice experiment aimed at measuring consumer WTP. A total of 240 consumers were assigned to two tasting groups of equal size: all were presented at least one brand of mock wine, while drinkers also tasted a familiar brand of low-alcohol sweet sparkling wine. A paper-and-pencil choice experiment followed the tasting sessions. Findings The results demonstrate that participants in blind or manipulated “informed” conditions are not able to discriminate among mock wines and wine, whereas significant differences in preferences for brands under investigation appeared when labels and other information were disclosed. In effect, drinkers and non-drinkers did not differ in hedonic scores of mock wines. While younger participants exhibited the highest scores in blind liking, the overall expected liking is significantly higher for non-drinkers and women if compared, respectively, to drinkers and men. WTP for mock wines is influenced by taste, glass bottle packaging and the organic label, while mock-wine colour is not relevant. Research limitations/implications Although limited in sample size and representativeness, this study has brought some new insights into the consumption of non-alcoholic mock wines. In this study, a significant influence of blind sensory liking on WTP is demonstrated. This result has theoretical implications: while the effect of product information on WTP is well established, the relationship between hedonic scores and WTP – while theoretically consistent – is not so clear-cut in the literature. Further research is needed to confirm/disconfirm these findings. Practical implications Sparkling no-alcohol mock wines, despite their sweetness, appear not different in taste to medium-to-low APV (7.5 per cent) sweet wines. Originality/value The paper suggests that marketing of mock (no-alcohol) wines needs careful branding to elicit significant hedonic effects, while interacting sensory (blind liking) scores with price information in choice models may help to represent taste heterogeneity in WTP estimates in a better way.


2020 ◽  
Vol 15 (4) ◽  
pp. 372-386
Author(s):  
David Jakinda Otieno ◽  

Fair trade is an important ethical concern in the food value chains of developed countries. However, there is a dearth of empirical insights into consumer preferences for this critical aspect in the domestic markets of developing countries. The current study analysed consumer willingness to pay (WTP) for fair-trade attributes in the goat meat value chain in Nairobi, Kenya. Choice experiment data from 270 randomly sampled consumers was analysed using the random parameter logit (RPL) model. The results show that 56% of the consumers were aware of the fair-trade concept and 64% of them were willing to pay for fair-trade-compliant practices. Specifically, consumers were willing to pay a premium of 62% to prevent child labour, 45% to support provision of medical insurance for workers in the meat value chain, 40% for direct purchase from producers, 39% for fair-trade labelling and 30% to support disabled people as part of corporate social responsibility


2019 ◽  
Vol 41 (4) ◽  
pp. 417-433
Author(s):  
Hyung-Woo Lee ◽  
Dong-Young Rhee

Purpose Addressing low performers has been an important issue for government. The purpose of this paper is to examine what practices of performance management are effective in reducing the proportion of low performers in the US federal government. Design/methodology/approach The authors conducted the binary logit regression analysis and multinomial regression analysis. Findings Analyzing the Merit Principle Survey 2016, the authors found that the dismissal of low performing employees and the formal performance improvement plan (PIP) is the most effective in reducing the proportion of low performers. To the contrary, the within-grade-increase did not have a significant influence on the proportion of low performers. Moreover, using the performance appraisal for the purpose of reassigning employees to the position that better match employees’ talent increased the number of low performers in work units. Research limitations/implications Research limitations are as follows. First, the performance measure for this study was the percentage of employees rated as unsuccessful. Second, the pseudo-R2 indicated that the proposed model explained only the small, albeit significant, portion of the total variance in employee performance. Lastly, this study used a cross-sectional research design that may impede the validity of inference of causalities. Practical implications According to a recent news article (Rein, 2018), Trump signed an executive order that limits the stable benefits associated with government employment such as, limiting pay associated with union work and negotiating more stringent union contracts. These measures are largely aimed at eliminating low performing employees rather than attempting to improve their performances through carefully designed training programs. Although removing low performers may be an option, the results indicate that providing assistance in order to develop employee knowledge and skills through the PIP have a comparable impact on reducing low performers. Originality/value These findings imply that the use of performance evaluation for developmental or sanctioning purpose is more effective than reassignment or incentive purpose.


2019 ◽  
Vol 11 (1) ◽  
pp. 14-30 ◽  
Author(s):  
Mohammad Iranmanesh ◽  
Maryam Mirzaei ◽  
Seyed Mehrshad Parvin Hosseini ◽  
Suhaiza Zailani

Purpose The purpose of this paper is to extent the theory of planned behaviour (TPB), when extended by self-identity and religious commitment (RC), and is able to predict Muslim consumers’ willingness to pay (WP) for certified halal food. Design/methodology/approach A survey of 277 Muslim consumers in Malaysia was conducted and the cross-sectional data were analysed using the partial least squares technique. Findings Attitude (ATT) and religious self-identity (RSI) were found to have a positive impact on WP for certified halal food. Additionally, RC has a positive effect on ATT and RSI and has a positive moderating effect on the relationship between perceived behavioural control and WP. Practical implications The findings can benefit halal food companies by offering an insight into the willingness of Muslim consumers to pay for certified halal food. Originality/value The findings contribute to the research on halal foods by illustrating the factors that determine Muslim consumers’ WP for certified halal food. This study also extends the understanding of the TPB to the halal food context.


Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1816 ◽  
Author(s):  
Kwan Byum Maeng ◽  
Jiyeon Jung ◽  
Yoonmo Koo

The building sector is considered to be important for Korean energy issues as it accounts for approximately 20% of Korea’s final energy consumption. As one of Korea’s passive strategies in its emission reduction plan is reducing energy consumption through improvements in energy efficiency because the energy loss mostly occurs from window sets, this study aims to examine the preferences and role of the energy efficiency level of window sets in South Korea. Given that the lifespan of a building exceeds 20 years, a building’s energy efficiency significantly impacts accumulated energy savings. However, window sets affect not only energy efficiency, but also the interior appearance of the building; therefore, it is important to understand consumer preferences and to examine their effect on building energy reduction accordingly. Using a mixed logit model, this study analyzes window set preferences and energy savings. As a result, this study determines that consumers consider the energy efficiency level to be the second most important factor in determining window preference, following the cost of the window. In addition, this study found that the marginal willingness to pay for efficiency level 2 window sets compared to level 3 window sets is USD 1256. For level 1 window sets, this figure increases to USD 3140. Further, a scenario analysis is conducted to analyze the government incentive program’s effectiveness in encouraging consumers to purchasing higher energy efficiency more efficient products, and thus in promoting the eco-friendly consumption of in households. Taking into consideration of households’ willingness to pay and cost saving amount for using energy efficient window sets, the optimal value of government incentives of is found to be approximately USD 700 is found to be optimal.


2014 ◽  
Vol 46 (2) ◽  
pp. 193-208 ◽  
Author(s):  
Ran Xie ◽  
Olga Isengildina-Massa ◽  
Carlos E. Carpio

This study examined how various components of the Certified South Carolina campaign are valued by participating restaurants. A choice experiment was conducted to estimate the average willingness to pay (WTP) for each campaign component using a mixed logit model. Three existing campaign components—Labeling, Multimedia Advertising, and the “Fresh on the Menu” program—were found to have a significant positive economic value. Results also revealed that the type of restaurant, the level of satisfaction with the campaign, and the factors motivating participation significantly affected restaurants' WTP for the campaign components.


2017 ◽  
Vol 119 (4) ◽  
pp. 817-829 ◽  
Author(s):  
Shaosheng Jin ◽  
Haoyang Li ◽  
Yao Li

Purpose In recent years, fresh produce (fresh vegetables and fruit) has been circulated widely via e-commerce in Chinese large cities in the form of fresh produce portfolios (FPPs). The purpose of this paper is to analyze the preferences of Chinese consumers for specific FPP attributes. Design/methodology/approach A choice experiment approach was used to explore consumer preferences. The authors conducted a means-end-chains evaluation to select the attributes for the choice experiment. The authors used a fractional factorial design and finally obtained 18 choice scenarios. The authors collected 166 effective consumer questionnaires in Beijing. Findings The authors found that among the four attributes considered, certification and the diversity of the FPP had significant effects on the willingness to pay (WTP) among consumers. Residents had heterogeneous preferences for FPP diversity and certification, but certification was the major concern when considering fresh produce in the FPP. With regard to the WTP for attributes in the portfolio, the WTP values for “green” and “organic” attributes were high, but the WTP for the diversity of FPPs was low. Originality/value This study is the first attempt to explore the preferences of Chinese consumers regarding the attributes of FPP in an e-commerce environment.


2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.


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