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.

Information asymmetry, third party certification and the integration of organic food value chain in China

2019 ◽  
Vol 12 (1) ◽  
pp. 20-38 ◽  
Author(s):  
Jiang Zhao ◽  
Ksenia Gerasimova ◽  
Yala Peng ◽  
Jiping Sheng
Keyword(s):  
Information Asymmetry ◽  
Value Chain ◽  
Food Supply ◽  
Product Information ◽  
Organic Food ◽  
Raw Milk ◽  
Third Party ◽  
Content Type ◽  
Organic Certification ◽  
Food Value

Purpose The purpose of this paper is to discuss characteristics of organic food value chain governance and policy tools that can increase the supply of good quality of agri-products. Design/methodology/approach This paper discusses a national organic food supply system in China, identifying the link between an organization form with a social confidence crisis and information asymmetry as the main challenges. It develops an analytical model of the market structure of organic certification based on the contract theory, which considers the certification incentive driven by both farmers and processors. Two cases of raw milk producers and processors provide empirical data. Findings The argument which is brought forward is that product information asymmetry together with strict requirement for ensuring organic food integrity brings the organic milk value chain into a highly integrated organization pattern. A tight value chain is effective in the governance of organic food supply chain under third party certification (TPC), while a loose value chain discourages producing organic products because of transaction costs. TPC is found to be a positively correlation with a tight value chain, but it brings high organizational cost and it raises cost for consumers. Originality/value This is the first paper discussing the governance of organic food value chain in Chinese milk industry.

Consumer willingness to pay for organic fresh milk in Taiwan

2014 ◽  
Vol 6 (2) ◽  
pp. 198-211 ◽  
Author(s):  
Chin-Huang Huang ◽  
Chun-Hung Lee
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Dairy Product ◽  
Survival Function ◽  
Organic Food ◽  
Dichotomous Choice ◽  
Food Labels ◽  
Content Type ◽  
Fresh Milk ◽  
Starting Point

Purpose – The Fresh Milk Logo certifies that dairy product sold in Taiwan really is fresh milk. However, the logo represents only a moral pledge by the manufacturer. No method exists for inspecting whether products are fresh milk or reconstituted milk, and the label does not represent a commitment to the same level of quality and consumer health protection as found in organic foods. The purpose of this paper is to analyze consumer perceptions of organic certified agricultural standards (CAS) and estimates consumer willingness to pay (WTP) a premium should the Fresh Milk Logo be transformed into an organic CAS certified label. Design/methodology/approach – Exploratory factor analysis is adopted to extract the main determinants of respondent perceptions and preferences. Additionally, the double-bounded dichotomous choice of the contingent valuation method (CVM) and survival function is used to measure consumer WTP a premium for organic fresh milk. Findings – Consumer consumption preferences for buying fresh milk extracted four main factorial dimensions: Fresh Milk Logo, price/promotion, organic, and product/brand. Respondents are willing to pay US$21.95 extra per year to buy organic CAS milk and the factors affecting WTP are “Fresh Milk Logo” and “organic”. Research limitations/implications – The problems of the CVM include hypothetical and starting point for price bidding. The double-bounded dichotomous choice contingent valuation model and pre-testing can reduce the biases. The survival function is more flexible, yields more information and permits assumptions regarding parametric distributions without additional costs. The collaboration of survival function with the double-bounded method produces a reliable result that incorporates fewer statistical errors. Practical implications – Consumers are willing to pay a premium for fresh milk with an organic CAS label that certifies its good quality and safety. Social implications – Marketing managers can use the study findings to develop effective marketing strategies and refine advertising campaigns to promote organic fresh milk to attract more consumers. Originality/value – Organic food labels certify food safety, and are associated with the trend toward increasing awareness of environmental and health issues. Perception of organic food labels are introduced into double-bounded dichotomous choice CVM to estimate consumers’ WTP, an approach which has successfully dominated traditional methods, using Likert scale-type measurement.

Successful collaboration between smart city consortium and Hong Kong Government in Covid-19 dashboard: the case of leadership in practice

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Jung Yue Chun ◽  
Wahid Abdul Nabsiah ◽  
Cheng Ling Tan
Keyword(s):  
Hong Kong ◽  
Smart City ◽  
Third Party ◽  
City Development ◽  
Structured Interviews ◽  
Content Type ◽  
Non Profit ◽  
Mass Collaboration ◽  
The Government

Purpose This paper aims to discover why such a public partnership project had been successful with a non-profit third-party alliance such as a smart city consortium (SCC) promoting smart city development. Design/methodology/approach This descriptive case study is primarily based on analysing data collected from various texts, public statements, media interviews and three semi-structured interviews with key members involved in the Covid-19 dashboard project. Findings The data and analysis reviews that both interpersonal and interorganisational trust, dedication and proactiveness of the leaders at SCC were major contributing factors to why SCC was able to partner with the Hong Kong Government in the Covid-19 dashboard in the first place and that the success was also a direct outcome of effective mass collaborative knowledge management activities. Research limitations/implications The research in leadership attributes and activities in the non-profit alliance has been few and this collaborative partnership between the alliance and the government is an example of the importance of further research in smart city leadership. Practical implications In deploying projects for mass collaboration and knowledge sharing in smart city development (which is multi-disciplinary in nature). there are still many new and evolving organisational practices and leadership matters that many business leaders and city managers can learn from. Social implications Smart city development projects involve the notion of sharing data in an open environment enabled by software and mediating tools. Successful projects such as this Hong Kong Covid-19 dashboard which serves a diverse audience can further promote the importance of an open data policy regime for the benefit of the public. Originality/value This case study covers a highly original and unique case study with the leaders at the SCC and representatives from the Hong Kong Government.

What motivates Indian consumers’ to buy organic food in an emerging market?

2020 ◽  
Vol 12 (2) ◽  
pp. 97-113 ◽  
Author(s):  
Heerah Jose ◽  
Vijay Kuriakose ◽  
Moli P. Koshy
Keyword(s):  
Emerging Market ◽  
Organic Food ◽  
Food Products ◽  
Least Square ◽  
Third Party ◽  
Content Type ◽  
Indian Consumers ◽  
Perceived Price ◽  
Buffering Agent ◽  
Ordinary Least Square Regression

Purpose Indian consumers are showing an increased demand for organic food products; however, little is known about their intention to buy organic foods. The purpose of this paper is to understand how fear towards conventional food products motivates an individual to buy organic food products and whether trust and perceived price as contextual factors are able to enhance the buying intention. Design/methodology/approach A total of 275 valid responses were collected using a self-administrated structured questionnaire, representative of Indian consumers. An ordinary least square regression analysis was used to analyse the effect of trust and perceived price in influencing the relationship between consumers’ fear and intention to buy organic food products. Findings The moderating role of trust and perceived price in enhancing the direct relation between fear and intention was established. In addition, cluster analysis results revealed that married women with children are showing a greater interest in buying organic food products. Practical implications The findings of the study are of high importance to all stakeholders in organic food products, as selecting marketing practices which target consumers’ concern is an indispensable part of finding a niche for organic food products. Originality/value The findings suggest that even though consumers are fearful towards conventional food products, they displayed negative intention to buy organic food products when their trust towards the third party is low, thus confirming the importance of trust as a buffering agent.

Can product-information disclosure increase Chinese consumer’s willingness to pay for GM foods? The case of Fad-3 GM lamb

2017 ◽  
Vol 9 (3) ◽  
pp. 415-437 ◽  
Author(s):  
Qihui Chen ◽  
Gaoshuai Liu ◽  
Yumei Liu
Keyword(s):  
Willingness To Pay ◽  
Information Disclosure ◽  
Product Information ◽  
Contingent Valuation Method ◽  
Food Product ◽  
Chinese Consumers ◽  
Content Type ◽  
Gm Food ◽  
Valuation Method ◽  
Gm Foods

Purpose The purpose of this paper is to examine Chinese consumers’ level of perception of genetically modified (GM) foods and the determinants of their willingness to pay (WTP) for Fad-3 GM lamb, a newly developed GM product. Design/methodology/approach Based on a randomized choice experiment involving 576 consumers in Beijing, the authors adopt a double-bounded contingent valuation method to estimate consumers’ WTP for Fad-3 GM lamb, as well as the causal impact of (randomized) product-information disclosure on it. Findings The econometric result indicates that the randomly disclosed product information describing details about Fad-3 GM lamb, the potential risks associated with the consumption of it, and the related governmental regulation policies raised consumers’ WTP by 6.2 yuan per Jin (or US$2/kilogram). Originality/value This paper provides new experimental evidence of the effect of product-information disclosure on consumers’ WTP for a newly developed GM food product.

Certification label and fresh organic produce category in an emerging country: an experimental study on consumer trust and purchase intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eluiza Alberto de Morais Watanabe ◽  
Solange Alfinito ◽  
Luisa Lourenço Barbirato
Keyword(s):  
Purchase Intention ◽  
Organic Food ◽  
Consumer Trust ◽  
Content Type ◽  
Future Studies ◽  
Organic Certification ◽  
Dependent Variables ◽  
Emerging Country ◽  
Organic Food Consumption ◽  
Organic Produce

PurposeOrganic food consumption is growing, increasing the need for studies investigating the importance of organic certification labels in emerging countries. The research aims to identify the influence of certification labels and fresh organic produce categories (greenery, vegetable or fruit) on consumer trust and purchase intention.Design/methodology/approachAn online experimental survey 3 × 3 was administered among 349 Brazilian consumers. Certification label and fresh organic produce category were designated as independent variables and manipulated to explore consumer trust and purchase intention. The authors performed a multivariate covariance analysis (MANCOVA) to analyze the data.FindingsResults show that the certification label does not directly affect the dependent variables. It acts as a moderator and indirectly affects both consumer trust and purchase intention. Moreover, depending on the fresh organic produce category considered (greenery, vegetable or fruit), consumer trust changes. Sociodemographic characteristics, age and household income are also important. Finally, the greater the purchase frequency (the main predictor of the model), the greater the purchase intention and consumer trust.Originality/valueThe study contributes to deepen and expand studies involving organic food and to pave the way for future studies that aim to investigate the importance of certification labels of organic foods for consumers.

Attributes determining consumer preference for organic rice in Bangkok, Thailand

2018 ◽  
Vol 120 (9) ◽  
pp. 2017-2032 ◽  
Author(s):  
Hatairat Sakolwitayanon ◽  
Peeyush Soni ◽  
Jourdain Damien
Keyword(s):  
Cluster Analysis ◽  
Latent Class ◽  
Consumer Preference ◽  
Content Type ◽  
Clustering Techniques ◽  
Rice Market ◽  
Organic Certification ◽  
Organic Rice ◽  
Best Worst Scaling

Purpose The purpose of this paper is to explore key attributes of organic rice that consumers use in the process of choosing organic rice, and to segment organic rice market in Bangkok. Moreover, the study tends to identify the best clustering techniques, between latent class cluster analysis (LCCA) and traditional cluster analysis (CA), for precise segmentation. Design/methodology/approach Best–worst scaling (BWS) method was applied to measure the level of relative importance of organic rice attributes. Then, LCCA and CA techniques were applied to recognize market segmentation. Finally, homogeneity and heterogeneity of the resulting clusters were determined to compare performance of the two clustering techniques. Findings The LCCA technique was identified better than the CA in classification of consumers. According to LCCA solution, the organic rice market in Bangkok (Thailand) consisted of six distinct clusters, which can be grouped into three categories based on consumers’ profile. Organic rice consumer categories were identified as “Art of eating” and “Superior quality seeker” clusters focusing on special features and quality of the organic rice; consumer category “Basic concern” cluster heavily relied on organic certification logo and manufacturing information; and other consumer categories were “Price driven,” “Eyes on price” and “Thorough explorer” clusters. Originality/value This study first applies BWS score to examine consumers’ preference for organic rice attributes and segments market, providing results for practical use for retailers, producers and marketers.

Antecedents of pregnant women’s purchase intentions and willingness to pay a premium for organic food

2018 ◽  
Vol 120 (7) ◽  
pp. 1561-1573 ◽  
Author(s):  
Faruk Anıl Konuk
Keyword(s):  
Willingness To Pay ◽  
Pregnant Women ◽  
Environmental Concern ◽  
Organic Food ◽  
Structural Equations ◽  
Purchase Intentions ◽  
Convenience Sample ◽  
Content Type ◽  
Positive Effects ◽  
Health Consciousness

PurposeThe purpose of this paper is to examine the effects of health consciousness, environmental concern and customer innovativeness on pregnant women’s purchase intentions and willingness to pay (WTP) a premium for organic food.Design/methodology/approachIn order to collect data, a field study was conducted using administrated questionnaires from a convenience sample of pregnant women in Istanbul, Turkey. A structural equations model was used to test the proposed hypotheses.FindingsResults indicated positive effects of health consciousness, environmental concern and customer innovativeness on both purchase intentions and WTP a premium toward organic food. Specifically, it was found that health consciousness had the greatest influence on purchase intentions and WTP a premium.Originality/valueUnlike previous studies, this research focused on pregnant women and aimed to understand the role of health consciousness, environmental concerned and customer innovativeness on purchase intentions and WTP a premium for organic food.

scholarly journals Are Organic Food Labels Inadequate? Evidence from Consumers in Australia

2015 ◽  
Vol 1 (2) ◽  
pp. 45 ◽  
Author(s):  
Joanna Henryks ◽  
David Pearson ◽  
Tatiana Anisimova ◽  
Parves Sultan
Keyword(s):  
Negative Impact ◽  
Organic Food ◽  
The Body ◽  
Food Labels ◽  
Food Markets ◽  
Organic Certification ◽  
Price Premiums ◽  
Inadequate Information ◽  
Purchasing Behaviour ◽  
Developed World

The organic sector is one of the fastest growing food markets in the developed world, with a significant number of consumers continuing to prioritise these products that are perceived to be healthier and more sustainably sourced. The body of existing research has identified that very few consumers are dedicated organic food buyers hence most are purchasing it only some of the time. The most commonly identified barriers to purchasing more are associated with price premiums and limited availability. This paper adds to the literature by exploring another barrier, that of potentially inadequate information on product labels. Based on a large study of consumers in Australia (N=1011) findings show the majority feel information provided on labels is inadequate, and that this has a negative impact on their purchasing behaviour. Priorities for the organic industry to address this consumer concern are enhancing visibility and confidence in organic certification logos, and explaining what organic food is on product labels. Enhancing these marketing communications by providing supporting information via the Internet, as it is now more important than product labels, is likely to further enhance sales.

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