Organic wheat products and consumer choice: a market segmentation analysis

2020 ◽  
Vol 122 (7) ◽  
pp. 2341-2358 ◽  
Author(s):  
Tatiana Drugova ◽  
Kynda R. Curtis ◽  
Sherzod B. Akhundjanov
Keyword(s):  
Consumer Choice ◽  
Latent Class ◽  
Consumer Preferences ◽  
Wheat Gluten ◽  
Product Type ◽  
Actual Behavior ◽  
Content Type ◽  
Latent Class Modeling ◽  
Segmentation Analysis ◽  
Wheat Products

PurposeThis paper examines determinants of consumer interest in organic versions of wheat products by analyzing differences in selected factors among groups of consumers, distinguished by their likelihood of purchasing organic wheat products. The analysis is performed for bread and cookies to examine whether the findings are different for virtue and vice food categories.Design/methodology/approachA consumer survey was conducted across the western United States in 2017. Latent class modeling is used to identify groups of “very likely,” “likely” and “unlikely” consumers of organic wheat products, based on preferences for organic wheat products and attitudes toward organics in general.FindingsConsumer preferences and willingness to pay (WTP) for organic foods depend on product type. Additionally, significant differences are found across consumer groups—regardless of product type—in the importance they place on labels and product characteristics, WTP, reasons for (not) purchasing organic products and consumption limitations.Research limitations/implicationsThe group of organic consumers may be underrepresented in the sample. In addition, since actual behavior was not observed—respondents provided only stated preferences or responses to hypothetical questions—the results should be interpreted carefully.Originality/valueFew studies have examined preferences for organic wheat products across consumer groups. This study is also the first to examine the connection between wheat/gluten intolerance/avoidance and preference for organic versions of wheat products. Finally, this study adds to the limited literature on consumer preferences for organic virtue and vice food products.

scholarly journals Understanding preferences of German flower consumers: the desire for sustained beauty

2018 ◽  
Vol 46 (6) ◽  
pp. 560-576
Author(s):  
Meike Rombach ◽  
Nicole Widmar ◽  
Elizabeth Byrd ◽  
Vera Bitsch
Keyword(s):  
Latent Class Analysis ◽  
Latent Class ◽  
Consumer Preferences ◽  
Federal State ◽  
Class Analysis ◽  
Cut Flower ◽  
Cut Flowers ◽  
Content Type ◽  
Relative Preference ◽  
Best Worst Scaling

PurposeThe purpose of this paper is to provide insights for flower retailers, horticultural practitioners and marketing managers into the prioritisation of cut flower attributes by German residents.Design/methodology/approachApplying a best–worst scaling approach, this analysis identified the relative ranking of importance amongst product attributes relevant to German consumers when buying fresh cut flowers. A latent class analysis determined four flower consumer segments for further study. The study builds on a sample of 978 consumers and is consistent with the most recent German census in terms of age, gender, income and federal state.FindingsThe best-worst analysis showed that intrinsic flower attributes, in particular appearance, freshness and scent were found to be more important to German consumers than the extrinsic attributes studied, namely, price, country of origin and a certification indicating fair trade. The latent class analysis determined four consumer segments that desire either budget, luxury or ethical flowers or more information about flowers. For all identified consumer segments, appearance was the attribute of greatest importance. The segments that desired luxury or ethical flowers, as well as the segment that desires more information were interested in appearance, but also had relatively large shares of preferences dedicated to flower freshness guarantees. The preference for freshness guarantees in addition to appearance may be interpreted jointly as a desire for not only beautiful and aesthetically pleasing flowers, but for sustained beauty.Originality/valueInternationally, the study fills a research gap by exploring consumer’s relative preference for cut flower attributes. In contrast to existing studies on consumer preferences for flowers in Germany, the present study builds on a sample that was targeted in terms of age, gender, net household income and federal state to the most recent German census.

Latent class analysis and individuals' preferences mapping: the new consumption orientations and perspectives for craft beer in North-West Italy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stefano Massaglia ◽  
Valentina Maria Merlino ◽  
Simone Blanc ◽  
Aurora Bargetto ◽  
Danielle Borra
Keyword(s):  
Latent Class Analysis ◽  
Large Scale ◽  
Latent Class ◽  
Consumer Preferences ◽  
Demographic Characteristics ◽  
Class Analysis ◽  
Content Type ◽  
North West ◽  
Craft Beer ◽  
Definition Of

PurposeIn Italy, the craft beer (CB) market has undergone a trend of exponential growth in recent years, showing, at the same time, differences among different geographical areas. This research aimed to define the consumer preferences towards different CB attributes by involving a sample of individuals from Piedmont (from North-West Italy). Furthermore, the experimentation was designed to distinguish heterogeneous individuals' consumption profiles each characterised by different CB preferences, drinking habits and socio-demographic characteristics.Design/methodology/approachThe exploration of individuals' preferences towards 12 CB quality attributes was made throughout a choice experiment based on the Best-Worst Scaling (BWS) methodology approach. In addition, the BWS results were employed in the latent class analysis to identify the best sample segmentation in relation to attributes preferences.FindingsThe “Brand knowledge”, “I have already tried it” were the most important attributes for CB choice. On the contrary, the “Type of packaging” and “Price” were the least important for CB choice. The “Loyal”, “Attentive to quality composition” and “Territorial brand” clusters were defined in function of CB consumers preferences and described in terms of individuals consumption habits and socio-demographic characteristics.Originality/valueThe BWS methodology allowed the definition of a preference index for each selected CB attributes. These indications could have concrete importance on production and marketing choices in an increasingly extended and globalised market, also at large-scale distribution level. Furthermore, the definition of different consumption profiles allowed to highlight the heterogeneity of consumption (preferences and habits) towards CB.

scholarly journals Multilevel latent class modeling to segment the microfinance market

2019 ◽  
Vol 37 (5) ◽  
pp. 1103-1118
Author(s):  
Lucas Lopes Ferreira Souza ◽  
Francesca Bassi ◽  
Ana Augusta Ferreira de Freitas
Keyword(s):  
Market Segmentation ◽  
Financial Services ◽  
Latent Class ◽  
Latent Class Models ◽  
Microfinance Institutions ◽  
Content Type ◽  
Business Results ◽  
Latent Class Modeling ◽  
Class Models ◽  
Do So

Purpose Microfinance has become an important way to alleviate poverty. Though four decades have passed since its introduction, its impact is still not entirely clear. What makes it difficult to ascertain its efficacy is the existence of diverse types of microfinance organizations and client profiles. Microfinance institutions must primarily pay more attention to the client, and to the mechanism through which financial services are delivered. The purpose of this paper is to identify the profiles of microfinance customers and the features of their operations. Design/methodology/approach In this paper, multilevel latent class models were estimated to reveal clusters of operations and classes of clients. Findings The results show that there are six clusters of operations and four classes of clients in the market, each with distinct profiles and needs. Different strategies are recommended for each cluster and class. Originality/value Numerous studies have focused on the importance of getting to know the clients of microfinance programs, but none as yet have used market segmentation as a way to do so. The goal is to generate better strategies to help clients improve their business results. Applying market segmentation to the microfinance market may point to different products for different groups of clients, taking the real needs of each of them into account.

Consumer preference for wine from hand-harvested grapes

2019 ◽  
Vol 122 (8) ◽  
pp. 2551-2567 ◽  
Author(s):  
Andrea Dominici ◽  
Fabio Boncinelli ◽  
Francesca Gerini ◽  
Enrico Marone
Keyword(s):  
Latent Class ◽  
Consumer Preferences ◽  
Latent Class Model ◽  
Interactive Effect ◽  
Consumer Preference ◽  
Random Parameter ◽  
Content Type ◽  
Organic Certification ◽  
Taste Heterogeneity ◽  
The Impact

Purpose The purpose of this paper is to investigate preferences for wine made from hand-harvested grapes, and the interactive effect between this attribute and organic certification. Design/methodology/approach Data were collected via an online choice experiment involving a sample of 408 Italian wine consumers. A random parameter logit was performed to estimate consumer preferences for wine attributes: harvest type, organic and the interaction between these. The experiment also includes geographical indications and price. Furthermore, a latent class model (LCM) is performed to investigate taste heterogeneity for the included wine attributes. Findings On average, consumers prefer the wine produced with hand-harvested grapes. The hypothesis of an interaction between organic and hand-harvested attributes is rejected. Using the LCM, the authors identify three segments with significant taste heterogeneity in terms of the magnitude and the sign of the parameters. Moreover, consumer attitudes towards food naturalness differ according to their belonging to the segments. Originality/value The novelty of this article is twofold. First, this study investigates, for the first time, the impact of the hand-harvested method on consumer wine preferences. Second, hand-harvesting and organic have independent values.

scholarly journals Heterogeneity in consumer preferences for ready-to-eat pomegranate: an empirical study in Italy

2020 ◽  
Vol 122 (12) ◽  
pp. 3869-3884
Author(s):  
Alice Stiletto ◽  
Elisa Giampietri ◽  
Samuele Trestini
Keyword(s):  
Online Survey ◽  
Latent Class ◽  
Consumer Preferences ◽  
Heterogeneous Preferences ◽  
Time Saving ◽  
Content Type ◽  
Negative Effect ◽  
Italian Origin ◽  
Consumer Test ◽  
Positive Effect

PurposeThe present study aims at analysing consumer preferences for the pomegranate fruit, focussing on the effect of ready-to-eat format (i.e. packaged arils) on the purchasing choice, together with several products’ attributes as the origin, the packaging typology and the price.Design/methodology/approachThe paper presents a choice experiment (CE) among 626 Italian consumers from Veneto region through an online survey. The study estimates both a conditional logit (CL) and a latent class logit model (LCM).FindingsBy segmenting the sample based on the heterogeneous preferences of consumers, it can distinguish “eco-friendly consumers”, “time-saving lovers”, “nationalists” and “price sensitive” subjects. Interestingly, the marginal willingness to pay for ready-to-eat arils is positive for the “time-saving lovers” that are mainly young consumers. The Italian origin has always a positive effect on the choice, whereas a negative effect is found for the price. Finally, the eco-friendly package has both a negative and a positive effect.Research limitations/implicationsThe sample of this study is not representative of the population and the CE has a hypothetical nature. It follows that further research will link the economic analysis to a consumer test on a more representative sample.Practical implicationsThis study can be useful for the pomegranate producers and the industry because it provides original evidence that could drive their business and marketing strategies, for instance, the preference for ready-to-eat arils.Originality/valueThis study is one of the first seeking to determine the factors that affect consumers' preferences for pomegranate arils.

Tomato attributes and consumer preferences – a consumer segmentation approach

2019 ◽  
Vol 122 (1) ◽  
pp. 328-344 ◽  
Author(s):  
Kristin Jürkenbeck ◽  
Achim Spiller ◽  
Stephan G.H. Meyerding
Keyword(s):  
Latent Class ◽  
Consumer Preferences ◽  
Principal Component ◽  
Taste Preference ◽  
German Population ◽  
Principal Component Factor Analysis ◽  
Tomato Production ◽  
Content Type ◽  
Communication Problems ◽  
Segmentation Approach

Purpose Vegetables are an important component of a healthy diet. Given that tomatoes are the most purchased vegetable in Germany, the purpose of this paper is to focus on how consumers evaluate tomatoes during their food choice. Each consumer has different preferences and, in order to target them, it is necessary to identify consumer groups. The study segments tomato consumers into homogenous target groups. Design/methodology/approach A choice experiment was used to simulate the buying situation in a supermarket. The data were analysed using latent class analysis, as well as principal component factor analysis to measure food-related lifestyles. The sample consisted of 1,027 consumers and was representative of the characteristics of gender, age, educational level and income for the German population. Findings Consumers perceive air transportation and plastic wrapping as most climate damaging in tomato production. Six different tomato consumer groups were identified and named according to the attribute they found most important, i.e. “Balanced consumers”, “Price-conscious consumers”, “Taste enthusiasts”, “Colour-sensitive consumers”, “Price-conscious consumers with a taste preference” and “Colour- and price-sensitive consumers”. In three clusters, colour was the most important attribute. However, green and yellow tomatoes were rejected by all segments, indicating communication problems. Originality/value The results of this study provide breeders and marketers with valuable insights into the factors driving tomato choice. The information was based on a large sample and will help breeders to select the types of tomatoes that are in demand by consumers.

Fijian food shopping behaviour: implications for policy makers and smallholder farmers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Craig Johns ◽  
Wendy J. Umberger ◽  
Pamela Lyon ◽  
Rio Maligalig
Keyword(s):  
Food Industry ◽  
Latent Class ◽  
Consumer Preferences ◽  
Smallholder Farmers ◽  
Small Island ◽  
Food Retailing ◽  
Content Type ◽  
Food Shopping ◽  
Shopping Behaviour ◽  
Traditional Market

PurposeThe study aims to identify different consumer groups to better understand changes in urban Fijian food shopping behaviour and the implications for the local food industry.Design/methodology/approachThe authors used a Latent class (LC) cluster analysis of survey data from 1,000 urban Fijian households to identify unique consumer segments based on household food shopping behaviour.FindingsFive distinct urban household clusters were identified based on food shopping behaviour. The cluster with the highest income level spent significantly lower amounts on fresh fruit and vegetables (FFV) at the main traditional market, preferring to buy their FFV from modern supermarket outlets. Considering the vast majority of local smallholder farmers rely on traditional market channels to sell their produce, the growth and dominance of Fijian supermarkets are of some concern.Research limitations/implicationsFuture research should consider repeating these types of detailed consumer surveys to better understand the implications of changes in shopping behaviour over time, and the role that key stakeholders can play in ensuring smallholder farmers is not excluded from the market.Social implicationsSmallholder-driven agriculture accounts for a significant share of Fiji's gross domestic product (GDP), so understanding how the retail food industry is transforming and how this is affecting smallholder farmers is critical to Fiji's social structure.Originality/valueResearch on food retailing and the role of the consumer is rare in small island developing states (SIDS), such as Fiji. Fiji has a somewhat unique set of circumstances. In the absence of significant foreign investment in food retailing, key factors such as urbanisation and rising urban income mean consumer preferences are important drivers of changes in shopping behaviour. The study provides insights into Fiji's changing food industry with implications for other SIDS, while contributing to the global literature in this field.

Consumer cross-channel behaviour: is it always planned?

2020 ◽  
Vol 48 (12) ◽  
pp. 1357-1375 ◽  
Author(s):  
Isabella Maggioni ◽  
Sean James Sands ◽  
Carla Renee Ferraro ◽  
Jason Ian Pallant ◽  
Jessica Leigh Pallant ◽  
...  
Keyword(s):  
Online Survey ◽  
Latent Class ◽  
Deep Understanding ◽  
Channel Switching ◽  
Content Type ◽  
Channel Choice ◽  
Segmentation Analysis ◽  
Multi Attribute Utility Theory ◽  
Consumer Perspective ◽  
Key Aspects

PurposeFor consumers, cross-channel behaviour is increasingly prevalent. Such behaviour involves consumers actively engaging in (and deriving benefit) from one channel during a product search but switching to another channel when making a purchase. Drawing on multi-attribute utility theory, this study proposes a cross-channel behaviour typology consisting of three key aspects: channel choice behaviour, functional and economic outcomes and consumer-specific psychographic and demographic variables.Design/methodology/approachSegmentation analysis conducted via latent class analysis (LCA) was performed on a sample of 400 US consumers collected via an online survey.FindingsCross-channel behaviour is not always intentional. We identify a specific segment of consumers that most often engage in unplanned, rather than intentional, cross-channel switching. We find that of all shoppers that engage in cross-channel behaviour, a fifth (20%) are forced to switch channels at the point of purchase.Practical implicationsCross-channel behaviour can be mitigated by retailers via a deep understanding of the driving factors of different configurations of showrooming and webrooming.Originality/valueIn contrast with existing conceptualisations, this study suggests that cross-channel behaviour often stems from consumers being “forced” by factors outside of their control, but within the retailers' control. This research presents a nuanced approach to decompose consumer cross-channel behaviour from the consumer perspective as planned, forced or opportunistic.

scholarly journals Clean Label Trade-Offs: A Case Study of Plain Yogurt

2021 ◽  
Vol 8 ◽  
Author(s):  
Sara Maruyama ◽  
Juyun Lim ◽  
Nadia A. Streletskaya
Keyword(s):  
Willingness To Pay ◽  
Consumer Choice ◽  
Food Industry ◽  
Latent Class ◽  
Corn Starch ◽  
Consumer Preferences ◽  
Negative Impact ◽  
Mixed Logit ◽  
Logit Analysis ◽  
Trade Offs

Consumer demand for clean label has risen in recent years. However, clean label foods with simple and minimalistic ingredient lists are often expensive to produce and/or may possess less desirable sensory qualities. Accordingly, understanding consumer preferences regarding the clean label trend would be of great interest to the food industry. Here we investigate how ingredient lists and associated sensory quality descriptions may influence consumer preferences using a hypothetical choice experiment. In particular, we test the impacts of four common stabilizers (carrageenan, corn starch, milk protein concentrate, and pectin) and textural characteristics on preferences and willingness to pay for plain yogurt. A total of 250 yogurt consumers participated in the study. The results of a mixed logit analysis suggest that clean labeling significantly increases the likelihood of consumer choice, while poor texture reduces consumer choice. More importantly, the negative impact of poor texture seems to be less significant for clean label yogurts compared to that for yogurts with longer ingredient lists. Among all stabilizers, corn starch in particular has a significant negative impact on consumer choice. The estimated average consumer willingness to pay for clean labels is between $2.54 and $3.53 for 32 oz yogurt formulations. Furthermore, clean labels minimize the negative impact of textural defects with consumers willing to pay an estimated premium of $1.61 for the family size yogurt with a simple ingredient list. Results of latent class modeling reveal two classes of consumers with similar patterns of demand who prefer clean labels and, on average, would rather purchase a yogurt with a textural defect than opt out of purchasing a yogurt entirely. Implications for the food industry are discussed.

Study on the importance of wine bottle design on consumer choices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Chamorro ◽  
José Manuel García-Gallego ◽  
Hermelinda da Conceição Trindade-Carlos
Keyword(s):  
Consumer Choice ◽  
Consumer Preferences ◽  
Brand Name ◽  
Design Decisions ◽  
Content Type ◽  
Design Elements ◽  
Probabilistic Sampling ◽  
Level Of Knowledge ◽  
Practical Implications ◽  
Wine Bottle

PurposeThe aim of this study is to analyse the importance of bottle design in relation to other purchasing criteria, and also to understand which design elements are most attractive to consumers.Design/methodology/approachA survey of a sample of 437 wine drinkers was carried out in Portugal using non-probabilistic sampling. The technique used was conjoint analysis based on the SPSS conjoint module.FindingsOne of the key findings was the low importance of bottle design in shaping consumer preferences compared to other attributes (origin, price and category of wine). In terms of design elements, the label had the biggest influence on consumer choice, followed by the type of bottle, bottle seal and brand name, in that order. Differences in consumer choice were evident according to the level of knowledge of wine and frequency of consumption.Practical implicationsThe findings of this study provide guidance for Portuguese wineries as regards the marketing and design decisions of their products and packaging.Originality/valueThis study sheds new light on the importance of wine bottle design on consumer preferences. Previous studies in the area have proved to be minimal and heterogeneous.

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