Tasting organic: the influence of taste and quality perception on the willingness to pay for organic wine

2019 ◽  
Vol 31 (2) ◽  
pp. 221-242 ◽  
Author(s):  
Birgit Gassler ◽  
Carina Fronzeck ◽  
Achim Spiller

Purpose The mechanism by which organic labelling affects consumers’ willingness to pay (WTP) for wine is not yet fully understood. Organic labelling not only transports information about environmental benefits, but may also influence consumers’ perceptions of quality and taste. The purpose of this paper is to separate the information effect from the perception effect of an organic label on WTP. Design/methodology/approach Taste and quality perceptions of 110 German consumers and their WTP for white and red wines were collected in a second-price auction in conjunction with a blind tasting. Each measure was recorded under two experimental conditions: with and without organic labelling. Serial mediation analysis is used to identify the information and perception effect of an organic label on WTP. A moderating effect of commitment to organic consumption is considered. Findings Wines marketed as organic are perceived as tastier and of higher quality and value. The organic labelling effect is stronger for committed organic consumers. Mediation analysis confirms perceived better taste as a key driver for WTP, especially for less committed organic consumers. The findings highlight perceptions of wine quality as the main mediator through which organic labelling affects WTP for red wine and for committed organic consumers. Originality/value This paper adds to the literature by decomposing the signalling mechanism of organic labelling and by emphasising the role of individual characteristics in determining its magnitude and pathways. Implications from a marketing and wine industry’s perspective are discussed.

2015 ◽  
Vol 117 (11) ◽  
pp. 2814-2830 ◽  
Author(s):  
Mo Chen ◽  
Shijiu Yin ◽  
Yingjun Xu ◽  
Zhiwei Wang

Purpose – The purpose of this paper is to determine consumers’ willingness to pay (WTP) for tomatoes carrying different organic labels. Design/methodology/approach – The data were collected from 878 randomly selected consumers in Shandong Province, China, using the Becker-DeGroot-Marschak auction experiment. The authors used the multivariate probit (MVP) model to analyze the factors influencing consumer preferences. Findings – Results indicated that consumers’ WTP for tomatoes carrying the European Union (EU) organic label was significantly higher than those carrying the Chinese organic label. However, no significant difference was found between consumers’ WTP for tomatoes carrying the EU organic label and that for tomatoes carrying both Chinese and EU labels. The results of the MVP model analysis demonstrated that the consumers with different individual characteristics had heterogeneous preferences for organic labels. Food safety consciousness and organic knowledge both had positive effects on consumers’ WTP, meanwhile, environmental awareness had no prominent effect on consumer preferences. Originality/value – This research is of academic value and of value to policy makers and suppliers. To satisfy diverse market requirements, governments, and manufacturers should consider consumer preferences for different certification labels in strategy development.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yanji Duan ◽  
John A. Aloysius

Purpose Researchers in supply chain transparency have called to expand the boundaries by disclosing various types of information to multiple stakeholders. The purpose of this paper is to explore the effect of transparency about supply chain sustainability on consumers as critical stakeholders and investigate the effectiveness of message characteristics. Design/methodology/approach This study utilizes two scenario-based experiments grounded in a refurbished goods context: Study 1, which employs a 2×2 between-subject experiment investigates the effects of product type and sustainable information provision on consumers evaluations, and Study 2, which employs a 2×1 between-subject experiment examines the effects of sustainable information direction on consumer evaluations. A total of 348 participants were recruited from the Amazon M-Turk platform across the two experiments. Data are analyzed with regression analysis using the PROCESS macro in SPSS and the Johnson–Neyman technique. Findings Contrary to prior research that assumes that refurbished products are associated with lower quality, quality perceptions are moderated by individuals’ environmental involvement (EI) and the information presented by the firm. More importantly, consumer evaluations are influenced by specific characteristics of sustainable supply chain messages: high EI individuals have higher willingness-to-pay a premium (WTPP) when the message is consistent with original beliefs (pro-attitudinal). In contrast to prior theory, there was no difference in the WTPP of consumers with high EI and low EI for counter-attitudinal messages. Practical implications The study shows that what to say, how to say it and to whom, are critical for firms who seek to nudge consumers to support their sustainable practices. Originality/value The value of communicating information on sustainability has been well established. However, little is known about such association when the information provided trades off environmental benefits and product quality. This research addresses the gap in a refurbished product context. The research studies the effect of sustainable supply chain transparency and message characteristics on stakeholders’ evaluations.


2017 ◽  
Vol 9 (1) ◽  
pp. 141-155 ◽  
Author(s):  
Shijiu Yin ◽  
Mo Chen ◽  
Yingjun Xu ◽  
Yusheng Chen

Purpose Unlike some developed countries, Chinese food safety certification system is multi-level including organic/green/hazard-free certifications. The purpose of this paper is to assess consumers’ preferences for tomatoes carrying these different labels. Design/methodology/approach Data used in this study came from choice experiments (CEs) conducted in Shandong province, China. Based on experiment data, a random parameter logit model was established to analyze consumers’ willingness-to-pay (WTP). Findings Consumers’ WTP for organic tomatoes was higher than that for hazard-free and green-certified tomatoes. Furthermore, consumers’ WTP for the European Union (EU) organic label was higher than that for the Chinese organic label, whereas a non-significant difference existed between the levels of consumers’ WTP for hazard-free and green-certified tomatoes. Consumers with different food safety risk perception (FSRP) had large differences in WTP, whereas those with varying environmental awareness (ENAW) had similar levels of WTP. Originality/value This contribution is the first research which focuses on consumers’ WTP for EU organic label, Chinese organic label, green label, or hazard-free label on tomato through CEs in China. Furthermore, the influence of consumers’ FSRP and ENAW on their preference was analyzed through a random parameter logit model.


2020 ◽  
Vol 49 (1) ◽  
pp. 61-80
Author(s):  
Kwonsang Sohn ◽  
Christine Eunyoung Sung ◽  
Gukwon Koo ◽  
Ohbyung Kwon

PurposeThis study examines consumers' evaluations of product consumption values, purchase intentions and willingness to pay for fashion products designed using generative adversarial network (GAN), an artificial intelligence technology. This research investigates differences between consumers' evaluations of a GAN-generated product and a non-GAN-generated product and tests whether disclosing the use of GAN technology affects consumers' evaluations.Design/methodology/approachSample products were developed as experimental stimuli using cycleGAN. Data were collected from 163 members of Generation Y. Participants were assigned to one of the three experimental conditions (i.e. non-GAN-generated images, GAN-generated images with disclosure and GAN-generated images without disclosure). Regression analysis and ANOVA were used to test the hypotheses.FindingsFunctional, social and epistemic consumption values positively affect willingness to pay in the GAN-generated products. Relative to non-GAN-generated products, willingness to pay is significantly higher for GAN-generated products. Moreover, evaluations of functional value, emotional value and willingness to pay are highest when GAN technology is used, but not disclosed.Originality/valueThis study evaluates the utility of GANs from consumers' perspective based on the perceived value of GAN-generated product designs. Findings have practical implications for firms that are considering using GANs to develop products for the retail fashion market.


2014 ◽  
Vol 21 (5) ◽  
pp. 482-502 ◽  
Author(s):  
Osadebamwen Anthony Ogbeide ◽  
Christopher Ford ◽  
Randy Stringer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shivan Sanjay Patel ◽  
Shivendra Kumar Pandey ◽  
Dheeraj Sharma

PurposeThe present research aims to identify critical antecedents of willingness to pay (WTP) for traditional bundles (those comprising only goods or services) in an emerging market context. Further, it differentiates the relative importance of the determinants of customers' WTP according to the bundle type.Design/methodology/approachData were collected from Indian customers. The paper uses conjoint analysis with an orthogonal design. The experimental conditions were manipulated using vignettes.FindingsThe results indicated that purchase autonomy was considered the most important driver for customer's WTP in the case of traditional bundles. Quality variability, overall bundle quality and complementarity followed autonomy in the order of importance. Moreover, the interaction effects of autonomy and complementarity with bundle type significantly influenced the customer's WTP. Customers had a higher WTP for services bundle in high autonomy and goods bundle in high complementarity situations.Practical implicationsRetailers should allow customers to buy either the entire bundle or its components separately, irrespective of the type of traditional bundle. They should try to make bundles whose perceived quality varies significantly in the target customers. Retailers should try to keep complementary components in the goods-only bundle.Originality/valueThe present study extends the relationship of the WTP with its antecedents to traditional bundles. Earlier studies have only studied these relationships for hybrid (combination of goods and services) bundles. With the current study results, retailers can bundle traditional bundles (goods only and services only).


2019 ◽  
Vol 31 (2) ◽  
pp. 890-909 ◽  
Author(s):  
Yuxia Ouyang ◽  
Amit Sharma

PurposeThe purpose of this study was to investigate the preference of health-warning message labeling in an eating-away-from-home context. The authors assessed individuals’ preference valuation of such messaging from a dual – consumer and citizen – perspective and with associated expected risk reduction (RR) level.Design/methodology/approachIn an online stated choice experiment on Amazon’s Mechanical Turk (N = 658), participants were asked to provide willingness to pay (WTP) preferences for health-warning messages and based on the expected RR from health-warning messages. Two types of multiple price list questions were used for consumer and citizen contexts. Interval regression and descriptive analysis methods were applied to analyze the data.FindingsThe study found that individuals placed a higher value (higher WTP) on health-warning message labeling when acting as citizens rather than as consumers. An RR expectation of 50 per cent was most effective in increasing participants’ WTP. Individuals who ate out frequently were more concerned about healthier food messages, and the influence of gender and age on WTP was conditional on individuals’ roles as consumers versus citizens.Originality/valueThis study extends the theory of consumer-citizen duality to the context of health-related information labeling, thus opening the discussion to extending such labeling from traditionally risky behavior such as alcohol and tobacco to also including food choice behavior. The authors also highlight implications on policy and industry practices to promote healthy food choices through such messages.


2014 ◽  
Vol 5 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Niklas Eriksson

Purpose – This study aims to identify user categories of mobile travel services and analyze the differences between the categories based on individual characteristics, the individuals' perceived barriers to use internet-/mobile services during a trip and the individuals' preferred channel strategies. Design/methodology/approach – An extensive online survey in Finland was conducted to collect the data and a cluster analysis is used to identify the user categories. Findings – The study indicates that there are four user categories of mobile travel services: “info-seekers”, “checkers”, “bookers” and “all-rounders” and one group of “non-users”. Research limitations/implications – Due to the online data collection method and the self-selective process, the sample may be biased towards respondents finding electronic travel services important. It would be of value to conduct similar studies on a representative sample of the total population of different countries. Practical implications – The identified categories can be seen as consumer segments for which travel service providers can target mobile services. Originality/value – This study contributes with a categorization of mobile travelers and provides insights on the diffusion of mobile travel services.


2011 ◽  
Vol 77 (13) ◽  
pp. 4669-4675 ◽  
Author(s):  
Dawn C. Bisi ◽  
David J. Lampe

ABSTRACTThe insect-vectored disease malaria is a major world health problem. New control strategies are needed to supplement the current use of insecticides and medications. A genetic approach can be used to inhibit development of malaria parasites (Plasmodiumspp.) in the mosquito host. We hypothesized thatPantoea agglomerans, a bacterial symbiont ofAnophelesmosquitoes, could be engineered to express and secrete anti-Plasmodiumeffector proteins, a strategy termed paratransgenesis. To this end, plasmids that include thepelBorhlyAsecretion signals from the genes of related species (pectate lyase fromErwinia carotovoraand hemolysin A fromEscherichia coli, respectively) were created and tested for their efficacy in secreting known anti-Plasmodiumeffector proteins (SM1, anti-Pbs21, and PLA2) inP. agglomeransandE. coli.P. agglomeranssuccessfully secreted HlyA fusions of anti-Pbs21 and PLA2, and these strains are under evaluation for anti-Plasmodiumactivity in infected mosquitoes. Varied expression and/or secretion of the effector proteins was observed, suggesting that the individual characteristics of a particular effector may require empirical testing of several secretion signals. Importantly, those strains that secreted efficiently grew as well as wild-type strains under laboratory conditions and, thus, may be expected to be competitive with the native microbiota in the environment of the mosquito midgut.


2014 ◽  
Vol 29 (3/4) ◽  
pp. 237-260 ◽  
Author(s):  
Ashutosh Dixit ◽  
Kenneth D. Hall ◽  
Sujay Dutta

Purpose – The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to pay (WTP) in automated retail settings. Design/methodology/approach – The authors conducted two sets of quasi-experimental scenarios surrounding vending-machine purchase decisions. The first set was analyzed with MANOVA, the second set with choice-based conjoint (CBC) analysis. Findings – When prices are framed positively (as a discount), customer WTP is higher at high published price levels than it is for unframed or negatively framed prices. The effect on WTP holds whether the reference price range is broad (few large increments) or narrow (numerous small increments). In the CBC scenarios, immediate availability of the product was most influential on choice, followed by price and brand effects. These findings held under conditions invoking both urgency and price fairness. Providing an explanation for higher prices increases perceived price fairness. Research limitations/implications – Further study might assess the presence or absence of interaction effects in the conjoint scenarios. Practical implications – Managers should consider transparency in dynamic pricing, particularly when the price change is outside the control of the firm. The conjoint scenario results also offer evidence that dynamic pricing will not impact other marketing-mix decisions for fast-moving consumer goods (FMCG) dramatically (availability at point of purchase and presence in the consumer consideration set remain strong influences on choice). Social implications – Understanding these effects on WTP could help managers manage perceptions of unfairness and optimize WTP. Originality/value – A theoretical contribution from this study is that the immediate loss/gain consideration under theories of decision making under uncertainty outweigh considerations such as scarcity urgency or perceived unfairness. Use of conjoint analysis in WTP research, study of dynamic pricing in FMCG setting.


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