scholarly journals Consumer Preferences for Private Label Brand vs. National Brand Organic Juice and Eggs: A Latent Class Approach

2021 ◽  
Vol 13 (13) ◽  
pp. 7028
Author(s):  
Ellen J. Van Loo ◽  
Fien Minnens ◽  
Wim Verbeke

Many retailers have expanded and diversified their private label food product assortment by offering premium-quality private label food products such as organic products. With price being identified as the major barrier for organic food purchases, private label organic food products could be a suitable and more affordable alternative for many consumers. While numerous studies have examined consumer preferences for organic food, very few organic food studies have incorporated the concept of private labels. This study addresses this research gap by studying consumer preferences and willingness to pay for national brand and private label organic food using a latent class model. Specifically, this study analyzes consumer preferences for organic eggs and orange juice and the effect of national branding versus private label. Findings show heterogeneity in consumer preferences for production method and brand, with three consumer segments being identified based on their preferences for both juice and eggs. For eggs, about half of the consumers prefer private label and organic production, whereas one-quarter clearly prefers organic, and another quarter is indifferent about the brand and the organic production. For orange juice, the majority (75%) prefer the national brand. In addition, one-quarter of the consumers prefers organic juice, and about one-third values both organic and the national brand.

Foods ◽  
2020 ◽  
Vol 9 (3) ◽  
pp. 259 ◽  
Author(s):  
Boban Melovic ◽  
Dragana Cirovic ◽  
Branislav Dudic ◽  
Tamara Backovic Vulic ◽  
Michal Gregus

Considering the benefits of the organic production system, it is recognized as one of the main drivers of future economic development. However, the imbalance between demand and supply at the local market level represents one of the serious obstacles that prevents its future growth. Therefore, this article examines the key factors related to the main elements of the offer that have the strongest impact on consumer preferences and acceptance of organic food products. In that sense, organic product, price, distribution channel, and promotion are considered the main elements of the offer and are analyzed in this paper from the consumer preferences perspective. Further, this article provides insight into some of the sensory properties of the offer that are important to consumers. Finally, it gives recommendations for optimization of the offer on the organic food market based on the analysis of the influence of each of those elements (product, price, distribution, and promotion) on consumer acceptance of organic products and making purchasing decisions. The data were collected using a questionnaire, and analyzed using the structural equation model (SEM). The results revealed that price and promotion have the strongest impact on consumer acceptance and buying decisions. Further analysis revealed that attitudes towards organic food products, price/quality ratio, distribution barriers, and modern media as a promotion instrument are the factors that have the most significant impact on consumer perception and attitudes towards the available market offer. These findings can help producers and other decision makers to better understand what creates added value of the organic food products in consumers’ mind and therefore make an offer that is in line with their expectations and preferences, which is recognized as one of the main prerequisites for the acceptance and purchase of organic food products.


2020 ◽  
Vol 10 (8) ◽  
pp. 1507-1525
Author(s):  
E.A. Aleshina ◽  
◽  
A.A. Leksina ◽  
Zh. S. Dossumova ◽  
◽  
...  

Organic agriculture, based on natural production technologies, obtains a great potential for reversing humanity to a healthy diet and living in harmony with nature by improving the state of the ecosystem. The share of organic food products in the market of the developed countries is already quite high; and various institutional systems of the industry have been introduced and are being improved in the leading countries of the world. Domestic agribusiness is currently lagging behind in these matters, but the situation should be significantly changed by the adopted law and state standard regulating the requirements for the organic sector. In this regard, an objective need arose to substantiate the capabilities and the resource potential of the Saratov region in this sphere. Within the framework of the presented research, an interdisciplinary fundamental platform to develop the theory of the organic food products market was formed. As a result, the elements of the scientific methodology (theories, principles, factors, methods) of its functioning were identified, which made it possible to substantiate the potential capacity of the regional consumer market for organic food. The calculation was made taking into account the rational norms of food consumption that meet modern requirements for a healthy diet, the heterogeneity of consumer preferences, the price gap for the main conventional and organic products in retail and the dispersion of prices for the latter, the implementation of state policy to protect and improve the health of certain population groups. This study is intended for the state management bodies of the agro-industrial sector, the leadership of agricultural, processing and marketing enterprises, the structures of wholesale and retail food products trade and branch research institutions.


2019 ◽  
Vol 122 (8) ◽  
pp. 2551-2567 ◽  
Author(s):  
Andrea Dominici ◽  
Fabio Boncinelli ◽  
Francesca Gerini ◽  
Enrico Marone

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.


2011 ◽  
Vol 1 (1) ◽  
pp. 19-23
Author(s):  
Rupesh Mervin M ◽  
Velmurugan R

The market of organic products is growing as the number of people willing to consume organic food and consumer preference towards organic food products is ever increasing. The promotion of organic food products constitutes an important option not only for producers, government and consumers but also to respond to societies‘ desire for higher food quality and food production that is less damaging to environment systems and improve the quality of life; this makes the study of consumer preferences highly important. The main purpose of this study is to identify the factors influencing consumer preferences toward organic products. The target population in this research includes consumers of Kozhikode district of Kerala state of India. By making use of convenience sampling method 750 respondents have been selected. Data required for the study have been collected with the help of questionnaire.The finding of the research work revealed that gender, age, occupation, monthly income, family status, level of awareness, state of health and environmental engagement are associated with consumer preference towards organic foods. The research work shows increasing monthly income and environment engagement activities influences consumer preference towards organic food products.There is an inverse relationship between consumer awareness and consumer preferences towards organic food. Organic food considered as healthy product and it is more preferred by the green consumers. The research result suggest that Government and social organizations have to promote organic farming at the households among general public and to take necessary steps for creating a regulatory system for authenticated organic certification and labeling in order to build-up the trust and confidence in consuming organic food products.


2018 ◽  
Vol 120 (2) ◽  
pp. 269-289 ◽  
Author(s):  
Almir Peštek ◽  
Emir Agic ◽  
Merima Cinjarevic

Purpose The purpose of this paper is to obtain empirical understanding of organic food buyers in the context of emergent organic food market (i.e. Bosnia and Herzegovina) by using a segmentation approach. Design/methodology/approach A self-administrated online survey was carried out among organic food buyers (n=202) using the snowball sampling technique. Measurement items were mainly adapted from the prior studies. Findings The authors analysed the heterogeneity of organic food buyers with latent class model. Four distinct latent classes (i.e. segments) of organic food buyers were identified. Those segments were named as enthusiastic social-seekers, enthusiastic moralists, hostile seldom shoppers, and hostile heavy shoppers. Originality/value Though the study was exploratory, the identified segments of organic food buyers can enhance our knowledge about differing characteristics of organic food buyers in the context of the country where the organic food industry is in the early stages of development. The findings of this study will give organic food producers and marketers a much better framework for making product, pricing, distribution and marketing communications decision. Moreover, the identification of organic food consumer profiles will provide an insight into how policymakers should tailor their public policy and strategies to expand the size of the organic food market.


Foods ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 624
Author(s):  
Widya Satya Nugraha ◽  
Shang-Ho Yang ◽  
Kiyokazu Ujiie

In this study, we focus principally on Taiwan’s traditional markets, as food safety issues in those markets have been increasing recently. Thus, this poses pressures and challenges in traditional markets in terms of attracting consumers. This research aims to investigate whether there is consumer demand for more quality improvement from butchers and additional product information in Taiwan’s traditional markets by surveying consumers’ willingness to pay (WTP). This study determines consumers’ preferences for the important attributes and also investigates the different consumer segmentation in Taiwan’s traditional markets by analyzing the types of Taiwanese consumers who care about food safety and additional product information, including Taiwan Fresh Pork (TFP), QR code (provides product source information), Cold storage, and price. In this study, both Mixed Logit Model and Conditional Logit Model are used to elicit consumers’ WTP, and the Latent Class Model is used to understand the market segmentation in Taiwan’s traditional markets. The results show that the majority of Taiwanese consumers in traditional markets show preferences and WTP for meat products if cold storage and QR code are available in Taiwan’s traditional markets. This work also provides appropriate strategies for improving the additional product information in Taiwan’s traditional markets, which can influence present and potential customers purchasing decisions.


2016 ◽  
Vol 5 (2) ◽  
pp. 115-133 ◽  
Author(s):  
Rui Gaspar ◽  
José Manuel Palma-Oliveira ◽  
Victor Corral-Verdugo

AimRather than being rigid, habitual behaviours may be determined by dynamic mental representations that can adapt to context changes. This adaptive potential may result from particular conditions dependent on the interaction between two sources of mental constructs activation: perceived context applicability and cognitive accessibility.MethodTwo web-shopping simulations offering the choice between habitually chosen and non-habitually chosen food products were presented to participants. This considered two choice contexts differing in the habitual behaviour perceived applicability (low vs. high) and a measure of habitual behaviour chronicity.ResultsStudy 1 demonstrated a perceived applicability effect, with more habitual (non-organic) than non-habitual (organic) food products chosen in a high perceived applicability (familiar) than in a low perceived applicability (new) context. The adaptive potential of habitual behaviour was evident in the habitual products choice consistency across three successive choices, despite the decrease in perceived applicability. Study 2 evidenced the adaptive potential in strong habitual behaviour participants – high chronic accessibility – who chose a habitual product (milk) more than a non-habitual product (orange juice), even when perceived applicability was reduced (new context).ConclusionResults portray consumers as adaptive decision makers that can flexibly cope with changes in their (inner and outer) choice contexts.


2017 ◽  
Vol 15 (3) ◽  
pp. e0114 ◽  
Author(s):  
Engjell Skreli ◽  
Drini Imami ◽  
Catherine Chan-Halbrendt ◽  
Maurizio Canavari ◽  
Edvin Zhllima ◽  
...  

Albania has potential for developing the organic agriculture sector; however, it is a new industry and constraints abound including lack of consumer preferences information for organic food. Knowledge on consumer preferences and behaviour toward organic (bio) products is crucial for market development benefiting potential entrepreneurs and government policies. They need to know the preference for preferred product attributes and willingness to pay. Tomato, which is the most important vegetable in terms of consumption and production in Albania, is the subject of this study. A conjoint choice experiment with the most important product attributes: production type (bio vs. conventional), production system (open field vs. greenhouse), origin and price were used to design the choice surveys. Four distinct classes have been identified as significant using latent class analysis. The classes are summarized as: bio-ready consumers, price sensitive consumers, variety seeking consumers and quality seeking consumers. Origin played a small influence on preference. Education and income did show some influence on preference for organic tomatoes. Although the organic food market in Albania is in its infancy stage, organic tomatoes are clearly preferred and many consumers are willing to pay a premium price.


Foods ◽  
2020 ◽  
Vol 9 (9) ◽  
pp. 1212 ◽  
Author(s):  
Ching-Hua Yeh ◽  
Davide Menozzi ◽  
Áron Török

This paper investigates consumers’ preferences for egg purchase in two European countries, Hungary and Italy. We utilize random parameter logit models to interpret the results of discrete choice experiments (DCE) for the elicitation of preference of the egg consumers. A sample of 403 in the Hungarian survey and 404 in the Italian survey were recruited in summer 2018. The DCE questionnaire includes the following product and process characteristics: organic labels, nutrition and health claims, and price. Our results show that for Hungarian and Italian consumers, the price is the most important attribute, followed by the nutrition and health claim and the organic production labelling. Three egg consumer segments can be identified via latent class models for each country. In both countries, we found similar consumer groups, the Price Sensitive and Quality Optimizing Opportunist Consumers and Health Conscious Buyers, respectively. Particularly, compared to the other segments the Health Conscious Buyers (46% in Hungary and 49% in Italy) exhibited stronger preference for and are willing to pay a higher price premium for eggs with organic label and nutrition claims. In Italy, we identified a third segment with consumers preferring simpler labelling approach, whilst in Hungary we found a consumer segment distrusting the EU organic logo.


Sign in / Sign up

Export Citation Format

Share Document