Effects of quality claims on willingness to pay for organic food

2016 ◽  
Vol 118 (9) ◽  
pp. 2218-2233 ◽  
Author(s):  
Marin Cagalj ◽  
Rainer Haas ◽  
Ulrich B. Morawetz
Keyword(s):  
Willingness To Pay ◽  
Organic Food ◽  
Food Products ◽  
Health Claims ◽  
Experimental Auction ◽  
Experimental Auctions ◽  
Content Type ◽  
Credence Attributes ◽  
Organic Products ◽  
The Eu

Purpose Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would change the willingness to pay (WTP) for organic products in Croatia. Design/methodology/approach For estimating the WTP under different claims the authors used an experimental auction. Participants (258) bid for real food products (organic and conventional tomatoes and apples) and are endowed with cash at a location where they usually go shopping. Findings For the sample the authors find that consumers are willing to pay on average a premium of 42 percent for organic apples and 59 percent for organic tomatoes. On top of that, WTP increases between 16-20 percent for environmental claims and 12 percent for health claims. Taste-related claims are not significant. Practical implications Sellers and producers of organic food can benefit from adding claims to organic labels. To protect consumers from manipulation, regulators are well advised to be cautions when allowing claims about credence attributes of food. Originality/value The authors quantify the influence of claims about organic products on the WTP by using experimental auctions which are particularly suitable to investigate effects which cannot be observed on the market.

Attitudes and behaviour towards organic products: an exploratory study

2008 ◽  
Vol 36 (2) ◽  
pp. 158-175 ◽  
Author(s):  
Efthimia Tsakiridou ◽  
Christina Boutsouki ◽  
Yorgos Zotos ◽  
Kostantinos Mattas
Keyword(s):  
Organic Food ◽  
Food Products ◽  
Local Economy ◽  
Health Concern ◽  
Future Research ◽  
Consumer Decision Making ◽  
Content Type ◽  
Actual Behaviour ◽  
Trade Offs ◽  
Organic Products

PurposeThe aim of this paper is to identify consumers' attitudes and behaviour towards organic products in Greece.Design/methodology/approachThis paper draws on a non‐probability quota sample of 660 respondents to explore the attitudes and behaviour of Greek consumers towards organic food products.FindingsGreek consumers seem to be informed about environmental and health issues. They seek information about the nutritional value of food and demand more products free from chemical residues. The results show that most consumers associate organic consumption mainly with fruit and vegetables. Although demographics seem to affect attitudes towards organics, their value in explaining actual behaviour is minimal.Research limitations/implicationsIt is recognized that the data gathered in this study focus on the metropolitan area of Thessaloniki, Greece. The specific area though, is considered to be representative of the total Greek population. The results confirm that health, concern for the environment, animal welfare and support of the local economy are drivers of organic consumption. However, there is an indication that the importance of motives and barriers may vary for different product categories and perhaps future research should focus on product segmentation.Practical implicationsAlthough certain similarities in consumers' attitudes towards organic food products have been identified, this paper records the variation in behaviour towards organics among the various consumer groups examined in Greece, and highlights the gap between attitudes and actual behaviour. Given the complexity of consumer decision making, future research should explore the other value trade‐offs that consumers make.Originality/valueThis paper attempts to provide evidence on the relatively under researched area of organics attitudes and behaviour in Greece.

Shaping consumer perception: effects of vertical and horizontal packaging alignment

2020 ◽  
Vol 37 (4) ◽  
pp. 423-431
Author(s):  
Jannick Bettels ◽  
Janina Haase ◽  
Klaus-Peter Wiedmann
Keyword(s):  
Willingness To Pay ◽  
Empirical Studies ◽  
Organic Food ◽  
Food Products ◽  
Consumer Perception ◽  
Content Type ◽  
Point Of Sale ◽  
Packaging Design ◽  
Value Perception ◽  
Utilitarian Value

Purpose Packaging represents an essential issue for marketers in terms of effectively communicating the product’s benefits, especially in the case of organic food products. Because of logistical advantages, rectangular packaging is frequently used for organic food products. However, the question arises whether packaging alignment may significantly influence consumers’ decision-making at the point of sale. Therefore, this paper aims to examine the effects of rectangular packaging alignment (vertical vs horizontal) on consumer perception in the context of organic food products. Design/methodology/approach On the basis of the empirical results of a pilot study, a between-subjects online experiment with a sample size of 699 participants and two conditions (vertical vs horizontal packaging alignment) was performed. Analyses of covariance and PROCESS mediation analysis were used for data analysis. Findings The results of two empirical studies confirm the relevance of differences in consumers’ horizontal and vertical information processing for the research context of organic food and provide evidence for the assumed relevance of packaging alignment by ultimately showing a change in packaging alignment affects consumers’ willingness to pay. Importantly, this effect is mediated by utilitarian value perception. Originality/value This paper importantly contributes to research on packaging design of organic food products. Specifically, the relevance of an efficient utilitarian value perception for the consumer’s willingness to pay is highlighted in this context. Potential implications of these results for companies, consumers and public health are discussed.

scholarly journals Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products

Food Policy ◽  
2007 ◽  
Vol 32 (2) ◽  
pp. 145-159 ◽  
Author(s):  
Marvin T. Batte ◽  
Neal H. Hooker ◽  
Timothy C. Haab ◽  
Jeremy Beaverson
Keyword(s):  
Willingness To Pay ◽  
Organic Food ◽  
Food Products

Perception of Romanian Consumers on Ecological Products

2016 ◽  
pp. 203-224
Author(s):  
Violeta Sima ◽  
Ileana Georgiana Gheorghe
Keyword(s):  
Decision Making ◽  
Organic Food ◽  
Food Products ◽  
Purchase Decision ◽  
Main Concern ◽  
Review Of The Literature ◽  
Consumption Behavior ◽  
Perceptions And Attitudes ◽  
Organic Products ◽  
Decision Making System

This chapter aimed to investigate perceptions and attitudes of Romanian consumers about organic products, in order to study the connection between knowledge and attitudes of consumers and their place in purchase decision-making system to understand their behavior toward organic food. In the first part, after a brief introduction, the authors tried to perform a review of the literature in the field, starting from the presentation of the concept of green or ecological consumption behavior and the notions related to it. A synthetic scheme of the drivers of the green market was proposed as a conclusion of this introductory part. The main concern is about consumption of the ecological products in Romania. The authors identified a number of 17 relevant studies performed in Romania in order to help them substantiate their work. They took into account two issues, namely, Ecological Non-Food Products and Ecological Food Products.

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.

scholarly journals Food for thought

2020 ◽  
Vol 122 (4) ◽  
pp. 1130-1155 ◽  
Author(s):  
Boban Melović ◽  
Marina Dabić ◽  
Sunčica Rogić ◽  
Vladimir Đurišić ◽  
Vesna Prorok
Keyword(s):  
Food Production ◽  
Organic Food ◽  
Product Category ◽  
Organic Production ◽  
Decision Makers ◽  
Social Implication ◽  
Content Type ◽  
Perceptions And Attitudes ◽  
Organic Products ◽  
Young Consumers

PurposeThis paper seeks to identify the factors that influence the perceptions and attitudes of young people in Montenegro toward organic products.Design/methodology/approachThe results of the research, obtained using the multivariate factor analysis, showed that the vast majority of young consumers identify organic food as healthy and natural and that its higher price is a significant barrier inhibiting their likelihood of purchasing it, along with inaccessibility and the limited options offered.FindingsThe data obtained provides valuable information for managers and decision-makers working in organic food production and sales in Montenegro – a country with the potential to develop in this field.Research limitations/implicationsThe study was carried out in the CEE transition country of Montenegro, with 300 young consumers. Further research is needed to validate the results through longitudinal study.Practical implicationsThe data obtained represents a meaningful contribution to the field of organic food production and sale in Montenegro (which is a country with a lot of potential in this area) and will assist managers and decision-makers in the field.Social implicationUnlike most research that has previously examined issues concerning organic production – such as its standardization, financing, environmental impact, and even its promotion – this paper provides a better understanding of the behavior of young consumers toward organic products in Montenegro by outlining their perceptions and attitudes toward this product category.Originality/valueThis research represents the first academic study of customers' attitudes and perceptions in this area, alongside the main factors affecting the young consumer's choice to purchase organic food in Montenegro.

Blissed ignorance?

2014 ◽  
Vol 44 (4) ◽  
pp. 345-362 ◽  
Author(s):  
Gianluca Stefani ◽  
Alessio Cavicchi ◽  
Donato Romano
Keyword(s):  
Willingness To Pay ◽  
Raw Materials ◽  
Production Method ◽  
Negative Influence ◽  
Communication Strategy ◽  
Experimental Auctions ◽  
Content Type ◽  
Production Methods ◽  
The Impact ◽  
First Time

Purpose – The purpose of this study was to explore the impact of information on origin, “typicalness”, production method and flavour on the willingness to pay and the sensorial appreciation of Tuscan sanguinaccio (Italian Salami). Design/methodology/approach – The goal of the study was to explore how differences between willingness to pay and sensorial appreciation (measured using a hedonic score) for the three types are influenced by the nature of the sensorial and non-sensorial information available to the consumer. To evaluate reaction to sensorial information, typical information regimes used in works on degree of disconfirmation (Schifferstein, 2001) were adopted, that is, visual examination of the product with indication of the name and tasting of the labelled product. Findings – Analysis of the results of the experiments indicates that Mallegato and Biroldo have particular characteristics that make it critical to promote them to a vast public. The information on the production methods and ingredients seemed to interact negatively with the sensorial perception of the product after tasting, probably because of the presence of blood and other problematic components (for example, components of the pig head in Biroldo) among the ingredients. Research limitations/implications – Limited size of the sample and a gastronomic niche product analyzed. Practical implications – The negative influence of the processed information has to be considered to efficiently communicate the typicalness of these salami products. In fact, whilst for other traditional products, different kinds of information related to process, raw materials, recipes and, more generally, tradition can be jointly used to increase the arousal and the expectation on products quality characteristics, in this case, the communication strategy has to carefully consider the limit of these product components. Originality/value – For the first time the use of experimental auctions investigate the role of problematic information, such as the presence of blood, on consumers’ preference towards a typical gastronomic product.

scholarly journals Consumers’ willingness to pay for organic products in Thailand

2015 ◽  
Vol 42 (5) ◽  
pp. 480-510 ◽  
Author(s):  
Yaowarat Sriwaranun ◽  
Christopher Gan ◽  
Minsoo Lee ◽  
David A Cohen
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation Method ◽  
Good Health ◽  
Content Type ◽  
Factors Affecting ◽  
Valuation Method ◽  
Organic Products ◽  
Products Analysis ◽  
Jasmine Rice ◽  
The City

Purpose – The purpose of this paper is to investigate factors affecting consumers’ willingness to pay (WTP) a premium for organics. Design/methodology/approach – A self-administered questionnaire was used to collect data at five retail stores in metropolitan Bangkok. Exploratory factor analysis and the double-bound contingent valuation method were used for analysis. Findings – Results indicate WTP premiums of 88, 51 and 51 per cent for kale, jasmine rice and pork, respectively. Analysis indicates that respondents are willing to pay a premium if they have already purchased organic products, have good health, strong ethical and environmental concerns, think that organic products provide greater quality and health benefits, and reside in the city. Respondents with children, however, are less likely to pay a premium for organic products. Analysis also indicates that the price premium hinders purchase. Practical implications – Efforts should be made by policymakers, together with marketers and producers, to lower the price of organic products to attract more consumers. Originality/value – To enlarge the organic market, one must understand consumers’ preferences for organic products and the premium they will pay for them. This is not well-researched. Though several studies have investigated consumers’ behaviour towards environmentally friendly products in Thailand, there is little research on WTP. This lack is a major impediment to the growth of organic consumption and the development of organic product markets.

Trade deals will boost EU organic agriculture

2017 ◽  
Keyword(s):  
Organic Agriculture ◽  
Genetically Modified Organisms ◽  
Pesticide Use ◽  
Content Type ◽  
Agriculture Sector ◽  
The Past ◽  
Organic Products ◽  
Trade Deals ◽  
Opening Up ◽  
The Eu

Subject Outlook for the EU organic agriculture sector. Significance Over the past ten years, the EU’s organic sector has grown on average by 5-6% per year; 6% of farming land in the EU is used for the cultivation of organic foodstuffs. The drivers for continued growth include a consumer desire for ‘cleaner’ food, and concerns about genetically modified organisms and pesticide use in the supply chain. Impacts The EU is focusing on the development of its stringent organic regulations, which apply not only to EU but also to EEA member states. The EU-Chile agreement will likely provide a framework for future deals with other countries in the region such as Mexico. Demand for organic products in the EU is growing faster than production, opening up opportunities for other countries.

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