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Consumer characteristics and incentives to buy labelled regional agricultural products

Richard Kwasi Bannor (Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana)
Steffen Abele (Ökonomie ländlicher Räume Hochschule für Forstwirtschaft Rottenburg, Rottenburg, Germany)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 31 May 2021

Issue publication date: 7 September 2021

244

Abstract

Purpose

Rooted in the social identity theory (SIT), the study analysed the effect of consumer ethnocentrism as well as other factors on the purchase of labelled regional agricultural products together with the readiness to purchase the labelled regional products at a premium price in Germany.

Design/methodology/approach

The determinants of the consumption of labelled regional agricultural products and the readiness to pay a premium price for the same in Southwestern Germany were analysed via both probit and ordered probit regressions, respectively.

Findings

Consumer ethnocentrism influences the purchase of labelled regional agricultural products as well as the readiness to purchase at a premium price. Also, consumer socioeconomic and product characteristics and knowledge and perceived benefits of regional products had a divergent influence on the purchase and readiness to purchase labelled regional agricultural products at a premium price.

Research limitations/implications

In terms of limitation, even though the sample size was proper, it could be improved in other studies to validate the findings. Also, the study was limited to a limited number of counties in Southwestern Germany; hence future studies could explore a more extensive geographical space within the region.

Practical implications

The results can serve as a good source of information for improving the marketing of regional agricultural products. This study recommends that regional producers and marketers brand regional products with the region's name to capitalise on consumers' ethnocentric tendencies in the region. Further, regional products have to be sold in places where consumers with a certain degree of ethnocentrism are present. Results provided by this study are commonly applicable for all products, regardless of the type and regional origin, so that product-specific studies are no longer necessary, which reduces redundancy and marketing research costs, which are difficult to bear for small producers.

Originality/value

Germany has benefited immensely from the boom of regional marketing in Europe. Likewise, in Southwestern Germany, there is a growing interest in the production and marketing of regional products. As a result, several studies have investigated the factors influencing the purchasing of regional products in Germany. Nevertheless, literature and studies on the effect of ethnocentrism on the purchasing of regional agricultural products in Southwestern Germany are scanty.

Keywords

Acknowledgements

The authors are profoundly grateful to DAAD and the German Government for the full funding received during the first author's Research Stay in Germany. They are very grateful to Ms Serafin Kattus and Ms Nina Schäfer for their tremendous assistance before and during the data collection. The logistical support of the University of Applied Forest Sciences during the first author's stay in Germany is duly acknowledged. The authors also express their heartfelt appreciation to the consumers, policy implementors, producers, marketers and labelling company officials of Baden-Württemberg who spent time to answer the questionnaires.

Funding: Research funding was received from the Federal Government of Germany under the DAAD Research Stays for University Academics and Scientists, 2018 (57378441) for the study.

Competing interests: The authors declare that they have no competing interests.

Citation

Bannor, R.K. and Abele, S. (2021), "Consumer characteristics and incentives to buy labelled regional agricultural products", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 4, pp. 872-888. https://doi.org/10.1108/WJEMSD-12-2020-0173

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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