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The percentage of dairy cows managed in grazing systems in Northwest Europe is on the decline, even though pasturing is perceived favourably as enhancing the health and…
The percentage of dairy cows managed in grazing systems in Northwest Europe is on the decline, even though pasturing is perceived favourably as enhancing the health and welfare of dairy cows. With consumers turning away from intensively produced food, developing the pasture-raised milk market could encourage farmers to continue keeping their cows on pastures. To provide insights for expanding this specialty milk market, the purpose of this paper is to, therefore, investigate the roles of personal, product-related, economic and social factors in purchasing pasture-raised milk.
Drivers of pasture-raised milk purchases are identified and the conceptual model is tested using structural equation modelling with data from a cross-sectional study among 917 German milk consumers.
Perceived price and availability barriers are the main consumption obstacles for pasture-raised milk. Besides increasing availability and reducing price premiums, processors should cater health and dietary conscious consumers by providing pasture-raised milk with unique and favourable product qualities, i.e. focussing on freshness, a rich taste or naturalness. Raising awareness for extensive husbandry systems may enhance pasture-raised milk purchases, while introducing a unified pasturing claim could help consumers to distinguish pasture-raised milk from conventional barn milk.
This study provides dairies and marketers with valuable insight about the factors driving pasture-raised milk purchases. This information is derived from a large sample with extensive regional coverage and will thus be useful in expanding this specialty milk market and in maintaining extensive dairy production.
The mechanism by which organic labelling affects consumers’ willingness to pay (WTP) for wine is not yet fully understood. Organic labelling not only transports…
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.
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.
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.
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.