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Article
Publication date: 7 August 2017

Chenguang Li, Junfei Bai, Zhifeng Gao and Jiangyuan Fu

Continuing economic growth in emerging markets offers large market opportunities to producers and marketers worldwide; however, market failures due to asymmetric…

Abstract

Purpose

Continuing economic growth in emerging markets offers large market opportunities to producers and marketers worldwide; however, market failures due to asymmetric information are often seen when high-quality products enter these “new markets” where recognition rates among consumers are low. The use of “geographical originlabels as quality signals to overcome asymmetric information problem plays an important role. The purpose of this paper is to compare consumers’ perception and willingness to pay (WTP) for different levels of geographic origin labels to provide insights to the strategic use of origin labels in emerging markets.

Design/methodology/approach

A consumer survey on geographic labeling for imported dairy products was carried out in Beijing, China in May 2015. Under the “products of European Union (EU)” range, the authors used “product of Ireland” as a case study for the country-specific origin label. Information on consumer demographic, dairy consumption, safety perceptions, knowledge on Ireland and Irish products, as well as WTP for different geographic labeling and product attributes were collected from 307 face-to-face interviews. WTP was elicited using double-bounded contingent valuation method, and estimated with maximum log-likelihood function.

Findings

The authors found that consumers are willing to pay premium prices for both of these geographical origin indicators, but the EU label had slightly higher WTP results. However, the controversial situation is that although the EU label has a better chance than the country-specific label in signaling premium quality to Chinese consumers, EU labeling at its best signals an average quality across the EU counties. For premium products with above average quality, using generic EU labeling has a potential drawback to the establishment of product differentiation.

Originality/value

This study is the first to evaluate Chinese consumers’ WTP for EU generic origin label for dairy products in comparison to country-specific origin label. Findings of the study have immediate policy and marketing implications in emerging markets.

Details

British Food Journal, vol. 119 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 1 January 1989

Johny K. Johansson

Selected empirical findings on the effects of a product′s“made‐in” label are integrated with theoretical developmentsin consumer information processing and the economics of

Abstract

Selected empirical findings on the effects of a product′s “made‐in” label are integrated with theoretical developments in consumer information processing and the economics of consumer search. The result is an internally consistent theory of how country‐oforigin effects vary across situations, individuals and products. The new perspective explains why country stereotyping influences decisions more among well‐informed buyers and dismisses the idea that country‐oforigin cues are necessarily misleading or bad. It also generates predictions of when country‐oforigin effects are greater and when they are smaller.

Details

International Marketing Review, vol. 6 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 31 August 2020

Yohan Bernard, Véronique Collange, Aurore Ingarao and Sarra Zarrouk-Karoui

The purpose of this paper is to better understand an increasingly widespread practice consisting, of a brand, in signaling the domestic origin of its products aimed at…

Abstract

Purpose

The purpose of this paper is to better understand an increasingly widespread practice consisting, of a brand, in signaling the domestic origin of its products aimed at domestic consumers, that is, the “made in the domestic country” (MIDC) strategy. To this end, it is proposed to analyze the MIDC label as a cue interacting with the brand’s characteristics (brand equity and country of origin of the brand).

Design/methodology/approach

A between-subjects experiment is conducted among 293 French consumers on four different brands of pasta. The overall design is a 2 (with/without the MIDC label) × 2 (high/low brand equity) × 2 (domestic/foreign brand) mixed design.

Findings

The results show that intention to buy the product increases significantly with the presence of the MIDC label, but not so willing to pay. The positive effect on buying intention is greater when: the product has rather low brand equity, consumer ethnocentrism is high and/or consumers are strongly attached to their national identity.

Research limitations/implications

The present research extends the literature on country-of-origin effects by taking into account the role of the brand equity of the product. However, the study focused on only one low-involvement product category (pasta) and one country (France).

Practical implications

This study shows that adding an MIDC label to the product is empirically justified.

Originality/value

While moderate or high scores on “patriotic” variables reinforce the positive impact of the MIDC label, low scores reverse the trend, that is, cause rejection.

Details

European Journal of Marketing, vol. 54 no. 12
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 23 July 2020

Jae Min Jung, Joseph Jones, Curtis P. Haugtvedt and Somnath Banerjee

Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase…

Abstract

Purpose

Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase intentions. Likewise, little is known about when the state-of-origin (SOO) information enhances, has no effect or has a negative effect on consumer attitudes and purchase intentions. Primarily drawing on the country-of-origin literature, this study aims to examine the influence of SOO label information and the moderating role of state residency.

Design/methodology/approach

To test five hypotheses, the authors conducted a survey (Study 1) and an experiment (Study 2). The analyses included content analysis, regression and ANOVA.

Findings

The findings show that for certain products, moderate-to-strong product–state associations exist. However, when the associations are weak, consumers show bias for products made in their (vs other) states. The findings also show that when consumers evaluate their state products, normative (vs cognitive) reasons drive their attitudes, but that when they assess products from states other than their state of residency, cognitive (vs normative) reasons drive attitudes. Additionally, economic sustainability seems a powerful motivator for buying products made in their state of residency.

Practical implications

Companies should take advantage of positive biases for their products in the states in which they produce products. However, when companies market their products outside their states of production, in some cases, they should consider deemphasizing SOO information unless there is a strong product–state association present among consumers outside of the state.

Originality/value

This paper adds value by providing new insights for designing product origin labeling programs. Suggestions for future research and marketing strategies for practitioners who want to use SOO as a branding strategy are offered.

Details

Journal of Consumer Marketing, vol. 37 no. 7
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 2 September 2019

Carla Ferreira, Lina Lourenço-Gomes, Lígia M. Costa Pinto and Ana Patrícia Silva

The purpose of this paper is to analyze the existence and influence of gender effects on wine choice, specifically whether women and men seek the same cues in wine labelling.

Abstract

Purpose

The purpose of this paper is to analyze the existence and influence of gender effects on wine choice, specifically whether women and men seek the same cues in wine labelling.

Design/methodology/approach

Five focus groups, involving 45 regular wine consumers (22 women and 23 men) from four Portuguese wine regions of origin, were conducted. Sessions included two projective techniques. To gather more information, participants were asked to fill a short questionnaire, relating purchasing and consumption habits, knowledge and socioeconomic characteristics. Qualitative data were transcribed verbatim and content analysis was used.

Findings

Women frequently associate wine to the context of consumption; while men frequently associate wine to convivial and sensorial pleasure. Region of origin and prior knowledge experience seem to be the two main reasons for men to choose a wine; while, women seem to rely more on wine brand and previous experience. Front label information (region of origin, awards and region illustration) seems to be more important for women, while the back label descriptors (grape variety, world heritage site and wine history) are more relevant for men. The typography (font size) and information type were identified as negative aspects of the back label.

Practical implications

Understanding how men and women looking for information on a wine bottle can help marketers communicate with specific market segments. This paper provides insights to design marketing campaigns regarding product customization at the level of label information and design.

Originality/value

The present research contributes to current literature on wine consumer behaviour, exploring behavioural differences, perceptions and motivations by gender. In particular, the relevance of wine cues for choice decision is explored. The evidence of focus groups combined with projective techniques is complemented with data collected through a questionnaire.

Details

International Journal of Wine Business Research, vol. 31 no. 4
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 5 March 2018

Mira Kos Skubic, Karmen Erjavec and Marija Klopčič

The purpose of this paper is to investigate consumer preferences in the Slovenian context with regard to cheese, ham and honey labelled with the national and EU protected…

Abstract

Purpose

The purpose of this paper is to investigate consumer preferences in the Slovenian context with regard to cheese, ham and honey labelled with the national and EU protected designation of origin (PDO) indication and the protected geographical indication (PGI) associated with price and origin.

Design/methodology/approach

An online survey with a representative sample of the Slovenian population of 650 consumers was conducted. Consumer preferences were estimated using choice-based conjoint analysis.

Findings

The findings show that price is the most powerful driver of consumer preferences for cheese and honey, whereas it is origin for ham, which proved to be the most strongly desired “Slovenian” food product of all items analysed. Label is the least preferable attribute for all three products considered. Cheese, ham and honey bearing the national PDO and PGI labels were more desired than products carrying the EU PDO and PGI labels. The study findings also show the main statistically significant differences in the age and gender of consumers.

Research limitations/implications

The biggest limitation is that the study focused on certain labels only, related to quality, and origin in particular.

Practical implications

This result highlights the need to extend and intensify promotional and communication activities to increase consumer preferences for the national and EU PDO- and PGI-labelled cheeses, ham and honey.

Originality/value

This study contributes to relevant literature by presenting the results regarding consumer preferences for the EU and national quality labels for different food categories in Slovenia, which has no tradition in using the EU quality labels.

Details

British Food Journal, vol. 120 no. 3
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 1 January 2014

Andrea Insch and Erin Jackson

This study aimed to investigate consumers' understanding of country of origin (CoO) information and its relative importance in the context of their everyday food purchase…

Abstract

Purpose

This study aimed to investigate consumers' understanding of country of origin (CoO) information and its relative importance in the context of their everyday food purchase decisions.

Design/methodology/approach

A cross-sectional intercept survey of 402 consumers in two cities in New Zealand was conducted. Respondents were asked to describe what they had considered when selecting a food item in their trolley. This was followed by questions to assess respondents' knowledge of CoO and their use and understanding of common CoO labels.

Findings

Price (42 per cent), taste (40 per cent), health (18 per cent), and quality (18 per cent) were the most important factors that respondents mentioned. Only 3.5 per cent of respondents mentioned CoO as one of the factors influencing their decision. Of respondents 61 per cent, when prompted, stated that they knew the CoO of the food product selected. Of these respondents, 90 per cent were correct. Of respondents 62 per cent stated that they look at CoO labels when making food purchase decisions. Yet, only one third of respondents correctly understood the difference between the “Made in” and “Product oflabels.

Research limitations/implications

The findings suggest that consumers that do access CoO labels are misinterpreting this information which may form the basis of their assumptions about the source of origin of the brands and food products they routinely purchase.

Practical implications

Mandatory CoO labelling policies may add costs and reinforce misconceptions that consumers already hold about the meaning of these labels.

Originality/value

This study contributes to understanding of the extent to which consumers are competent in their knowledge and understanding of these informational labels.

Details

British Food Journal, vol. 116 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 1 December 2002

Dimitris Skuras and Aleka Vakrou

Quality agricultural products are assuming an increasingly important role in European Union (EU) agricultural and food policies. The potential for differentiating quality…

Abstract

Quality agricultural products are assuming an increasingly important role in European Union (EU) agricultural and food policies. The potential for differentiating quality products and services on a regional basis has been recognised and legislation has been introduced for protecting the geographical indications and designations of origin for agricultural products and quality foodstuffs. Today, marketing strategies for quality products attempt to explore these new opportunities, trying to build on the products’ reputation and the image of their region of origin. This study employs a dichotomous choice model to identify the socio‐economic characteristics that influence Greek consumers’ willingness to pay for an origin labelled wine. The results indicate that wine consumers’ willingness to pay varies only according to social and demographic characteristics. Furthermore, the mean willingness to pay was estimated using two alternative econometric specifications of the dichotomous choice model. We have found that non‐quality wine consumers are willing to pay double the price of a bottle of normal table wine if the alternative provides for a guarantee of the place of origin of the wine. Their decision is found to be dependent only upon education and affiliation with the place of origin. The model specifications are compared and useful conclusions referring to price policy for origin labelled wines and their marketing are drawn.

Details

British Food Journal, vol. 104 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 1 January 1994

Li‐Wen Lin and Brenda Sternquist

Reports on a study in which 265 consumers were asked to assign price andquality estimates to women’s sweaters. Uses a 4 x 3 factorial designwhich incorporates four country…

Abstract

Reports on a study in which 265 consumers were asked to assign price and quality estimates to women’s sweaters. Uses a 4 x 3 factorial design which incorporates four country cues – the USA, Italy, Japan and Taiwan – and three groups relating to store prestige, which were manipulated. Found that country of origin significantly influenced Taiwanese consumer perceptions of sweater quality. The sweater labelled “Made in Japan” received the highest evaluation and the sweater labelled “Made in Taiwan” the lowest. The cue of store prestige was not significantly related to price estimates and quality evaluations of sweaters. Neither of origin nor store prestige was found to have an effect on price estimates.

Details

European Journal of Marketing, vol. 28 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 13 November 2020

Elisabetta Savelli, Laura Bravi, Barbara Francioni, Federica Murmura and Tonino Pencarelli

The paper aims at investigating whether and how the product designation of origin (PDO) label influences consumers' acceptance, attributes' perception and purchase…

Abstract

Purpose

The paper aims at investigating whether and how the product designation of origin (PDO) label influences consumers' acceptance, attributes' perception and purchase intention of PDO foods.

Design/methodology/approach

The study employs an experimental lab study based on the affective test of acceptance methodology with a nine-point hedonic scale. Three PDO foods are compared with similar non-PDO samples concerning cheese, cured ham and olive oil categories.

Findings

The presence of PDO labels enhances the consumers' acceptance as well as their perception of sensory attributes. A critical role of the brand name as an enhancer of consumer acceptance also emerges, highlighting the relationship between brand-name and PDO label.

Research limitations/implications

The main limitation is related to the lab study methodology, which employs a small number of participants and occurs far from a “normal” situation of consumption. The acceptance test, moreover, does not provide explanations about motives underlying the differences in consumers' perception and preferences.

Practical implications

Practical implications are suggested for food companies concerning the management of both PDO labels and brand strategies and the product's properties that could improve the sensory perception of consumers and their overall product's acceptance.

Originality/value

The study contributes to the debate on consumer behaviour towards PDO foods by adding evidence about the positive influence of such a certification on individual preferences on the basis of a sensory methodology that has been little employed for studying the domain of product certifications.

Details

British Food Journal, vol. 123 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

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