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Article
Publication date: 5 September 2016

Marin Cagalj, Rainer Haas and Ulrich B. Morawetz

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…

Abstract

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.

Details

British Food Journal, vol. 118 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 10 March 2023

Jyrki Isojärvi and Jaakko Aspara

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price…

2648

Abstract

Purpose

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price promotions or discounts of organic products. The present study aims to fill this research gap.

Design/methodology/approach

To develop alternative hypotheses about consumers’ behavioural responses to price promotions of organic fast-moving consumer good (FMCG) products, the authors used the researcher-introspection method in a pre-study. To test the hypotheses developed based on the pre-study, the authors conducted a field experiment on online advertising of an FMCG sold in drugstores. In the field experiment, the authors exposed consumers to an online ad featuring either a price promotion (−20%) or the regular price of the product. The ads also varied in terms of whether they contained explicit organic claims or not, and whether they included implicit organic cues or not.

Findings

The price promotion increased the clickthrough rate of the ad both when combined with an explicit organic claim and when combined with the implicit cue of green product pack. The results suggest that consumers do not have significant suspicions about price promotions of organic products, but rather presume that the price promotion of an organic FMCG product is a periodical promotional action, similar to the price promotions for conventional, non-organic products. Also, consumers seem to assume that the regular prices of organic FMCG products are so high that the retailer/manufacturer can well afford periodic price discounts.

Research limitations/implications

The present research shifts the focus of organic marketing research from the premium price levels to the effectiveness of price promotions and discounts. Further, the present results contrast with certain earlier studies that have questioned the effectiveness of price promotions for organic products.

Practical implications

The results have different implications for marketing managers of brands not yet providing organic product versions in the market, of brands producing non-organic products, which cannot easily be rendered organic, and of brands offering organic products in the market.

Originality/value

This is, to the best of the authors’ knowledge, the first empirical study and field experiment on price promotions of organic products, including explicit organic claims.

Article
Publication date: 3 April 2017

Justina Gineikiene, Justina Kiudyte and Mindaugas Degutis

The purpose of this paper is to explore how health consciousness and skepticism toward health claims are related to perceived healthiness and willingness to buy functional food…

2248

Abstract

Purpose

The purpose of this paper is to explore how health consciousness and skepticism toward health claims are related to perceived healthiness and willingness to buy functional food (i.e. functional yogurt) compared to conventional and organic (bio) food.

Design/methodology/approach

A survey of 295 consumers was conducted in Lithuania. Data were analyzed using structural equation modeling.

Findings

Research findings indicate that health conscious consumers tend to discount messages about the health value of functional food and show preferences for organic food. In contrast, skepticism toward health claims has a higher negative homogenous impact on the perceived healthiness of functional, organic and conventional products compared to health consciousness. On the other hand, skepticism toward health claims does not directly reduce consumers’ willingness to buy functional, organic and conventional products.

Research limitations/implications

Testing other settings, product categories, additional constructs and understanding underlying processes using an experimental design may help to gain more insights into how health conscious and skeptical consumers make food choices.

Practical implications

An examination of health consciousness and skepticism toward health claims can provide at least a partial explanation as to why many functional food products fail to gain consumer confidence.

Originality/value

Based on the reactance theory, the study sheds some light on the understanding of how different psychosocial factors are related to consumer attitudes toward functional, organic and conventional food.

Details

Baltic Journal of Management, vol. 12 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 3 December 2021

Yoann Guntzburger, Ingrid Peignier and Nathalie de Marcellis-Warin

Ecolabels will undoubtedly play a central role in promoting more sustainable production methods and consumption behaviors. Although numerous recent studies have explored consumer…

Abstract

Purpose

Ecolabels will undoubtedly play a central role in promoting more sustainable production methods and consumption behaviors. Although numerous recent studies have explored consumer awareness, interpretation and preferences toward ecolabels and certifications, little is yet known about how they perceive the regulatory schemes that underpin them.

Design/methodology/approach

Data were collected using a survey answered by a representative random sample of 1,032 Canadian consumers. Unconstrained partial-proportional odds models were used to perform statistical analyses.

Findings

The results suggest that consumers generally do not differentiate between regulatory schemes for organic, local and non-GMO products. The level of perceived control and strictness appears to be influenced by multiple variables involving risk perception, trust and motivations, although this influence varies across labels.

Research limitations/implications

In addition to geographical specificities, this survey includes self-reported variables that might be subject to desirability biases and intention variables which do not necessarily predict behavior. Finally, this study does not consider interaction effects, since claims and ecolabels have not been studied in relation to specific products.

Practical implications

These misperceptions about ecolabels' regulatory schemes could be addressed through better communication about schemes and certifications, although the authors agree that information alone would not be enough to deal with the trust issue suggested by the results. Deliberative and behavioral approaches might be more efficient to embed consumers' values, perceptions and concerns related to food labeling and certifications into the policymaking process.

Originality/value

This work explores the role played by risk perceptions, trust, egoistic and altruistic motives, and the importance of third-party certifications in the consumer's understanding of ecolabels' regulatory schemes.

Details

British Food Journal, vol. 124 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 7 March 2016

Tiziana de-Magistris and Azucena Gracia

The purpose of this paper is to assess consumers’ willingness to pay (WTP) for three different food claims on semi-cured, pasteurized sheep milk cheese. In particular, the authors…

Abstract

Purpose

The purpose of this paper is to assess consumers’ willingness to pay (WTP) for three different food claims on semi-cured, pasteurized sheep milk cheese. In particular, the authors used a health-related claim (the nutritional claim indicating a reduced fat content: “light”), a regional claim (“designation of origin – PDO”) and an organic claim (the European organic logo). Moreover, the authors investigated whether consumers’ personal characteristics could influence their WTP for those types of cheese.

Design/methodology/approach

A home-grown experimental auction was applied in Spain during Spring 2012. The authors opted to use the nth random price with repeated rounds and without price feedback.

Findings

The results show that consumers were willing to pay more for PDO cheese, followed by organic and light cheese. Moreover, respondents who were female, older and with a university-level education showed some environmental concerns, influencing their WTP for different cheeses.

Originality/value

Empirical evidence on consumers’ preferences for PDO, organic and nutritional claims, evaluated jointly, is lacking in Spain. Moreover, the home-grown auction has several merits in terms of real market simulation and consumer preference application.

Details

British Food Journal, vol. 118 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 July 2014

Rebecca Schröck

The purpose of this paper is to identify and quantify the factors determining the prices of organic and conventional cheese. For a market with a high degree of product…

1053

Abstract

Purpose

The purpose of this paper is to identify and quantify the factors determining the prices of organic and conventional cheese. For a market with a high degree of product differentiation, i.e. the German cheese market, price premiums of various cheese attributes are examined. Thereby, special attention is paid to country of origin (CO) effects, geographical indications (GIs) and organic claims.

Design/methodology/approach

The analysis is based on homescan panel data of 13,000 representative German households provided by the GfK consumer research association. The data set combines actual purchase and demographic data for a five-year sample period from 2004 to 2008. Applying the hedonic technique, the cheese price is modelled as a function of a wide range of consumer, store and product characteristics. Effects are analysed in detail by distinguishing between supply- and demand-side effects and by estimating price regressions not only for the whole sample but also for different shop types.

Findings

The estimated organic price premiums range between 18 per cent in discount shops and 26 per cent in hypermarkets. The impacts of the CO and GIs are considerably smaller in magnitude and limited to special shopping venues like super- and hypermarkets.

Originality/value

The German cheese market is currently evolving from a staple product market to a highly differentiated market where increasing attention is paid to quality indicators such as organic claims or GIs. The data are remarkable, both in sample size and information content. Furthermore, the estimation of shop type-specific price premiums offers new and detailed insights in consumer valuation and producer costs of a wide range of cheese attributes.

Details

British Food Journal, vol. 116 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 29 May 2019

Polymeros Chrysochou and Alexandra Festila

Do the package designs of organic products differ from those of conventional products and which package design elements are used more systematically in organic products? This…

1695

Abstract

Purpose

Do the package designs of organic products differ from those of conventional products and which package design elements are used more systematically in organic products? This paper aims to address this question by exploring the package design elements of organic products. The proposition is that in addition to package design elements that explicitly communicate and position a product as organic (i.e. organic labels and claims), other package design elements that implicitly convey an organic image are used.

Design/methodology/approach

The authors conduct a content analysis of the package designs from new product launches in four product categories (butter, cereals, fruit juice and milk) and across four markets (Austria, Denmark, Sweden and Switzerland).

Findings

The results show that the package designs of organic products differ from those of conventional products based on the presence of more paper material, white and green colours and images displaying nature.

Research limitations/implications

The findings support the notion that in addition to organic labels and claims, package design elements that implicitly communicate values associated with organic products, such as environmental friendliness and sustainability are used.

Originality/value

This study is among the few to explore package design elements for organic products. Understanding how the package designs of organic products are constructed can support managerial decisions on the use of the package as a means to better communicate and position organic products.

Details

Journal of Consumer Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 18 January 2013

Simone Mueller Loose and Hervé Remaud

The study seeks to assess the impact of two different corporate social responsibility (CSR) claims, relating to social and environmental dimensions, on consumers' wine choice…

5403

Abstract

Purpose

The study seeks to assess the impact of two different corporate social responsibility (CSR) claims, relating to social and environmental dimensions, on consumers' wine choice across international markets. It analyses how point of purchase CSR claims compete with other food claims and their awareness, penetration and consumers' trust are examined.

Design/methodology/approach

A discrete choice experiment with a visual shelf simulation was used to elicit consumer preferences and to estimate marginal willingness to pay for CSR and other food claims across the UK, France, Germany, the US East Coast, the US Midwest, and Anglophone and Francophone Canada.

Findings

CSR claims relating to social and environmental responsibility have a similar awareness, penetration and consumer trust, but differ in their impact on consumer choice, where environmental corporate responsibility claims benefit from a higher marginal willingness to pay. Consumer valuation of CSR claims significantly differs across international markets, but is consistently lower than for organic claims.

Originality/value

This is the first cross‐national study that analyses the impact of CSR claims on consumer food choice relative to other food claims using large representative consumer samples. The strength of the paper also pertains to the utilisation of innovative choice experiments covering a large range of choice relevant product attributes.

Article
Publication date: 1 June 2001

Peter Jones, Colin Clarke‐Hill, Peter Shears and David Hillier

During the past five years consumer demand for organic food has risen dramatically in the wake of a series of high profile scares about food safety. This paper provides a case…

9970

Abstract

During the past five years consumer demand for organic food has risen dramatically in the wake of a series of high profile scares about food safety. This paper provides a case study of the retailing of organic foods. The case study includes an outline of the characteristics and development of the organic food market, an examination of the different players within the retail market place and a discussion of pricing, supply and marketing issues.

Details

British Food Journal, vol. 103 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 19 March 2024

Jiayuan Zhao, Hong Huo, Sheng Wei, Chunjia Han, Mu Yang, Brij B. Gupta and Varsha Arya

The study employs two independent experimental studies to collect data. It focuses on the matching effect between advertising appeals and product types. The Elaboration Likelihood…

Abstract

Purpose

The study employs two independent experimental studies to collect data. It focuses on the matching effect between advertising appeals and product types. The Elaboration Likelihood Model serves as the theoretical framework for understanding the cognitive processing involved in consumers' responses to these advertising appeals and product combinations.

Design/methodology/approach

This paper aims to investigate the impact of advertising appeals on consumers' intentions to purchase organic food. We explored the interaction between advertising appeals (egoistic vs altruistic) and product types (virtue vs vice) and purchase intention. The goal is to provide insights that can enhance the advertising effectiveness of organic food manufacturers and retailers.

Findings

The analysis reveals significant effects on consumers' purchase intentions based on the matching of advertising appeals with product types. Specifically, when egoistic appeals align with virtuous products, there is an improvement in consumers' purchase intentions. When altruistic appeals match vice products, a positive impact on purchase intention is observed. The results suggest that the matching of advertising appeals with product types enhances processing fluency, contributing to increased purchase intention.

Originality/value

This research contributes to the field by providing nuanced insights into the interplay between advertising appeals and product types within the context of organic food. The findings highlight the importance of considering the synergy between egoistic appeals and virtuous products, as well as altruistic appeals and vice products. This understanding can be strategically employed by organic food manufacturers and retailers to optimize their advertising strategies, thereby improving their overall effectiveness in influencing consumers' purchase intentions.

Details

British Food Journal, vol. 126 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

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