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Article

Linhai Wu, Hongsha Wang and Dian Zhu

The purpose of this paper is to reveal the actual consumer demand for traceable pork by investigating consumer preferences for pork with combined levels of traceability…

Abstract

Purpose

The purpose of this paper is to reveal the actual consumer demand for traceable pork by investigating consumer preferences for pork with combined levels of traceability information based on differences in individual consumer preferences, in order to support the government in decision making regarding the gradual construction of safe food markets.

Design/methodology/approach

Combinations of four types of traceability information, including farming, slaughter and processing, distribution and sales, and government certification, with price were randomly designed. To identify consumer preferences for these attribute combinations of traceable pork, 215 consumers in Wuxi, Jiangsu Province were investigated using a real choice experiment and the mixed logit model.

Findings

Significant heterogeneity was observed in consumer preferences for traceable pork. The information of farming, slaughter and processing, distribution and marketing, and government certification could significantly improve consumer utility. Moreover, consumers had the highest preference for government certification information.

Originality/value

Although numerous studies have been performed on consumer preferences for food safety attributes using a real choice experiment, almost none of them focus on Chinese consumers. Therefore, this study is an attempt to fill this gap. The conclusions of this study can serve as a reference for the Chinese government in developing safe food consumption policies. Although Chinese consumers have cried out for improvement of pork safety, they have different preferences for traceability information; thus, the government must promote traceable food step-by-step, using consumer preferences as a starting point.

Details

China Agricultural Economic Review, vol. 7 no. 2
Type: Research Article
ISSN: 1756-137X

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Article

Mo Chen, Yiqin Wang, Shijiu Yin, Wuyang Hu and Fei Han

The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for…

Abstract

Purpose

The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for tomatoes carrying these different labels.

Design/methodology/approach

The data came from real choice experiments conducted in Shandong Province, China. A mixed logit model was used to analyze consumer willingness to pay (WTP).

Findings

Results indicated that, among the four organic labels considered in this study, the highest WTP was expressed for organic label from the European Union, followed by Hong Kong’s organic label, Japanese organic label and, lastly, by the Chinese mainland organic label. Consumer trust has a positive effect on their WTPs for the four organic labels. Providing consumers with information on organic can significantly lift their WTPs, and reduce the gaps between WTPs for different organic labels.

Originality/value

This research is of academic value and of value to food suppliers. International food marketers are recommended to equip their products with proper organic labels and initiate additional consumer education.

Details

British Food Journal, vol. 121 no. 7
Type: Research Article
ISSN: 0007-070X

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Article

Brano Glumac and Thomas P. Wissink

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling…

Abstract

Purpose

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market.

Design/methodology/approach

Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format.

Findings

Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system.

Research limitations/implications

These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets.

Practical implications

Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market.

Originality/value

As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.

Details

Journal of European Real Estate Research, vol. 11 no. 1
Type: Research Article
ISSN: 1753-9269

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Book part

David A. Hensher

It has long been recognised that humans draw from a large pool of processing aids to help manage the everyday challenges of life. It is not uncommon to observe individuals…

Abstract

It has long been recognised that humans draw from a large pool of processing aids to help manage the everyday challenges of life. It is not uncommon to observe individuals adopting simplifying strategies when faced with ever increasing amounts of information to process, and especially for decisions where the chosen outcome will have a very marginal impact on their well-being. The transactions costs associated with processing all new information often exceed the benefits from such a comprehensive review. The accumulating life experiences of individuals are also often brought to bear as reference points to assist in selectively evaluating information placed in front of them. These features of human processing and cognition are not new to the broad literature on judgment and decision-making, where heuristics are offered up as deliberative analytic procedures intentionally designed to simplify choice. What is surprising is the limited recognition of heuristics that individuals use to process the attributes in stated choice experiments. In this paper we present a case for a utility-based framework within which some appealing processing strategies are embedded (without the aid of supplementary self-stated intentions), as well as models conditioned on self-stated intentions represented as single items of process advice, and illustrate the implications on willingness to pay for travel time savings of embedding each heuristic in the choice process. Given the controversy surrounding the reliability of self-stated intentions, we introduce a framework in which mixtures of process advice embedded within a belief function might be used in future empirical studies to condition choice, as a way of increasingly judging the strength of the evidence.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

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Book part

Henri Kuokkanen and William Sun

Many consumer-focused corporate social responsibility (CSR) studies suggest a positive link between the responsibility demonstrated by a company and consumers’ intention…

Abstract

Purpose

Many consumer-focused corporate social responsibility (CSR) studies suggest a positive link between the responsibility demonstrated by a company and consumers’ intention to favor the company in their purchases. Yet an analogous causal effect between corporate social and financial performances is not evident. This chapter conceptualizes how social desirability and cynicism contribute to the discrepancy between consumers’ attitudes and their actual purchase behavior, and analyzes why consumer choices indicated in surveys do not consistently convert into actions.

Methodology/approach

We develop a conceptual framework based on hybrid choice modeling to estimate the impact of two new variables, Corporate Social Desirability and Corporate Social Cynicism, on CSR research. The model presented synthesizes research findings from the fields of CSR and psychology with a discrete choice methodology that allows inclusion of psychological aspects as latent variables.

Findings

The goal of the framework is to bridge the gap between choices stated by consumers in CSR surveys and their actual choices by quantifying and extracting the effects of biases that otherwise threaten the validity of such survey results. As the next step, the practical value of the model must be evaluated through empirical research combining a CSR choice study with social desirability and cynicism measurement.

Originality

The framework proposes a novel way of controlling CSR surveys for potential biases created by social desirability and cynicism and enables quantification of this impact, with potential application to other fields where psychological aspects may distort research results. Future empirical evidence based on the framework may also offer new insights into the mechanisms by which the two biases distort findings.

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Article

Andrea Dominici, Fabio Boncinelli, Francesca Gerini and Enrico Marone

The purpose of this paper is to investigate preferences for wine made from hand-harvested grapes, and the interactive effect between this attribute and organic certification.

Abstract

Purpose

The purpose of this paper is to investigate preferences for wine made from hand-harvested grapes, and the interactive effect between this attribute and organic certification.

Design/methodology/approach

Data were collected via an online choice experiment involving a sample of 408 Italian wine consumers. A random parameter logit was performed to estimate consumer preferences for wine attributes: harvest type, organic and the interaction between these. The experiment also includes geographical indications and price. Furthermore, a latent class model (LCM) is performed to investigate taste heterogeneity for the included wine attributes.

Findings

On average, consumers prefer the wine produced with hand-harvested grapes. The hypothesis of an interaction between organic and hand-harvested attributes is rejected. Using the LCM, the authors identify three segments with significant taste heterogeneity in terms of the magnitude and the sign of the parameters. Moreover, consumer attitudes towards food naturalness differ according to their belonging to the segments.

Originality/value

The novelty of this article is twofold. First, this study investigates, for the first time, the impact of the hand-harvested method on consumer wine preferences. Second, hand-harvesting and organic have independent values.

Details

British Food Journal, vol. 122 no. 8
Type: Research Article
ISSN: 0007-070X

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Article

Julia Höhler and Julia A. Schreiner

In times of “milk price crises”, “fair” milk prices are repeatedly demanded. Various studies indicate an increased willingness to pay (WTP) for the additional attribute of…

Abstract

Purpose

In times of “milk price crises”, “fair” milk prices are repeatedly demanded. Various studies indicate an increased willingness to pay (WTP) for the additional attribute of price fairness. Nevertheless, market shares have been low so far. The purpose of this paper is to discuss three possible reasons for this: low reference prices, socially desirable responses in choice experiments and the lack of justification of the claim “fair” by further attributes.

Design/methodology/approach

In a split sample, one group facing alternatives with a higher price range and the other with a lower price range, the consumer’s choices are examined. This study uses a social desirability scale for controlling biases in the stated WTP. In addition, the claim “fair” is complemented with a guaranteed price, grazing, regional production and CO2-reduction. A random parameter logit model specified in WTP space is employed to estimate milk consumers’ (n=480) preferences for “fair” milk. Furthermore, a latent class approach reveals information about the source of preference heterogeneity for fair milk attributes among the two groups of the split sample.

Findings

This study finds statistically significant differences between the two price ranges. In the low price range, additional attributes can trigger an additional WTP. In the high price range, there is no statistically significant additional WTP. WTP’s dependence on price levels could explain why the market share for “fair” milk has so far been low.

Originality/value

This paper contributes to the study of the effect of split samples in choice experiments. In addition, it promotes the understanding of price fairness in milk and its determinants.

Details

British Food Journal, vol. 122 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Christopher A. Wolf, Frank Lupi and Stephen Harsh

The purpose of this paper is to determine which financial record‐keeping system farmers use, as well as what system attributes farmers value and to what degree.

Abstract

Purpose

The purpose of this paper is to determine which financial record‐keeping system farmers use, as well as what system attributes farmers value and to what degree.

Design/methodology/approach

This research uses a choice experiment to examine farmer's demand for attributes of financial record‐keeping systems. A sample from the general Michigan farm population is compared to samples from university and agribusiness record system clients.

Findings

Results reveal that university and agribusiness clients are willing to pay considerably more for a farm‐specific record system to backstop their farm management decisions.

Practical implications

The results provide an understanding of farmer demands for farm financial record systems and can be used to position record‐keeping systems to meet those demands.

Originality/value

This paper describes and analyzes farm financial accounting system use and preferences by type.

Details

Agricultural Finance Review, vol. 71 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

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Book part

Jayson L. Lusk

Purpose – Despite the existence of hundreds of studies and several review articles on consumer preferences for genetically modified (GM) food, it remains difficult to…

Abstract

Purpose – Despite the existence of hundreds of studies and several review articles on consumer preferences for genetically modified (GM) food, it remains difficult to ascertain the current state of knowledge on the topic. The purpose of this chapter is to distill some of the key findings from the body of research on consumer preferences for GM food.

Approach – In reviewing key pieces of literature, including two meta-analyses, the chapter identifies four key unresolved questions and includes discussions on how the questions might be resolved.

Findings – The chapter identifies four questions in need of additional thought and research. The questions relate to (1) why the market for GM-free food is so small in the United States despite the large estimated willingness-to-pay premiums for GM-free food, (2) why consumers remain so uninformed about biotechnology despite their seemingly high levels of aversion, (3) why economists have generally ignored the information-content of GM food policies, and (4) why it is so difficult to determine why U.S. and European consumers have seemingly reacted so differently to GM foods.

Value – This chapter should be useful to those interested in learning about the current state of knowledge on consumer preferences for GM food, and to those seeking to identify areas in need of additional research.

Details

Genetically Modified Food and Global Welfare
Type: Book
ISBN: 978-0-85724-758-2

Keywords

Content available
Article

Xinyi Hong, Chenguang Li, Junfei Bai, Zhifeng Gao and Liming Wang

Following the standard practice of using nutrition claims to denote food functionality, this study empirically explores Chinese consumers’ willingness-to-pay for…

Abstract

Purpose

Following the standard practice of using nutrition claims to denote food functionality, this study empirically explores Chinese consumers’ willingness-to-pay for functional processed meat products by using three nutrition claims (namely “increased calcium,” “containing omega-3”, and “reduced salt”) made on pork sausages. It also aims to outline the typical characteristics of Chinese consumer segments based on preferences.

Design/methodology/approach

A choice-based choice experiment is utilized to investigate Chinese consumers’ valuation on attributes of interest regarding functional sausage products. First-hand data was collected in the two cities of Xi'an and Beijing.

Findings

There are market potentials for domestic and/or imported functional processed meat products among Chinese consumers. Nutrition claims made on pork sausages are appealing to Chinese consumers, and therefore, monetarily rewarded by them. Being imported from a more developed country of origin could both positively and negatively impact consumers’ WTP for nutrition claims made on pork sausages. Furthermore, specific functional modification strategies should be taken into account when addressing different segments of the Chinese market. In addition, regional impacts between Xi'an and Beijing are implied in terms of consumers’ valuation for functional pork sausages.

Research limitations/implications

Limitations in the current study are mainly two folds. First, the WTP estimation magnitudes are subject to a hypothetical bias by using a stated preference approach. Second, this study only focuses on pork sausages to explore consumers’ perceptions and selects three nutrition claims among many other relevant options.

Practical implications

Implications are provided for meat marketers and for Chinese official food policymakers, such that promoting meat products with a nutrition claim is an attractive marketing strategy for foreign food manufacturers in China, and more reformulated meat products with better nutritional compositions should be allowed in the Chinese market.

Originality/value

To the best of the author’s knowledge, this research is the first to fill in the literature blank on investigating the consumers’ valuation for functional meat in the emerging market of China. Because when taking Chinese consumers as a target market and evaluating their perceptions of food quality-related labeling and certifications, the existing literature is mainly limited to topics of product safety, organic/green products, and geographical origins. However, nutrition claims, as marketable credence attributes that associate closely to the main characteristics of the functional food products, have been explored to a much lesser extent among Chinese consumers.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

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