Purpose 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. Design/methodology/approach 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. Findings 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. Originality/value 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.
Although there is no legal definition of the word 'superfood', in recent years exotic foods and ingredients have become popular in German food retailers. The aim of the study was to determine consumer preferences for superfood ingredients in different types of bread; to accomplish this, a choice experiment was set up with a representative sample of 503 German consumers. Respondents had to choose between products with varying attributes such as type of bread, superfood ingredient, nutritional information, production method, durability, and price. The results indicate that consumers value bread that serves a functional purpose through superfood ingredients such as linseed or chia. Using latent class segmentation, the respondents were divided into four segments, of which three groups valued bread with superfood ingredients. All in all, the type of bread is the most important factor when choosing a bread. Further market research could take into account different types of superfoods (processed/unprocessed), as well as regional deviations in Germany and the EU member states to analyze differences regarding the market potential of staple foods such as bread that serve a functional purpose through superfood ingredients.
Pasture-raised milk is gaining in importance in some European countries and in the United States. The production of pasture-raised milk is linked to higher costs, as the milk is normally collected and processed separately from conventional barn milk. This could hinder the production of sustainable milk products. We discuss alternative labeling strategies that allow the mixing of pasture-raised (sustainable) and conventional milk to reduce costs and break free from the current niche market. The lower price would allow for more pasture-raised milk to be produced and enter the mainstream market. The aim of this study was to analyze consumers' willingness to pay for alternative labeling types using a discrete choice experiment with 1,065 German milk buyers. The 2 alternative labels, besides the classical labeling approach, are based on the mass balance approach (at least 50% pasture-raised milk in a package) and cause-related marketing (support of farmers who keep their cows on pasture). The discrete choice experiment was combined with a cluster analysis to get a deeper understanding of the buying behavior of the diverse consumer segments for milk. We found that all consumer groups prefer the classical label where products are segregated but also understand the benefits of cause-related marketing. The average consumer was willing to pay €0.50 more for pasture-raised milk certified with the classical label and €0.38 more for pasture-raised milk labeled with a cause-related marketing claim. However, differences between the clusters are strong: The smallest cluster of ethically involved consumers (15%) is willing to pay the highest premiums, especially for the classical label. Cause-related marketing is an interesting alternative for involved buyers under price pressure (41%), whereas the mass balance approach is little understood and thus less valued by consumers. From our results we concluded that cause-related marketing (in our case, the support of pasturing of dairy cows) can be useful for dairies for which it is not efficient to collect and process products separately. This approach is furthermore suitable for reaching consumers who are mainly interested in altruistic issues but at the same time are more price sensitive, as this labeling strategy does not need separate collection and processing and can thereby be marketed at a lower price.
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