Consumer, retailer, and producer assessments of product differentiation according to regional origin and process quality

Abstract

Regional marketing concepts can be a successful strategy for product differentiation. A research project in Northern Germany reveals the following results: consumers' stated preferences show clearly potential demand for regional food, in particular if environment-friendly produced and controlled. The main influencing factors that could be identified by means of a rank-ordered logit analysis are consumers' regional, nutrition, and environment consciousness as well as a low price sensitivity and mistrust in conventional food from somewhere else. Also some retailers indicated interest in regional marketing concepts, but rarely in environment-friendly produced food: listing of regional specialities and a seasonal offer as well as a farmer's market outlet in a shopping center. Further, farmers showed general interest in regional marketing, but not combined with environment-friendly production. Overall, one can conclude of these results, that the limiting factor for regional marketing seems to be more the supply than the demand side. [EconLit citations: Q130, M310.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 191-211, 2005.

Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?

“…They concluded that producers may be able to reach different segments by providing consumers with different types of information and that demographic characteristics alone do not accurately predict natural beef consumers. Results from other research suggest that consumer attitudinal and preference variables such as knowledge, motivation, risk preferences, environmental and social consciousness play a large role in determining consumer preferences for credence attributes (Baker & Burnham, 2000;Huffman, Shogren, Rousu, & Tegene, 2003;Umberger et al, 2003;Wirthgen, 2005).…”

“…Previous researchers examining consumers' perceptions of meat quality have found that consumers use a combination of search, experience, and credence attributes to determine the quality of meat products (Umberger, 2004(Umberger, , 2007Wirthgen, 2005). Past studies have used neoclassical demand theory as the basis for determining consumer segments willing to pay more for meat products labeled with credence attributes such as ''natural,'' ''organic,'' ''free-range,'' ''GMO-free,'' ''produced without the use of hormones and/or antibiotics,'' ''certified humane,'' ''environmentally friendly,'' and ''local'' to name a few (Baker & Burnham, 2001;Dickinson & Bailey, 2002;Loureiro & Umberger, 2003, 2005Lusk & Fox, 2002;Lusk, Roosen, & Fox, 2003;McGarry-Wolf & Thulin, 2000;Thilmany, Grannis, & Sparling, 2003;Umberger, Feuz, Calkins, & Sitz, 2003;Wirthgen, 2005).…”

“…Past studies have used neoclassical demand theory as the basis for determining consumer segments willing to pay more for meat products labeled with credence attributes such as ''natural,'' ''organic,'' ''free-range,'' ''GMO-free,'' ''produced without the use of hormones and/or antibiotics,'' ''certified humane,'' ''environmentally friendly,'' and ''local'' to name a few (Baker & Burnham, 2001;Dickinson & Bailey, 2002;Loureiro & Umberger, 2003, 2005Lusk & Fox, 2002;Lusk, Roosen, & Fox, 2003;McGarry-Wolf & Thulin, 2000;Thilmany, Grannis, & Sparling, 2003;Umberger, Feuz, Calkins, & Sitz, 2003;Wirthgen, 2005). These past studies had various outcomes in terms of the demographic variables that helped explain WTP for individual or sets of credence attributes.…”

Differences in retail strategies on the emerging organic market

“…Codron et al show that recently, ethical, health and environmental values become increasingly more important for consumers (2006). Wirthgen (2005) also indicates that marketing on "the regional origin" can be a successful strategy for product differentiation. Thus as consumers perceive that organic products score very well on these points, some retailers may develop organic, fair trade and sustainable products strongly to enforce their image as social responsible retailer.…”

Understanding place brands as collective and territorial development processes

“…), but much less by considering various stakeholders (Wirthgen 2005) or from a strategic management point of view. An exception is presented by Hanf and Kühl (2005) for the branding strategy of the retail.…”