Carola Grebitus

German and British Consumer Willingness to Pay for Beef Labeled with Food Safety Attributes

The European Union has implemented some of the most stringent food safety policies for beef globally, ranging from banning growth hormones to mandating country of origin labeling. Using choice experiments and random parameter logit models, we examine German and British consumer willingness to pay (WTP) for American, Canadian, Argentinian, French, German and British beef, quality assurance seals, hormone-free beef production and a gourmet label. We also determine how consumer WTP for these food safety and quality attributes is affected by the extent to which consumers consider food safety issues (FSI). Results indicate that British consumers had the lowest WTP for beef from Argentina and German consumers had the lowest WTP for beef from Great Britain. The hormone-free label was the relatively most preferred label by consumers in both countries, and by those who considered FSI to affect their meat consumption patterns.

Which Deceptive Practices, If Any, Should Be Allowed in Experimental Economics Research? Results from Surveys of Applied Experimental Economists and Students

Deceptive experimental practices are banned in some professions but are standard in others. Recently, the journals of the Agricultural and Applied Economics Association introduced guidelines that allow researchers to publish articles that use some forms of deception. However, in their present form, these guidelines leave room for interpretation. This situation is not ideal for researchers, and a clearer definition of which deceptive practices should be banned could be beneficial. Our aim is to help provide greater clarity and potential guidance for journal policies regarding deception by using the results of surveys of both researcher and student subjects. Evaluating ten potentially deceptive experimental techniques, we find consistent support for banning certain practices while allowing others.

Perceived quality in organic and conventional pork markets in Germany

Abstract Food choice and consumption are based on perceived product quality, consumer attitudes, socio-demographics as well as economic factors. This article analyzes the impact of quality characteristics, attitudes, and socio-demographics on consumption of organic and conventional pork. Data come from a German consumer survey. A bivariate ordered probit model is used to test the role of quality perception in explaining choice over organic versus conventional pork. Clear differences in consumers’ use of certain quality characteristics emerge as consumers perceive and evaluate conventional and organic fresh pork. Product appearance, perceived food safety, and production method are especially important characteristics. An increased consumption of conventional pork decreases the likelihood of consuming organic pork and vice versa.

Online information search and decision making

A naturalistic online information search exposes individuals to multiple sites and conflicting perspectives. In this study, we evaluated how the holistic stance of a web search toward a product influences purchasing decisions. We recruited 109 participants who completed an initial product choice task regarding bottled water, a brief Internet search, and then a second post-search product choice task. Internet searches were analyzed to identify query terms, site visits, and stance. Results show that query terms influenced the types of sites obtained in a search, which in turn shaped the overall search stance. Participants were more likely to buy bottled water when they visited websites that emphasized environmental, economic, or health benefits for bottled water (i.e., positive stance). Participants who were asked to focus on environmental issues were less likely to buy bottled water unless packaged in recycled plastic. Effects of online search and mixed messages on decision making are investigated.Searches focused on superficial product features rather than key knowledge.Superficial search behaviors resulted in biased web searches.The holistic stance of a brief web search influenced decision making.Goal-oriented messaging influenced both search behaviors and decisions.

Why U.S. Consumers Support Country of Origin Labeling: Examining the Impact of Ethnocentrism and Food Safety

ABSTRACT The legality of U.S. country of origin labeling (COOL) laws for agricultural products has been challenged by foreign countries. Isolating the reasons why consumers support COOL can help determine the efficiency of COOL as a policy. Therefore, this study investigated why consumers have a desire for COOL. Data were collected through an online survey with 566 U.S. participants. Results of a bivariate ordered probit model indicate that as consumers are more ethnocentric and more pessimistic about the safety of their food, they are more likely to support COOL for sugar and for sugar in soft drinks. Thus, policies designed to inform the public about the safety of foreign commodities could reduce their desire for COOL. Evidence is also provided that highly ethnocentric individuals support COOL in an effort to “buy American” products.

Visual Attention and Choice: A Behavioral Economics Perspective on Food Decisions

Abstract Food decisions receive a lot of attention from multiple disciplines. In this context, choice experiments are often used to determine consumers’ preferences and willingness to pay for food product attributes. The design of choice experiments and its influence on measurement of consumer choices has received great consideration. This study analyzes the influence of visual attention on the final choice by combining choice experiments with eye tracking. Furthermore, the role of attention on more or less complex choices is investigated by using two treatments with three-attribute and five-attribute designs. We find that visual attention affects decision making of the average individual but there is heterogeneity in behavior present as to how much attention influences choice. Furthermore, results show that visual attention predicts choice more in the choice experiment with the three-attribute design than in the choice experiment with the five-attribute design.

A Comparison of Hypothetical Survey Rankings with Consumer Shopping Behavior

Hypothetical surveys are commonly used to elicit consumer behavior to guide product development, marketing, and labeling strategies. However, despite the prevalence of surveys in consumer food studies, previous work has not assessed the relationship between hypothetical responses and actual consumer behavior in real-world purchase situations.We explore whether attributes cited by consumers in surveys as being important to them when making decisions indeed factor into their product decision process in real-world markets. Evidence from a point of sale study of 702 pork purchasers indicates that there is a strong correspondence between hypothetical survey ratings and actual shopping behavior.

Is the Natural Label Misleading? Examining Consumer Preferences for Natural Beef

A petition to the USDA claims that natural labeling misleads consumers. We investigate this claim using an online choice experiment to determine consumer willingness to pay for steak labeled as natural. Half of the sample was provided with the definition of natural, while half was not. The absence of the definition resulted in consumers placing a premium on “natural” steak, while those provided with the definition were not willing to pay a premium. Similarly, participants who consider themselves familiar with the natural definition did not place a premium on “natural” steak. Results indicate that consumers may misinterpret the natural label.

A Way to More Effective Marketing Strategies

To create successful marketing strategies, it is essential to be familiar with consumers’ cognitive structures. In this article, the qualitative method of concept mapping is applied in a consumer survey (N = 132) to elicit cognitive structures and dimensionality of cognitive structures. The authors present methods to analyze dimensionality of cognitive structures descriptively and microeconometrically. An indicator for measuring cognitive structure dimensionality including weighted links is applied. To test the methodology, effects of sociodemographics on dimensionality are analyzed regarding a chosen food product. Results show that consumers’ age and education determine whether cognitive structures are more or less complex, whereas gender has no effect on the dimensionality of cognitive structures. To offer tailored marketing strategies based on dimensionality, emotional marketing strategies should be applied to reach customers with less complex cognitive structures. For consumers with more complex cognitive structures, marketers might focus on providing more detailed, information-based promotion.

Spread of retailer food quality standards: a transition countries perspective.

Privately initiated food quality standards are becoming increasingly important elements in the marketing of food and agricultural products in Western Europe. At the same time, they are at the centre of a discussion about the potential negative effects on small farmers and farmers in developing and transition countries in general. This study analyses the adoption of two private food standards, the BRC Food Technical Standard and GlobalGAP, at an aggregated cross-country level. The results of the econometric analysis reveal some (potential) barriers for developing and transition countries in accessing this type of organizational innovation. Certificates seem more likely to be issued in countries that are larger and wealthier, which have better institutional arrangements and better infrastructural conditions, and which are former UK colonies.