Ferdinand F. Wirth

Developing and validating measures of facets of customer-based brand equity

Abstract This article presents four studies that develop measures of “core/primary” facets of customer-based brand equity (CBBE). Drawing from various CBBE frameworks, the facets chosen are perceived quality (PQ), perceived value for the cost (PVC), uniqueness, and the willingness to pay a price premium for a brand. Using numerous advocated scale developmental procedures, the measures of these facets showed evidence of internal consistency and validity over 16 different brands in six product categories. Results also suggest that PQ, PVC, and brand uniqueness are potential direct antecedents of the willingness to pay a price premium for a brand, and that willingness to pay a price premium is a potential direct antecedent of brand purchase behavior.

PURCHASING SHRIMP FOR AT-HOME CONSUMPTION: THE RELATIVE IMPORTANCE OF CREDENCE VERSUS PHYSICAL PRODUCT FEATURES

Consumers have become increasingly concerned with the quality, safety and production features of food. Certain population segments will pay more for food products carrying a label identifying credence features that consumers cannot evaluate, even after consumption. Seventy-nine market research questionnaires were completed by consumers purchasing live shrimp at two harvest sales at a University of Florida pond aquaculture facility. A conjoint analysis experiment was included to quantify the utility value and relative importance of seven different shrimp product physical and credence features: species, size, refrigeration state, product form, purchase price, country of origin label, and production method label. Both credence features had positive impacts on shrimp product utility, with country of origin label conferring higher positive utility than any other shrimp feature. Utility associated with wild-harvested shrimp was slightly higher than the utility of farm-raised shrimp. These results provide justification of seafood industry support for mandatory country of origin labeling.

Environmental Management of the U.S. Aquaculture Industry: Insights from a National Survey

As a relatively new and growing segment of American agriculture, aquaculture has been subjected to increased levels of environmental regulation and enforcement activities. However, as a result of the diversity of agencies administering these regulations at the state level, the current regulatory environment is perceived by many to be a major constraint to industry development. This research explores the basis for alternative management approaches for the aquaculture industry, including command and control and market - based incentives. Special emphasis is placed on the environmental management aspects of the aquaculture industry. Results of a 1995 national survey of U.S. aquaculture environmental management shed light on the current use of incentive - based mechanisms at the state level.

MARKET PREFERENCES TOWARD FARM-RAISED STURGEON IN THE SOUTHEASTERN UNITED STATES: A CONJOINT ANALYSIS

Finfish culturists face relatively low profit margins due to high investment and production costs, prompting farmers to seek higher value species. Sturgeon is viewed as an excellent candidate for culture due to its high quality meat, high value caviar, fast growth rate, excellent feed conversion and hardiness, although little is known concerning buyer demand for sturgeon products. This study employed a mail survey of southeastern U.S. seafood restaurants and retailers, including a conjoint analysis experiment to quantify the utility value and relative importance of key farmer-controllable sturgeon product features. Almost 90% of respondents were not familiar with sturgeon, suggesting the need for industry educational programs. Twenty-one percent of restaurants and 31% of retailers would buy sturgeon products if they were readily available. Conjoint results indicate that a fresh sturgeon fillet is strongly preferred by both market segments; price and seasonal availability are relatively unimportant, especially for seafood restaurants.

RISK ASSESSMENT OF A SHRIMP AQUACULTURE INVESTMENT IN FLORIDA

A stochastic simulation model was developed to examine the impact of risky economic variables on the profitability of a small-scale shrimp farm. Sources of risk included input and output prices, random-kill events, and hurricane damages. Success was measured using the probability distribution of the net present value (NPV). A baseline model that assumed capital costs of

SELLING FRESHWATER PRAWN IN FOOD FESTIVALS: A MARKETING EXPERIMENT IN KENTUCKY

493,993, a stocking density of 100 shrimp per m2, a harvest survival of 80%, and a discount rate of 8% failed to generate a positive NPV. Subsequently adding a

Regulatory Climate toward Finfish Aquaculture: The Impacts of State Institutional Structure

0.66 price premium also failed to establish a positive NPV. Further reducing initial capital costs by 50% resulted in a 2% probability of a positive NPV. Incrementally reducing the discount rate generated increasingly positive NPV probabilities ranging from a 9% probability of success (7% discount rate) to a 94% probability of success (3% discount rate). Additional analyses suggested that probabilities of financial success were also sensitive to random-kill and hurricane events.

Consumers’ Shrimp Purchasing Preferences: An Application of Conjoint Analysis

This paper evaluated consumer perceptions of cooked freshwater prawn sold in festivals. Data were collected from prawn consumers attending the Kentucky State Fair and Garretts Festival (in Lexington, Kentucky) on knowledge of prawn, seafood consumption frequency, proclivity of purchasing locally grown food, etc. A conjoint experiment was conducted in which respondents rated nine hypothetical plates of cooked prawn, differing from one another by the number of prawns, price, cooking style, and the presence or absence of side items. Results from data analyses indicated that the Garretts Festival respondents were more educated and had more knowledge of prawns than the State Fair respondents. The State Fair respondents, while indifferent to the prawn cooking style, considered the products price to be more important than the Garretts Festival respondents. All results suggest that vendors would be more successful in dedicated prawn festivals than participating in festivals of general interest, such as the State Fair.

Assessing the U.S. Market Economics for a Cultured Flounder, Paralichthys sp., Industry

Abstract The impact of state development and regulatory institutional characteristics on the regulatory climate toward finfish aquaculture, defined as the stringency of regulations imposed upon aquaculture, is evaluated in a two‐limit truncated regression model, using data from a national survey. The conceptual basis of the model draws from elements of public choice and firm location theories, characterized within an institutional setting. Empirical results indicate that (1) establishing a formal state aquaculture development plan and (2) transferring regulatory enforcement authority from the state fish and wildlife agency to the state department of agriculture are strategies which will significantly reduce regulatory stringency and the negative impacts of state institutional constraints on aquaculture. Ornamental fish and baitfish were subjected to lower regulatory stringency than commercial foodfish. States in the northeast and western regions of the U.S. had higher regulatory stringency than states in the southern region.

Economics of Fruit Thinning: A Review Focusing on Apple and Citrus

The U.S. shrimp farming industry has been developing in Southern states in response to domestic market demand for shrimp. Shrimp farmers have expressed interest in marketing fresh, whole shrimp directly to consumers. This study employed a mail survey and conjoint analysis to quantify the utility value and relative importance of key, farmer-controlled shrimp attributes: size, refrigeration state, form, and price. Almost all survey respondents (96%) indicated that a member of their household eats shrimp, and 84% purchase shrimp for at-home consumption. The conjoint analysis results suggest that large (26–35 tails per lb. count), fresh, whole shrimp should receive favorable consumer acceptance.