Lisa A. House

French consumer perception, preference of, and willingness to pay for fresh fruit based on country of origin

Purpose – The purpose of this study is to determine French consumer perceptions and preferences for fresh fruit from different countries. French consumer willingness to pay (WTP) for citrus fruit and the factors affecting WTP are also determined. Design/methodology/approach – An online consumer survey was conducted in France to collect data on consumer perceptions and preferences for fresh fruits from different countries. The contingent valuation method is used to estimate consumer WTP for fresh citrus fruit. A double hurdle model is used to determine the factors that have substantial impact on consumer preferences. Findings – Results show that fresh fruit from China was perceived as the lowest quality, the least safe, and the cheapest among the fruit from various countries. French consumers had the highest stated WTP for fresh fruit from France, followed by fruit from Spain. In addition, consumer WTP for country of origin varies by type of fruit. Research limitations/implications – The contingent valuati...

The Impact of Cosmetic Defects on Japanese Consumers’ Preference for Fresh Grapefruit

An online survey was conducted to investigate Japanese consumer preferences for fresh grapefruit based on prices and external fruit quality. The impact of 4 types of peel disorders (windscar, rust mite, melanose, and greasy spot) was investigated. Results from a discrete-choice model based on consumer responses indicate that willingness to pay for Extra Class fruit (no to little visible damage) is 1.5 times higher than the average willingness to pay for Class II fruit (highest level of visible damage allowed). Additionally, consumers revealed different utility levels depending on the type of peel disorder.

Do U.S. agriculture suppliers benefit from South Korea-U.S. Free Trade Agreement – the case of orange juice

This paper investigates the effect of the South Korea-U.S. Free Trade Agreement (KORUS-FTA) on U.S. competition with other suppliers for the import/export of orange juice. We use monthly trade data for 2007-2015 to estimate the import demand from the United States, Brazil, Israel, and the rest of the world. Our results suggest that U.S. suppliers have surpassed Brazil and dominate the market. Moreover, we show that thanks to the KORUS-FTA, U.S. suppliers have gained significant welfare and trade value, which is particularly important for industries suffering from a shrinking domestic market.

Florida’s Natural® and the supply of Florida oranges

This case study provides a thorough description of the U.S. orange juice industry, and focuses on Florida’s Natural, a cooperative of citrus growers and owner of the Florida’s Natural® brand. Florida’s Natural® competes mainly with Tropicana, owned by PepsiCo, and with Minute Maid and Simply Orange, brands of The Coca-Cola Company. The objective of the case is to evaluate the orange juice industry, assess the position of Florida’s Natural within the industry, and propose business actions for the cooperative. By the end of 2016, the orange juice industry was in the midst of a severe crisis, threatened by decreasing supply and changing consumption preferences. Total orange production in the State of Florida during the 2015-16 season was the smallest crop since the 1960s due mainly to a disease known as citrus greening. Marketers were also facing consumers’ concerns regarding high levels of calories and sugar in some juice categories. Furthermore, on May 2016, the Food and Drug Administration mandated a chan...

Zero-inflated ordered probit approach to modeling mushroom consumption in the United States

This paper investigates the determinants of fresh and processed mushroom consumption in the United States by employing the zero-inflated ordered probit (ZIOP) model. The ZIOP model accounts for excessive zero observations and allows us to differentiate between genuine non-consumers and individuals who did not consume during the given period but might under different circumstances. The results indicate that the market for fresh mushrooms is larger than that for processed mushrooms. However, the market for processed mushrooms has a larger portion of potential consumers which might indicate more potential if appropriate marketing strategies are applied. The results also suggest that the decisions to participate in the market or not and the consumption frequency are driven by structurally different factors. A comparison of the ZIOP to other models is included to show the advantages of allowing for non-consumers and potential consumers to be analyzed separately.

Consumer perceptions of climate change and willingness to pay for mandatory implementation of low carbon labels: the case of South Korea

The purpose of this study is to examine consumer values for mandatory carbon labels incorporating South Korean consumers’ perceptions about climate change using conjoint analysis. In a face-to-face consumer survey, we asked about individuals’ perceptions of the impact of climate change on their personal lives to measure its effect on consumer preference for carbon labels. The results of ordered logit and conditional logit regressions showed that a significant preference for mandatory carbon labels reflected Koreans’ level of concern about climate change. As an increasing number of consumers feel the impact of climate change, the gap of willingness to pay between voluntary and mandatory low carbon labels is significant. Also, consumer perception of the impact of climate change on their personal lives was significantly influenced by the area in which the respondents’ lived.

Consumer response to media information: the case of grapefruit-medicine interaction

This study measured the effect of media exposure on grapefruit/grapefruit juice consumption changes, in particular grapefruit-medicine interaction. Respondents’ attitudes about health news on television and the internet were measured to account for consumers exposed versus not exposed to such information. Results of a sample selection model show that consumer attitudes toward health news were significantly related to exposure to media information. Also, news exposure about grapefruit-medicine interaction has a tendency to result in reduced grapefruit consumption. Consumers who are directly affected by the medication interaction significantly react to the news, and the effect varies by age. Even though consumer’s age was positively related to the probability of increased grapefruit consumption, when consumers took the medication, consumer’s age was negatively related to the probability of increased grapefruit consumption.