Riccardo Vecchio

An empirical investigation of rewards’ effect on experimental auctions outcomes

We examine the effect of earned participation rewards on willingness to pay (WTP) bids in experimental auctions. Our results show that when subjects are provided with a fixed reward, they bid more than those who had to earn their reward.

Anti-Waste Labeling and Consumer Willingness to Pay

ABSTRACT Food waste is an important topic in the general context of food consumption sustainability and ethical consumption. Several studies have focused on environment-friendly labeling schemes based on different “ethical attributes,” such as organic, fair trade, and locally grown. However, the effect of a labeling scheme based on food waste prevention has never been studied. In the current work, experimental auctions were used to investigate the effect of a certification about containing food waste within a certain threshold on participants’ willingness to pay. The product chosen for the auctions was the French baguette (500 g) packaged with a paper wrapper. Furthermore, we examined whether the effect would be moderated by different communication strategies about the consequences of wasting. Specifically, two different frames of reference were used: the first is based on the carbon footprint, the other on the water footprint. Our results showed that waste prevention–based labeling positively affected participants’ willingness to pay and that this effect was enhanced by the carbon footprint frame of reference.

Sociodemographic Factors Differentiating the Consumer and the Motivations for Functional Food Consumption

Objective: The aim of this study was to determine the (1) role of gender, age, and education in the evaluation of multidimensional criteria of the purchase of functional products, which were (a) quality and organoleptic attributes, (b) attributes of packaging and labeling, (c) healthful properties, (d) functional components, (e) base product (carrier) and (2) most important motives for the purchase and consumption of functional food among consumers of different sociodemographic profiles. Design: The data were collected in direct interviews. The sample (n = 200) consisted of 137 women and 63 men age 18–60 years. The research tool was a questionnaire divided into 4 sections. The first one included quality attributes. The second one included healthful properties, functional components, and carriers. The third one concerned the motives for purchasing functional food and included the consequences and values. In the fourth section the participants were asked about gender, age, and education. Results: Gender, age, and education differentiated the criteria influencing the decision to purchase functional food. Women, older people (35–60 years), and those with university education attach the greatest importance to naturalness, nutritional value, freshness, food safety, and quality guarantee. Clear differences between men and women appear in the field of functional components, which are significantly more important for women than for men. Gender, age, and education essentially differentiate the preferences for base product (carrier). Young men prefer meat products in the role of functional carriers. In turn, women and older men prefer cereal products as basic functional carriers. Young consumers are more open to high-technology food processing. Motivations are differentiated by age and gender. Young men, as opposed to women and older men, attach less importance to functional and psychological consequences: improvement of health, healthy eating, conscious choice, and health promotion. Women and older men are more interested in health safety and are more responsible for their health. Among young men, lower self-esteem can be found. Conclusion: The analysis conducted revealed that groups of consumers are significantly different from each other in the evaluation of the significance of each of the variables in the selection of functional food. Sociodemographic factors differentiate the motivations for consumption of functional food.

Do Consumers Want More Nutritional and Health Information on Wine Labels? Insights from the EU and USA

The global strategy to reduce the harmful use of alcohol launched in 2010 by the World Health Organization includes, amongst several areas of recommended actions, providing consumer information about, and labelling, alcoholic beverages to indicate alcohol-related harm. Labelling requirements worldwide for alcoholic drinks are currently quite diverse and somewhat limited compared to labelling on food products and on tobacco. In this context, the current paper contributes to the academic and political debate on the inclusion of nutritional and health information on wine labelling, providing some insights into consumer interest in, and preferences for, such information in four core wine-producing and -consuming countries: Italy, France, Spain, and the United States of America. A rating-based conjoint analysis was performed in order to ascertain consumer preferences for different formats of additional information on wine labels, and a segmentation of the sample was performed to determine the existence of homogeneous groups of consumers in relation to the degrees of usefulness attached to the nutritional and health information on wine labels. Our results highlight the interest expressed by European and United States consumers for introducing nutrition and health information on wine labels. However, the results of conjoint analysis show some significant differences among stated preferences of the information delivery modes in different countries. In addition, segmentation analysis reveal the existence of significant differences between consumer groups with respect to their interest in receiving additional information on wine labels. These differences are not only linked to the geographic origin of the consumers, or to socio-demographic variables, but are also related to wine consumption habits, attitudes towards nutritional information, and the degree of involvement with wine. This heterogeneity of consumer preferences indicates a need for a careful consideration of wine labelling regulations and merits further investigation in order to identify labelling guidelines in terms of the message content and presentation method to be used.

Consumers’ willingness to pay and drivers of motivation to consume omega-3 enriched mozzarella cheese

Purpose Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this paper is to estimate individual WTP for enriched mozzarella cheese and related it to self-efficacy beliefs and outcome expectations of omega-3 consumption, following regulatory focus theory. Design/methodology/approach Data were collected in May-June 2015 from a sample of 150 consumers in Southern Italy. A structural equation modelling procedure was implemented. Findings The results show a significant role is played by prevention outcome expectations on consumer behaviour. While promotion outcome expectation constructs proved non-significant, self-identity correlates with prevention outcome expectations. Research limitations/implications There are several limitations that the authors are aware of regarding this study. First of all, since the authors rely on self-reported measures, optimistic bias might have affected participants’ responses (Weinstein, 1980). Second, results may be influenced by the choice of the specific information provided to consumers for the analysis; different claims and different information framings should be tested (LeBoeuf and Shafir, 2003). Practical implications Implications stemming from the results encourage the promotion of omega-3 enriched mozzarella cheese based on stimulating outcome expectations, bearing in mind that individual motivations should be enhanced by self-identity beliefs. Originality/value Although the combined role of self-efficacy and outcome expectations on personal intention to adopt healthy behaviour has already been demonstrated (Keller, 2006; Tudoran et al., 2012), to the best of the knowledge no previous study relates individual behaviour to an intention measured as a WTP for an actual product. In addition, current study has applied a non-hypothetical BDM (from Becker et al., 1964) auction in-store experiment.

Health warnings on wine: a consumer perspective

Purpose – The purpose of this paper is to investigate consumers’ interest and preference for health warnings on wine label, and the key socio-demographic and attitudinal variables driving this interest. Design/methodology/approach – Data were gathered, by a professional marketing company, through an on line survey with a sample of 300 Italians, aged over 18, consuming wine at least once a month. Findings – Respondents were interested in receiving more information on nutritional and health features of wine through the label, and would also like to obtain information about the warnings about possible side effects related to excessive wine consumption. The most relevant variables influencing positive interest toward this information are gender (female), age (younger cohort), education level (higher), presence of children in the household and being the main responsible of grocery shopping. Research limitations/implications – The research was limited by being conducted only in Italy, using explorative methodol...

Consumer Understanding and Use of Health Claims: The Case of Functional Foods

As widely acknowledged functional foods (FFs) may contribute to improve human health due to the presence of specific components useful for their protective action against several diseases. However it is essential that consumers are able to comprehend and assess the properties of FFs health claims play a central role in helping consumers to select among food alternatives, beyond providing protection against unsupported or misleading statements about foods properties. At the same time health claims are the main marketing tool that the food industry could use to differentiate FFs from other products. Clearly, massive investments in research and development are necessary to enter the FF market segment, together with the possibility to protect innovation through patents. Current paper aims to examine factors influencing consumer understanding and use of food health claims on FFs, as well as providing several indications for developers, marketers and policy makers. After a brief review of the literature the results of a quantitative survey conducted online on 650 Italian consumers are presented. Results show that consumer use and understanding of health claims on FFs depend on different variables such as socio-demographic characteristics, knowledge and confidence with nutrition information but also wording and variables related specifically to the product. Furthermore, different segments with a diverse degree of use and understanding of health claims have been identified. Therefore, to boost market growth, more efforts are needed by policy makers and marketers to provide better information on nutrition and health aspects of FF using an approach capable to ensure truthful, significant and clear information. Finally some recent patents related to the FFs market with specific regard to components and/or functionality investigated in the current paper are reviewed.

More crop for drop - climate change and wine: an economic evaluation of a new drought-resistant rootstock.

The current paper presents the results of an economic evaluation of a new drought-resistant rootstock (M4), capable to maintain in adverse environmental conditions high photosynthetic activity, to accumulate osmotic compounds and to compensate for the accumulation of sodium and chlorine in the grapevines, in two core Italian grapevine growing areas: the North-East and Sicily. After collecting data on quantitative (yield per plant in kg) and qualitative parameters (°Brix, anthocyanins, pH) of experimental vineyards (Cabernet Sauvignon variety) planted using the traditional rootstock 1103P and the innovative M4 rootstock, over a seven-year period, a cost-benefit analysis calculated the effects of replacing the traditional rootstock. The results show that M4 rootstock yields higher net revenues compared to the best situation of 1103P rootstock, roughly in 40% of North-East vineyards and in more than 80% of their Sicilian counterparts. In addition, 14% of North-East vineyards and more than 94% of Sicilian vineyards are currently exposed to drought risk, and these areas are expected to increase in the coming years. Thus the M4 rootstock, as other related innovations [51-53], could significantly improve watersaving strategies, which are gaining increasing attention from both public bodies and wine companies.

Web marketing strategies of food producers in Italy: a competitive analysis

Among the various information and telecommunication technologies available today, internet is certainly the most innovative and useful in terms of marketing potentialities. However, it requires that enterprises (especially small and medium sized ones) develop specific strategies in order not to be excluded from the advantages offered by the virtual market. An empirical investigation, carried out by browsing the websites of 107, randomly selected, Italian companies engaged in the production of typical and traditional foods has shown that these firms invest very little in web marketing. Focusing their efforts on the internet only as a secondary promotion tool, while web-based direct selling is confined to market niches.

Experimental Economics to Evaluate Consumer Preferences

Abstract This chapter is intended to guide readers in the comprehension of experimental economics mechanisms, and their underlying rationale, so the experimenter will be aware of how to choose, and effectively apply, the most appropriate method for her or his specific research objective. In particular, we focus on two of the most frequently applied incentive-compatible value elicitation mechanisms: nonhypothetical experimental auctions and multiple price list experiments.