willingnessto pay in a simple way. Using data on 427 Italian consumers regarding different organi... more willingnessto pay in a simple way. Using data on 427 Italian consumers regarding different organic logos, mediationand moderation analysis is applied for the first time in a discrete choice setting. We tested the hypothesisthat trust in logo mediates the relationship between the logo and consumer choice for organic labelledfood products. Results do not allow rejecting the hypothesis that trust in logo totally mediates the effectof the logo. Therefore, the willingness for organic products could be interpreted as “cost for trust”: thehigher the trust the higher the perceived value-for-money. The mediation effect of trust in logo doesnot vary across points-of-purchase or regions. Our novel approach is susceptible of various applicationswhen analysing choice data and can be extended further.
Organic food is often labelled with an organic certification logo to gain consumer trust in the p... more Organic food is often labelled with an organic certification logo to gain consumer trust in the product integrity. The number of different organic certification logos in the European market raises the question whether consumers prefer specific logos over others. The aim of this paper is to analyse consumers’ willingness-to-pay (WTP) for different organic logos to give recommendations for actors in
... to communicate that the production process has been certified and the product meets certain s... more ... to communicate that the production process has been certified and the product meets certain standards (Roe and Sheldon 2007; Golan et al ... information economics, products with attributes that the consumer cannot verify are referred to as credence goods (Darby and Karni 1973 ...
As a result of continuous growth in the organic market, organic food is increasingly available in... more As a result of continuous growth in the organic market, organic food is increasingly available in conventional retail outlets, where organic products are placed alongside both conventional and so called conventional-plus products. Conventional-plus products are food products with particular attributes that also apply to organic products, such as ‘no artificial additives or flavours’. This overlap provokes the question whether conventional-plus
ABSTRACT Purpose ‐ The purpose of this paper is to consider whether UK consumers recognise and tr... more ABSTRACT Purpose ‐ The purpose of this paper is to consider whether UK consumers recognise and trust organic certification logos and whether the presence of these logos on a product increases consumer willingness to pay for that product. Design/methodology/approach ‐ To ascertain the reaction of UK consumers to organic certification logos commonly used in the UK, this study makes use of three methods: focus groups, a consumer survey and a willingness to pay experiment (choice experiment). Findings ‐ These three approaches reveal that UK consumers associate certain benefits with organic foods but are generally unaware of how the industry is regulated. With regards to trust of the logo, the standards they think underlie the logo and the inspection system that they think is associated with the logo, UK consumers rate the Soil Association and Organic Farmers and Growers logos more highly than the EU logo or products labelled with just the word "organic". They appear willing to pay a premium for the additional assurance that these two logos provide, suggesting that where they are recognised, certification logos are valued. Originality/value ‐ To the authors' knowledge, no previous studies exist on whether UK consumers recognise and trust different organic certification logos. These findings show that where such logos are recognised they can help to give some assurance to the UK consumer and this is reflected in a willingness to pay a premium for foods labelled with the Soil Association and Organic Farmers and Growers certification logos, as opposed to no logo or the (less well known) EU logo.
willingnessto pay in a simple way. Using data on 427 Italian consumers regarding different organi... more willingnessto pay in a simple way. Using data on 427 Italian consumers regarding different organic logos, mediationand moderation analysis is applied for the first time in a discrete choice setting. We tested the hypothesisthat trust in logo mediates the relationship between the logo and consumer choice for organic labelledfood products. Results do not allow rejecting the hypothesis that trust in logo totally mediates the effectof the logo. Therefore, the willingness for organic products could be interpreted as “cost for trust”: thehigher the trust the higher the perceived value-for-money. The mediation effect of trust in logo doesnot vary across points-of-purchase or regions. Our novel approach is susceptible of various applicationswhen analysing choice data and can be extended further.
Organic food is often labelled with an organic certification logo to gain consumer trust in the p... more Organic food is often labelled with an organic certification logo to gain consumer trust in the product integrity. The number of different organic certification logos in the European market raises the question whether consumers prefer specific logos over others. The aim of this paper is to analyse consumers’ willingness-to-pay (WTP) for different organic logos to give recommendations for actors in
... to communicate that the production process has been certified and the product meets certain s... more ... to communicate that the production process has been certified and the product meets certain standards (Roe and Sheldon 2007; Golan et al ... information economics, products with attributes that the consumer cannot verify are referred to as credence goods (Darby and Karni 1973 ...
As a result of continuous growth in the organic market, organic food is increasingly available in... more As a result of continuous growth in the organic market, organic food is increasingly available in conventional retail outlets, where organic products are placed alongside both conventional and so called conventional-plus products. Conventional-plus products are food products with particular attributes that also apply to organic products, such as ‘no artificial additives or flavours’. This overlap provokes the question whether conventional-plus
ABSTRACT Purpose ‐ The purpose of this paper is to consider whether UK consumers recognise and tr... more ABSTRACT Purpose ‐ The purpose of this paper is to consider whether UK consumers recognise and trust organic certification logos and whether the presence of these logos on a product increases consumer willingness to pay for that product. Design/methodology/approach ‐ To ascertain the reaction of UK consumers to organic certification logos commonly used in the UK, this study makes use of three methods: focus groups, a consumer survey and a willingness to pay experiment (choice experiment). Findings ‐ These three approaches reveal that UK consumers associate certain benefits with organic foods but are generally unaware of how the industry is regulated. With regards to trust of the logo, the standards they think underlie the logo and the inspection system that they think is associated with the logo, UK consumers rate the Soil Association and Organic Farmers and Growers logos more highly than the EU logo or products labelled with just the word "organic". They appear willing to pay a premium for the additional assurance that these two logos provide, suggesting that where they are recognised, certification logos are valued. Originality/value ‐ To the authors' knowledge, no previous studies exist on whether UK consumers recognise and trust different organic certification logos. These findings show that where such logos are recognised they can help to give some assurance to the UK consumer and this is reflected in a willingness to pay a premium for foods labelled with the Soil Association and Organic Farmers and Growers certification logos, as opposed to no logo or the (less well known) EU logo.
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