Sweatshops and Consumer Choices

We consider a case where consumers are faced with a choice between sweatshop-produced clothing and identical clothing produced in high-income countries. We argue that it is morally better for consumers to purchase clothing produced in sweatshops and then to compensate sweatshop workers for the difference between their actual wage and a fair wage than it is for them either to purchase the sweatshop clothing without this compensatory transfer or to purchase clothing produced in high-income countries

Influence of store attributes on shopping intentions in factory outlet malls

This paper examines the effect of eight types of consumer decision-making styles and shopping behaviour on future shopping intentions at factory outlet malls. Results indicate that six out of eight decision-making styles are positively related of future shopping intentions. Conclusions drawn from the current study's findings and their implications for consumer decision-making and shopping behaviour are discussed

Consumer demand for variety: intertemporal effects of consumption, product switching and pricing policies

The concept of diminishing marginal utility is a cornerstone of economic theory. The consumption of a good typically creates satiation that diminishes the marginal utility of consuming more. Temporal satiation induces consumers to increase their stimulation level by seeking variety and therefore substitute towards other goods (substitutability across time) or other differentiated versions (products) of the good (substitutability across products). The literature on variety-seeking has developed along two strands, each focusing on only one type of substitutability. I specify a demand model that attempts to link these two strands of the literature. This issue is economically relevant because both types of substitutability are important for retailers and manufacturers in designing intertemporal price discrimination strategies. The consumer demand model specified allows consumption to have an enduring effect and the marginal utility of the different products to vary over consumption occasions. Consumers are assumed to make rational purchase decisions by taking into account, not only current and future satiation levels, but also prices and product choices. I then use the model to evaluate the demand implications of a major pricing policy change from hi-low pricing to an everyday low pricing strategy. I find evidence that consumption has a lasting effect on utility that induces substitutability across time and that the median consumer has a taste for variety in her product decisions. Consumers are found to be forward-looking with respect to the duration since the last purchase, to price expectations and product choices. Pricing policy simulations suggest that retailers may increase revenue by reducing the variance of prices, but that lowering the everyday level of prices may be unprofitable.Variety seeking; Intertemporal effects of consumption; product switching; Pricing; Dynamic demand;

Seasonality Effects on Consumers Preferences Over Quality Attributes of Different Beef Products

Using discrete choice modelling, the study investigates 946 American consumers willingness-to-pay and preferences for diverse beef products. A novel experiment was used to elicit the number of beef products that each consumer would purchase. The range of products explored in this study included ground, diced, roast, and six cuts of steaks (sirloin, tenderloin, flank, flap, New York and cowboy or rib-eye). The outcome of the study suggests that US consumers vary in their preferences for beef products by season. The presence of a USDA certification logo is by far the most important factor affecting consumers willingness to pay for all beef cuts, which is also heavily dependent on season. In relation to packaging, US consumers have mixed preference for different beef products by season. The results from a scaled adjusted ordered logit model showed that after price, safety-related attributes such as certification logos, types of packaging, and antibiotic free and organic products are a stronger influence on American consumers choice. Furthermore, US consumers on average purchase diced and roast products more often in winter slow cooking season, than in summer, whereas New York strip and flank steak are more popular in the summer grilling season. This study provides valuable insights for businesses as well as policymakers to make inform decisions while considering how consumers relatively value among different labelling and product attributes by season and better address any ethical, safety and aesthetic concerns that consumers might have

Consumer Willingness to Pay for Swiss Chicken Meat: An In-store Survey to Link Stated and Revealed Buying Behaviour

In a global economy food origin is gaining increasing attention as determining purchase criterion in food consumption. Consequently, for many consumers a product’s country-of-origin (COO) is an important cue in evaluating both domestic and foreign products. A double-bounded dichotomous choice approach in an in-store setting was used to assess consumers’ preference and willingness-to-pay (WTP) for the product attribute “Swiss origin” relative to “European origin” for chicken meat. Data collection took place in the poultry section of six grocery stores in Francophone Switzerland. Sample selection was based on the consumer’s purchase decision, that is only actual chicken buyers were questioned. During the survey product data of participants’ actual purchase were recorded. Thus, both hypothetical stated and revealed consumer behaviour data were collected. Based on 450 records we highlight four different consumer segments, notably “Loyal Swiss”, “Low Price Swiss Zappers”, “Price Orientated”, and „The Gourmets”. At an equal price, 90% of the entire sample prefers Swiss chicken meat. To elicit mean WTP for “Swiss origin” we used logit analysis. The results indicate that mean WTP differs significantly between the highlighted consumer segments. “Loyal Swiss” – medium to high priced Swiss chicken meat consumers – are willing to pay a premium of about 7.40 Euros per kilo chicken breast of Swiss origin. This premium corresponds with actual price differences of at most 7.50 €/kg for Swiss chicken breast relative to European found in the researched grocery stores. “Low Price Swiss Zappers” are willing to pay a premium of 2.10 €/kg chicken breast of Swiss origin. In contrast, the “Price Orientated” and „The Gourmets” are not willing to pay any premium for Swiss origin. This corresponds with their revealed purchase behaviour as they bought imported European chicken. Considering mean WTP for the entire sample of 3.00 €/kg for Swiss origin, we conclude that this is not a good predictor for specific consumer segments. It over-, or underestimates mean WTP of the highlighted consumer segments. Using both stated and revealed consumer behaviour data, we are able to calculate consumer group specific mean WTP which leads to more appropriate results for agribusiness and marketing purposes.contingent valuation method, country-of-origin, willingness-to-pay, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

Determinants of Choice Regarding Food with Nutrition and Health Claims

Health is an increasingly important topic in the food market. The regulation (EC) No 1924/2006 on nutrition and health claims is meant to facilitate healthy food choices of consumers. However, research studies about claim perception and choice behaviour are scarce in Europe up to this point, especially those focusing on revealed preferences or a close-to-realistic study design. This contribution reports findings of realistically designed choice-tests accompanied by video-observation and followed by a face-to-face questionnaire. Logistic regression analysis was applied in order to determine the influencing factors on purchase behaviour of food products with claims. Perception of relative healthiness of the product with a claim, credibility of the claim and extent of information acquisition were found to influence choice positively, while claim format and product category were of no importance.Consumer behaviour, health claims, choice tests, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Lemons on the Web: A Signalling Approach to the Problem of Trust in Internet Commerce

Asymmetric information is at the heart of situations involving trust. In the case of B2C Internet commerce, the information asymmetry typically relates to the difficulty that consumers have of distinguishing between "trustworthy" and "untrustworthy" Web merchants. The impasse can be resolved by the use of signals by trustworthy Web merchants to differentiate themselves from untrustworthy ones. Using an experimental design where subjects are exposed to a series of purchase choices, we investigate three possible signals, an unconditional money-back guarantee, branding, and privacy statement, and test their efficacy. Our empirical results confirm the predictions suggested by signalling theory.trust (social behaviour), consumer behaviour

Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology

We assess Canadian’s risk perceptions for genetically modified (GM) food and probe influences of socio-economic, demographic and other factors impinging on these perceptions. An internet-administered questionnaire with two stated choice split-sample experiments that approximate market choices of individual grocery shoppers is applied to elicit purchase behavior from 882 respondents across Canada. Data are collected to assess the influence on respondents’ choices for a specific food product (bread) of 1) product information which varies in content and by source and 2) information provided through labeling. These data also enable: a) analysis of trade-offs made by consumers between possible risks associated with GM ingredients and potential health or environment benefits in food and b) assessment of influences on respondents’ search for/access of product information. We rigorously document the extent and type of variation in Canadian consumers’ attitudes and risk perceptions for a selected GM food. This is pursued in analysis of experiment 1) data using a latent class model to analyze 445 consumers’ choices for bread products. We identify four distinct groups of Canadian consumers: 51% (value seekers) valued additional health or environmental benefits and were indifferent to GM content; traditional consumers (14 %) preferred their normally-purchased food; fringe consumers (4%) valued the health attribute and could defer consumption. Another 32 % (anti-GM) strongly opposed GM ingredients in food irrespective of introduced attributes. Thus there is a dichotomy in Canadian attitudes to GM content in food: a small majority of the sample (55 per cent) perceive little or no risk from GM food, but this is strongly opposed by 46% of respondents. Differences in gender, number of children in the household, education, and age are associated with the likelihood of segment membership. We also report on the search for information on characteristics of the GM food by a sample of 445 respondents with opportunity for voluntary access to related information through hyperlinks in the survey. Slightly less than half actually sought such information. Gender, employment status, rural or urban residency and the number of children in the household all affected the probability that respondents would access information. A further research component examines product choices made in the context of two common GM labeling policies: mandatory and voluntary labeling. We find these two types of strategies to have distinctive impacts on consumers and on measures of social welfare. Knowledge of these may help policy makers to make more informed analyses of the alternative labeling policies. Specific findings also provide base-line measures of Canadians’ attitudes to risks of GM technology in the context of food and environmental risks, as well as documenting the importance of context influences and reference points on consumers’ preferences for GM food. We also develop methodological improvements for accurately estimating the value of information on a negative attribute. The project built upon initial findings from a previous AARI project (#AARI Project #2000D037) and is complemented by research supported through a Genome Prairie GE3LS (Genetics, Ethics, Environment, Economics, Law and Society) project: “Commercialization and society: its policy and strategic implications.”Research and Development/Tech Change/Emerging Technologies,

Consumer Willingness-To-Pay for Different Organic Certification Logos in Turkey

Using data from focus group discussions with consumers and a choice experimentconducted in some of Turkey’s major cities, this study investigates whetherTurkish consumers prefer certain organic labelling schemes over others attemptsand to elicit their willingness to pay (WTP) for different organic certificationlogos. Although the level of awareness regarding organic certification logos waslow, consumers’ perceptions of the logos were generally positive. The results ofthe random parameter logit models indicated a positive WTP for the presence ofone of the three tested certification body logos in addition to the mandatorygovernmental logo. Given the low level of certification logo awareness, theconclusion is that both purchasing decisions and perceptions regarding logoswere affected by subjective criteria. Both the government and certification bodiesshould develop measures to increase consumer awareness of their logos and formconsumer perceptions and attitudes regarding the quality of the certificationimplied by the logo