Organic food prices and the consumer - review of the evidence

There is a lack of research on actual organic price knowledge and on how consumers deal with prices during information search and purchase decision at the point of sale. Further research into this can help market actors to strike the balance between price as a barrier and as a cue to quality perception. Research on consumers and organic food prices should increasingly differentiate between organic consumer segments, product categories, distribution channel and brands. Such research will guide market actors towards more targeted pricing strategies that can support further market growth

Consumers’ evaluation of imported organic food products: The role of geographical distance

Country-of-origin (COO) effects and consumer evaluation of organic food products are rarely studied in combination. The aim of this study was therefore to investigate organic consumers’ preferences for imported organic food products from different origins and the underlying reasons for these preferences, including how consumers’ COO preferences depend on the geographical distance to the COO. We employed a multi-method, qualitative approach consisting of in-store interviews (N = 255) and focus groups (six, N = 38) with organic consumers in three German cities located in the north (Hamburg, close to Denmark), west (Münster, close to The Netherlands) and south (Munich, close to Austria). The interviews confirmed the well-known preference for domestic (also for) organic products. It also revealed a preference for geographically close countries as origin for imported organic products. The main reason for this preference is the perceived negative environmental impact of transportation, followed by trust in the country and general country image. Implications for exporters of organic food products are discussed, underlining the importance of building trust and supporting a positive country image, especially in geographically close export markets

Food handling practices and expiration dates: Consumers’ perception of smart labels

Household food waste is a major sustainability problem to solve. Smart labels can alleviate the contributing factor of incorrect interpretation of expiration date labels. However, so far little research has studied consumer handling practices and perceptions of such labels in the context of use. We address this through a qualitative, asynchronous and text-based focus group study with 18 UK smart label early adopter and mainstream consumers, using the case of smart labels on red meat packaging. Results show that consumers are heavily reliant on either expiration date or their own senses, and that trust in the label is a key factor towards including smart labels in everyday food handling practices. Findings imply that in-store demonstrations and information would support and foster uptake of smart labels

Nachhaltiger Lebensmittelkonsum gestern, heute und morgen: Trends und Herausforderungen auf dem Weg zu Generationengerechtigkeit

Die Weltgemeinschaft sieht sich mit steigendem Bevölkerungswachstum und Zielkonflikten der Nutzung von Land und Agrarrohstoffen konfrontiert. Dies wirft die Frage auf, wie nachhaltiger Lebensmittelkonsum in der Zukunft auszusehen hat. Der Beitrag diskutiert die Frage aus Sicht der Konsumverhaltensforschung. Er umreißt vergangene und heutige als ethisch bzw. nachhaltig angesehene Konsumtrends. Es wird aufgezeigt, welche Barrieren auf individueller Ebene verhindern, dass positive Einstellungen sich in verändertem Kaufverhalten niederschlagen, und dass selbst ‚nachhaltiger‘ Konsum meist in Zusammenhang mit einem ressourcenintensiven ‚Lifestyle‘ geschieht. Es werden Definitionen und Empfehlungen zu nachhaltigem Lebensmittelkonsum genannt und schließlich Lebensmittelkonsumtrends beschrieben, die zumindest einen Teilbeitrag zur Lösung der Herausforderungen liefern können

Impact of Country of Origin and Organic Certification on Consumer Food Choices in Developed and Emerging Economies. Abstract for EMAC 2018

To investigate the influence of COO on consumers’ food choices in the presence of other quality cues, a choice-based conjoint (CBC) experiment was conducted in Germany, France, China and Thailand. In each country, a sample of about 1000 consumers participated after being screened for responsibility for the household’s shopping, consumption of the case product, and knowledge of organic food. The overall design is a full factorial with four COOs, three different organic label conditions and three price levels. The 36 different choice options were bundled in 12 choice sets of three alternatives, which were presented in random order. The study revealed a general tendency to prefer imported food products from economically developed over products from less developed countries. In Europe, this effect cannot be disentangled from a preference for nearby COOs. However, in Asia, distance to the COO seems less important. Country image linked to level of economic development seems to matter more

Deliverable 1.3.(b): Conference paper: German consumers’ evaluation of imported organic food products – the importance of geographical distance

In Germany, as in several other European countries, the demand for organic food is growing substantially faster than domestic production and supply, which has led to high import shares of many organic foods. Consequently, domestic consumers are presented with a wide variety of organic products from foreign country-of-origins (COOs). Although there are many studies of consumer preferences for COO on the one hand and organic food on the other, research on COO effects in the context of organic food is scarce. More specifically, there is a lack of research on how consumers evaluate imported organic food products. To explore regional differences in German consumers’ preferences for imported organic foods, 6 focus groups and 255 in-store interviews were conducted in Hamburg (north, close to Denmark), Munich (south, close to Austria) and Münster (west, close to The Netherlands). The multi-method study design included both between and within-method data triangulation. The aim was to enhance the validity of the findings and reduce inherent method bias. German organic consumers were found to be a highly involved target group demonstrating an intrinsic motivation to acquire relevant knowledge in order to elaborate on differentiated product alternatives. This leads to an increased importance of a product’s origin and ultimately translates to a higher attention to the COO cue in the purchase situation. Overall, a strong preference for imported organic food products with specific, geographical close COOs were found among organic consumers in three different German regions. Figure 1 shows that Austria was the most preferred foreign COO in Munich; it also ranked amongst the top five origins in Hamburg, whilst it was only mentioned few times in Münster. In Münster, respondents clearly favoured products from the Netherlands. Also in Hamburg most respondents indicated prefer Dutch products, closely followed by French and Danish ones. Apart from Hamburg, Denmark was very seldom or not at all mentioned as alternative COO. Hence, at least for Munich and Münster, the geographically close COO was preferred (Austria and The Netherlands, respectively), while the preferences for Danish products were comparatively more pronounced in Hamburg than in the other two cities. The findings further suggest that preferences for foreign COOs were strongly influenced by concerns about the negative effects of transport. The prevalence of these considerations can be attributed to a high environmental concern amongst organic consumers. These findings are in line with past research arguing that consumers buy organic food at least partly for ethical reasons, as reflected in such pro-environmental behaviour. This study’s findings expand the scarce research on COO effects in the context of imported organic food. In particular, this study offers exporting countries, domestic retailers and policy makers insights into how imported organic products are perceived, possibly revealing growth opportunities for both demand and supply side

Deliverable 1.3.(a): Conference paper: Consumer evaluation of imported organic food products in emerging economies in Asia

Consumers in emerging economies such as Thailand and China have started to demand organic food products – mainly due to food safety reasons (Ortega, Wang, Wu, & Hong, 2015; Roitner-Schobesberger, Darnhofer, Somsook, & Vogl, 2008; C. L. Wang, Li, Barnes, & Ahn, 2012; O. Wang, De Steur, Gellynck, & Verbeke, 2015). Since the domestic organic markets are still not well-established in Thailand and China, there is a huge potential for export of organic food products to these markets from countries, where the organic markets are more established and able to provide consumers with safe products. However, little is known about consumer preferences for imported organic food in emerging economies in Asia. A total of 139 in-store interviews were conducted in China (70 in March 2016 and 69 in March 2017). In Thailand, 81 in-store interviews were conducted in August 2016. Also, two focus groups were conducted with consumers in Bangkok, Thailand, and Guangzhou, China, respectively, in August 2016. The aim with this triangulation was to enhance the validity of the findings and reduce inherent method bias. Thai and Chinese consumers perceived products’ country-of-origin as important, but price, brands and familiarity with the product also influenced their decision. Country-of-origin was especially considered when evaluating the quality and safety of the products. In Thailand, trust in the certification was the major reason for choosing imported products from especially New Zealand, Japan and Australia. Food safety and quality control were also important motives. That was also the case in China - however, choosing imported food was often a consequence in low levels of trust in domestic certification. Environmental awareness (pesticides, transport distances) also played a role for Chinese consumers. The results imply that there is a growing awareness among Chinese and Thai consumers towards organic products – especially the imported ones, since these are associated with food safety and quality control in both countries. The study also provides evidence of the array of variables influencing consumer preferences for foreign COOs. These findings expand the scarce research on COO effects in the context of organic food

Deliverable 3.2: Survey instrument

This document is deliverable 3.2. in the SOMDwIT project and provides information on the development of the survey instrument for the quantitative data collection in Denmark, Germany, France, Thailand and China

INCOME AND PRICE AS A BARRIER TO ORGANIC FOOD CHOICE

From the barriers said to potentially hamper the further development of the sector, the consumer demand side and herein the high prices are handled as crucial. We reviewed the literature since 2000 regarding the role of perceived price and income. We find that self-report based studies nearly unequivocally find price is the primary barrier to choice, deviations from this appear to occur when researching organic consumers and developed organic markets. There are mixed findings regarding income, but representative studies tend to indicate a significant influence. Number and age of children and income level are found to impact the influence of income on intention to or purchase of organic food

Pride and prejudice - a comparison of consumer preferences for country-of- origins of imported organic foods in Germany and China. Abstract for EMAC 2018

The aim is to investigate why and when consumers in an emerging economy vs. an economically developed country prefer imported to domestic organic food products. A domestic country bias has been found mostly in developed countries. Three studies were conducted with organic consumers in China and Germany: In-store interviews, focus groups and an online survey. A strong domestic country bias for organic food products is confirmed in Germany, and to a much lesser extent in China. German consumers prefer products imported from countries that are geographically and culturally close. Food safety and health concerns are the primary reasons for Chinese consumers buying organic food. Hence, organic products from developed countries are preferred because of institutions they trust will secure high and credible organic standards. This gives economically developed countries a competitive advantage on the world market