Are consumers willing to pay a price premium for specific organic logos?

Since July 2010, prepacked organic food produced in the EU must be labelled with the new mandatory EU logo for organic food. However, there is a long tradition of voluntary organic certification logos in most European countries. In this paper we analyse the willingness-to pay (WTP) of European consumers for products with different voluntary organic certification logos to make recommendations for actors in the organic sector. Data was collected by means of choice experiments with 1,997 consumers of organic food in five EU countries, based on which a number of random parameter logit models were estimated. According to our results, there were great differences between the tested logos regarding the price premium that consumers were willing to pay compared to organic products without a logo. One to two logos with a considerable additional WTP could be identified per country. It is recommended to display these logos in addition to the mandatory EU logo, at least in a transition period. The additional WTP for the old voluntary EU logo was close or equal to zero in all study countries except Italy. For the new EU logo, it is therefore recommended to provide public financial support for communication campaigns on the new logo

Consumer views on the new mandatory EU logo for organic food

In July 2010, the new mandatory EU logo for organic food was introduced to make the identification of organic products easier for consumers. In the present study we analysed how consumers in five EU countries view a mandatory EU logo for organic food to make recommendations for agrarian decision-makers and market actors in the organic sector. The study was based on a combination of qualitative and quantitative methods with consumers of organic food in the Czech Republic, Denmark, Germany, Italy and the United Kingdom. Firstly, 15 focus group discussions were conducted to reveal the spectrum of consumer perceptions. In a subsequent survey with 2042 participants consumer views on key issues were quantified. Finally, the results of the qualitative and quantitative studies were brought together. Our findings suggest that a mandatory EU logo for organic food was basically welcomed in all countries, however, trust in the underlying production standards and the inspection system was not very pronounced (except in Italy). We conclude that the introduction of the new EU logo should be supported by communication campaigns to make clear what the new logo stands for and remove unfounded consumer concerns regarding the downscaling of standards and the trustworthiness of the inspection system

Consumer perception of different organic certification schemes in five European countries

With the introduction of the new mandatory EU logo for organic food and farming, the various existing organic certification schemes in the European market face a challenge: Producers and retailers might only continue to display the existing organic logos on product packages if the underlying certification schemes offer consumers an added value compared to the mandatory EU logo and its scheme. The present study aims to identify potential added values that organic certification schemes could incorporate to differentiate themselves from the mandatory EU logo. The study explores consumer awareness and perception of different organic certification schemes and the corresponding logos, about which little is known to date. The qualitative approach with focus group discussions in the five European countries Czech Republic, Denmark, Germany, Italy and United Kingdom revealed that consumer knowledge of organic certification schemes is generally low. In Italy and the United Kingdom, the great majority of participants was not aware of any differences between the schemes that were discussed. In the Czech Republic, Denmark and Germany, several participants preferred a particular organic certification scheme over others. The following aspects could be identified as potential added values for certification schemes to differentiate themselves from the EU logo and the underlying scheme: Stricter production standards, stricter control, domestic origin, and fair prices for farmers

Consumer preferences and willingness-to-pay for organic certification logos: Recommendations for actors in the organic sector. Report of the CERTCOST project

In many European countries, a variety of different organic certification logos and schemes is found in the market. In the countries of the European Union (EU), the new mandatory EU logo for organic food was introduced in July 2010, so that other organic logos can only be used in addition to the mandatory EU logo. Within the CERTCOST project, consumer perceptions, preferences and willingness-to-pay (WTP) regarding different organic certification logos were investigated. The seven study countries were Czech Republic, Denmark, Germany, Italy, Switzerland, Turkey and United Kingdom. The overall objective was to give recommendations for actors in the organic sector regarding the use and promotion of organic certification logos. Firstly, an inventory study was conducted in shops with an organic food range in autumn 2008 to get insights into the spectrum of different organic certification logos in the market and the extent of price differences among products with different organic logos. The analysis showed that the importance of different kinds of logos differed considerably between the study countries. Only a few significant price differences between products with and without certain organic logos were found. Secondly, consumer perceptions, preferences and WTP regarding different organic logos as well as consumer views on a mandatory EU logo were investigated by a combination of qualitative and quantitative methods of consumer research (focus group discussions conducted in spring 2009, choice experiments and structured interviews conducted in early 2010). The results revealed that consumers had a low level of factual knowledge about organic production standards and the organic control system. Nevertheless, consumers clearly preferred certain organic logos more than others. Different kinds of organic logos were preferred across the countries. In Denmark and the Czech Republic, consumers were willing to pay a considerably higher price premium for the governmental logo than for the other tested logos. In Germany, a high WTP was recorded for the logo of the farmers’ association Demeter and the governmental logo. In Italy, the old EU logo reached the highest WTP. In Switzerland, the logo of the farmers’ umbrella organisation Bio Suisse was clearly preferred. In Turkey, consumers were willing to pay the highest price premium for the logo of the certification body Ecocert. In the UK, the WTP was the highest for the logos of the Soil Association and the certification body ‘Organic Farmers & Growers’. In all countries, products without a logo just labelled with the prefix ‘organic’ were not trusted. The introduction of a mandatory EU logo was generally welcomed by the participants. However, trust in the underlying standards and the control system was not very pronounced except in Italy. The report briefly outlines the methods and results, while the focus lies on recommendations for different actors in the organic sector with regard to the use and promotion of organic certification logos. To increase consumer trust in the new mandatory EU logo, it is recommended that promotion campaigns should be carried out explaining what the logo indicates. Regarding the investigated governmental logos, it is recommended that their use should be continued, at least in a transition period, since a high level of consumer trust in the logos was recorded. For organic certification logos of private organisations it is recommended that their use should only be continued for logos that offer a clear ‘added value’ compared to the EU logo

Verbraucherakzeptanz umweltfreundlicher Lebensmittelverpackung am Beispiel von Öko-Salami

Die vorliegende Studie hat untersucht, welchen Einfluss umweltfreundliche Verpackung auf die Produktwahrnehmung, Kaufentscheidung und Zahlungsbereitschaft von Verbrauchern hat. Es wurden Verbraucher computergestützt vor Supermärkten befragt und die Daten multivariat ausgewertet. Anhand der Ergebnisse wird aufgezeigt, was eine umweltfreundliche Verpackung erfüllen muss, um von Verbrauchern positiv wahrgenommen zu werden. Darüber hinaus wird der Einfluss der Produktwahrnehmung auf die Kaufentscheidung und Zahlungsbereitschaft von Verbrauchern dargestellt

Organic certification labels from the perspective of consumers in Switzerland

Organic labels have been established to communicate the consumer that a certain product has been produced according to defined organic standards. The aim of the research presented in this paper was to investigate i) how Swiss organic consumers perceived different organic labels and ii) if Swiss organic consumers prefer particular organic certification schemes over others. To achieve these objectives, we carried out focus group discussions with organic consumers, and conducted consumer choice experiments that were combined with a subsequent structured questionnaire. We focused on two labels that are well established in the Swiss market – one mostly in specialised organic shops (Demeter label), the other one also found widely in a larger retail shop (Bio Suisse label «Knospe »). Our analysis shows the high level of awareness of the Bio Suisse label among Swiss consumers. Furthermore, the study provides evidence for the importance of trust in labels in the Swiss organic market

Are shoppers aware of Organic Certification logos?

The article explores consumer awareness and perception of different certification schemes and corresponding logos in the UK, based on a survey with more than 400 consumers in three supermarkets and one organic shop. The work is part of the Certcost project*, funded by the European Seventh Framework Programme

Präferenzen deutscher Öko-Konsumenten für Wein

Die Qualitätsbeurteilung von Wein stellt für Verbraucher beim Kauf eine besondere Herausforderung dar. In dieser Untersuchung wurden die Präferenzen von Konsumenten von Öko-Lebensmitteln für Wein analysiert, um die relative Bedeutung verschiedener Produkteigenschaften für die Kaufentscheidung zu bestimmen. Dabei wurden Choice Experimente und Befragungen miteinander kombiniert. Unter den getesteten Eigenschaften hatte bei Rotwein die ökologische Erzeugung den größten Einfluss auf die Kaufentscheidung gefolgt vom Preisniveau und dem Herkunftsland. Die Präferenzen für deutschen, französischen und italienischen Wein fielen dabei gleich hoch aus, Spanien hingegen wurde weniger stark bevorzugt. Bei Weißwein spielte die deutsche Herkunft für Verbraucher die wichtigste Rolle, gefolgt von der ökologischen Erzeugung und dem Preisniveau. Bei beiden Weinsorten zeigte sich, dass Weine im mittleren Preisniveau gegenüber günstigen Weinen bevorzugt wurden. Hieraus wird geschlossen, dass der Preis als Qualitätsindikator fungiert

THINKING ALOUD ABOUT SUSTAINABLE AQUACULTURE PRODUCTS: CONSUMER PERCEPTIONS AND BARRIERS TO COMMUNICATION

Sustainable methods of aquaculture have evolved as a response to negative impacts of overfishing of the oceans and problems associated with conventional aquaculture. The German fish market is characterised by a multitude of different labels and claims for sustainable production and fishing methods. However, little is known about how consumers in Germany evaluate and interpret the different food labels and claims of sustainably produced aquaculture products. This paper presents results of think aloud protocols about consumers’ fish-buying decision making and in-depth interviews on consumer preferences for different sustainability labels and claims. Results indicate that not only product attributes, e.g. Origin, Production methods, Organic production, and the sensory Taste of the fish product were relevant for the consumers, but also Skepticism and a Lack of knowledge about procedures of aquaculture were important. When asked to evaluate the sustainability of the products, the organic labels were the most recognized and trusted sources of information. The sustainability claims presented in the in-depth interviews were mainly rejected as being too imprecise. In order to communicate the value of sustainable aquaculture products the knowledge gap between consumers and producers about the production processes needs to be closed. Consumers prefer local aquaculture production and a clear labeling of the product origin. Communication should therefore include information about the origin of the aquaculture product and, at best, the whole production chain. All information on product packages should be easily accessible to consumers. Claims about sustainability should be precise and certification schemes must be trustworthy

Do you like organic wine? Preferences of organic consumers

The market share of organic wine is remarkably lower than the market share of organic food in general. The objective of this paper was to analyse the wine preferences of consumers of organic food in Germany in order to identify how demand for organic wine could be increased. Choice experiments and structured interviews were conducted with 600 consumers of organic food. In the choice experiments, the participants clearly preferred organic wine over conventional wine. However, preferences for organic wine were lower among people with a high interest in wine, i.e. people who place high importance upon vintage, grape variety and winery. We conclude that targeted marketing activities are needed to convince these people about the quality of organic wine. Interestingly, medium-priced wine (4.99 € and 6.99 €) was preferred over low-priced wine (2.99 €). It is therefore recommended to avoid a low-price strategy for organic wine