4 research outputs found

    The Role of Credence Attribute Claims in Food Product Launch – A Comparative Study of New Zealand and Australia

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    Purpose: This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food companies in Australia (AU) and New Zealand (NZ). As such, positioning through credence attribute claims can be associated with product launch strategies, including brand-new products, expansion of product ranges, new packaging and relaunch, as a response to market demand. Design/methodology/approach: Text analysis was used to investigate the descriptions of food claims using Structured Query Language, providing a word list of food claims and further filtered and categorised into groups of claims. Multinomial regression models were then employed to analyse the association between product launch strategies and food claims adopted by firms. Findings: The results of this paper provide evidence that positioning via food claims play an important role in product launch strategies in both AU and NZ. Types of food claims matter differently to firms' product launch decisions in the two markets. The “green” and “ethical” attributes are found to be associated with new launches in NZ but not in AU. Claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach. Originality/value: This study is amongst the first studies that addresses the role of positioning in product launch strategies of food companies. The results and findings provide insights into the different prevailing credence attributes from the firm side and help policymakers to regulate the delivery of information about credence attributes to consumers

    Factors affecting farmers' adoption of and willingness to pay for biodegradable mulch films in China

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    The technology of biodegradable mulch films (BDMs) is an environmentally-friendly substitute for polyethylene (PE) mulches in agricultural production. Given the technology is new to the market, it is not easy for farmers to adopt it. Additionally, farmers’ decision on BDMs adoption is a multiple-stage process. To understand the decision process, this paper employs a double hurdle model to explore the factors affecting farmers’ adoption and willingness to pay for BDMs using the sample data from China. The results show farmers follow a two-stage decision-making process, farmers have to overcome the first hurdle, i.e., adoption or non-adoption, and then decide how much they are willing to pay for BDMs. The role of technology-specific characteristics is more important than adopter-specific characteristics in the adoption of BDMs. Understanding the impact of factors on farmers’ decision-making process can assist policymakers in designing programs, specifically tackling difficulties confronting farmers at different stages of decision-making

    Factors affecting farmers' willingness to adopt and willingness to pay for biodegradable mulch films in China

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    Purpose – Biodegradable mulch films (BDMs) technology is regarded as an environmentally-friendly substitute to traditional plastic mulch films in agricultural production. Given the high price and it is new to the market, it is not easy for farmers to accept and adopt it. This paper aims to explore the key factors affecting farmers’ willingness to adopt and willingness to pay for BDMs to understand the complex process of farmers’ decision-making. Design/methodology/approach – This paper employs a double hurdle model to explore the multi-stage decision-making process in the adoption of BDMs using the sample of 1247 observations from Yunnan province China, where two mechanisms of decision-making (i.e., direct rejection of technology and lack of resources) were used to capture zero willingness to pay (WTP) for BDMs. Findings – The results indicate the two-stage decision-making process, where some factors, such as income, crop type, and perception of the technology, only affect farmers’ willingness to adopt but not willingness to pay for BDMs. The role of technology-specific characteristics is more important than adopter-specific characteristics in the adoption of BDMs in China – training for understanding and using the technology has a positive effect on both the adoption and willingness to pay. Originality/ Value – The paper is the first attempt that empirically analyse the determinants of farmers’ adoption and WTP for BDMs. It contributes to the literature on adoption analysis by: 1) considering farmers’ adoption choices as a two-step process by using a hurdle model and 2) addressing the importance of technology-specific characteristics and the impact on farmers’ willingness to adopt and pay for the new technology, i.e., BDMs in our case. Understanding the role of factors on different stage of farmers’ decision-making could assist policymakers in designing programs, specifically tackling difficulties confronting farmers at different stages of decision-making
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