DO HEALTH CLAIMS MATTER FOR CONSUMER PREFERENCE ON TEA BEVERAGE? EXPERIMENTAL EVIDENCE FROM TAIWAN

Abstract

This paper aims to identify consumer preference for tea drinking products in Taiwan by applying conjoint analysis and investigate whether health claims as attributes would influence consumer’s choice behavior. From 1 July to 31 August 2005, 620 consumers of tea drinking products participated in the choice-based conjoint experiment, which conducted in the city of Taipei, Taichung, Tainan, and Kaohsiung in Taiwan. The data were collected in supermarket using questionnaire for personal interviews. Overall, the estimated individual models fit the data well using Conditional Logit Model. Regarding the result of “Original Tea”, consumer’s order ranking of tea category is green tea, oolong tea, and black tea. The most importance on the standard that health claims have positive influence on higher likelihood of purchasing tea drinks. In addition, consumer prefers to tea drinks with Catechins, processing technology using cold extraction, and paper package. However, it could be seen that as the price increases the utility for the consumer decreases. Also, we report the negative relationship between price and purchasing intention. It is found that respondents preferred to tea drinking products with health claims. This result stands for consumer’s concern on their health status by intaking additives like Catechins. Our results also suggest that respondents prefer that tea drinks include less sugar that implies that the product is produced “light”.Tea Drinking Products, Consumer Preference, Health Claims, Conjoint Analysis, Conditional Logit Model, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy,