nep-mkt New Economics Papers
on Marketing
Issue of 2016‒05‒08
eighteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Consumer Willingness to Pay for Locally Grown Plants By Zaffou, Madiha; Campbell, Benjamin
  2. Spillover Effect of Participation in Women, Infant and Children (WIC) Program on Consumer’s Purchasing Behavior of Private Label Goods By Zaffou, Madiha; Campbell, Benjamin; Rabinowitz, Adam
  3. Analyzing Consumer Demand During a Food Scandal: The Case of Dioxin Contaminated Feed in Germany and the Media By Rieger, Jorg; Kuhlgatz, Christian
  4. Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China By Yan, Zhen; Zhou, Jie-hong
  5. Sustainable Consumer Groups and Their Willingness to Pay for Tangible and Intangible Attributes of Fresh Strawberries By Zhang, Lisha; Gao, Zhifeng; Vassalos, Michael
  6. Management of tourist product By Robert Sałek; Joanna Nowakowska-Grunt; Anna Brzozowska; Judyta Kabus; Anna Wiśniewska-Sałek
  7. The Impact of Restaurant Menu Labeling on the Cost of the Selected Meals By Zaffou, Madiha; Campbell, Benjamin
  8. Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya By Otieno, David; Ogutu, Sylvester
  9. Evaluating the effectiveness of the Farmers’ Market Nutrition Programs (FMNP): An exploratory analysis for west Tennessee By Tewari, Rachna; Vann, Scott; Mehlhorn, Joey; Parrott, Scott; Pruitt, Ross
  10. The Value of Country-of-Origin and Wild-Caught Labels: A Hedonic Analysis of Shrimp Retail Prices in the United States By Wang, Xiaojin
  11. Consumers’ willingness to pay price premium for seafood: the effects of food safety incidents in China By Han, Yang; Bi, Xiang
  12. Local vs. Organic Products By Ben Campbell
  13. Consumer Willingness to Pay for Eco Labels in China By Haitao Yin; Rui Zhao
  14. Creating Tourism Improvement Districts to Raise Stable Funding for Destination Marketing and Promotion By James Mak
  15. Spatial Pricing Efficiency of Rice Marketing in North Central, Nigeria By Ojo, Olanike; Ojo, Akindele; Tsado, Jacob
  16. Food Buying Practices of College Students By Hardy, Deric; Ejimakor, Godfrey; Amoakon, Joel; Ralph, Okafor
  17. Does Consumer’s Working Memory Matter? The Relationship between Working Memory and Selective Attention in Food Choice By Shen, Meng; Gao, Zhifeng
  18. Crowdfunding in Wine By Bargain, Olivier; Cardebat, Jean-Marie; Vignolles, Alexandra

  1. By: Zaffou, Madiha; Campbell, Benjamin
    Abstract: Over the last decade there has been a move by many consumers to purchase locally grown products. Many studies have focused on food with limited studies examining plants. Utilizing a choice experiment in conjunction with latent class modeling with examine the impact of locally labeling and retail outlet on preference and willingness to pay for azaleas. Results indicate that only one of the latent classes, about 43% of the sample, valued locally labeling. Furthermore, the same class that valued local also preferred a nursery/greenhouse outlet over a home improvement center. Recommendations for the different retail outlets are given based on the results.
    Keywords: local labeling, retail outlet, plants, green industry, Agribusiness, Marketing,
    Date: 2016
  2. By: Zaffou, Madiha; Campbell, Benjamin; Rabinowitz, Adam
    Abstract: The special supplemental nutrition program for women, infants, and children program (WIC) allows its participants to purchase food items from a WIC approved list at retail grocery stores. However, this program restricts not only the type and the quantity of food to be purchased but also the specific food brand. In fact, participants are often required to purchase private label brands –the least expensive brand- for some of the food products. Using Nileson home-scan data on daily food purchases across the county, this study aims to evaluate how these food brand restrictions may impact consumer brand preference even outside of the WIC program.
    Keywords: Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Marketing,
    Date: 2016
  3. By: Rieger, Jorg; Kuhlgatz, Christian
    Abstract: This study investigates the effect of media coverage on the consumer demand for pork chops and chicken filet in the course of the German dioxin scandal in 2011. A media index is constructed to account for the dynamics of the media coverage for the first nineteen calendar weeks in 2011. The response of the German households is estimated with a dynamic correlated random effect Tobit model based on weekly panel data provided by the GfK and data on media coverage provided by Lexis Nexis. Our dataset contains detailed information on purchasing transactions and socio-economic characteristics of the consumer households. The empirical results show that unobserved heterogeneity is important to consider when analyzing the determinants of demand in times of a scandal. For both meat products, media had a significant negative effect on the propensity to consume as well as the quantity purchased.
    Keywords: Dynamic correlated random effects Tobit model, consumer demand, media, food scandal, panel data, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, L15, Y90,
    Date: 2015
  4. By: Yan, Zhen; Zhou, Jie-hong
    Abstract: An increasing number of recent media reports on pork safety problems at source have attracted great attention and thought to be a growing threat to risk perception amplification on pork safety, even leading to public panic. This paper was among the first to explore the impact of media report about potential benefits and risk of traceability on consumer utility valuation and preference heterogeneities for select pork traits. By capturing key issues from online media reports in last three years both on benefit and risk as information shock showed to interviewees, we investigate willingness to pay from 788 consumers across sixteen traceability pilot cities, China. The findings indicate that consumers value certification more than other pork traits, while only preference on farmerinfo labeling significantly imcreases in negative information group. Highly valued farmerinfo and free range labeling in same class from positive information shock, while consumer preference for free range in one class from negative group.
    Keywords: Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,
    Date: 2015
  5. By: Zhang, Lisha; Gao, Zhifeng; Vassalos, Michael
    Abstract: Consumer preferences for food have drastically changed over the last decades. Other than the nutrient provided by food, they increasingly care about the impact of food production on the environment and society. Consequently, consumers require more information regarding a number of intangible product attributes, such as the amount of fertilizer used, whether the farmer adopted sustainable production practices etc. The objective of this paper is twofold. First, the study seeks to identify sustainable consumer groups by examining their preferences of different tangible and intangible attributes of fresh strawberries. Second, it investigates the effect of consumers’ perceptions for different labels (i.e. organic, local etc.) and their willingness to pay for the examined attributes. This can provide valuable insights to retailers, farmers and policy makers to promote sustainable food production and increase profitability by meeting consumers’ increasing demands for sustainability. The study data set is obtained from a nationwide online survey of U.S consumers. Payment card method combined with ordered probit model is used to estimate consumer WTP. Preliminary results indicate that consumers who frequently purchase groceries in farmers markets or those who subscribe to community support agriculture services are willing to pay more for strawberries labeled intangible attributes.
    Keywords: Agribusiness, Marketing,
    Date: 2016
  6. By: Robert Sałek (Czestochowa University of Technology, Faculty of Management); Joanna Nowakowska-Grunt (Czestochowa University of Technology, Faculty of Management); Anna Brzozowska (Czestochowa University of Technology, Faculty of Management); Judyta Kabus (Czestochowa University of Technology, Faculty of Management); Anna Wiśniewska-Sałek (Czestochowa University of Technology, Faculty of Management)
    Abstract: Promotion and operations conducted alongside it, aiming at giving a business or product class and prestige, have accompanied economy for ages. After transition from statist economic policy to free market policy, its influence has also become visible in Poland. It has given a whole new dimension to promoted products. On the other hand, proper functioning of tourism aided by various economic instruments is possible only when the essence of the issue of tourism as a social and economic phenomenon is correctly understood. If by this term we mean management of tourist traffic, benefits and sales of tourism goods aided by, i.e. promotion (the most important marketing tool), we will understand the economic benefits. This paper is an attempt to analyze the process of management of tourist product promotion. There have been presented tools used in promotion which includes brand and advertisement, among others. There has also been analyzed the essence of promotion in tourism.
    Keywords: management, tourism, tourist product, promotion, marketing.
    JEL: M31 Z00
  7. By: Zaffou, Madiha; Campbell, Benjamin
    Abstract: In response to the Food and Drug Administration (FDA) proposed rules for national menu labeling, several studies have examined the effect of restaurant menu labeling on consumers food choices and total calorie intake. However, outcomes other than nutritional and health concerns were not given enough attention. An important component that can be affected by menu labeling is the total cost/price paid by consumer for a selected meal. In this study, samples of 242 participants with diverse demographic characteristics were presented with two different restaurant menus. For each menu, we construct different experimental treatments associated with calorie information display formats (total calories, percentage daily intake and traffic lights) and we ask participants to make their meal choice(s). Data on price and calorie information for chosen food items is then recorded. Therefore, we examine how prices paid by consumers are affected by a change of calorie labeling formats for each menu. Results of this analysis are critical to restaurants owners and may have a significant impact on their pricing decisions.
    Keywords: menu labeling, consumer choice, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, Marketing,
    Date: 2016
  8. By: Otieno, David; Ogutu, Sylvester
    Abstract: In developing countries, especially in sub-Saharan Africa, policy makers have been reluctant to formulate animal welfare policies. This is despite potential benefits of such policies including increased domestic and global consumers’ demand for products that are compliant with humane treatment of animals. This study employed a choice experiment method to establish consumer willingness to pay (WTP) for animal welfare attributes in chicken. Data were drawn from 200 chicken consumers in Nairobi, Kenya and estimated using a random parameter logit model. The results indicate that consumers were willing to pay a premium for humanely-treated chicken. The consumers had a positive and significant preference for use of certified transportation means, humanely slaughtered chicken and animal welfare labelling. However, the consumers showed a negative preference for use of antibiotics in chicken production. These findings are vital for formulation of product differentiation strategies in the industry as well as food policy.
    Keywords: Animal-welfare, Chicken, Choice Experiment, Kenya, Agricultural and Food Policy, Livestock Production/Industries, D18, D63, F18,
    Date: 2015
  9. By: Tewari, Rachna; Vann, Scott; Mehlhorn, Joey; Parrott, Scott; Pruitt, Ross
    Abstract: Federal nutrition assistance programs at farmers’ markets are considered effective strategies to support direct marketing of local produce, and to increase consumer access to healthy food in low-income communities. Review of existing literature suggests lack of significant research regarding FMNP programs in west Tennessee. The primary goal of this study is to evaluate the existing Farmers’ Market Nutrition Programs (FMNP) from both producers’ and recipients’ perspectives. This will be achieved through an exploratory survey analysis for the participating west Tennessee farmers’. The results from this study will be instrumental in expanding the visibility of fresh farm produce from farmers as a means to promote health benefits among recipients, as well as a platform for farmers to improve their distribution and marketing network.
    Keywords: farmers markets, nutrition program, survey, west Tennessee, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, I38, Q13, Q18,
    Date: 2016
  10. By: Wang, Xiaojin
    Abstract: The retail market for shrimp is dynamic with substantial competition between imports and domestic products. Country of origin and method of production (wild and/or farm-raised) labels are required for all seafood since April 4, 2005. But little is known about how these and other credence attributes are valued in the retail market. To estimate the value of these attributes, we use weekly store scanner data of unbreaded frozen shrimp products in 2013. An estimated hedonic model shows a premium for both home (product of USA), and price premium for fishing method (wild-caught), and a premium for the organic claim. The results contribute new insights regarding opportunities for differentiation by credence attributes which may lead to more sustainable and effective resource use along the value chain for shrimp.
    Keywords: country-of-origin labeling, revealed preference, hedonic price, shrimp, scanner data, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, C23, D12, Q22,
    Date: 2016
  11. By: Han, Yang; Bi, Xiang
    Keywords: Willingness to pay, price premium, seafood, food safety incidents, effect, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2016–02–06
  12. By: Ben Campbell (University of Connecticut)
    Abstract: There tends to be an evolution occurring with respect to how people view local and organic. Since the inception of organic as a mainstream item, organic has been marketed to a large extent as helping the world through less pesticide use and more environmentally friendly production practices, while local has been viewed as helping the community and providing fresher product. Research from UConn (Lingqiao Qi, Ben Campbell, and Yizao Liu) shows that consumers that are altruistic (e.g. care about others) and biospheric (e.g. care about the environment) are more likely to purchase local over organic. This transformation seems to indicate that local seems to be expanding to fill the role of environmental stewardship, while also helping the community. The continued evolution of local and organic will be interesting over the next couple of years.
    Date: 2015–08
  13. By: Haitao Yin (Antai College of Economics and Management, Shanghai Jiao Tong University); Rui Zhao (Shanghai Jiao Tong University)
    Keywords: willingness to pay, eco labels
    Date: 2016–03
  14. By: James Mak (University of Hawaii Economic Research Organization, University of Hawaii at Manoa)
    Abstract: Tourism Improvement Districts (TIDs), modeled after the more well-known Business Improvement Districts (BIDs), are increasing rapidly in the U.S. With enabling legislation from state and local governments, TIDs allow hoteliers in a tourist destination to ban together to impose compulsory assessments on nearly all the hotels in the district in order to raise money to fund destination marketing. To date, research on TIDs have come almost exclusively from destination marketing organizations (DMOs), travel associations, TIDs, and consultants with vested interest in the formation and expansion of TIDs. This paper synthesizes information from available reports and attempts to provide a more balanced view of the role of TIDs in destination tourism marketing and promotion.
    Keywords: Tourism improvement district, tourism business improvement district, tourism marketing district
    JEL: H4 H7
    Date: 2016–03
  15. By: Ojo, Olanike; Ojo, Akindele; Tsado, Jacob
    Abstract: This study examined the spatial pricing efficiency of rice marketing in North central, Nigeria. Data collection involved the use of primary data and a multi-stage random sampling technique was used the selection of 200 marketers. Data analytical techniques involved the use of descriptive statistics, the model of spatial price relationship as well as Ordinary Least Square (OLS) regression model. The results on spatial pricing efficiency revealed that consumers were void of exploitative behavior of middlemen in most of the markets. The result on the factors affecting rice prices showed the estimated R2 for Kwara and Niger States of 98.3% and 42%, respectively. The main constraint facing rice marketing in the area was cost of transportation. Based on these results, it is recommended that the negative price spread in Owode market should gear up the local government authorities in the provision of more market outlets in Owode market.
    Keywords: Spatial, efficiency and price-spread, Agricultural and Food Policy, Financial Economics,
    Date: 2015
  16. By: Hardy, Deric; Ejimakor, Godfrey; Amoakon, Joel; Ralph, Okafor
    Abstract: As young adults, many college students are independently buying their food for the first time. What they buy, how, and where they buy food are dependent on a set of factors. One of the factors that influences how students buy food may be practices learned while living at home. Food buying is for the most part a new experience for college students. In order to better serve their customers, food service establishments and food outlets in and around college areas will need information on the food buying habits of students. It is also important to understand the preferred sources of food for college students. This study assesses factors that are important to college students in their food buying practices.
    Keywords: Food-at-home, Food-away-from-home, Nutrition Label, Food Price, Food Taste, Organic Food, Local Food, Small Farm, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,
    Date: 2016–01–22
  17. By: Shen, Meng; Gao, Zhifeng
    Abstract: The capacity to perform complex cognitive tasks depends on the ability to retain task-relevant information in an accessible state (working memory) and to selectively process information in the environment (selective attention). Due to working memory capacity limits, people usually filter out irrelevant information and instead focus on important information. Will consumer’s working memory capacity affect their attention and further their choice? Our study uses choice experiments (CE) to investigate the effect of working memory capacity on attention and choice. Evidence suggests that consumer’s working memory capacity will indeed affect their attention and choice.
    Keywords: Working Memory, Selective Attention, Choice Experiment, Consumer/Household Economics, Institutional and Behavioral Economics,
    Date: 2016
  18. By: Bargain, Olivier; Cardebat, Jean-Marie; Vignolles, Alexandra
    Abstract: Crowdfunding has recently emerged as a novel way of financing new ventures. This coincides with a growing interest in wine as an investment good and with a search for new funding opportunities by wine makers. In this study, we first suggest a brief review of the literature on wine and finance as well as on how crowdfunding is entering the wine sector. In particular, we question who are the potential investors willing to engage in wine crowdfunded projects, and what kind of revenue could attract them. To go further, we also exploit an original survey where interviewees are asked about their wine consumption and purchase, their knowledge about crowdfunding, their relation to the Internet, their investment and project related to wine crowdfunding and their expectations concerning the returns from this type of contribution. We suggest that, among all forms of crowdfunding, the donation/voluntary contribution side, driven by intrinsic motivation, is likely to remain marginal compared to crowdfunding as an investment or a form of early purchase - a retail form of the “en primeur” sales. More generally, we ask how the public can help finance this sector and diversify the way wine is sold.
    Keywords: crowdfunding, wine sector, alternative assets, Agribusiness, Agricultural Finance, G11, G12, L17, G21, L26,
    Date: 2016–04

This nep-mkt issue is ©2016 by João Carlos Correia Leitão. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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