The paper examined the potential demand for a food specialty dairy product, cheese, with alternative multiple labels. A random-parameter logit model was applied to interpret the results of online discrete choice experiments (DCE) for the elicitation of the preference of the cheese consumers surveyed in two European countries, France (n = 400) and Italy (n = 408). We analyzed consumers’ choices of quality-labeled cheeses, i.e., protected-designation-of-origin (PDO)-labeled Parmigiano Reggiano and Comté. Other features were tested, such as organic (Comté) and Mountain Product (Parmigiano Reggiano) labels, companies’ brands and price. The paper contributes to the literature on credence attributes by examining consumers’ willingness to pay (WTP) for differentiated cheese products in two EU countries, and by identifying the effects of personal characteristics, in terms of socio-demographics and level of product involvement, on the differences in preferences. The results show that price was the most important attribute in both countries, followed by the PDO quality label, particularly when paired with the second quality feature. Two cheese consumer segments were identified via latent class models in each country, helping producers to improve their marketing of agri-food products with a high gastronomic value and differentiation potential.
This paper investigates consumers’ preferences for egg purchase in two European countries, Hungary and Italy. We utilize random parameter logit models to interpret the results of discrete choice experiments (DCE) for the elicitation of preference of the egg consumers. A sample of 403 in the Hungarian survey and 404 in the Italian survey were recruited in summer 2018. The DCE questionnaire includes the following product and process characteristics: organic labels, nutrition and health claims, and price. Our results show that for Hungarian and Italian consumers, the price is the most important attribute, followed by the nutrition and health claim and the organic production labelling. Three egg consumer segments can be identified via latent class models for each country. In both countries, we found similar consumer groups, the Price Sensitive and Quality Optimizing Opportunist Consumers and Health Conscious Buyers, respectively. Particularly, compared to the other segments the Health Conscious Buyers (46% in Hungary and 49% in Italy) exhibited stronger preference for and are willing to pay a higher price premium for eggs with organic label and nutrition claims. In Italy, we identified a third segment with consumers preferring simpler labelling approach, whilst in Hungary we found a consumer segment distrusting the EU organic logo.
Geographical Indications (GIs) can increase producer margins and contribute to local economic development, but the extent to which they do so depends on the nature of consumer demand. A Discrete Choice Experiment (DCE) considers the value that consumers place on a Protected Geographical Indication (PGI) in comparison with a leading manufacturer’s brand, as well as the importance of taste variations. Based on an application of DCE to sausages in Hungary, results indicate that a PGI can generate value to consumers exceeding that conveyed by the leading manufacturer’s brand. Consumers’ taste preferences, however, may not be consistent with the specification of GI products. Latent Class (LC) and Random parameter Latent Class (RLC) analyses identify two consumer segments, with the majority of consumers (71%-LC, 65%-RLC) classified as traditionalists, who most value the GI label, while a minority (29%-LC, 35%-RLC) is brand conscious, for whom the GI status is less salient. Both theoretical and business implications for GI marketing and club branding are drawn.
18 November 2023 in Journal of Agriculture and Food Research