Consumers wine preferences according to purchase occasion: Personal consumption and gift-giving

We tested the hypothesis that individuals may act differently when buying a bottle of wine for themselves than they do when buying wine as a gift. Using a between-subject design, we estimated the differences in consumer preference for these two occasions. We conducted a choice experiment on 618 Italian wine consumers and included the attributes of price, geographical indication (i.e. IGT, DOC, or DOCG), organic claim, and brand (i.e. famous producer or a non-famous producer). By applying an error component random parameters logit model, we detected relevant differences between the two scenarios in terms of the relative importance of the studied attributes. The gift-giving scenario was further investigated using a latent class model, which identified three segments of consumers; we profiled these according to personal attitudes and wine knowledge. Our results show a relevant heterogeneity among consumers’ preferences for the gift-giving scenario, with geographical indication having a low impact and brand and organic claim playing a pivotal role. This study provides relevant insights for winemakers and retailers regarding diversifying marketing strategies.     

Choice models with mixtures: An application to a cocktail experiment

Data from choice experiments are analyzed using choice models. Proper modeling allows a good understanding of the consumer preferences, the identification of consumer segments and the optimization of products, and, eventually, offers opportunities for competitive advantage. However, in the analysis of choice data, products that are mixtures of ingredients have been largely overlooked. In this paper, we combine traditional choice models and traditional mixture models. We apply the resulting mixture choice models to data from a real-life experiment in which consumers made pair-wise comparisons involving seven cocktails. For the choice models, we first assume consumer homogeneity. Next, we allow for heterogeneity among individuals. Therefore, we discuss the multinomial logit model, the mixed logit model and the latent class model. For identifying segments, besides the latent class model, we explore various two-stage segmentation approaches in which forces, hierarchical Bayes estimates and Firth individual-level estimates are used as input for a cluster analysis. The results show that the mixed logit model and the latent class model describe the data better than the multinomial logit model. The optimal cocktails for the segments we identified using the various methods are not identical, but show many similarities.     

The influence of involvement on purchase intention for new world wine

Understanding the ways in which consumers’ involvement levels influence how they use different cues to make purchase decisions has been a topic of research for several decades. This study, which provides a specific extension to the more general study by Lockshin et al. [Lockshin, L., Wade, J., d’Hauteville, F., & Perrouty, J. P. (2006). Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food Quality and Preference, 17(3–4) 166–178] examines the moderating effects of wine product involvement and wine purchase involvement on wine purchase decisions. A sample of 187 New Zealand regular wine consumers participated in a conjoint experiment using the variety New Zealand Sauvignon Blanc. The product stimuli were defined by three attributes: (i) presence/absence of region of origin information, (ii) price level, and (iii) presence/absence of a price discount. Purchase intention ratings, which were analysed using multiple regression and non-parametric bootstraps, suggested that the cue pertaining to information about region of origin was more important for consumers high in product involvement and purchase involvement than for consumers with low levels of involvement. There was also some evidence to suggest that consumers who are high in product involvement place less importance on price and, that consumers who are low in purchase involvement place greater importance on price discounts.     

Consumer Valuations and Preference Heterogeneity for a Novel Functional Food

ABSTRACT:  Recent trends in the marketing of functional foods suggest that multiple-benefit products are becoming more common. Yet it is unclear which consumers are most interested in, or best served by, such novel or new generation functional foods. With emerging scientific evidence of efficacy and more diverse products offered for sale, a broader range of consumers are likely to become interested in dietary interventions to enhance health. Consumers will likely respond based on a range of motivation, health conditions, and knowledge levels suggesting "one size will not fit all." Given such an evolving marketing environment, this paper presents 1 research technique exploring differences in consumer preferences and valuations for a novel functional food product—a tomato juice containing soy. A discrete choice experiment is applied to examine consumer valuation of this novel functional food. Data were collected from 1704 households in Ohio through a mail survey. The choice experiment manipulates whether or not the product is organic, whether it contains natural or fortified nutrients, and product price. Estimates of consumer willingness to pay a premium price are based on conditional logit and mixed logit models, which permit an examination of consumer preference and valuation heterogeneity for key product attributes. Results indicate that health benefits and ingredient naturalness are positively valued, but such preferences and valuations depend on an individual's education, income, and food purchase behavior. Naturally occurring nutrients are preferred over fortification. Considerable heterogeneity is found in the data suggesting that a range of market segments may exist.     

The role of price as a product attribute in the organic food context: An exploration based on actual purchase data

High prices are often quoted as an obstacle to consumer purchase of organic food products. This article investigates the market performance of organic food products at different price levels and whether high price is necessarily a disadvantage for organic food products, especially with regard to generating repeat purchase. Based on analyses of panel purchase data from 2011 in Denmark, the study explores the effects of production method (organic vs. conventional) and price on consumers’ repeat purchase and cross-purchase across four product categories: red meat, chicken, milk and hard cheese. Results show that a high price is a disadvantage for generating repeat purchase of organic food products. Although organic products enjoy higher repeat purchase than conventional products overall, a high price generates less repeat purchase of organic products than a low or a medium price in all product categories; whereas in the case of conventional food products the situation is the reverse. At the same time, the cross-purchase analysis reveals that consumers who buy organic products from the high price tier are less likely to switch to other price tiers than consumers who buy low or medium price organic products (i.e. there is a spillover of high price organic food purchases to other product categories). Implications for pricing strategies for organic food products are discussed.     

The wine headache: Consumer perceptions of sulfites and willingness to pay for non-sulfited wines

A panel of 223 alcohol consumers recruited in a liquor store participated in a survey/best–worst experiment investigating perceptions on sulfites and willingness to pay for non-sulfited wines. We find that 34% of our sample experiences headaches after consuming moderate amounts of wine, and sulfites are the most frequently attributed cause. Based on a rank ordered logit estimation of best–worst choices, headache syndrome sufferers are willing to pay a ceteris paribus premium of $1.23 per bottle to avoid added sulfites. However, results from a (logit) model of purchase intentions suggest that quality and price are most important, with differentiating labels (no sulfite added, organic) playing only a marginal role. Marketing implications for the wine industry are offered, and negative perceptions toward sulfites are contextualized within the hypothesis of a “lightning rod” effect induced by the “contains sulfites” warning label.     

Consumption decisions made in restaurants: The case of wine selection

The situational dependency on food choice and consumption decisions is widely acknowledged. In this study we integrate that understanding in the research design process and investigate one specific consumption situation and the influences on it: purchase of wine to be consumed while eating a meal with friends in a restaurant. This situation is of interest because dining out is widespread, but understudied; and because beverage choice rarely receives explicit attention in the food choice literature. The importance of 13 wine selection influences (or wine choice factors), specific to the focal occasion is measured among a random sample of adult wine drinkers and the findings extend previous work by showing that the wine selection influences ‘grape variety’ (e.g., Chardonnay) and ‘geographical region’ (e.g., Marlborough) are of greater importance among people who are highly involved with wine. The wine selection influence ‘matched to food’ was also of greater importance in the high involvement segment. In confirmation of the ‘situational dependency’ premise on which this research builds, 76% of participants stated that they would change the importance attached to the wine selection influences if the occasion were different to dining with friends in a restaurant.     

Consumers’ perceptions of organic food attributes and cognitive and affective attitudes as determinants of their purchase intentions toward organic food

The current study investigates how consumers perceive organic food attributes, which in turn influence their utilitarian and hedonic attitudes and intentions to purchase organic food. Specifically, consumers’ perceptions of nutritional content, ecological welfare, and price attributes of organic food have strong effects on utilitarian attitudes as well as hedonic attitudes toward buying organic food, while perceptions of the sensory appeal attribute have a strong effect on hedonic attitudes. Interestingly, consumers’ perceptions of the natural content attribute of organic food are not a significant determinant of the two dimensions of attitude. Lastly, utilitarian and hedonic attitudes play an important and influential role in determining behavioral intentions to purchase organic food. This study raises questions about the lack of a theoretical framework in previous organic food studies. Therefore, a modified S–O–R model is applied to provide theoretical support for organic food research. In addition, this study employs a bi-dimensional approach to attitudes (i.e., utilitarian and hedonic attitudes), contributing to a better understanding of consumers’ expectations and perceptions in their behaviors regarding organic food.     

Re-understanding the antecedents of functional foods purchase: Mediating effect of purchase attitude and moderating effect of food neophobia

The world market for functional foods has grown dynamically and China is expected to be one of the most promising markets. But little is understood the formation mechanisms of consumers’ purchase attitude and intention toward functional foods in Mainland China. The current study investigates the roles of trust, health consciousness and price in shaping consumers’ purchase intention toward functional foods by focusing on purchase attitude as a mediator and food neophobia as a moderator. Results from the sample of 1144 Chinese suggest that Chinese consumers had moderate purchase intention toward functional foods. Trust in the food system and health consciousness positively affects purchase intention via purchase attitude. Price negatively affects purchase intention; meanwhile, the negative effect could be counteracted by health consciousness. Food neophobia does not directly affect individuals’ purchase attitude or intention, but moderates the relationships between antecedents and them. Consumers with a low level of food neophobia treat higher price as a monetary sacrifice, while their counterparts may regard a higher price as a greater quality signal. The study offers the food industry insights into the development and marketing of functional foods targeted to the Mainland China market.     

References to home-made and natural foods on the labels of ultra-processed products increase healthfulness perception and purchase intention: Insights for policy making

As nutritional recommendations change, new marketing strategies are expected to appear on food labels to convey the idea that products are healthful and aligned with the recommendations. In this context, the objective of the study was to evaluate the effect of references to ‘home-made’, images of natural foods and nutritional warnings on consumers’ healthfulness perception and purchase intention of labels of ultra-processed products with excessive content of nutrients associated with non-communicable diseases (NCDs). The study was conducted with 790 Uruguayan Facebook users (65% female, 18–89 years old), diverse in terms of educational and socio-economic levels. A choice experiment involving labels of four categories of ultra-processed products (burgers, cookies, instant soup and instant vanilla milk custard) was implemented. For each product category, eight sets of two labels differing in the presence of references to home-made, images of natural foods and nutritional warnings were designed. Half of the participants were asked to indicate the healthier product, whereas the other half were asked to indicate the product they would purchase. Data were analyzed using mixed logit models. The inclusion of references to home-made and images of natural foods on the labels had a positive effect on purchase intention and tended to create the belief that products were healthful. Nutritional warnings decreased healthfulness perception and discouraged participants' choice. In three of the product categories images of natural foods created a health halo that reduced the effect of nutritional warnings on product choice. Results from the present work suggest the need to develop stricter labelling regulations for ultra-processed products with high content of nutrients associated with NCDs.     

Willingness to pay for red wines in China

China's rapidly expanding wealthy population has expressed a new desire for imported red wines. Using data collected in China's major red wine consumption region of Beijing, this study analyzes the impact of country of origin, price, wine age, and brand on consumer-derived utility and willingness to pay for red wines. Findings from a conditional logit model and a mixed logit model indicate that price remains the key factor in Chinese consumers' red wine choices. For gift purchases, consumers are willing to pay an additional $20 to move from a US wine to a French wine. For own consumption, French wines are preferable if their price is within a reasonable range of $13–20 above Chinese or US wines. Chinese consumers also strongly favor branded and matured red wines. China's rapid and sustainable economic growth and its stronger integration to the global economy have led to greater disposable income and the expanding consumer demand for luxury beverage of red wines.     

Consumer preferences for additional ethical attributes of organic food

This paper examines the relevance of additional ethical attributes of organic food for consumers’ purchase decisions. By means of an Information-Display-Matrix (IDM) and an accompanying consumer survey, the information acquisition behaviour of consumers regarding seven additional ethical attributes and the product price of organic food was investigated in five European countries. The ethical attributes, ‘animal welfare’, ‘regional production’ and ‘fair prices to farmers’ turned out to be the most important. The results also show that the vast majority of consumers of organic food was willing to pay higher prices for organic products with additional ethical attributes. Contrasting the results with those from direct inquiry by means of a ‘single source approach’ revealed considerable differences between both methods, particularly regarding the preferences for the product price relative to some of the ethical attributes. This may serve as evidence for higher external validity of the IDM with respect to social desirability bias.     

Determining consumer purchase intentions: the importance of dry matter, size, and price of kiwifruit

Abstract: Knowledge of the relative importance of food quality attributes in determining consumer purchase intention is critical for robust assessment of economic opportunities for industry growth. The aim of this study is to demonstrate how conjoint analysis methodology that incorporates tasting of fruit can be used to collect such information. Three hundred Japanese consumers took part in research designed to measure the importance of dry matter (DM), size, and price of kiwifruit (Actinidia deliciosa “Hayward” and Actinidia chinensis “Hort16A”) for purchase intention. Measurement of consumer liking for kiwifruit of different DM content was a key first step. Liking increased as DM increased and was accompanied by increased purchase likelihood/choice probability for kiwifruit. The size of kiwifruit presented to consumers varied from “small” to “extra large.” Consumers liked “mid‐sized” kiwifruit over “small” or “extra‐large” kiwifruit. Despite these differences in liking, size was of little importance in determining purchase likelihood/choice probability for kiwifruit. Price was a very important factor in determining purchase likelihood/choice probability but was less important than DM content. As price increased, purchase likelihood/choice probability decreased. Beneath these general findings, heterogeneity existed. Some consumers placed more/less importance on the focal purchase drivers than suggested by the aggregate model. Overall, the results suggest that incentive schemes already implemented by industry should consider rewarding high‐DM fruit more than fruit size. Practical Application: This research has contributed to the New Zealand kiwifruit industry gaining a better understanding of the relative importance consumers place on DM, size, and price of kiwifruit and has resulted in changes to grower incentive schemes. The research approach presented forces consumer to tradeoff attributes of kiwifruit against each other and decide on how important two key quality attributes—DM and size—are relative to each other and relative to price. The application of conjoint analysis in this article can be transferred to other fruits, food, and beverages and help guide consumer‐led innovation.     

An analysis of the territorial factors affecting milk purchase in Italy

Numerous international studies have pointed out that consumers are usually willing to pay a premium price for domestic and local food. This paper describes the use of a choice experiment to investigate the willingness to pay (WTP) a premium price for milk while considering three attributes: origin (south Italy, north-centre Italy, or other European Union countries), area of production (mountain or plains), and rearing method (cows grazed or kept in a barn). The data collected were analysed by means of three approaches. First, we used a multinomial logit model to estimate the average premium price for the three attributes considered. Second, an interaction term between price and quantity of milk purchased weekly was introduced into the model. This made it possible to verify whether the quantity purchased can modify the WTP, and the magnitude and significance of the effect. Finally, the latent class method was used to explore the heterogeneity of the preferences. The results suggest that the choice experiment, despite providing important qualitative measures, should be utilised with caution regarding premium price estimates in the analysis of food demand.     

An integrated framework to explain consumers’ purchase intentions toward green food in the Chinese context

The present study aims to explore an appropriate framework for explaining consumers’ purchase intentions toward green food in the Chinese context. An integrated green food purchase intention (IGFPI) model was designed based on various cognitive and affective variables extracted from the amended theory of planned behavior (A-TPB) and modified stimulus-organism-response (M-SOR) models. An online survey was conducted among Chinese consumers with 1,412 usable responses. Research data were analyzed using structural equation modeling to evaluate the strength of the relationship between constructs and compare the model fit among three models (i.e., A-TPB, M-SOR, and IGFPI). The findings reveal that three models present reasonable fit and the IGFPI model provides a better explanatory power than the other two independent models. In summarizing the results of hypotheses tests among the three models, the variables of perceived behavioral control, face consciousness, group conformity, utilitarian and hedonic attitudes have significant effects on purchase intentions toward green food. Consumers’ perceptions of nutritional content and price attributes of green food have strong effects on utilitarian attitudes, while the sensory appeal and price attributes strongly influence hedonic attitudes. Interestingly, the strength of the association between confidence, personal characteristics and purchase intention, as well as between ecological welfare and utilitarian attitudes vary within the independent and integrated models respectively. This study provides insight for stakeholders and future research in better understanding the framework and factors that influence purchase intentions of consumers toward green food products in the Chinese context.     

What’s the deal? Consumer price involvement and the intention to purchase suboptimal foods. A cross-national study

Retailers aim to supply consumers exclusively with food products that are flawless, and therefore impose strict standards that foods have to comply with before deemed qualified for retail. This practice results in large amounts of foods, suitable for human consumption, to be discarded due to deviation from these standards. In an effort to battle food waste, retailers have begun to offer suboptimal food products on price promotion. However, consumers’ reactions to price promotions are not uniform and depend on the significance individuals assign to these promotions, based on their own price involvement. An online questionnaire administered to a total sample of 3,114 consumers divided across representative samples of Dutch (n = 628), German (n = 622), Swedish (n = 620), Norwegian (n = 625) and Danish (n = 619) consumers aimed to investigate the effect of five price involvement dimensions (Deal proneness, Value consciousness, Price consciousness, Price-Quality schema, Prestige sensitivity), Perceived budget constraints, and current use of suboptimal foods on consumers’ intention to purchase these products in the near future. Results indicate that consumers’ intention to purchase suboptimal foods is influenced by different price involvement dimensions within and across countries. These findings offer evidence that a more nuanced approach to price promotions can increase consumers’ intentions to purchase suboptimal foods and thus prove an efficient marketing tool that can be used to help reduce food waste. Retailers could benefit from applying price promotions that tap into the price involvement dimensions that increase consumers’ intentions to purchase suboptimal foods, in contrast to the current practice of applying uniform price reductions.     

The relative influence of packaging,labelling, branding and sensory attributes on liking and purchase intent: Consumers differ in their responsiveness

The relative impact of several extrinsic attributes on informed hedonic liking and purchase intent for wine is measured by combining a blind hedonic test with an informed tasting of the same wine packaged in different product concepts. This study separated the relative effect of various attributes and also considers differences between consumers in their responsiveness to various product cues.Five-hundred and twenty-one regular wine consumers participated in a central location test in three German cities in 2005. Respondents first rated hedonic liking of a white wine in a blind condition, then evaluated elements of product concepts differing in four extrinsic attributes, region of origin, grape variety, brand and packaging style, before indicating their liking and purchase intent in an informed condition.Overall, label style and brand evaluation were the strongest drivers for informed liking followed by liking in the blind condition. Purchase intent was influenced directly only by informed liking and price evaluation; the effect of the extrinsic and intrinsic cues is mediated through informed liking. A latent class regression resulted in three consumer segments that differ in the responsiveness of their informed liking to the different product characteristics. Younger inexperienced consumers utilised a mix of various cues, wine experienced consumers based their evaluation mainly on grape variety and blind hedonic liking, and older frequent wine consumers were influenced most strongly by brand and packaging. These findings provide insights into the relative impact of product packaging, branding and labelling on overall product liking and indicate strong differences in how consumers respond to different product characteristics.     

Investigating individual preferences in rating and ranking conjoint experiments. A case study on semi-hard cheese

Stated preference conjoint experiments and self-explicated measures based on rating and ranking approaches were conducted to investigate Norwegian consumers’ choices among healthier and organically produced semi-hard cheeses. In the conjoint experiments, one group of participants (n = 114) performed a rating task of eight cheeses whereas the other group (n = 105) performed a ranking task of the same cheeses, all based on pictorial stimuli only. Then, all participants performed self-explicated rating and ranking evaluations of the cheese attributes. Conjoint rating data were analysed by mixed model ANOVA, while conjoint ranking data were analysed by mixed logit. The different approaches are compared in terms of data analysis methodologies, outcomes and practicalities for the experimenter as well as for the respondents. Rather than average population effects, focus is brought on individual preferences and consumer segmentation. Findings reveal that the two conjoint experiments lead to similar population effects and consumer segments. Consumers on average prefer cheeses of new (healthier) fat composition, organic production and lower price to cheeses of regular fat composition, conventional production and higher price. Two consumer segments are investigated. Consumers in the New fat segment are health-conscious, whereas consumers in the Regular fat segment are attracted by conventional cheese and lower prices. Self-explicated ratings of the cheese attributes corroborate these findings.