Valuing the influence of underlying attitudes and the demand for organic milk in Japan

Managi, Shunsuke, Yamamoto, Yasutaka, Iwamoto, Hiroyuki, & Masuda, Kiyotaka (2008) Valuing the influence of underlying attitudes and the demand for organic milk in Japan. Agricultural Economics, 39(3), pp. 339-348.

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Abstract

Subjective perceptions about a product affect consumer choice. Accordingly, acquiring the underlying demand characteristics that consumers find desirable is vital for firms planning future marketing strategies. However, the extent to which product-specific perceptions affect consumer choice is poorly understood. New agricultural standards for organic livestock were introduced in Japan in November 2005 and are expected to influence the market significantly. Choice modeling (CM) is used to explore how consumers evaluate the latent demands and conventional attributes (or tangible values) of organic milk. The results suggest that latent demands, along with socioeconomic characteristics and conventional attributes, provide strong incentives for consumers to move from the purchase of conventional milk to organic milk. The analysis indicates that latent demands reflecting the safeness of organic milk, the better taste of organic milk, the image of environmental friendliness in the production process, and the image of the health and comfort of the cows are important factors that influence consumers' purchasing decisions. However, each specific factor has a corresponding conventional tangible attribute that needs to be targeted in marketing strategy.

Impact and interest:

10 citations in Scopus
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7 citations in Web of Science®

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ID Code: 75495
Item Type: Journal Article
Refereed: Yes
Keywords: Choice modeling; Latent demands; Organic milk
DOI: 10.1111/j.1574-0862.2008.00337.x
ISSN: 0169-5150
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2008 International Association of Agricultural Economists
Deposited On: 25 Aug 2014 00:20
Last Modified: 26 Aug 2014 04:48

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