consumers’ processing of organic, natural, and standard labeling erica bewley daniel turnbow...
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Consumers’ Processing of Organic, Natural, and Standard Labeling
Erica Bewley Daniel TurnbowHanover College
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The Growing Organic Market
In 1991 and 1995 only 7 percent of all organic sales were contributed by conventional retailers
In 2000, 49 percent of all organic sales were supplied through conventional retailers
(Dimitri & Greene, 2000)
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The Collision of all Packaged Products
• (Kuvykaite, Dovaliene and Navickiene, 2009)
http://www.joshuakennon.com
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Three classes of products and Packaging
• Standard Manufactured
o Packaging is based on product
• Naturalo Packaging has heavy implications of
Naturalness.
• Organico Packaging displays organic characteristics and
is USDA approved.
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Why do we choose the products that we do?
Choices could be attributed to:
• Packaging(Kuvykaite, Dovaliene and Navickiene, 2009)
• Eco-labeling (Johnston, Wessells, donath, and Asche, 2001)
• Personal characteristics and opinions(Sirgy, 1985)
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Personal Differences
• Organic Products may have a symbolic value on which personality traits can be reflected
(Grubb and Grathwohl, 1967)
• Moral norms (such as, personal beliefs considering right or wrong doings) can be deemed the main motivator of purchasing intention.
(Guido, Prete, Peluso, Maloumby-Baka, and Buffa, 2010)
• When considering Organic vs. Standard products individual personality traits may indicate a relationship with consumer behavior.
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Idealism
• High Idealism: Desired consequences can be brought about through the “right” actions.
• Low Idealism: Desired and undesired consequences come as a mixed bag and you can’t know why something happens.
Schlenker & Forsyth, 1977
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Hypothesis
• People will be willing to pay more for organic products
• Personal characteristics will play a role in the choosing of certain products
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Participants
N= 169
Gender• Females: 99• Males: 70
Age• Mean:25.9
• Median: 22
• Range: 15 - 64
Education level • Median ranged
between a high school education and some college experience
SES• Median income
bracket:
$25,000-$50,000
Online survey participants
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Stimuli
Three product classes from each of three companies
• Companies were selected for having a product that appears in each of our three categories
• Though Smucker's did have an organic grape jelly, it was unobtainable in our area.
• An organic granola bar was substituted in its place
• Unable to find similar flavors and color of the R.W. Knudsen juice in all three classes as well
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Standard
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Natural
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Organic
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Equipment
• Online Survey
• Photos of Productso DSLR Camerao Actual productso Borrow Photo lab in CFA
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Design
• Mixed design
• Each participant views only one product category. e.g. only organic products
• Online survey
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Procedure
• With product displayed, asked to make judgments about the product one factor at a timeo Free Short response for price willing to payo Quality, environmental friendliness, healthfulness,
ethicalness of company
• Asked to complete demographic section
• Personality• Idealism
(Forsyth, 1980)
• Big five(Gosling, 2003)
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Product Features
Qua
lity
Enviro
nmen
t
Health
fulne
ss
Ethica
lness
1
1.5
2
2.5
3
3.5
4
4.5
5
StandardNaturalOrganic
Lik
ert
Ra
tin
gs
(1:s
tro
ng
ly d
isa
gre
e,
7:
str
on
gly
ag
ree
)
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Price Willing to pay
Organic Natural Standard1
1.5
2
2.5
3
3.5
4
Low Idealism
High IdealismCo
st
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Discussion
• People were not willing to pay more for organic products
• High ratings in organic for quaility, environment, healthiness, and ethical
• Personality Dimensions
• Idealism:
o Highly idealistic = willing to pay more for organic, but not natural products
o Low Idealism = natural products
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Future Research
• Within-Subjects Design
o Forced choice
• Familiartiy of product
• Expanded Big Five
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Questions
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Ethicalness of company and Participant Agreeableness
Bread
Juice1
1.5
2
2.5
3
3.5
4
High Agree-ablenessLow Agree-ableness
Eth
ical
nes
s o
f C
om
pan
y (l
ow
:1,
Hig
h:7
)
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Quality of product and Participant Agreeableness
High Agreeableness Low Agreeablness 1
1.5
2
2.5
3
3.5
4
4.5
Qu
alit
y (l
ow
:1,
Hig
h:
7)
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Ethicalness and Idealism
Bread Juice1
1.5
2
2.5
3
3.5
4
Low IdealismHigh Idealism
Eth
ical
nes
s (
low
=1,
Hig
h=
7)
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Healthfulness of product and Participant Agreeableness
Org
anic
Natur
al
Stand
ard
1
1.5
2
2.5
3
3.5
4
4.5
5
Juice
High AgLow Ag
Hea
thfu
lnes
s (
1: l
ow
, 7:
Hig
h)
Org
anic
Natur
al
Stand
ard
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
Bread
High AgLow Ag
Hea
thfu
lnes
s (1
: lo
w,
7: H
igh
)