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The impact of customer ratings on consumer choice of fresh produce: A stated preference experiment approach

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  • Chenyi He
  • Lijia Shi
  • Zhifeng Gao
  • Lisa House

Abstract

The importance of customer ratings or reviews in online shopping has been recognized in the previous literature; however, few have studied how online customer rating scores affect consumers’ fresh produce purchases and its importance relative to other fresh produce attributes. The quality of fresh produce demonstrates high uncertainty and variation; therefore, the impact of user‐generated content such as customer rating scores on the choice of fresh produce may be more complex than on other product categories. Moreover, previous studies on customer ratings have not examined the price premium that retailers can obtain based on better ratings of fresh produce. Using a stated preference approach (i.e., choice experiment), this study measures the willingness to pay for a higher customer rating score and explores its relative importance to other popular fresh produce attributes (i.e., organic, place of origin, and shelf life). The results show that customer rating is the second most important attribute after the place of origin and is more important than production methods (e.g., organic and naturally grown) for fresh strawberry purchases. Also, rating scores demonstrate a diminishing marginal impact on consumer willingness to pay. Younger consumers and households with children are willing to pay more for fresh produce with high ratings than those with low ratings. L'importance des évaluations ou des avis des clients dans les achats en ligne a été reconnue dans la littérature; cependant, peu ont étudié comment les notes des clients en ligne affectent l'achat de produits frais par les consommateurs et son importance par rapport aux autres attributs des produits frais. La qualité des produits frais montre une grande incertitude et variation; par conséquent, l'impact du contenu généré par les utilisateurs, comme les notes des clients sur le choix des produits frais, est possiblement plus complexe que pour d'autres catégories de produits. De plus, les études précédentes sur les évaluations des clients n'ont pas examiné la majoration de prix que les détaillants peuvent obtenir sur la base de meilleures évaluations des produits frais. En utilisant une approche de préférence déclarée (c.‐à‐d. une expérience de choix), cette étude mesure la volonté de payer pour un score de notation client plus élevé et explore son importance relative pour d'autres attributs populaires de produits frais (c.‐à‐d. biologique, lieu d'origine et durée de conservation). Les résultats montrent que l'évaluation des clients est le deuxième attribut le plus important après le lieu d'origine et est plus importante que les méthodes de production (par exemple, biologiques et cultivées naturellement) pour les achats de fraises fraîches. De plus, les scores de notation démontrent un impact marginal décroissant sur la volonté de payer des consommateurs. Les jeunes consommateurs et les ménages avec enfants sont prêts à payer plus pour des produits frais avec des notes élevées que ceux avec des notes basses.

Suggested Citation

  • Chenyi He & Lijia Shi & Zhifeng Gao & Lisa House, 2020. "The impact of customer ratings on consumer choice of fresh produce: A stated preference experiment approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 359-373, September.
  • Handle: RePEc:bla:canjag:v:68:y:2020:i:3:p:359-373
    DOI: 10.1111/cjag.12222
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    Cited by:

    1. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    2. Lin Bai & Zhanguo Zhu & Tong Zhang, 2021. "How to Improve Food Quality in the Domestic Market: The Role of “Same Line Same Standard Same Quality”—Evidence from a Consumer Choice Experiment in China," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    3. Yanlai Li & Zifan Shen & Cuiming Zhao & Kwai-Sang Chin & Xuwei Lang, 2024. "Understanding Customer Opinion Change on Fresh Food E-Commerce Products and Services—Comparative Analysis before and during COVID-19 Pandemic," Sustainability, MDPI, vol. 16(7), pages 1-22, March.
    4. Zhanguo Zhu & Qinyuan Shen & Zhifeng Gao, 2022. "Consumer choices in agricultural markets with multitier collective labels and private brands," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 905-922, October.
    5. Nguyen, Ly & Gao, Zhifeng & Anderson, James L., 2022. "Regulating menu information: What do consumers care and not care about at casual and fine dining restaurants for seafood consumption?," Food Policy, Elsevier, vol. 110(C).
    6. Zhang, Dianfeng & Shen, Zifan & Li, Yanlai, 2023. "Requirement analysis and service optimization of multiple category fresh products in online retailing using importance-Kano analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    7. Yefan Nian & Zhifeng Gao & Ruojin Zhao, 2023. "Are people's daily life habits consistent with their preference for food sustainability labels?," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 589-622, July.
    8. Xuqi Chen & Yan Heng & Zhifeng Gao & Yuan Jiang, 2022. "Impacts of duo‐regional generic advertising of social media on consumer preference," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 21-44, January.
    9. Nguyen, Ly & Gao, Zhifeng & Anderson, James L. & House, Lisa A., 2022. "The Impacts of Covid-19 on Consumers’ Willingness to Pay for Information Transparency at Casual and Fine Dining Restaurants," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322463, Agricultural and Applied Economics Association.
    10. Jee-Won Kang & Young Namkung, 2022. "Measuring the Service Quality of Fresh Food Delivery Platforms: Development and Validation of the “Food PlatQual” Scale," Sustainability, MDPI, vol. 14(10), pages 1-19, May.

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