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Explaining consumer willingness to pay for country‐of‐origin labeling with ethnocentrism, country image, and product image: Examples from China's beef market

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  • Shijun Gao
  • Carola Grebitus
  • Karen L. DeLong

Abstract

Chinese beef imports have been increasing in recent years. At the same time, Chinese public sentiment toward foreign countries, including those who export beef to China, has been changing. Therefore, this research uses a discrete choice experiment (DCE) to investigate the role of ethnocentrism, country image, and product image on consumer willingness to pay for country‐of‐origin labeled beef. Results indicate, on average, Chinese consumers prefer domestic beef most, and value beef from Australia and the US somewhat similarly. Their willingness to pay varies based on their perceived image of the country that the beef originates from and based on their perception of the safety of the beef, that is, product image. The more ethnocentric consumers are, the more they prefer domestic beef and discount foreign beef. Importantly, the effects of ethnocentrism, country image, and product image are stronger on the willingness to pay for domestic beef than for imported beef. More generally, findings indicate that controlling for ethnocentrism, country image, and product image contributes to understanding consumer willingness to pay for products originating from foreign countries. Overall, findings suggest that stronger ethnocentric tendencies lead to lower willingness to pay for imported beef (with some exceptions), and positive country image and product image increase the willingness to pay for imported beef. Thus, it is important to consider these constructs when estimating consumer willingness to pay for imported products, especially for countries where public sentiment toward exporting countries may be prone to change in a dynamic global environment. Les importations chinoises de bœuf ont augmenté ces dernières années. Dans le même temps, l'opinion publique chinoise à l’égard des pays étrangers, y compris de ceux qui exportent du bœuf vers la Chine, a changé. Par conséquent, cette recherche utilise une expérience de choix discret pour étudier le rôle de l'ethnocentrisme, de l'image du pays et de l'image du produit sur la volonté du consommateur à payer pour du bœuf étiqueté avec le pays d'origine. Les résultats indiquent qu'en moyenne, les consommateurs chinois préfèrent le bœuf national et apprécient de la même manière le bœuf australien et américain. Leurs préférences sont hétérogènes et varient en fonction de leur image perçue du pays d'origine de la viande bovine et de leur perception de la sécurité de cette viande, c'est‐à‐dire de l'image du produit. Plus les consommateurs sont ethnocentriques, plus ils préfèrent le bœuf national et le bœuf étranger à prix réduit. Plus généralement, les résultats indiquent que la prise en compte de l'ethnocentrisme, de l'image du pays et de l'image du produit contribue à comprendre la volonté des consommateurs à payer pour des produits provenant de pays étrangers. Il est donc important de prendre en compte ces concepts lors de l'estimation des préférences des consommateurs pour les produits importés, en particulier pour les pays où l'opinion publique à l’égard des pays exportateurs peut être susceptible de changer dans un environnement mondial dynamique.

Suggested Citation

  • Shijun Gao & Carola Grebitus & Karen L. DeLong, 2024. "Explaining consumer willingness to pay for country‐of‐origin labeling with ethnocentrism, country image, and product image: Examples from China's beef market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 149-166, June.
  • Handle: RePEc:bla:canjag:v:72:y:2024:i:2:p:149-166
    DOI: 10.1111/cjag.12359
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