IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v34y2018i2p338-350.html
   My bibliography  Save this article

Influence of brand equity on the price premium for private labels in fresh produce: A contingent valuation survey

Author

Listed:
  • Kiyotaka Masuda
  • Shohei Kushiro

Abstract

In recent years, premium private labels for fresh produce grown with reduced use of synthetic pesticides and chemical fertilizers have been developed by Japanese general merchandise stores. In this paper, the brand equity factors that affect willingness to pay (WTP) for private label vegetables are identified using the contingent valuation method. We consider four key dimensions of brand equity, namely brand awareness, brand loyalty, perceived quality, and brand associations. We find that brand loyalty factors based on the psychology of consumers who seek value†added vegetables with health and safety characteristics have the largest effect on the WTP premium. Providing shoppers with clear information about the key product attributes of reduced use of synthetic pesticides and chemical fertilizers is particularly important to generate brand equity for private label vegetables. [EconLit citations: Q130, M310].

Suggested Citation

  • Kiyotaka Masuda & Shohei Kushiro, 2018. "Influence of brand equity on the price premium for private labels in fresh produce: A contingent valuation survey," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 338-350, March.
    • Handle: RePEc:wly:agribz:v:34:y:2018:i:2:p:338-350
    DOI: 10.1002/agr.21498
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21498
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21498?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fabrice Larceneux & Florence Benoît-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print hal-00656485, HAL.
    2. Craig A. Bond & Dawn Thilmany & Jennifer Keeling Bond, 2008. "Understanding consumer interest in product and process-based attributes for fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 231-252.
    3. repec:dau:papers:123456789/7842 is not listed on IDEAS
    4. Shunsuke Managi & Yasutaka Yamamoto & Hiroyuki Iwamoto & Kiyotaka Masuda, 2008. "Valuing the influence of underlying attitudes and the demand for organic milk in Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 339-348, November.
    5. Domenico Carlucci & Antonio Stasi & Gianluca Nardone & Antonio Seccia, 2013. "Explaining Price Variability in the Italian Yogurt Market: A Hedonic Analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 29(2), pages 194-206, March.
    6. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    7. Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June.
    8. Florence Benoît-Moreau & Fabrice Larceneux & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print halshs-00673075, HAL.
    9. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    10. Fabrice Larceneux & Florence Benoit-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Journal of Consumer Policy, Springer, vol. 35(1), pages 85-104, March.
    11. Taglioni, Chiara & Cavicchi, Alessio & Torquati, Biancamaria & Scarpa, Riccardo, 2011. "Influence of Brand Equity on Milk Choice: A Choice Experiment Survey," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(3), pages 1-21, December.
    12. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    13. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Junyi Zhong & Jiazhen Huo, 2022. "Impacts of Power Structure on Introduction of Green Store Brand," Sustainability, MDPI, vol. 14(19), pages 1-33, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coderre, François & Sirieix, Lucie & Valette-Florence, Pierre, 2022. "The facets of consumer-based food label equity: Measurement, structure and managerial relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    2. Ishaq, Muhammad Ishtiaq & Hussain, Nazia & Asim, Ali Ijaz & Cheema, Luqman J., 2014. "Valor da marca na indústria hoteleira paquistanesa," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(3), May.
    3. Machiel J. Reinders & Jos Bartels, 2017. "The roles of identity and brand equity in organic consumption behavior: Private label brands versus national brands," Journal of Brand Management, Palgrave Macmillan, vol. 24(1), pages 68-85, January.
    4. Marc Dressler & Ivan Paunovic, 2021. "The Value of Consistency: Portfolio Labeling Strategies and Impact on Winery Brand Equity," Sustainability, MDPI, vol. 13(3), pages 1-18, January.
    5. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.
    6. Gumirakiza, Jean Dominique & VanZee, Sarah, 2018. "The Most Important Food Labels among Online Shoppers when Shopping for Fresh Produce," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266683, Southern Agricultural Economics Association.
    7. Gildas Appéré & Muriel Travers & Frédéric Dupont, 2017. "The sum of all the fears: the role of attitude towards health and environmental risk in the WTP a premium for organic foods," Post-Print hal-01947369, HAL.
    8. Wei, Wei & Kim, Gaeul & Miao, Li & Behnke, Carl & Almanza, Barbara, 2018. "Consumer inferences of corporate social responsibility (CSR) claims on packaged foods," Journal of Business Research, Elsevier, vol. 83(C), pages 186-201.
    9. Debra Riley & Peter Martins da Silva & Sabrina Behr, 2015. "The Impact of Packaging Design on Health Product Perceptions," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 81-89, July.
    10. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.
    11. Guzhen Zhou & Wuyang Hu & Wenchao Huang, 2016. "Are Consumers Willing to Pay More for Sustainable Products? A Study of Eco-Labeled Tuna Steak," Sustainability, MDPI, vol. 8(5), pages 1-18, May.
    12. Chia-Lin Lee, 2014. "Is Co-Branding a Double-Edged Sword for Brand Partners?," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 19-34.
    13. Sigurdsson, Valdimar & Larsen, Nils Magne & Folwarczny, Michał & Fagerstrøm, Asle & Menon, R.G. Vishnu & Sigurdardottir, Freyja Thoroddsen, 2023. "The importance of relative customer-based label equity when signaling sustainability and health with certifications and tags," Journal of Business Research, Elsevier, vol. 154(C).
    14. Jessica Bosseaux & Philippe Aurier & Alain François-Heude, 2019. "The official quality signs influence on prices and volumes: the case of organic fresh eggs [L’influence du label Bio sur les prix et les ventes : Le cas des oeufs]," Post-Print hal-03079779, HAL.
    15. Irshad Hussain Sarki & Raheela Haque & Asif Mahmood & Muhammad Noman Yaseen & Muhammad Sufyan Khawar & Asad Qayoom & Saif Ur Rehman, 2023. "Factors Influencing Green Purchase Intention: A Mediation Moderation Study," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 652-664.
    16. Kathleen Jacobs & Jacob Hörisch, 2022. "The importance of product lifetime labelling for purchase decisions: Strategic implications for corporate sustainability based on a conjoint analysis in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1275-1291, May.
    17. Carla Rossi & Francesca Rivetti, 2020. "Assessing Young Consumers’ Responses to Sustainable Labels: Insights from a Factorial Experiment in Italy," Sustainability, MDPI, vol. 12(23), pages 1-23, December.
    18. Anna Paola Antonazzo & Mariantonietta Fiore & Piermichele La Sala & Francesco Cont?, 2015. "Assessing perceptions of wine tourists on organic wine," Economia agro-alimentare, FrancoAngeli Editore, vol. 17(2), pages 57-76.
    19. Christoph Müller & Hansjörg Gaus, 2015. "Consumer Response to Negative Media Information About Certified Organic Food Products," Journal of Consumer Policy, Springer, vol. 38(4), pages 387-409, December.
    20. Clinton Amos & Anthony Allred & Lixuan Zhang, 2017. "Do Biodegradable Labels Lead to an Eco-safety Halo Effect?," Journal of Consumer Policy, Springer, vol. 40(3), pages 279-298, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:34:y:2018:i:2:p:338-350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.