Understanding Consumers' Preferences for Protected Geographical Indications: A Choice Experiment with Hungarian Sausage Consumers.

Geographical Indications (GIs) can increase producer margins and contribute to local economic development, but the extent to which they do so depends on the nature of consumer demand. A Discrete Choice Experiment (DCE) considers the value that consumers place on a Protected Geographical Indication (PGI) in comparison with a leading manufacturer's brand, as well as the importance of taste variations. Based on an application of DCE to sausages in Hungary, results indicate that a PGI can generate value to consumers exceeding that conveyed by the leading manufacturer's brand. Consumers' taste preferences, however, may not be consistent with the specification of GI products. Latent Class (LC) and Random parameter Latent Class (RLC) analyses identify two consumer segments, with the majority of consumers (71%-LC, 65%-RLC) classified as traditionalists, who most value the GI label, while a minority (29%-LC, 35%-RLC) is brand conscious, for whom the GI status is less salient. Both theoretical and business implications for GI marketing and club branding are drawn.

Children's purchase behavior in the snack market: Can branding or lower prices motivate healthier choices?

BACKGROUND: Children's dietary-related diseases and their associated costs have expanded dramatically in many countries, making children's food choice a policy issue of increasing relevance. As children spend a considerable amount of money on energy-dense, nutrient-poor (EDNP) products, a better understanding of the main drivers of children's independent food purchase decisions is crucial to move this behavior toward healthier options. OBJECTIVE: The objective of the study is to investigate the role of branding and price in motivating children to choose healthier snack options. METHODS: The study investigates snack choices of children ages 8 to 11, using a survey and a purchase experiment. The research took place in after-school programs of selected schools in the Boston area. Participants included 116 children. Products in the choice experiment differed on three factors: product type, brand, and price. Data were analyzed using aggregated and mixed logit models. RESULTS: Children's purchase decisions are primarily determined by product type (Importance Value (IV) 56.6%), while brand (IV 22.8%) and price (IV 20.6%) prove to be of less relevance. Only those children who state that they like the familiar brand reveal a preference for the branded product in their purchase decision. Price is a significant predictor of choice when controlling for whether or not children obtain an allowance. CONCLUSION: It is not simple brand awareness but a child's liking of the brand that determines whether a brand is successful in motivating a child to choose a product. The extent of children's experience with money influences their price responsiveness. To the extent that children who receive an allowance are primarily the ones buying food snacks, higher prices for EDNP snacks could be successful in motivating children to choose a healthier option.