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Will the Consistent Organic Food Consumer Step Forward? An Empirical Analysis

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  • Hans Jørn Juhl
  • Morten H. J. Fenger
  • John Thøgersen

Abstract

The organic food market has reached a significant value in developed countries, but market shares vary substantively between product categories. This article investigates general patterns in the sequence of adoption of organic products based on a major Danish retailer’s panel scanner data. All registered transactions over 20 months from 8,704 randomly selected customers with a loyalty card are analyzed using a hidden Markov model, capturing the dynamics in consumers’ purchases. The model identifies latent states representing identifiable, accessible, and actionable dynamic customer segments, and captures the movements between states or segments. A pattern emerges that is consistent with the theory of behavioral spillover and inconsistent with the theory of moral licensing, including a tendency to buy organic products in an increasing number of product categories over time. The order in which organic products are adopted is inversely related to the behavioral costs of adopting them. The employed approach provides a firm basis for personalized communication aiming to increase cross-selling of organic products, increase the sale of less popular organic products, and accelerate movements from segments buying few organic products to segments buying organic more consistently.

Suggested Citation

  • Hans Jørn Juhl & Morten H. J. Fenger & John Thøgersen, 2017. "Will the Consistent Organic Food Consumer Step Forward? An Empirical Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(3), pages 519-535.
    • Handle: RePEc:oup:jconrs:v:44:y:2017:i:3:p:519-535.
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    2. Robert Mai & Stefan Hoffmann & Ingo Balderjahn, 2021. "When drivers become inhibitors of organic consumption: the need for a multistage view," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1151-1174, November.
    3. Olson, Erik L., 2022. "‘Sustainable’ marketing mixes and the paradoxical consequences of good intentions," Journal of Business Research, Elsevier, vol. 150(C), pages 389-398.
    4. BAGLIONE, Stephen L. & TUCCI, Louis A. & STANTON, John L., 2019. "Organic Food: Identifying Actionable Segments," Holistic Marketing Management Journal, Holistic Marketing Management, vol. 9(1), pages 10-27, March.
    5. Xenia Raufeisen & Linda Wulf & Sören Köcher & Ulya Faupel & Hartmut H. Holzmüller, 2019. "Spillover effects in marketing: integrating core research domains," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 249-267, December.
    6. Yuriy Danko & Olena Nifatova, 2022. "Agro-sphere determinants of green branding: eco-consumption, loyalty, and price premium," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-9, December.
    7. Yating Tian & Qeis Kamran, 2021. "A Review of Antecedents and Effects of Loyalty on Food Retailers toward Sustainability," Sustainability, MDPI, vol. 13(23), pages 1-18, December.
    8. Nathalie Spielmann, 2021. "Green is the New White: How Virtue Motivates Green Product Purchase," Journal of Business Ethics, Springer, vol. 173(4), pages 759-776, November.
    9. Lembregts, Christophe & Cadario, Romain, 2024. "Consumer-Driven Climate Mitigation: Exploring Barriers and Solutions in Studying Higher Mitigation Potential Behaviors," OSF Preprints ywus6, Center for Open Science.
    10. Olson, Erik L., 2022. "Advocacy bias in the green marketing literature: Where seldom is heard a discouraging word," Journal of Business Research, Elsevier, vol. 144(C), pages 805-820.
    11. Santa, Juana Castro & Drews, Stefan, 2023. "Heuristic processing of green advertising: Review and policy implications," Ecological Economics, Elsevier, vol. 206(C).
    12. Goff, Sandra H., 2021. "A test of willingness to pay as penance in the demand for ethical consumption," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    13. Tandon, Anushree & Dhir, Amandeep & Kaur, Puneet & Kushwah, Shiksha & Salo, Jari, 2020. "Why do people buy organic food? The moderating role of environmental concerns and trust," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    14. van Doorn, Jenny & Risselada, Hans & Verhoef, Peter C., 2021. "Does sustainability sell? The impact of sustainability claims on the success of national brands’ new product introductions," Journal of Business Research, Elsevier, vol. 137(C), pages 182-193.
    15. Dütschke, Elisabeth & Frondel, Manuel & Schleich, Joachim & Vance, Colin, 2018. "Moral licensing: Another source of rebound?," Ruhr Economic Papers 747, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Uddin, Azhar & Gallardo, R. Karina, 2021. "Consumers' willingness to pay for organic, clean label, and processed with a new food technology: an application to ready meals," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.

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