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Valuing the influence of underlying attitudes and the demand for organic milk in Japan

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  • Shunsuke Managi
  • Yasutaka Yamamoto
  • Hiroyuki Iwamoto
  • Kiyotaka Masuda

Abstract

Subjective perceptions about a product affect consumer choice. Accordingly, acquiring the underlying demand characteristics that consumers find desirable is vital for firms planning future marketing strategies. However, the extent to which product-specific perceptions affect consumer choice is poorly understood. New agricultural standards for organic livestock were introduced in Japan in November 2005 and are expected to influence the market significantly. Choice modeling (CM) is used to explore how consumers evaluate the latent demands and conventional attributes (or tangible values) of organic milk. The results suggest that latent demands, along with socioeconomic characteristics and conventional attributes, provide strong incentives for consumers to move from the purchase of conventional milk to organic milk. The analysis indicates that latent demands reflecting the safeness of organic milk, the better taste of organic milk, the image of environmental friendliness in the production process, and the image of the health and comfort of the cows are important factors that influence consumers' purchasing decisions. However, each specific factor has a corresponding conventional tangible attribute that needs to be targeted in marketing strategy. Copyright (c) 2008 International Association of Agricultural Economists.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:agecon:v:39:y:2008:i:3:p:339-348
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    1. repec:gam:jsusta:v:10:y:2018:i:4:p:1079-:d:139606 is not listed on IDEAS
    2. repec:spr:envpol:v:19:y:2017:i:4:d:10.1007_s10018-016-0169-y is not listed on IDEAS
    3. Schroeter, Christiane & Nicholson, Charles F. & Meloy, Margaret G., 2016. "Consumer Valuation of Organic and Conventional Milk: Does Shelf Life Matter?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), November.
    4. 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).

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