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Japanese Consumers’ Willingness to Pay for Environmentally Friendly Farming Produce Based on Consumer Trustfulness

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  • Yang Runan

    (Tohoku University, Sendai, Japan)

  • Takashino Nina

    (Tohoku University, Sendai, Japan)

  • Fuyuki Katsuhito

    (Tohoku University, Sendai, Japan)

Abstract

In the past decade, the market share of environmentally friendly farming (EFF) produce in Japan has witnessed relatively rapid growth. However, consumer awareness and purchasing experience of this agricultural produce are still lagging. To study how awareness of EFF produce influences consumer psychology and purchase decisions, we use ordered logistic regression and choice experiments to analyze 600 survey responses collected through online questionnaires. The results show that information from friends and family can have a positive influence on Japanese consumers’ trust in EFF produce. Consumers also show a significant preference for EFF produce in the short term after receiving information about it. By setting up a control group for comparison, we find that, in addition to information, consumer education and income also positively and significantly affect the decision to purchase EFF produce. This study presents a unique perspective between information and consumer decision-making and provides targeted solutions for the promotional and marketing strategy problems faced by EFF produce sellers in Japan. We argue that strengthening regional publicity methods such as community events can enhance EFF producers’ marketing strategies.

Suggested Citation

  • Yang Runan & Takashino Nina & Fuyuki Katsuhito, 2022. "Japanese Consumers’ Willingness to Pay for Environmentally Friendly Farming Produce Based on Consumer Trustfulness," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 20(1), pages 1-14, May.
    • Handle: RePEc:bpj:bjafio:v:20:y:2022:i:1:p:1-14:n:5
    DOI: 10.1515/jafio-2020-0036
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    References listed on IDEAS

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