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Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK

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  • Kontoleon Andreas

    (Department of Land Economy, University of Cambridge, United Kingdom)

  • Yabe Mitsuyasu

    (Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Japan)

Abstract

This paper undertakes a detailed market segmentation analysis of the demand for GM derived animal foods in the UK with the aim of illustrating how this analysis can provide distinct information that can assists in evaluating the welfare impacts of proposed changes to the EU's GM labelling policy. The specific modelling approach employed was the latent segment (LS) model which allows for the simultaneous determination and explanation of both segment membership and product choice. Based on psychometric and demographic variables as well as choice data, the LS model was able to identify three distinct and behaviourally consistent consumer segments. Further, the LS model was found to outperform alternative econometric approaches for accounting for preference heterogeneity. Finally, our analysis shows how it can yield distinct information over the segmented nature of the food market that can uniquely assist both European policy makers in designing GM labelling regimes and public awareness campaigns as well as the agricultural and food industry in developing pricing, marketing and new product development strategies.

Suggested Citation

  • Kontoleon Andreas & Yabe Mitsuyasu, 2006. "Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-38, December.
    • Handle: RePEc:bpj:bjafio:v:4:y:2006:i:1:n:8
    DOI: 10.2202/1542-0485.1150
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    3. Vo Hong Tu & Steven W. Kopp & Nguyen Thuy Trang & Andreas Kontoleon & Mitsuyasu Yabe, 2021. "UK Consumers’ Preferences for Ethical Attributes of Floating Rice: Implications for Environmentally Friendly Agriculture in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-27, July.
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    5. Reithmayer, Corrina & Danne, Michael & Mußhoff, Oliver, 2019. "Societal attitudes in ovo gender determination as an alternative to chick culling," Department of Agricultural and Rural Development (DARE) Discussion Papers 298040, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Corrina Reithmayer & Michael Danne & Oliver Mußhoff, 2021. "Societal attitudes towards in ovo gender determination as an alternative to chick culling," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 306-323, April.
    7. Birol, Ekin & Villalba, Eric Rayn & Smale, Melinda, 2009. "Farmer preferences for milpa diversity and genetically modified maize in Mexico: a latent class approach," Environment and Development Economics, Cambridge University Press, vol. 14(4), pages 521-540, August.
    8. Birol, Ekin & Falck-Zepeda, José & Kikulwe, Enoch & Wesseler, Justus, 2009. "A latent class approach to investigating consumer demand for genetically modified staple food in a developing country: The case of GM bananas in Uganda," IFPRI discussion papers 938, International Food Policy Research Institute (IFPRI).
    9. Kloos, Julia & Tsegai, Daniel W., 2009. "Preferences for domestic water services in the Middle Olifants sub-basin of South Africa," Discussion Papers 49970, University of Bonn, Center for Development Research (ZEF).
    10. Falck-Zepeda, José B. & Kilkuwe, Enoch M. & Wesseler, Justus, 2008. "Introducing a genetically modified banana in Uganda: Social benefits, costs, and consumer perceptions," IFPRI discussion papers 767, International Food Policy Research Institute (IFPRI).
    11. Boesch Irene & Weber Michael, 2012. "Processor's Preferences and Basic Differentiation Strategies for Potatoes, Milk, and Wheat in Switzerland," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-24, October.
    12. Taro Ohdoko & Kentaro Yoshida, 2012. "Public preferences for forest ecosystem management in Japan with emphasis on species diversity," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(2), pages 147-169, April.
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