What are the factors affecting the consumers’ milk choices?

https://doi.org/10.17221/335/2015-AGRICECONCitation:Gulseven O., Wohlgenant M. (2017): What are the factors affecting the consumers’ milk choices? Agric. Econ. – Czech, 63: 271-282.
download PDF

There is an increasing interest in specialty milk products such as soymilk, cholesterol free/lactose free (CFLF) milk and organic milk. While the market shares of these milk types are still small, specialty milk consumption is one of the fastest growing consumer segments in the dairy industry. Therefore, it is of interest to producers, consumers as well as the policy-makers to identify the consumer profile of these products and to determine policies based on the consumer choices. In the article, there are utilised the actual consumer sales data to see whether the USDA’s dairy policy follows the consumers’ milk preferences. The results indicate that the household demographics significantly affect milk preferences. Race is by far the most striking factor in the consumers’ decision process. Minority households have a much higher probability of purchasing specialty milk types than the white households. They are also loyal customers of the specialty milk types and are less responsive to the changes in factors that affect their purchase decision. Based on these findings, there is recommend an alternative policy to the USDA’s one-size-fits-all type of dairy guidelines.    

Aizaki Hideo, Sawada Manabu, Sato Kazuo, Kikkawa Toshiko (2012): A noncompensatory choice experiment analysis of Japanese consumers' purchase preferences for beef. Applied Economics Letters, 19, 439-444  https://doi.org/10.1080/13504851.2011.583207
de Boer Alie, Bast Aalt (2015): International legislation on nutrition and health claims. Food Policy, 55, 61-70  https://doi.org/10.1016/j.foodpol.2015.06.002
Chakraborty K. (2005): Consumers’ attitude towards hormone-free milk: what have we learned? Applied Economics Letters, 12: 633–637.
Chema S. Kambua, Marks Leonie A., Parcell Joseph L., Bredahl Maury (2006): Marketing Biotech Soybeans with Functional Health Attributes. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 54, 685-703  https://doi.org/10.1111/j.1744-7976.2006.00073.x
Cotterill R.W., Tirtha D. (2003): Oligopoly Pricing with Differentiated Products: The Boston Fluid Milk Market Channel. Research Report, Food Marketing Policy Center, Connecticut.
Davis George C., Wohlgenant Michael K. (1993): Demand Elasticities from a Discrete Choice Model: The Natural Christmas Tree Market. American Journal of Agricultural Economics, 75, 730-  https://doi.org/10.2307/1243580
Garretson Judith A., Burton Scot (2000): Effects of Nutrition Facts Panel Values, Nutrition Claims, and Health Claims on Consumer Attitudes, Perceptions of Disease-Related Risks, and Trust. Journal of Public Policy & Marketing, 19, 213-227  https://doi.org/10.1509/jppm.
Gracia Azucena, de Magistris Tiziana (2008): The demand for organic foods in the South of Italy: A discrete choice model. Food Policy, 33, 386-396  https://doi.org/10.1016/j.foodpol.2007.12.002
De Groote Hugo, Kimenju Simon Chege (2008): Comparing consumer preferences for color and nutritional quality in maize: Application of a semi-double-bound logistic model on urban consumers in Kenya. Food Policy, 33, 362-370  https://doi.org/10.1016/j.foodpol.2008.02.005
Gulseven Osman, Wohlgenant Michael (2014): Demand for functional and nutritional enhancements in specialty milk products. Appetite, 81, 284-294  https://doi.org/10.1016/j.appet.2014.06.105
Harvard School of Public Health. Nutrition Source. Available at http://www.hsph.harvard.edu/nutritionsource/ (accessed July 15, 2015).
Hoefkens Christine, Verbeke Wim, Van Camp John (2011): European consumers’ perceived importance of qualifying and disqualifying nutrients in food choices. Food Quality and Preference, 22, 550-558  https://doi.org/10.1016/j.foodqual.2011.03.002
Huffman S.K., Jensen H.H. (2004): Demand for Enhanced Foods and the Value of Nutritional Enhancements of Food: The Case of Margarines. In: AAEA Annual Meeting, Denver, Aug 1–4, 2004.
Kolodinsky Jane (2008): Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk. Food Policy, 33, 616-623  https://doi.org/10.1016/j.foodpol.2008.07.002
Jan Man-ser, Fu Tsu-tan, Huang Chung L. (2007): A Conjoint/Logit Analysis of Consumers? Responses to Genetically Modified Tofu in Taiwan. Journal of Agricultural Economics, 58, 330-347  https://doi.org/10.1111/j.1477-9552.2007.00100.x
McFadden D. (1978): Modeling the choice of residential location. In: Karlgvist A. et al. (eds): Spatial Interaction Theory and Residential Location. North Holland, Amsterdam: 75–96.
Menrad Klaus (2003): Market and marketing of functional food in Europe. Journal of Food Engineering, 56, 181-188  https://doi.org/10.1016/S0260-8774(02)00247-9
Moon W., Balasubramanian S.K., Rimal A. (2005): Perceived health benefits and soy consumption behavior: two-stage decision model approach. Journal of Agricultural and Resource Economics, 30: 315–332.
Moschini GianCarlo, Bulut Harun, Cembalo Luigi (2005): On the Segregation of Genetically Modified, Conventional and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis. Journal of Agricultural Economics, 56, 347-372  https://doi.org/10.1111/j.1477-9552.2005.00022.x
Nerlove Marc (1995): Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers. European Economic Review, 39, 1697-1716  https://doi.org/10.1016/0014-2921(95)00013-5
Nimon Wesley, Beghin John (1999): Are Eco-Labels Valuable? Evidence from the Apparel Industry. American Journal of Agricultural Economics, 81, 801-  https://doi.org/10.2307/1244325
Peng Yanning, West Gale E., Wang Cindy (2006): Consumer Attitudes and Acceptance of CLA-Enriched Dairy Products. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 54, 663-684  https://doi.org/10.1111/j.1744-7976.2006.00072.x
Pounis George D., Makri Stella, Gougias Lazaros, Makris Haralambos, Papakonstantinou Marianna, Panagiotakos Demosthenes B., Kapsokefalou Maria (2011): Consumer perception and use of iron fortified foods is associated with their knowledge and understanding of nutritional issues. Food Quality and Preference, 22, 683-688  https://doi.org/10.1016/j.foodqual.2011.05.004
Press (2005): Associated Press. News Max. October 1, 2005. Available at http://archive.newsmax.com/archives/articles/2005/10/30/215232.shtml (accessed Sep 15, 2014).
Richards T.J., Paul M.P., Abebayehu T. (2007): Obesity and nutrient consumption: a rational addiction? Contemporary Economic Policy, 25: 309–324.
Rosen Sherwin (1974): Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition. Journal of Political Economy, 82, 34-55  https://doi.org/10.1086/260169
Saba A., Moneta E., Nardo N., Sinesio F. (1998): Attitudes, habit, sensory and liking expectation as determinants of the consumption of milk. Food Quality and Preference, 9, 31-41  https://doi.org/10.1016/S0950-3293(97)00024-4
Scrimshaw N.S., Murray E.B. (1988): The acceptability of milk and milk products in populations with a high prevalence of lactose intolerance. American Journal of Clinical Nutrition, 48: 1079–1159.
Steiner Bodo (2004): French Wines on the Decline? Econometric Evidence from Britain. Journal of Agricultural Economics, 55, 267-288  https://doi.org/10.1111/j.1477-9552.2004.tb00096.x
Steinman H. (2002): Milk Allergy and Lactose Intolerance. Science in Africa. Available at http://www.scienceinafrica.co.za/2002/may/milk.htm (accessed Sept 15, 2014).
Tepper Beverly J., Choi Young-Suk, Nayga Rodolfo M. (1997): Understanding food choice in adult men: Influence of nutrition knowledge, food beliefs and dietary restraint. Food Quality and Preference, 8, 307-317  https://doi.org/10.1016/S0950-3293(97)00014-1
Thompson Gary D. (1998): Consumer Demand for Organic Foods: What We Know and What We Need to Know. American Journal of Agricultural Economics, 80, 1113-  https://doi.org/10.2307/1244214
Train K.E. (2003): Discrete Choice Methods with Simulation. Cambridge University Press, Cambridge.
United States Department of Agriculture: My Plate Dairy Nutrients. Available at http://www.choosemyplate.gov (accessed July 15, 2015).
Urala Nina, Lähteenmäki Liisa (2004): Attitudes behind consumers' willingness to use functional foods. Food Quality and Preference, 15, 793-803  https://doi.org/10.1016/j.foodqual.2004.02.008
Verbeke Wim (2006): Functional foods: Consumer willingness to compromise on taste for health?. Food Quality and Preference, 17, 126-131  https://doi.org/10.1016/j.foodqual.2005.03.003
Waldman K.B., Kerr J.M. (2015): Is Food and Drug Administration policy governing artisan cheese consistent with consumers’ preferences? Food Policy, 55: 71–80.
Wang Qingbin, Halbrendt Catherine, Kolodinsky Jane, Schmidt Fred (1997): Willingness to pay for rBST-free milk: a two-limit Tobit model analysis. Applied Economics Letters, 4, 619-621  https://doi.org/10.1080/758533286
Wang Zhigang, Mao Yanna, Gale Fred (2008): Chinese consumer demand for food safety attributes in milk products. Food Policy, 33, 27-36  https://doi.org/10.1016/j.foodpol.2007.05.006
download PDF

© 2022 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti