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The interaction relationships among agricultural certification labels or brands: evidence from Chinese consumer preference for fresh produce

In: International Food and Agribusiness Management Review
Authors:
Yiqin Wang Doctoral Student, College of Economics & Management, South China Agricultural University, Guangzhou 510642, China P.R.

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Jingbin Wang MSc, School of Economics, Qufu Normal University, Rizhao 276826, China P.R.

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Dan Han Associate Professor, Business school, Jinan University, Jinan 250022, China P.R.

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Shanshan Lv MSc, School of Economics, Qufu Normal University, Rizhao 276826, China P.R.

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Mo Chen Professor, School of Economics, Qufu Normal University, Rizhao 276826, China P.R.

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Shijiu Yin Professor, School of Economics, Qufu Normal University, Rizhao 276826, China P.R.

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Open Access

China uses a multilevel agricultural certification system; however, its implications are not well understood. In this study, we used tomatoes as an example in a series of Becker-DeGroot-Marschak auction experiments to determine consumers’ willingness to pay (WTP) toward three safety certification labels and two kinds of brands. Then, based on the auction experiment results, we designed a menu-based choice experiment to assess the interaction relationships between the safety certification labels and brands. The results showed that consumers were generally willing to pay a premium for tomatoes with safety-certified labels (especially for organic labels) and brands (especially for the enterprise brand). Providing consumers with additional information regarding the certification remarkably improved their WTP for tomatoes with organic and green labels. The menu-based choice experiment suggested that the organic and green labels were found to be substitutes. In addition, organic and green labels could not substitute the enterprise brand, whereas the converse of this relationship was true. Finally, a mutual substitution relationship was observed between hazard-free label and enterprise brand. Our research enables producers to consider the interaction between certification strategies and brand strategies. Therefore, marketers and policymakers should take steps to promote and expand consumers’ knowledge on certification, as it could benefit the development of certified food.

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