Region of Origin Labeling for
Food Products from NRW
Relevance for Consumers
Master Thesis Presentation August 2013
Bettina Anne-Sophie Lorenz
Overview
1.
2.
3.
4.
5.
6.
7.
8.
9.
Motivation for Research
Important Concepts
Regionalmarke NRW: Status Quo of Regionality Labeling in NRW
Procedure
Regionality in Food Purchasing Behavior
General Theory on Consumer Behavior
Modelling Approach
Testing the Model
Results and Recommendations
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1. Motivation for Research
• Consumer Behavior as Research Area
– Past studies in BA with a specialization in consumer behavior
– Focus of courses at Bonn University
• Regionality as Determinant of Consumer Behavior
– Relevant topic in EU-CAP (Pillar II)
– Topic of public interest in Germany: 65 % of consumers consider regionality at
least "most of the time" (BMELV 2011)
– Increased willingness to pay for regional food (von Alvensleben 1999)
• Project at Bonn University: “Regionalmarke NRW”
– Marketing food products produced in NRW at the scope of NRW
– Until 2012 main focus on producers and expert interviews
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2. Important Concepts
1.
Concepts for Regionality
•
Geographical
–
•
Cultural
–
–
•
“an area situated within one or more countries, which form an entity based on
local characteristics such as traditions, culture and scenery” (van Ittersum 2002, p.3)
Regional products as means to distinguish and differentiate (Besch 1999)
Ethnocentrism (Frewer, Risvik and Schifferstein 2001, p.290)
Communicative
–
–
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Regionality not linked to a “real” space (Wilson and Whitehead 2012)
Metaphorical closeness between producers and consumers (Ermann 2002)
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2. Important Concepts
2.
Communication of Regionality for Food Products
•
Implicit Communication (Banik, Simons and Hartmann 2007; Hausladen 2002)
–
–
–
•
Farm shops, weekly markets
Direct contact between seller and consumer
Restricted scope
Explicit Communication (Verbeke and Roosen 2009; Ermann 2002)
–
–
–
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Artificially assigned statements of origin (labels)
Function similar to brands
Issue of credibility when low perceived authenticity
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3. Regionalmarke NRW: Status Quo of
Regionality Labeling in NRW
• Few agricultural food products with EU-regionality labels (EC 2012)
• Small-scale regionality labels from producer- and processor led initatives
• Regionality-based trademarks by retailers (one explicit brand for NRW)
• No reliable state-based regionality label
 Potential for marketing agricultural food products at increased scope?
• Qualitative findings: NRW is not suitable as regionality label (Banik, Simons and
Hartmann 2007; Henseleit, Kubutzki and Treuber 2007)
– people in NRW do identify with smaller-scale regions (cultural concept of
regionality)
– people in NRW hold more consistent images of sub-regions (perceived
authenticity)
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4. Procedure
1.
Find out about theory on consumer behavior with respect to regionality
of food products
2.
Determine a model for the effect of labeled regionality in NRW on
consumer food purchasing behavior
3.
Conduct a quantitative survey among habitants of NRW to test the
model and recommend on regionality labels in NRW (either state-based
or related to sub-regions)
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5. Regionality in Food Purchasing Behavior
1.
Tripartite Model of Region-of-Origin Labeling for Food (Obermiller and
Spangenberg 1989; von Alvensleben 1999)
•
Cognitive Elements
–
•
Affective Elements
–
•
based on cognitive beliefs on product characteristics (freshness, better taste,
quality, safety)
based on stereotypes and images (most positive image for home region and
well-known holiday destinations)
Normative Elements
–
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based on perceived implications by oneself and by others (support local
farmers, less traffic from short transportation)
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6. General Theory on Consumer Behavior
2.
Theory of Planned Behavior by Ajzen (1991)
Attitudes
Subjective Norms
Behavioral
Intention
Behavior
PBC
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6. General Theory on Consumer Behavior
2.1.
Attitudes
Attitudes
Subjective Norms
Behavioral
Intention
Behavior
PBC
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6. General Theory on Consumer Behavior
2.1.
•
Attitudes
Implicit response that supports the individual’s judgment whether
something is good (positive attitude) or bad (negative attitude) (Fishbein
1967)
•
•
Learned concept based on Expectancy Theory (Gutman 1988)
Towards persons, activities, ideas
Beliefs about
Consequences
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x
Relevance
=
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Attitude towards
Purchasing
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6. General Theory on Consumer Behavior
2.2.
Subjective Norms
Attitudes
Subjective
Norms
Behavioral
Intention
Behavior
PBC
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6. General Theory on Consumer Behavior
2.2.
•
•
•
Subjective Norms (Ajzen and Fishbein 1973)
Account for social environment in which decisions take place
Relate to perceived expectations of significant others
Are determined by the individual’s (positive/negative) motivation to
comply
Beliefs about
Expectations
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x
Motivation to
comply
=
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Subjective
Norms
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6. General Theory on Consumer Behavior
2.3.
Perceived Behavioral Control
Attitudes
Subjective Norms
Behavioral
Intention
Behavior
PBC
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6. General Theory on Consumer Behavior
2.3.
•
•
•
Perceived Behavioral Control (Ajzen 1991)
Refers to a person’s belief on his/her ability to control the behavior
Product availability and self-efficacy (Armitage and Connor 2001)
Based on experience and information from other persons
Beliefs about
Control
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=
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Subjective
Norms
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7. Modeling Approach
3.
Extension to the Theory of Planned Behavior
Affective and cognitive Elements of Attitudes (Breckler 1984)
• in line with tripartite regionality model and the ABC model of attitudes
Personal Norms (Ryan and Bonfield 1975; Schwartz and Bilsky 1987)
• in line with self-concept theory: implications from others and from oneself
Identification with RoO
• based on ethnocentrism and cultural dimension of regionality
Perceived Authenticity
• based on research on regionality labeling
 Extension from an additive Model towards a Structural Model
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7. Modeling Approach
4.
Structural Model to determine Consumers' Purchasing Intention for
Regional Food w.r.t. a specific Region and a specific Product
Perceived
Authenticity
cognitive
Attitudes
affective
Subjective
Norms
Identification
with RoO
Purchasing
Intention
Purchasing
Personal
Norms
PBC
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8. Testing the Model
1. Structural Equation Modeling (Fuchs 2011; Jahn 2007; Hair et al 1995)
• Confirmatory method to test complex theoretical (hypothesized) models
empirically
• Allowing to include latent variables: unobservable variables
•
•
Structural Model  relationship between latent variables
Measurement Models  translating latent variables into measurable indicators
feeling home
feeling comfortable
Friends & Family
Identification
with RoO
Locus of Activities
Integration
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8. Testing the Model
2. Scope of quantitative Survey
• Definition of an exemplary product: pork
• Definition of a region: based on 12 sub regions in NRW and the current
place of habitat
3. Sample and Distribution
• Survey conducted among people with their current place of habitat in
NRW who
– are above 18 years old
– do consume pork
• Sample size: 1,000 respondents
• Distribution: programmed online questionnaire; external market research
agency
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8. Testing the Model
4. Estimation of Parameters
• Covariance-based approach (Fuchs 2011)
– full information calculation of parameters of structural model and
measurement models based on variance- and covariance matrices of
indicators
– allows for considering measurement errors in the indicators
– either using Maximum Likelihood or General Least Squares for estimation of
parameters
• Use of software: AMOS (SPSS extension)
– user friendly
– widely applied program which provides extended analysis tools
– data from survey will be supplied coded in SPSS by external agency
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8. Testing the Model – Outlook
5. Evaluation of Model (Fuchs 2011; Blunch 2008; Jahn 2007)
• Structural Components significance level (Type I error) α = 0.05
– parameters between latent variables >=0.2
– factor loading in measurement model >=0.7
• Measurement Model Fit
– Cronbachs alpha, average variance extracted , Fornell/Larcker Criterion
• Global Fit Indices
– Chi-Square Test for model representing reality  divide by degrees of
freedom; Root Mean Squared Error of Approximation
– Adjusted Goodness of Fit Index
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9. Results and Recommendations - Outlook
1.
Confirmation of theoretical Structural Model
– by Significance and Value of Parameters
– Global Model Fit
2.
Determination of the Role of Identification and Authenticity
– based on parameter values
3.
Recommendation on using NRW or Sub Regions for Marketing
– based on differentiation among 12 sub regions
– based on additional survey questions on the notion of home (rather in NRW
or in the current sub region of habitat)
– based on additional survey questions on associations with sub regions in
NRW compared to NRW in total
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Literature
Ajzen, I. (1991): The Theory of Planned Behavior. In Organizational Behavior and Human Decision Processes (50), pp. 179–211.
Ajzen, I.; Fishbein, M. (1977): Attitude-Behavior Relations: A Theoretical Analysis and Review of Empirical Research. In Pschological Bulletin
(84(5)), pp. 888–918.
Alvensleben, R. von (1999): Verbraucherpräferenzen für regionale Produkte: Konsumtheoretische Grundlagen. Bonn, Nov 25th - 26th
1999. Available online at http://www.uni-kiel.de/agrarmarketing/Lehrstuhl/verbraucherregio.pdf, checked on Apr 6th 2013.
Armitage, C.J; Conner, M. (2001): Efficacy of the Theory of Planned Behaviour: A meta-analytic review. In British Journal of Social
Psychology (40), pp. 471–499.
Banik, I.; Simons, J. Hartmann M. (2007): Regionale Herkunft als Erfolgsfaktur für die Qualitätswahrnehmung von Verbrauchern in NRW.
Edited by Lehr- und Forschungsschwerpunkt „Umweltverträgliche und Standortgerechte Landwirtschaft (USL)“. Landwirtschaftliche Fakultät
der Rheinischen Friedrich-Wilhelms-Universität Bonn. Bonn (Forschungsbericht, 152).
Breckler, S.J (1984): Empirical Validation of Affect, Behavior, and Cognition as Distinct Components of Attitude. In Journal of Personality
and Social Psychology (47(6)), pp. 1191–1205.
Besch, M. (1999): Regionalisierung versus Globalisierung. In Agrarwirtschaft (48(11)), pp. 393–394.
Blunch, N.J (2008): Introduction to Structural Equation Modelling using SPSS and AMOS. London: Sage Publication Ltd.
BMELV (2011): Initiative biologische Vielfalt schützen und nutzen – Abschlussbericht. Available online at
http://www.bmelv.de/SharedDocs/Downloads/Landwirtschaft/Klima-undUmwelt/BiologischeVielfalt/InitiativeAbschlussbericht.pdf?__blob=publicationFile, checked on Dec 16th 2012.
Ermann, U. (2002): Regional Essen? Wert und Authentizität der Regionalität von Nahrungsmitteln. Edited by Bundesforschungsanstalt für
Ernährung. Karlsruhe (Wissenschaftliche Jahrestagung der Arbeitsgemeinschaft Ernährungsverhalten e.V., 23).
European Commission (2012): and Rural Development – DOOR registered designations. Available online at
http://ec.europa.eu/agriculture/quality/door/list.html, checked on Dec 14th 2012.
Frewer, L. Risvik E.; Schifferstein, H. (2001): Food, People and Society - A european Perspective if Consumers' Food Choices. Berlin:
Springer-Verlag.
Literature
Fuchs, A. (2011): Methodische Aspekte linerarer Strukturgleichungsmodell. Ein Vergleich von kovarianz- und varianzbasierten
Kausalanalysen. Research Paper. Julius-Maximilians-Universität, Würzburg. Lehrstuhl für BWL und Marketing.
Hair, J.F; Anderson, R.E; Tatham, R.L; Black, W.C (1995): Multivariate Data Analysis with Readings. 4th ed. New Jersey: Prentice-Hall
International Inc.
Hausladen, H. (2002): Regionale Marketingkonzepte im Lebensmittelbereich - Bedeutung und Erfolgsfaktoren. Edited by
Bundesforschungsanstalt für Ernährung. Freising (23. Wissenschaftliche Jahrestagung der Arbeitsgemeinschaft Ernährungsverhalten e.V.).
Henseleit, M.; Kubutzki, S.; Treuber, R. (2007): Verbraucherpräferenzen für regionale Lebensmittel. In Berichte über Landwirtschaft Zeitschrift für Agrarpolitk und Landwirtschaft (85(2)), pp. 214–237.
Ittersum, K. van (2002): The Role of Region of Origin in Consumer Decision-Making and Choice. Den Haag: LEI.
Wilson, G.; Whitehead, I. (2012): Local rural product as a 'relic' spatial strategy in globalised rural spaces: Evidence from Country Claire
(Ireland). In Journal of Rural Studies (28), pp. 199–207.
Jahn, S. (2007): Strukturgleichungsmodellierung mit LISREL, AMOS und SmartPLS. Eine Einführung. Technische Universität, Chemnitz.
Wirtschaftswissenschaftliche Fakultät.
Obermiller, C.; Spangenberg, E. (1989): Exploring the Effects of Country-of-Origin Labels. In Advances in Consumer Research (16), pp. 454–
459. Available online at http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=6946.
Ryan, M.; Bonfield, E. (1975): The Fishbein Extended Model and Consumer Behavior. In Journal of Consumer Research (2(2)), pp. 118–136.
Schwartz, S.H; Bilsky, W. (1987): Toward a Universal Psychological Structure of Human Values. In Journal of Personality and Social
Psychology (53(3)), pp. 550–562.
Verbeke, W.; Roosen, J. (2009): Market Differentiation Potential of Country-of-origin, Quality, and Traceability Labeling. In The Estey Centre
Journal of International Law and Trade Policy (10(1)), pp. 20–35.
Wilson, G.; Whitehead, I. (2012): Local rural product as a 'relic' spatial strategy in globalised rural spaces: Evidence from Country Claire
(Ireland). In Journal of Rural Studies (28), pp. 199–207.
Thank you very much for your
Attention!
Master Thesis Presentation August 2013
AFEPA Program | Bettina Anne-Sophie Lorenz