Chinese consumer trust and preferences for organic labels from different regions

Abstract

Purpose The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for tomatoes carrying these different labels. Design/methodology/approach The data came from real choice experiments conducted in Shandong Province, China. A mixed logit model was used to analyze consumer willingness to pay (WTP). Findings Results indicated that, among the four organic labels considered in this study, the highest WTP was expressed for organic label from the European Union, followed by Hong Kong’s organic label, Japanese organic label and, lastly, by the Chinese mainland organic label. Consumer trust has a positive effect on their WTPs for the four organic labels. Providing consumers with information on organic can significantly lift their WTPs, and reduce the gaps between WTPs for different organic labels. Originality/value This research is of academic value and of value to food suppliers. International food marketers are recommended to equip their products with proper organic labels and initiate additional consumer education.