Explaining consumer willingness to pay for country‐of‐origin labeling with ethnocentrism, country image, and product image: Examples from China's beef market

Author:

Gao Shijun12ORCID,Grebitus Carola2ORCID,DeLong Karen L.3ORCID

Affiliation:

1. Friedman School of Nutrition Science and Policy Tufts University Boston Massachusetts USA

2. Morrison School of Agribusiness W. P. Carey School of Business, Arizona State University Mesa Arizona USA

3. Department of Agricultural and Resource Economics University of Tennessee Knoxville Tennessee USA

Abstract

AbstractChinese beef imports have been increasing in recent years. At the same time, Chinese public sentiment toward foreign countries, including those who export beef to China, has been changing. Therefore, this research uses a discrete choice experiment (DCE) to investigate the role of ethnocentrism, country image, and product image on consumer willingness to pay for country‐of‐origin labeled beef. Results indicate, on average, Chinese consumers prefer domestic beef most, and value beef from Australia and the US somewhat similarly. Their willingness to pay varies based on their perceived image of the country that the beef originates from and based on their perception of the safety of the beef, that is, product image. The more ethnocentric consumers are, the more they prefer domestic beef and discount foreign beef. Importantly, the effects of ethnocentrism, country image, and product image are stronger on the willingness to pay for domestic beef than for imported beef. More generally, findings indicate that controlling for ethnocentrism, country image, and product image contributes to understanding consumer willingness to pay for products originating from foreign countries. Overall, findings suggest that stronger ethnocentric tendencies lead to lower willingness to pay for imported beef (with some exceptions), and positive country image and product image increase the willingness to pay for imported beef. Thus, it is important to consider these constructs when estimating consumer willingness to pay for imported products, especially for countries where public sentiment toward exporting countries may be prone to change in a dynamic global environment.

Funder

National Institute of Food and Agriculture

Publisher

Wiley

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