Country of origin labelling: A consumer preference analysis for ethnic greens and herbs in the east coast USA

• Published in: Economic affairs (Calcutta) Vol. 61; no. 4; p. 641
• Main Authors: Arumugam, Surendran, Govindasamy, Ramu, You, Xinling, Vellangany, Isaac
• Format: Journal Article
• Language: English
• Published: New Delhi New Delhi Publishers 01.12.2016
• Subjects: Asian people; Consumer behavior; Consumers; Crops; Econometrics; Economic forecasts; Education; Ethnic foods; Ethnicity; Ethnocentrism; Family income; Food products; Food quality; Food safety; Herbs; Hispanic Americans; Labeling; Market strategy; Marketing; Population; Purchasing; Questionnaires; Rule of origin; Studies; Variables; Willingness to pay; United States > US
• ISSN: 0424-2513; 0976-4666
• DOI: 10.5958/0976-4666.2016.00078.4

The objective of the study was to predict the willingness to buy (WTB) Country of Origin Labelling (COOL) ethnic greens and herbs in the east-coast region of U.S. The estimated logit model results indicate that, the sample respondents are more likely to buy COOL if they consider food safety, and products sold in packages instead of loose. Sample respondents who consume ethnic greens and herbs for health motives have a higher probability of buying COOL ethnic produce. Reading food label and frequency of purchase have a significant positive effect to buy COOL ethnic greens and herbs. Moreover, the distance to closest ethnic store and price have a negative effect on consumers' WTB ethnic greens and herbs with COOL. Income still plays an important role to buy COOL ethnic greens and herbs. Compared with other respondents, those who earn annual household income from $40,000 to $59,999 are less likely to buy COOL ethnic greens and herbs. Respondents aged 21 to 50 have a higher likelihood of buying COOL ethnic greens and herbs compared with a cohort older than 65. Based on the results in this study, producers can have a pricing strategy to set an appropriate price. Although there are important variables which may be beneficial in targeting ethnic consumers and executing marketing strategies, further research is needed to explore why these variables have varying effects on influencing ethnic consumers' attitudes towards WTB ethnic greens and herbs.