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Article
Publication date: 8 May 2018

Cesar Revoredo-Giha, Faical Akaichi and Philip Leat

The purpose of this paper is to analyse the overall effect of promotions on consumers’ food purchases in Scotland and to consider the implications of the findings for food and…

Abstract

Purpose

The purpose of this paper is to analyse the overall effect of promotions on consumers’ food purchases in Scotland and to consider the implications of the findings for food and health policy.

Design/methodology/approach

This is achieved by analysing a representative scanner panel data set for the period 2006-2013. The methodology consists of exploring the impact of promotions on food expenditure and allocation within households’ food purchases, using expenditure regressions and estimations of the linear version the Almost Ideal Demand System.

Findings

The results indicate that whilst promotions have differentiated effects by category, they have similar results by SIMD. The effect of the promotions on the total expenditure is positive for all the quintiles. However, the effect of promotions on each food category is complex because of the cross-effects between categories. As regards the effect of prices, the results provide a picture that seems to indicate that typical economic measures such as specific taxes applied to substances which, e.g., encourage obesity, might have limited impact on the diet given the inelasticity of the demand to changes in prices.

Originality/value

A contribution of this paper has been to focus on the effect of promotions on all the food products consumed by Scottish households, instead of analysing promotional influences on a single or reduced number of products within a category.

Details

British Food Journal, vol. 120 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 4 July 2016

Faical Akaichi and Cesar Revoredo-Giha

The purpose of this paper is to assess Scottish consumers’ demand for animal welfare and organic pork. The paper also tried to answer the following questions: first, are…

1306

Abstract

Purpose

The purpose of this paper is to assess Scottish consumers’ demand for animal welfare and organic pork. The paper also tried to answer the following questions: first, are animal-friendly pork and organic-pork complements or substitutes (competing)? Second, what is the relationship between pork products with different animal welfare labels (i.e. “freedom food” pork vs “specially selected pork”)? Third, does the demand for animal-friendly and organic pork vary with the level of deprivation of the area where consumers are living?

Design/methodology/approach

The dataset used in the analysis is the Kantar Worldpanel dataset for Scotland, which contains weekly data of food and drink purchases for consumption at home, covering the period 2006-2011. The panel is representative of the Scottish population and covers about 3,694 households. The linear version of the almost ideal demand system was estimated. Then, the own- and the cross-price elasticities as well as the expenditure elasticities for the 22 food categories and products were computed.

Findings

The results indicate that when the price of animal-friendly pork increases, consumers decrease their consumption of this product and substitute it by organic pork or regular pork, especially in the case of fresh pork, bacon and sausages. It was found that products with different animal welfare accreditation are substitutes in the eyes of Scottish consumers and are, therefore, competing for the market share of animal-friendly foods. The results also show that the demand for animal-friendly pork is more elastic in the most deprived areas in Scotland.

Originality/value

To the best of the authors’ knowledge, this is the first study that estimates the demand for conventional, animal-friendly and organic pork using a scanner data in Scotland and controlling for the variation by area of deprivation.

Details

British Food Journal, vol. 118 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 20 January 2012

Faical Akaichi, José M. Gil and Rodolfo M. Nayga

The purpose of this paper is to analyze the market potential of a locally produced and high quality food product (i.e. white bean “Mongeta Ganxet” (MG)) from Catalonia, Spain…

1287

Abstract

Purpose

The purpose of this paper is to analyze the market potential of a locally produced and high quality food product (i.e. white bean “Mongeta Ganxet” (MG)) from Catalonia, Spain. Consumers' willingness to pay (WTP) for the product is elicited using a non‐hypothetical economic experiment and then the sensitivity of WTP values is analyzed with regard to additional information provided to participants that includes reference prices, leaflets and tasting. Finally, a sample‐selection model is estimated to assess the factors that significantly affect consumers' WTP for the product.

Design/methodology/approach

To elicit the willingness to pay a premium for the local food product, 90 subjects were invited to participate in a random nth price experimental auction. Before auctioning the product, participants were asked to complete a questionnaire about consumer attitudes and purchase habits.

Findings

Only 7 percent of participants are willing to pay a price higher than the minimum price from which the MG product may be purchased directly from a producer or the local producing market. Also, it was found that providing reference prices of substitute products (both conventional and alternative high quality white beans) positively affects WTP for the MG. Interestingly, however, provision of information on organoleptic, nutritional and cooking characteristics of the MG and product tasting do not significantly influence WTP. Finally, the level of consumption, the degree of knowledge about the product and the participants' previous experience increase the purchasing intention for the MG.

Originality/value

In contrast to traditional market research studies that use hypothetical methods, the authors use non‐hypothetical elicitation mechanism to elicit consumers' valuation for an important local food product in Catalonia, Spain. Since actual products and cash were used in the experiments, the authors provided the respondents with an incentive to reveal their true preferences and valuation for the product of interest. The authors also tested the effect of provision of certain types of information on WTP and analyzed the factors that significantly influence consumers' WTP for the product.

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