Chinese consumer preferences for organic labels on Oolong tea: evidence from a choice experiment

Abstract

Repeated food scandals in China have prompted growing consumer consciousness on food safety and health. Organic food, considered to be of higher quality, is being increasingly demanded by Chinese consumers. This study examines preferences for organic labels to provide insight on the sustainable development of the Oolong tea industry. Research was conducted using the choice experiment (CE) method in Fujian and Guangdong Provinces. The results demonstrate that place of origin, organic label, and brand attributes are all significant factors affecting the purchase of Oolong. Also, people demonstrated significantly positive attitudes toward organic labels and preferred Oolong tea from Fujian Province to those from Guangdong Province and Taiwan. Increasing trust can enhance consumer preference and willingness to pay (WTP) for organic labels. Contrary to previous studies, people have a higher WTP for Chinese organic labels than Japanese and American ones. This is probably because respondents are more familiar with domestic Oolong tea and trust more in Chinese organic certification. This provides an opportunity for domestic producers to tailor their organic food labels and better satisfy consumer demands. These findings suggest that the Chinese government should take more responsibility for reducing food-related fraud and thus improve consumer trust regarding organic food.