Chinese consumers’ preferences for quality signals on fresh milk: Brand versus certification

Abstract

AbstractThis study examines the influences of brand and certification on Chinese consumers’ choices of fresh milk products. Specifically, we examine interrelationships between brand and certification for fresh milk and how trust and consumption habits affect consumers’ reactions to these different quality signals. Our results show that Chinese consumers tend to buy branded rather than unbranded fresh milk products and that fresh milk carrying quality certifications is also preferred. We find evidence of both substitution and complementary effects between brands and certifications. Results from a latent class model reveal three latent consumer groups for fresh milk: brand/certification seekers, price‐sensitive shoppers, and habitual buyers. Habitual buyers are loyal to the brand they most frequently purchase, whereas respondents who exhibit higher levels of trust and education are more likely to be brand/certification seekers. [EconLit Citations: Q13; D12].