How Does Information Influence Consumers’ Purchase Decisions for Environmentally Friendly Farming Produce? Evidence from China and Japan Based on Choice Experiment

Abstract

In this research, 600 Chinese and Japanese consumers were divided into four groups to analyze consumers’ marginal willingness to pay for environmentally friendly farming (EFF) produce. We found that Chinese consumers had high awareness of green foods, while Japanese consumers were more familiar with organic produce than specially cultivated produce, perhaps because the latter has not yet received uniform national certification in Japan. Choice experiments show that EFF produce prices and consumers’ income critically affect consumers’ decision to pay, especially in China. After each group read different formal definitions of EFF produce, Chinese consumers still preferred green food certification, whereas Japanese consumers chose specially cultivated carrots. Both displayed different ideological purchasing behaviors through added interaction terms with an increase in education. When no information was given, Japanese consumers’ purchasing decisions became more positive as their education levels rose. Possibly, highly educated Chinese consumers emphasize pragmatism, whereas Japanese consumers emphasize the connection between environmental protection and agriculture. Therefore, EFF messaging should be differentiated by region. For distributors committed to international trade in EFF products between developing and developed markets, we suggest lower costs, differentiated product messaging, and community initiatives events to enhance trade and marketing in both China and Japan.