High-income Consumers Research Articles

Consumers’ Attitudes Towards Prawn Consumption in Bangladesh: An Investigation on Perceived Value and Willingness-to-Pay

This study assessed consumer preferences and consumption patterns for prawns in Bangladesh, underscoring the economic and nutritional significance of prawns in the local diet. A total of 120 respondents were interviewed following a random sampling technique from four districts. The data analysis employed descriptive statistics alongside mathematical and statistical methods. The findings indicate a strong preference for fresh and large-sized prawns among the consumers. Income level substantially influenced the prawn purchases, with the high-income consumers more likely to buy premium prawn products, while the low-income consumers showed sensitivity to price changes. The primary concerns that significantly influenced the consumers’ purchasing decisions were found to be size, freshness, taste, price, market availability, and income. Additionally, the consumers’ perceived value and willingness-to-pay for prawns were significantly driven by size, freshness, environmental sustainability, and income levels. Policy recommendations include promoting sustainable prawn farming and improving accessibility for low-income consumers to enhance both nutritional intake and economic resilience. This research offers valuable insights for stakeholders in the prawn industry, facilitating the development of targeted marketing strategies and informed policymaking for sustainable industry growth.

Global economic impact of weather variability on the rich and the poor

AbstractTemperature and precipitation variability and extremes impact production globally. These production disruptions will change with future warming, impacting consumers locally as well as remotely through supply chains. Due to a potentially nonlinear economic response, trade impacts are difficult to quantify; empirical assessments rather focus on the direct inequality impacts of weather extremes. Here, simulating global economic interactions of profit-maximizing firms and utility-optimizing consumers, we assess risks to consumption resulting from weather-induced production disruptions along supply chains. Across countries, risks are highest for middle-income countries due to unfavourable trade dependence and seasonal climate exposure. We also find that risks increase in most countries under future climate change. Global warming increases consumer risks locally and through supply chains. However, high-income consumers face the greatest risk increase. Overall, risks are heterogeneous regarding income within and between countries, such that targeted local and global resilience building may reduce them.

The influence of ecolabels in the consumption of green products: a study on Durban consumers

The purpose of the study is to ascertain the influence of ecolabels in the consumption of certified green products. It explores ecolabels in Durban, hoping to gain valuable insights into ecolabels’ role in influencing the consumption of certified green products. The study employed a quantitative and a non-probability sampling method to understand the influence of ecolabels among green consumers in Durban. To ensure that the data represents the diversity of Durban consumers, a random sampling method was adopted. The data was collected using questionnaires and analysed using the IBM SPSS Version 25. The study employed a sample of 384 customers from retail malls within selected Durban suburbs. The findings revealed that consumers generally have a positive perception of ecolabels and are likely to recommend certified green products. However, the data also revealed that there is scepticism around certified green products as they are considered expensive and can perhaps be attributed to the high cost of certification, credibility issues and the cost associated with the ecolabelling. There is a potential trend towards wider acceptance, with more respondents trusting the authenticity of ecolabels than not. The study also found that older respondents and those with higher income tend to have a more positive perception of ecolabels, potentially due to higher disposable income and greater familiarity with the concept. This suggests that addressing concerns about cost and credibility could further increase positive consumer perception of ecolabels. Businesses can use these findings to develop strategies to address consumer concerns about the cost and credibility of certified green products. They can also target marketing efforts towards older demographics and higher-income consumers who are more receptive to ecolabels. Policymakers can use the findings to evaluate the effectiveness of existing ecolabeling programs and also develop strategies to increase consumer awareness and trust in ecolabels, especially younger audiences.

Residential energy demand, emissions, and expenditures at regional and income-decile level for alternative futures

Abstract Income and its distribution profile are important determinants of residential energy demand and carry direct implications for human well-being and climate. We explore the sensitivity of residential energy systems to income growth and distribution across SSP-RCP scenarios using a global, integrated, multisector dynamics model, GCAM, which tracks national/regional household energy services and fuel choice by income decile. Nation/region energy use patterns across deciles tend to converge over time with aggregate income growth, as higher-income consumers approach satiation levels in floorspace and energy services. However, in some regions, existing within-region inequalities in energy consumption persist over time due to slow income growth in lower income groups. Due to continued differences in fuel types, lower income groups will have higher exposure to household air pollution, despite lower contributions to greenhouse gas emissions. We also find that the share of income dedicated to energy is higher for lower deciles, with strong regional differences.

Az egészség ára – Az egészségesnek vélt élelmiszerek iránti fogyasztási és vásárlási szokások vizsgálata, kiemelt tekintettel az árra

The economic events of recent years (war, the COVID epidemic) have had a significant impact on our daily life, including our consumer and shopping habits. The main aim of this research is to examine how food consumption and purchasing habits have changed in response to price changes, particularly for foods perceived to be healthy. Two focus group surveys were conducted to explore consumer habits on this topic. The period covered by the research was the consumer prices in April 2022 and April 2023. Our research explored general food purchasing habits and consumer motivations. We examined the extent to which products that participants perceived as healthy were purchased online, and the impact of price changes on the demand for health-conscious foods and on consumers' brand loyalty. We also looked at the online price monitoring system, where we mapped consumer adoption and the consumer benefits that the system provided. One of our key achievements is to identify a growing consumer awareness, with more and more people choosing quality, expertise and choice over convenience and price. The types of consumer responses identified in the EUROPA.EU research was in terms of products perceived as healthy in the wake of the price rise, although the proportions have shifted significantly; many are looking for alternatives, seeking substitutes for products; and fewer are the concern-averse, loyal consumers and the well-off but not engaged. Price sensitivity is increasing as a result of recent sustained price rises, with a small proportion of people who are not concerned. There is also a low proportion of emotional comfort seekers, a group largely confined to high-income consumers. For those who are not aware of the price of products, there is no change in brand loyalty and no brand abandonment, but for those who are price-aware, there is a tendency to switch between brands. JEL-CODES: I12, M31, M38

Assessing the potential of a niche market for wool products in South Africa

<abstract> <p>Ethical consumerism has been on the rise since the early 1900s; thus, increasing discerning consumers. Consumers place greater importance on intangible attributes such as the origin and societal and environmental impacts of the products. Studies focus on agricultural niche marketing in the South African and sub-Saharan context, but none focus on niche markets within the South African sheep wool industry. In this study, we investigated the niche market for local, handmade and socially responsible wool products in South Africa. Our methodology included interviews, a choice-based conjoint analysis and a multinomial logit model. The results revealed that South African high-income consumers preferred locally produced wool products over imported wool products. This was followed by consumers' preferring handmade over machine-made products as well as socially responsible wool products over those that provided no information on social responsibility. The existence of a niche market in South Africa was demonstrated when consumers preferred ethical wool products. We defined consumers' demographic and psychographic factors for a niche market. The findings can assist the South African wool industry and small-scale woolgrowers to identify niche markets for wool products by considering intangible attributes.</p> </abstract>

Consumer Perception and Purchase Attitude towards Genetically Modified Foods during the Covid-19 Pandemic: the Case of Erzurum, Türkiye

The aim of the study was to determine consumers’ perception and purchase attitudes towards foods with genetically modified organisms (GMOs) and the main factors impacting on their purchase decision in Erzurum province in Türkiye. The material of the research consisted of primary data obtained from face-to-face questionnaire fulfilled with 323 households residing in Erzurum in 2021 and intending to consume foods with GMOs during the Covid-19 pandemic, and then explanatory factor and cluster analyses were applied to determine the main factors affecting three homogenous consumer clusters’ attitudes and beaviors towards foods with GMOs. The results of the study highlighted that high-income consumers were of willingness to buy foods with GMOs due to positive purchase motivation with orientation of media communication and product mixes, that middle-income consumers altered consciously their purchase models by preferring GMO-foods with lower price to traditional foods, and that low-income participants did not want to buy foods with GMOs owing to negative impacts on human health, environment safety and ethical issues. As a result, high and middle-income consumers attributed positive purchasing perception and attitudes toward foods with GMOs, but low-income those were of a negative perception for these.

Consumer Profiles of Sustainable Fruit and Vegetable Consumption in the European Union

Despite the World Health Organization (WHO) advocating a healthy and balanced diet for consumers for many years, inadequate fruit and vegetable (FV) consumption remains a substantial issue with economic, social, environmental, and nutritional implications. This study aims to identify consumer profiles for sustainable fruit and vegetable consumption in the European Union, considering specific demographic and socio-economic factors. The analysis is based on data from the 2019 European Health Interview Survey (EHIS). This article provides a clear understanding of how gender, age, education level, income, and place of residence relate to sustainable FV consumption through a principal component analysis (PCA). By defining consumer profiles linked to sustainable and healthy FV consumption, the study aids in creating cohesive goals for promoting health within European society. The results of the PCA reveal four distinct consumer profiles and enhance our understanding of the factors influencing these profiles. These findings align with previous research, indicating that consumer profiles remain relatively consistent. According to the PCA classification, sustainable fruit and vegetable consumption is more prevalent among women, educated individuals, higher-income consumers, and those over 55 years old. In contrast, the opposite profile consists of consumers with lower income, younger and middle-aged individuals, men, and those with less than a high school education, highlighting the need for effective strategies to promote a healthier diet in this group. Countries with lower economic development, reflected in consumer incomes, deviate the most from the recommended “at least five portions of fruit and vegetables a day” consumption pattern, and do not exhibit a sustainable consumption model. Thus, continued monitoring of consumer profiles is essential, with a focus on both the quantity and frequency of fruit and vegetable consumption, as well as strategies aiming to increase their intake.

Risk-free rate puzzle: An explanation of the heterogeneity of consumer risk attitudes under China's income gap

The original C-CAPM encounters a risk-free rate puzzle, making it difficult for the capital and consumer markets to achieve equilibrium. This problem can be addressed by solving this risk-free rate puzzle. In this paper, we propose that a representative consumer in the C-CAPM does not reflect the reality of China's social development. Second, we introduce three kinds of typical consumers, low-, middle- and high-income consumers, to embody the heterogeneity of risk attitudes. From the perspective of the consumer Pareto optimum, we derive the new C-CAPM and risk-free rate equation. Third, we compare the new model with the original C-CAPM and risk-free rate equation and theoretically explain this equation. Using monthly data on social consumption in China from 2011 to 2019, we find that the income gap in China is the underlying reason for this risk-free rate puzzle.

Unlocking transparency in water information: a discrete choice experiment design

ABSTRACT This study employed the discrete choice experiment (DCE) to examine consumers’ willingness to gain access to public information on water quality and the tradeoffs. We estimated that if water quality information is provided monthly, weekly, and daily, consumers are willing to pay an additional 28, 29, and 37 thousand VND per cubic metre, respectively. Consumers highly value the transparency of water quality information. High-income consumers are willing to pay more for water quality improvements and transparent water quality information. Further, having safe filter to drink water and potable tap water rather than unsafe drinking water equals an additional 5 and 7 thousand VND per cubic metre in customers’ willingness to pay. Consumers also prefer state-controlled water companies to private companies. In the case of private water companies, consumers also expect these companies to have a high level of awareness about their corporate social responsibility. The findings provide evidence that information transparency in water quality can be a powerful tool that fosters public awareness and holds water companies accountable. Consumers are willing to pay to get access to information on water quality regularly. Since technology has evolved, a digital smart monitoring solution is no longer an option but a potential or a must.

Consumer acceptance for sheep milk–based yogurt—Evidence from a large sample of Italian consumers

Testing consumer acceptance for a new product, such as the sheep milk-based yogurt, provides a measure of its market success, thus it informs producers on the effectiveness of their decision to transform sheep milk into yogurt to increase their revenues. This work explores to what extent consumers accept sheep milk-based yogurt and test the role of person related factors and product related features on shaping its acceptance. The study collects data from a representative sample of Italian yogurt consumers, and data are then analyzed via a logistic regression. Results show that male, highly educated and high-income consumers are more likely than others to accept sheep milk-based yogurt. Findings suggest that consumers' food neophobia and variety-seeking traits play a pivotal role in affecting consumer acceptance. Lastly, interest in nutritional and health-related yogurt features increases the probability of accepting sheep milk-based yogurt. Thus, sheep milk-based yogurt should be targeted at high-end male consumers and those interested in nutritional and health-related aspects of yogurt. Informing consumers about the sheep milk yogurt properties may further increase its acceptance and curb food neophobia which we found to be one of the main barrier for the product acceptance. Future studies will explore consumer acceptance by using a real product and taste experiments.

다중 이산 연속선택모형을 이용한 원산지 및 용도별 쇠고기 수요 분석

There has been a steady increase in the consumption of Korean beef in recent years, with the per capita consumption of beef reaching a record high in 2022. The domestic beef market provides consumers with more choices, so traditional methods of demand analysis that rely on whole beef products are likely to become less useful. Employing the multiple discrete-continuous extreme value model (MDCEV), we analyze scanner data on consumer panels over a long period. Our findings indicate Hanwoo beef demand is less price sensitive than other beef types. Furthermore, Hanwoo beef has a relatively larger cross-price elasticity than other alternatives. Consumers' income, age, and household size also significantly affect the interrelationship between demand and supply.
 Higher-income consumers are more likely to choose Hanwoo beef and less likely to choose imported beef. Larger families are more likely to select beef for grilling rather than cooking. These results explain current beef expenditure patterns and help understand how consumers make decisions.

A survey on willingness-to-pay for food quality and safety cues on packaging of meat: a case of Poland

AbstractSince meat is an important source of protein needed for human development across the world, responsible production and consumption of meat products with a food quality and safety scheme label is one potential option to maintain social, economic and environmental sustainability. The implementation of this option depends on high willingness-to-pay (WTP) for certified safe foods among citizens. The overarching aim of the study is to examine WTP for national food quality and safety cues on the packaging of meat products. Using a questionnaire on-line survey of 1000 individuals, this study examines relationships between demographic variables and WTP for certified meat products. Relatively younger and higher-income consumers living in households composed of 4 and more members, which are the decision-makers of the future, are most willing to pay a premium price for guaranteed quality meat products. The strongest predictor of WTP for certified quality meat is the number of household members which can be related to children raising and care. A choice of guaranteed quality meat products is putting into practice “less but better” meat approach which tackle sustainable challenges of meat production and consumption regarding issues related to animal welfare, human health and environment.

Consumers’ valuations of tea traceability and certification: Evidence from a blockchain knowledge experiment in six megacities of China

Blockchain-based traceability provides unforgeable and tamper-resistant traceability information, thus contributing to a high-quality and safe food supply and alleviating consumers' increasing concerns about food quality and safety. There is scant literature analyzing consumers' valuation of blockchain-based traceability, although it matters for the application and development of this technology. We investigated the consumers' valuation of blockchain-based traceability in the tea industry in China. We conducted a randomized experiment to estimate the effect of the information intervention on consumers’ valuation. Using data from 4017 respondents in six Chinese megacities collected from an online survey, we found that consumers valued blockchain-based traceability more than commonly-used quality assurance attributes, including conventional traceability and certification labels, and consumers viewed blockchain-based traceability and certification labels as substitutes. Furthermore, exposure to relevant knowledge increased their valuation of blockchain-based traceability. This was especially true for consumers valuing product quality and safety most and young, highly educated, and high-income consumers. We suggest stakeholders strengthen publicity to help consumers realize the value of blockchain-based traceability technology.

Matching the Needs in an Emerging Market: An Investigation of Multinational Companies’ Marketing Strategies by Using the 4As Framework

Making the multinational companies’ (MNCs) products attractive among the low- and the high-income consumers is challenging in an emerging market. This study uses the 4As framework (affordability, accessibility, acceptability and awareness) to investigate the marketing activities that three Western companies from the industries such as telecoms, brewery and decorative paint implemented to match the needs in the Indian market. By proposing to split affordability into three categories, the study extends the 4As framework. Three general strategies emerged, each one composed of six 4As marketing activities. The strategies, one for each industry, show different approaches to how companies could develop the demand for their products. Each strategy is linked to one of the three categories of affordability: (a) Serving consumers across economic classes (affordable to everyone). (b) Serving consumers looking for an international lifestyle (affordable to the mainstream and the premium segments). (c) Serving consumers seeking a higher level of materialism (affordable to the premium segment). The study presents theoretical and managerial implications, and suggestions for future research.

Who buys non-alcoholic beer in Finland? Sociodemographic characteristics and associations with regular beer purchases.

The consumption of non-alcoholic beer and other non-alcoholic and low-alcohol beverages has grown significantly in recent years. Due to a lack of suitable datasets, there have been few studies conducted on the forerunners of the non-alcoholic beer consumption trend. This study examined the associations of sociodemographic characteristics with non-alcoholic beer purchase, and of non-alcoholic beer purchases with regular beer purchases. The data consisted of longitudinal individual purchases of non-alcoholic and regular beer from grocery stores in 2017 and 2018. The study participants were loyalty cardholders from the largest food retailer in Finland (n=47,066). The level of education, household income and occupational status were analyzed as determinants of non-alcoholic beer purchase using logistic regression models. The changes in the regular and non-alcoholic beer purchases from 2017 to 2018 and the distributions of non-alcoholic beer purchase by regular beer purchase, by gender and by age were described. Between 2017 and 2018, the total volume of non-alcoholic beer purchases increased from 2.3% to 3.7% of the total volume of all beer purchases. Men and older people purchased non-alcoholic beer more often than women and younger people did. Non-alcoholic beer purchases were most common among the highly educated and high-income consumers. Non-alcoholic beer purchases were most prevalent in the groups with the highest volumes of regular beer purchase. Educated and affluent consumers have been the forerunners of non-alcoholic beer consumption in Finland. In order to promote the substitution of regular beer with non-alcoholic beer the shift towards lower-strength beverages should be facilitated across social strata.

The influence of satisfaction with life, social contribution and environmental well-being on conscientious consumer decision-making in the South African emerging economy

ABSTRACT Emerging economies harbour increasing consumption patterns with detrimental social and environmental consequences. This study postulated that satisfaction with life determines consumers’ social contribution and environmental well-being (as sub-dimensions of their overall subjective well-being), which in turn contribute to their conscientious decision-making, especially regarding resource-intensive white goods. Acquiring such goods necessitates conscious thought surrounding the future implications of its use. A non-probability purposive sampling approach yielded a sample of 320 middle- to high-income consumers who were acquiring appliances. Structural equation modelling was performed on the survey data. Satisfaction with life was found to be an equally strong determinant of social contribution and environmental well-being. In turn, environmental well-being was the strongest predictor of respondents’ consideration for future environmental consequences in their decision-making. However, more attention is needed to improve consumers’ satisfaction with life and their subjective.

Hedonic Price Analysis for Hog Plum Purchase Decision In Southern Part of Bangladesh

The hog plum (Spondias mombin) is locally known as Amra is very popular fruit in Bangladesh. It is very delicious fruit and sources of Vitamin C. The purpose of this study is to identify the importance of the attributes of hog plum on its price. A total of 121 respondents were interviewed to identify the attributes of hog plum purchase decision using both OLS and robust regression models. Results show that quantity, whole fresh and blemish free are important attributes for hog plum purchase decision. Quantity, blemish free and traceability are significantly important attributes for low income consumer groups whereas quantity and whole fresh are significantly important attributes for high income consumer groups. The implication of the study is that proper hog plum farming system and its marketing activities design are necessary for making it a profitable business.
 Bangladesh J. Agril. Res. 46(1): 107-116, March 2021

Assessing the Gains from E-Commerce

E-commerce represents a rapidly growing share of consumer spending in the United States. We use transactions-level data on credit and debit cards from Visa, Inc. between 2007 and 2017 to quantify the resulting consumer surplus. We estimate e-commerce reached 8 percent of consumption by 2017, yielding the equivalent of a 1 percent boost to their consumption, or over $1,000 per household per year. While some of the gains arose from avoiding travel costs to local merchants, most of the gains stemmed from substituting to merchants available online but not locally. Higher income consumers gained more, as did consumers in more densely populated counties. (JEL D12, E21, G51, L81, L86)

Analysis of the income elasticity of demand for recreational and environmental of three ecosystems in Mexico

The objective of this research is to estimate the income elasticity of demand for environmental services of three ecosystems in Mexico. In the three studies of stated preferences about the willingness to pay for an environmental quality improvement project, we used a sample size of 289 observations for the Primas Basalticos ecosystems and 150 for the La Michilía Biosphere Reserve and the Molino de Las Flores National Park. The selection of interviewees was random among visitors. To carry out the estimation, a cluster analysis was carried out to determine the income strata, where the indicator was formulated and calculated in each ecosystem for three income strata (high, medium and low) based on a segmentation of the consumers of recreational services through the two-stage clustering method. In this way, the recreational services of the three ecosystems in both cases behave as a normal good; that is, if the income of the high and middle income consumer increases, the demand for recreational services will increase less than proportionally.